Quanex Building Products Corporation (NYSE: NX) saw its stock surge 5.05% in after-hours trading on Thursday, following the release of its second-quarter 2025 financial results that surpassed analyst expectations.

The company reported quarterly earnings of $0.60 per share, significantly beating the analyst consensus estimate of $0.47 by 27.66%. While this represents a 9.09% decrease from the same period last year, the strong performance relative to expectations drove the stock higher. Quanex's quarterly sales also impressed, coming in at $452.50 million, 3% above the analyst consensus estimate of $439.30 million and marking a substantial 69.98% increase from the $266.20 million reported in the same quarter last year.

Other highlights from the earnings report include an adjusted EBITDA of $61.9 million, a gross margin of 29%, and free cash flow of $13.6 million. The company also increased its cost synergy target to about $45 million, demonstrating confidence in its operational efficiency. Quanex management expressed optimism about mitigating potential margin impacts related to tariffs and noted that any unexpected weakness in demand during the second half of the year could be offset by faster-than-planned realization of cost synergies. This positive outlook, combined with the strong quarterly results, likely contributed to investors' enthusiasm in after-hours trading.