Quanex Building Products Changes Auditor to KPMG Amidst Ongoing Material Weakness in Internal Controls

summarizeSummary

Quanex Building Products Corporation has appointed KPMG LLP as its new independent auditor, replacing Grant Thornton LLP, following a competitive selection process. The change occurs while the company continues to report a material weakness in its internal controls over financial reporting.

check_boxKey Events

• Auditor Change

  Quanex Building Products appointed KPMG LLP as its new independent registered public accounting firm, replacing Grant Thornton LLP, effective January 13, 2026.

• Competitive Selection Process

  The Audit Committee conducted a competitive process to select KPMG as the new auditor.

• Material Weakness in Internal Controls

  Grant Thornton's audit reports on internal controls for fiscal years 2024 and 2025 contained an adverse opinion due to a material weakness in controls over the preparation and review of the statement of cash flows, which continues to exist.

• No Disagreements Reported

  The company reported no disagreements with Grant Thornton on accounting principles or practices, or auditing scope or procedure.

auto_awesomeAnalysis

The change in independent registered public accounting firm from Grant Thornton LLP to KPMG LLP, while stated to be a result of a competitive process, is notable due to the ongoing material weakness in internal control over financial reporting. Grant Thornton had issued adverse opinions on the company's internal controls for the fiscal years ended October 31, 2024, and 2025, specifically citing issues with the preparation and review of the statement of cash flows. Although there were no disagreements on accounting principles or practices, the persistence of this material weakness remains a concern for investors regarding the reliability of financial reporting. The new auditor, KPMG, will now be responsible for assessing and reporting on these controls.