Quanex Building Products Changes Auditor to KPMG Amidst Ongoing Material Weakness in Internal Controls
NX sits 67% above its 52-week low of $11.04.
Summary
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.
Key Events · Corporate Governance and Compliance · NX
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Auditor Change
Quanex Building Products appointed KPMG LLP as its new independent registered public accounting firm, replacing Grant Thornton LLP, effective January 13, 2026.
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Competitive Selection Process
The Audit Committee conducted a competitive process to select KPMG as the new auditor.
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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.
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No Disagreements Reported
The company reported no disagreements with Grant Thornton on accounting principles or practices, or auditing scope or procedure.
Analysis · NX · Manufacturing
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.
At the time of this filing, NX was trading at $18.39 on NYSE in the Manufacturing sector, with a market capitalization of approximately $840M. The 52-week trading range was $11.04 to $24.79. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.