On September 4, 2025, Quanex announced disappointing third-quarter 2025 results, citing ongoing operational issues at its legacy Tyman hardware facility in Mexico, which drove a steep earnings miss, including diluted EPS of ($6.04) compared to $0.77 the prior year. On the September 5 earnings call, CEO George Wilson admitted the facility’s tooling and equipment were severely underinvested, with deficient maintenance systems that forced costly repairs and delayed expected benefits from the Tyman integration. Following these disclosures, Quanex’s stock fell over 23% across two trading days.
The complaint alleges that throughout the Class Period, Quanex misled investors by failing to disclose the degraded condition of the Tyman facility, the associated risks, and the impact on expected cost savings and integration benefits.
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