Recent Financial Reports Reiterate Positive OutlookFebruary 13th, 2023 by Drew Vass, Executive Editor
While most publicly traded door and window companies won’t announce fourth-quarter results until late February, a third-quarter report filed last week by NSG Group (parent company to Pilkington) shows what officials are calling a “remarkable” revenue increase from architectural glass for the period ending March 31, 2023. The news from NSG adds to another third-quarter report filed by Quanex Building Products in December, announcing “another year of record revenue and earnings.” Meanwhile, a share repurchase program announced by PGT Innovations Inc., ahead of its Q4 results, signals long-term confidence in demand for doors and windows.
NSG’s Q3 report includes increases in overall revenue and operating profits, which it attributes to better prices and volume. While companies continue to struggle with material costs, NSG’s data shows that sales price improvements helped absorb the continuous impact of input costs. The data shows an overall Q3 revenue of $1.4 billion, with the architectural glass segment registering a Q3 revenue of $711 million. Architectural glass includes the manufacture and sale of flat glass, various interior and exterior glazing products for commercial and residential applications and glass for the solar energy market.
Though privately held, a representative for Guardian Glass told [DWM] that so far sales for insulating glass from his company have also been strong in 2023, with demand from some customers doubling year over year in January.
“We just came out of two years of ramped up production … we came in with the perspective that there’s been some softening, but we’ve been pleasantly surprised to find optimism,” said Mark Deckert, Guardian’s director of sales, east.
Officials for NSG forecast that demand for architectural glass will remain favorable, while the impact of energy prices and a potential recession remain concerns in Europe and the U.S.
Adding to positive reports from glass providers, officials for PGT Innovations Inc. announced that the company’s board of directors authorized a repurchase of up to $250 million of its common stock through February 3, 2026.
“We believe PGTI’s current stock price does not adequately reflect its long-term intrinsic value and this program underscores our confidence in the long-term outlook for our company,” said PGTI president and CEO Jeff Jackson. “With our strong balance sheet and cash flow, we have the ability to invest in innovation and grow our business, while taking this action to return capital to shareholders.”
The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations, officials said.