Quanex Building Products Corporation (NYSE:NX) Q3 2022 Earnings Conference Call September 2, 2022 11:00 AM ET
Company Participants
Scott Zuehlke - Senior Vice President, Chief Financial Officer and Treasurer
George Wilson - President and Chief Executive Officer
Conference Call Participants
Daniel Moore - CJS Securities
Steven Ramsey - the Thompson Research Group
Christian Zyla - KeyBanc Capital Markets
Operator
Good day and thank you for standing by. Welcome to the Q3 2022 Quanex Building Products Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Scott Zuehlke, Senior Vice President, CFO and Treasurer. Please go ahead.
Scott Zuehlke
Thanks for joining the call this morning. On the call with me today is George Wilson, our President and CEO.
This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance, and Quanex undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website.
I'll now discuss our financial results on a consolidated basis, followed by comments on the results for each operating segment. On a consolidated basis, we reported net sales of $324 million during the third quarter of 2022, which represents an increase of 15.8% compared to $279.9 million during the third quarter of 2021. The increase in revenue was mostly attributable to higher prices related to the pass-through of raw material cost inflation.
Net income increased by 90.4% to $25.9 million or $0.78 per diluted share during the third quarter of 2022 compared to $13.6 million or $0.41 per diluted share during the third quarter of 2021. On an adjusted basis, EBITDA for the quarter increased by 34.3% to $44.2 million compared to $32.9 million during the same period of last year.
This equates to adjusted EBITDA margin expansion of approximately 180 basis points year-over-year. The increase in earnings for the three months ended July 31, 2022, was largely due to increased pricing and surcharges related to the pass-through of raw material cost inflation and higher volumes in the North American Fenestration segment.