Core Insights - JELD-WEN's shares fell 5.9% following a significant drop in revenue and a price target reduction by an analyst [1] - The company reported quarterly revenue of $809 million, a 10% decline year-over-year, indicating deteriorating market demand, especially in North America [1][4] - An 11% reduction in the North American and corporate workforce was implemented in response to challenging market conditions [1] - Barclays analyst Matthew Bouley lowered the price target from $5.00 to $3.00 while maintaining an 'Equal-Weight' rating [1] Financial Performance - JELD-WEN's revenue for the quarter was $809.5 million, representing a 13.4% year-over-year decline, which fell short of analyst expectations [4] - The company reported an adjusted loss of $0.20 per share, a significant miss compared to analyst estimates and a decline from a profit of $0.32 per share a year ago [4] - Full-year revenue forecast was slashed by 4.5% to a midpoint of $3.15 billion, with EBITDA guidance below Wall Street estimates [4] Stock Performance - JELD-WEN's stock has decreased by 67.5% since the beginning of the year and is trading 76.8% below its 52-week high of $11.30 [5] - The stock has experienced extreme volatility, with 41 moves greater than 5% over the last year, indicating that the market views recent news as significant but not fundamentally altering its perception of the business [3]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $809 million, with core revenue down 10% year-over-year, primarily due to lower volumes in North America and Europe [10][11] - Adjusted EBITDA was $44 million, or 5.5% of sales, reflecting a decline of about $38 million from the prior year, driven by price-cost pressures and unfavorable volume [12][13] - Negative free cash flow was reported for the quarter, with net debt leverage increasing to 7.4 times due to lower year-over-year EBITDA [11][12] Business Line Data and Key Metrics Changes - North America revenue declined 19% year-over-year, with adjusted EBITDA dropping to $38 million from $75 million in the same quarter last year, primarily due to lower volumes and operational inefficiencies [14][15] - Europe saw a 2% increase in revenue year-over-year, with adjusted EBITDA remaining roughly flat at $16 million, as productivity improvements offset lower volumes [15] Market Data and Key Metrics Changes - The market environment has deteriorated, with new construction and repair and remodel activity weakening further, particularly in Canada where housing starts are down more than 40% year-over-year [18] - Full-year demand for windows and doors in North America is now expected to decline in the high single digits, while demand for doors in Europe is anticipated to decrease in mid-single digits [19] Company Strategy and Development Direction - The company is undergoing a strategic review of its European business to strengthen its balance sheet and sharpen its strategic focus [6][8] - A headcount reduction of approximately 11% in North America is planned to align the cost structure with current market demand [6][27] - The company is simplifying its product portfolio by reducing approximately 30% of its SKUs to improve service levels and operational efficiency [36][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing price-cost headwinds and inflation in labor and materials, which have created short-term margin pressure [5][10] - The outlook for Q4 2025 has been adjusted to reflect a more typical seasonal pattern, with expectations of continued negative price-cost dynamics and soft market conditions [20][21] - Management remains focused on improving execution and strengthening operations to capture growth as market conditions improve [8][28] Other Important Information - The company maintains a strong liquidity position with approximately $100 million in cash and $400 million of revolver availability, with no debt maturities until December 2027 [8] - The annualized impact of tariffs on the business is estimated to be around $45 million, with some pushback on tariff-related pricing actions from larger customers [16][17] Q&A Session Summary Question: Share losses and recovery path - Management noted significant share loss last year with a Midwest retailer, which impacted Q3 results, and highlighted ongoing pricing challenges in North America [35] Question: Update on productivity and cost-saving efforts - Management expects about $150 million in savings from transformation initiatives, with roughly half rolling forward into 2026 [39][40] Question: Drivers of EBITDA expectations drop - The decline in EBITDA expectations is attributed to softer market conditions, operational challenges, and a failure to capture expected market share gains [51][52] Question: Contribution of Europe to full-year EBITDA guide - Approximately half of the consolidated EBITDA is expected to come from Europe, with improvements noted despite challenges in North America [55] Question: Liquidity and potential actions - Management confirmed no plans to draw on the revolver in Q4 and is exploring selective sale leaseback actions to enhance liquidity [64][65] Question: Sales trends and market dynamics - Management indicated that recent interest rate relief has not significantly impacted sales, with cautious consumer behavior continuing to affect demand [81]

Certain statements in this presentation, including our guidance and business strategies, are forward- looking statements that involve risk, uncertainty and assumptions, and are based on information as of November 4, 2025. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review our Annual Report on Form 10-K, Form 10-Qs filed in 2025 and our other filings with the U.S. Securities and Exchange Commission. Third Quarter ...

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Financial Performance - Net revenues for Q3 2025 were $809.5 million, a decrease of $125.2 million or 13.4% compared to $934.7 million in Q3 2024[4] - Net loss from continuing operations was $367.6 million, or $4.30 per share, compared to a net loss of $73.0 million, or $0.86 per share in the same quarter last year[5][6] - Adjusted EBITDA from continuing operations was $44.4 million, a decline of $37.2 million from $81.6 million in Q3 2024, with an Adjusted EBITDA Margin of 5.5%, down 320 basis points[7][8] - The company reported a net loss of $367.6 million for the three months ended September 27, 2025, compared to a net loss of $74.4 million for the same period in 2024, representing a 394.1% increase in losses[33] - For the nine months ended September 27, 2025, net revenues were $2,409.2 million, a decrease of 16.3% from $2,879.9 million in the same period in 2024[35] - Adjusted EBITDA from continuing operations for the nine months ended September 27, 2025, was $105.3 million, down 55.2% from $235.2 million in the prior year[35] - The company reported a diluted net loss per share of $4.30 for the three months ended September 27, 2025, compared to a diluted net loss per share of $0.88 for the same period in 2024[33] - Net loss for the nine months ended September 27, 2025, was $579.3 million, compared to a loss of $120.6 million for the same period in 2024, representing an increase of 380%[39] Revenue Guidance and Forecast - JELD-WEN is lowering its 2025 revenue guidance to $3.1 to $3.2 billion, reflecting a year-over-year decline in Core Revenues of approximately 10% to 13% compared to 2024[12][13] - The company expects operating cash flow to be an approximate $45 million use of cash, including costs associated with the workforce reduction of approximately $10 to $20 million[13] Workforce and Restructuring - The company plans to reduce its North America and Corporate workforce by approximately 850 positions, representing roughly 11% of the teams, by year-end 2025[11] - Restructuring and asset-related charges for the nine months ended September 27, 2025, totaled $32.2 million, compared to $60.0 million in the same period of 2024[47][48] Asset and Liability Changes - The company’s total assets decreased to $2,171.8 million as of September 27, 2025, from $2,620.2 million as of December 31, 2024[37] - Total liabilities increased to $2,057.8 million as of September 27, 2025, compared to $2,000.1 million as of December 31, 2024[37] - The net debt increased to $1,076.0 million as of September 27, 2025, compared to $1,033.1 million as of December 31, 2024[50] - Total debt remained relatively stable at $1,182.7 million as of September 27, 2025, compared to $1,183.4 million as of December 31, 2024[50] Cash Flow and Expenses - Net cash used in operating activities was $37.7 million in the nine months ended September 27, 2025, compared to cash provided of $78.0 million in the same period in 2024[9] - The company reported a net cash inflow of $110.7 million related to the court-ordered divestiture of Towanda during the nine months ended September 27, 2025[39] - The company incurred $26.3 million in net legal and professional expenses and settlements for the nine months ended September 27, 2025, compared to $49.8 million in the same period of 2024[41] - Cash and cash equivalents at the end of the period were $108.4 million, down from $209.3 million at the end of September 28, 2024[39] - The company reported a net cash outflow of $(22.5) million in financing activities for the nine months ended September 27, 2025, compared to $(50.3) million in the same period of 2024[39] Goodwill and Impairment - Goodwill impairment for the three months ended September 27, 2025, was $196.9 million, a significant increase of 210.3% from $63.4 million in the prior year[33] - Goodwill impairment charges amounted to $334.6 million for the nine months ended September 27, 2025, significantly higher than $63.4 million in the same period of 2024[41] - Goodwill impairment for Q3 2025 amounted to $196.9 million, up from $63.4 million in Q3 2024, indicating increased challenges in asset valuation[43] Market Performance - North America net revenues were $546.1 million, a decline of $131.8 million or 19.4%, driven by a decrease in Core Revenues of 13%[15] - Europe net revenues were $263.3 million, an increase of $6.6 million or 2.6%, driven by a favorable foreign exchange impact of 6%[15] - North America adjusted EBITDA for the three months ended September 27, 2025, was $37.7 million, a decrease of 49.6% from $74.8 million in the same period of 2024[52] - Europe net revenues for the nine months ended September 27, 2025, were $776.8 million, down 4.2% from $811.3 million in the same period of 2024[52]

Core Insights - JELD-WEN's third-quarter results for 2025 fell short of expectations due to ongoing market challenges and price-cost pressures, prompting the company to initiate workforce reductions and a strategic review of its European segment [2][3][10] Financial Performance - Net revenues for Q3 2025 were $809.5 million, a decrease of 13.4% from $934.7 million in Q3 2024, primarily due to a 10% decline in Core Revenues and a 5% decrease from the divestiture of Towanda, partially offset by a 2% favorable foreign exchange impact [3][11] - The net loss from continuing operations was $367.6 million, compared to a loss of $73.0 million in the same quarter last year, resulting in a net loss per share of $4.30 versus $0.86 [4][5][11] - Adjusted EBITDA from continuing operations was $44.4 million, down from $81.6 million in Q3 2024, with an Adjusted EBITDA Margin of 5.5%, a decrease of 320 basis points [6][11] Segment Performance - North America reported net revenues of $546.1 million, a decline of 19.4%, driven by a 13% decrease in Core Revenues and a 7% decrease from the divestiture of Towanda [12] - Europe saw net revenues increase by 2.6% to $263.3 million, primarily due to a favorable foreign exchange impact, despite a 4% decrease in Core Revenues [12] Cash Flow and Capital Expenditures - Net cash used in operating activities was $37.7 million for the nine months ended September 27, 2025, compared to cash provided of $78.0 million in the same period last year, largely due to a decrease in earnings [7][8] - Capital expenditures decreased by $14.1 million to $103.9 million for the nine months ended September 27, 2025 [8] Workforce and Strategic Actions - The company plans to reduce its North American and Corporate workforce by approximately 850 positions, representing about 11% of the teams, to improve operational efficiency [9] - A strategic review of the European segment has been initiated to enhance long-term positioning [9] Updated Guidance - JELD-WEN has lowered its 2025 revenue guidance to between $3.1 billion and $3.2 billion, reflecting a year-over-year decline in Core Revenues of approximately 10% to 13% [10]

Core Insights - JELD-WEN Holding, Inc. is conducting a comprehensive review of strategic alternatives for its Europe business, which generated $1.1 billion, or approximately 28% of its global revenue in 2024 [2] Group 1: Strategic Review - The strategic review aims to optimize the company's portfolio and align resources for sustainable performance [2] - The European business has shown strong performance and holds leading positions in key markets, indicating a solid foundation for future growth [2] Group 2: Business Overview - JELD-WEN Europe is a prominent designer, manufacturer, and distributor of interior and exterior doors, employing around 6,000 people across the UK, France, Central Europe, and Northern Europe [2] - The company operates 23 manufacturing locations and offers a range of products, including fire-rated and security solutions under various market-leading brands [2]

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Core Insights - JELD-WEN Holding, Inc. has appointed Rachael B. Elliott as executive vice president for North America, effective October 20, 2025 [1] - Elliott brings over two decades of leadership experience in manufacturing, eCommerce, and supply chain management, previously holding senior roles at Ashley Furniture and other notable companies [2][3] - CEO William J. Christensen expressed confidence that Elliott's experience will be crucial for accelerating key initiatives and positioning JELD-WEN for future success [3] Company Overview - JELD-WEN is a leading global designer, manufacturer, and distributor of high-performance building products, including doors and windows, serving both new construction and remodeling sectors [4] - The company is based in Charlotte, North Carolina, operates in 14 countries across North America and Europe, and employs approximately 16,000 associates [4] - JELD-WEN's brand portfolio includes JELD-WEN worldwide, LaCantina, VPI in North America, and Swedoor and DANA in Europe [4]

Company Overview - JELD-WEN Holding, Inc. is a leading global designer, manufacturer, and distributor of high-performance interior and exterior doors, windows, and related building products [3] - The company serves both the new construction and repair and remodeling sectors [3] - JELD-WEN is based in Charlotte, North Carolina, operates facilities in 14 countries across North America and Europe, and employs approximately 16,000 associates [3] Upcoming Financial Results - JELD-WEN will release its third quarter 2025 results after the market close on November 3, 2025 [1] - A conference call to discuss the results will take place at 8 a.m. EST on November 4, 2025 [1] Accessing the Conference Call - Interested parties can access the call via webcast on the Investor Relations section of the company's website or by dialing specific numbers for the U.S. and international participants [2] - A replay of the call will be available on the company's website approximately two hours after the live event [2]