Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Core Viewpoint - JELD-WEN shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism about JELD-WEN's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, JELD-WEN is projected to earn $0.25 per share, a decrease of 21.9% from the previous year, but the Zacks Consensus Estimate has increased by 8.57% over the last 30 days due to one upward revision [6]. - For the full year, the earnings estimate stands at $0.27 per share, representing a decline of 65.4% from the prior year, yet the trend remains encouraging with one upward revision and no negative revisions [7]. Zacks Rank and Performance - JELD-WEN has achieved a Zacks Rank 2 (Buy), indicating strong potential for outperformance based on favorable estimate revisions [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a positive outlook for JELD-WEN [8]. Stock Performance - The stock has gained 37.6% over the past four weeks, driven by solid estimate revisions, indicating strong earnings growth prospects that may further elevate the stock price [9].

Group 1: Momentum Investing Overview - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] - Fast-moving trending stocks can be appealing, but determining the right entry point is challenging, as they may lose momentum if valuations exceed growth potential [2] Group 2: JELD-WEN Stock Analysis - JELD-WEN (JELD) has shown significant recent price momentum, with a four-week price change of 30.5% [4] - Over the past 12 weeks, JELD's stock gained 45.1%, indicating strong long-term momentum [5] - JELD has a beta of 1.65, suggesting it moves 65% more than the market in either direction [5] - The stock has a Momentum Score of B, indicating a favorable time to invest [6] - JELD has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [7] - The stock is trading at a low Price-to-Sales ratio of 0.14, meaning investors pay only 14 cents for each dollar of sales, indicating a reasonable valuation [7] Group 3: Investment Opportunities - JELD is highlighted as a strong candidate for investment, with potential for further price appreciation [8] - Other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria are also available for consideration [8] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [9]

Core Viewpoint - The previous investment stance on JELD-WEN Holding (NYSE: JELD) was a hold rating due to the absence of near-term recovery catalysts [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $824 million, a 16% decline year over year, primarily due to lower core revenues and the divestiture of Towanda operations [12][15] - Adjusted EBITDA decreased to $39 million, down $46 million from the previous year, resulting in an adjusted EBITDA margin of 4.7% [13][16] - Free cash flow was negligible compared to $12 million in Q2 2024, driven by lower EBITDA [13][14] - Net debt leverage ratio increased to 5.7 times, exceeding the targeted range, with a focus on reducing leverage [14][15] Business Line Data and Key Metrics Changes - North America segment reported revenue of $556 million, a 22% decline year over year, with adjusted EBITDA dropping to $35 million from $76 million [17] - Europe segment revenue was $268 million, down 2.7% year over year, with adjusted EBITDA at $17 million, a decline of $3 million [18][19] Market Data and Key Metrics Changes - Demand remained soft across all product categories and end markets, with a 14% decrease in volume and mix [15][16] - The court-ordered divestiture of Towanda operations negatively impacted year-over-year comparisons [12][15] Company Strategy and Development Direction - The company is focused on improving service levels, optimizing manufacturing and distribution networks, and investing in automation to enhance long-term efficiency [32][34] - Full year revenue guidance is set between $3.2 billion to $3.4 billion, with core revenue expected to decline between 4% to 9% [22][23] - The company is evaluating strategic options to address high leverage, including potential divestitures of non-core assets [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the macro environment but expressed confidence in long-term housing demand and the company's positioning for recovery [8][35] - The company reinstated full year guidance due to improved visibility, despite the uncertain macroeconomic conditions [8][22] Other Important Information - The company expects approximately $100 million in transformation benefits for the year, with half of that being carryover from previous actions [25][30] - Tariffs are estimated to have an annualized impact of approximately $40 million, with pricing actions in place to recover costs [20][21] Q&A Session Summary Question: Optimization of the network and implications for near-term margins - Management indicated they are over the halfway mark in optimizing the network but are slowing consolidation efforts to preserve capital and limit service disruptions [38][39] Question: Pricing pressures and inflation offset - Management noted a slight negative price-cost relationship due to inflation exceeding price increases, with competitive pricing pressures in select regions [43][44] Question: Actions to address leverage and urgency - Management confirmed that while the leverage ratio is above target, there is no immediate pressure due to ample liquidity and no restrictive covenants [50][52] Question: Volume performance in North America and Europe - Management reported mid single-digit volume declines in North America, with a similar trend in Europe, but noted that the rate of decline is slowing [63][66] Question: EBITDA margin improvement in the second half - Management explained that incremental EBITDA margins are expected to improve due to volume increases and cost mitigation actions already in place [54][56] Question: Performance of windows versus doors - Management stated that there has been no significant change in performance between windows and doors, with minimal mix down observed in 2025 [92][95]

Financial Performance - Sales decreased to $824 million in Q2 2025, a 16% decrease compared to $986 million in Q2 2024[17] - Adjusted EBITDA decreased by 54% to $39 million in Q2 2025, compared to $85 million in Q2 2024[19] - Adjusted EBITDA margin decreased by 390 bps to 4.7% in Q2 2025, compared to 8.6% in Q2 2024[19] - Core revenue decreased by 13% due to lower volume/mix[20, 22] - Free Cash Flow is ~($150M)[35] Segment Results - North America net revenue decreased to $556 million in Q2 2025 from $711 million in Q2 2024, with an Adjusted EBITDA of $35 million and a margin of 6.3%[28] - Europe net revenue decreased to $268 million in Q2 2025 from $275 million in Q2 2024, with an Adjusted EBITDA of $17 million and a margin of 6.4%[28] - North America volume/mix down (16%)[29] - Europe volume/mix down (10%)[29] Outlook and Guidance - Net revenue is projected to be between $3.2 billion and $3.4 billion[34] - Core revenue is expected to be down 4% to 9%[34] - Adjusted EBITDA is projected to be between $170 million and $200 million[34] Balance Sheet - Total debt is $1,179 million as of June 28, 2025[47] - Cash is $134 million as of June 28, 2025[47] - Net debt leverage is 5.7x[47]

Core Insights - Jeld-wen reported a year-over-year decline in GAAP revenue, operating margin, and net profit for Q2 2025, despite exceeding modest analyst estimates in non-GAAP EPS and GAAP revenue [1][12] - GAAP revenue was $823.7 million, surpassing the average analyst estimate of $810.1 million, while non-GAAP EPS showed a loss of $0.04, narrower than the projected loss of $0.08 [1][2] - The company reinstated its fiscal 2025 guidance, indicating ongoing sales and margin pressure, with limited financial progress observed [1][12] Financial Performance - GAAP revenue fell 16.5% year-over-year, primarily due to weak demand in North America and a court-mandated divestiture [5] - North America segment revenue dropped 21.8%, with a 16% decrease in volume and mix, and a 7% revenue loss from the divestiture of the Towanda manufacturing facility [5] - Adjusted EBITDA from continuing operations was $39.0 million, down 54.0% from $84.8 million in Q2 2024 [2][6] Operational Overview - Jeld-wen operates 79 manufacturing and distribution facilities across 14 countries, focusing on both residential and commercial building markets [3] - The company is modernizing and consolidating its manufacturing network, driving cost reductions, and leveraging proprietary technologies [4] - Environmental and regulatory compliance, particularly around sustainability and energy efficiency, is now central to the company's operations [4] Segment Analysis - The Europe segment showed more stability, with revenue down only 2.7%, partly offset by a 2% gain from price increases and a 5% boost from currency movements [6] - Adjusted EBITDA for the Europe segment decreased by 16.6%, indicating less margin erosion compared to North America [6] Challenges and Strategic Actions - Lower volumes and underutilization of production facilities have been significant challenges, although cost savings and transformation measures have helped mitigate some losses [7] - Additional charges, including $8.6 million in professional and legal expenses and $30 million in tariff costs, impacted results [8][9] - The company is investing in automation and reducing product complexity to optimize manufacturing and address excess capacity [10][11] Future Guidance - Management reinstated full-year guidance for FY2025, forecasting revenue between $3.2 billion and $3.4 billion, reflecting a 4% to 9% decline in core revenues year-over-year [12] - Adjusted EBITDA for FY2025 is expected to range from $170 million to $200 million, significantly below the prior year [12] - Operating cash flow for FY2025 is projected to be a use of approximately $10 million, indicating continued pressure on profit margins and weak demand [12]

[JELD-WEN Second Quarter 2025 Earnings Release](index=1&type=section&id=JELD-WEN%20Second%20Quarter%202025%20Earnings%20Release) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported a significant Q2 revenue decline of 16.5% and a 54.0% drop in Adjusted EBITDA amid challenging market conditions Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $823.7M | $986.0M | (16.5)% | | Net Loss from Continuing Operations | ($22.3)M | ($18.5)M | 20.6% | | Diluted EPS from Continuing Operations | ($0.26) | ($0.22) | (18.2)% | | Adjusted EBITDA from Continuing Operations | $39.0M | $84.8M | (54.0)% | | Adjusted EBITDA Margin | 4.7% | 8.6% | (390) bps | | Adjusted EPS from Continuing Operations | ($0.04) | $0.34 | (111.8)% | - The decrease in net revenues was primarily driven by a **(13%) decline in Core Revenues** and a **(5%) impact from the court-ordered divestiture of the Towanda facility**[4](index=4&type=chunk)[9](index=9&type=chunk) - The decline in Core Revenues was attributed to a **(14%) decrease in volume/mix**, which was slightly offset by a 1% benefit from price realization[4](index=4&type=chunk)[9](index=9&type=chunk) - CEO William J. Christensen highlighted that the company effectively managed uncertainty by delivering cost reductions and is making steady progress in improving quality and service[3](index=3&type=chunk) [Segment Performance (Q2 2025)](index=2&type=section&id=Segment%20Performance%20(Q2%202025)) Both North America and Europe segments saw revenue and Adjusted EBITDA declines, with North America more severely impacted by market weakness Q2 2025 Segment Performance (vs. Q2 2024) | Segment | Net Revenue | % Change | Adjusted EBITDA | % Change | | :--- | :--- | :--- | :--- | :--- | | North America | $555.7M | (21.8)% | $34.7M | (54.1)% | | Europe | $268.1M | (2.7)% | $17.0M | (16.6)% | - North America's revenue decline was driven by a **(15%) decrease in Core Revenues** (due to a 16% volume/mix decline) and a **(7%) impact from the Towanda divestiture**[17](index=17&type=chunk) - Europe's revenue performance was impacted by an **(8%) decrease in Core Revenues** (due to a 10% volume/mix decline), which was partially offset by a 5% favorable foreign exchange impact[17](index=17&type=chunk) [Financial Position and Cash Flow (Six Months Ended June 28, 2025)](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow%20(Six%20Months%20Ended%20June%2028%2C%202025)) The company's cash flow deteriorated significantly in H1 2025, leading to a substantial increase in Net Debt Leverage to 5.7x Six Months 2025 Cash Flow Summary (vs. Six Months 2024) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($48.9)M | $40.4M | | Capital Expenditures | $76.1M | $74.1M | | Free Cash Flow | ($125.1)M | ($33.8)M | - The increase in cash used in operations was primarily due to a **($165.4) million decrease in earnings** and a $39.5 million increase in cash used in working capital[10](index=10&type=chunk) - **Net Debt Leverage rose to 5.7x** as of June 28, 2025, compared to 3.8x at December 31, 2024, reflecting lower trailing twelve months Adjusted EBITDA[50](index=50&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) The company reinstated its full-year 2025 guidance, projecting revenue of $3.2-$3.4 billion and Adjusted EBITDA of $170-$200 million Full Year 2025 Guidance | Metric | 2025 Guidance | | :--- | :--- | | Revenue | $3.2 to $3.4 billion | | Adjusted EBITDA | $170 to $200 million | | Core Revenue Decline | (4%) to (9%) YoY | - The company reinstated its guidance despite remaining uncertainty around tariffs from the federal government[12](index=12&type=chunk) - The company now expects operating cash flow to be an approximate **$10 million use of cash** for the full year[14](index=14&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=3&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section provides detailed unaudited financial statements and reconciliations of GAAP to non-GAAP measures like Adjusted EBITDA [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a Q2 net loss of $21.5 million and an H1 net loss of $211.7 million, driven by lower revenues and a goodwill impairment Q2 2025 Income Statement Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Revenues | $823.7M | $986.0M | | Gross Margin | $143.4M | $190.0M | | Operating (Loss) Income | ($13.9)M | $5.1M | | Net Loss | ($21.5)M | ($18.5)M | H1 2025 Income Statement Highlights (vs. H1 2024) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Revenues | $1,599.7M | $1,945.1M | | Goodwill Impairment | $137.7M | $0.0M | | Operating Loss | ($198.9)M | ($23.1)M | | Net Loss | ($211.7)M | ($46.2)M | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $2.54 billion and shareholders' equity fell to $477.1 million, reflecting the period's net loss Balance Sheet Summary | Metric | June 28, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $134.1M | $150.3M | | Goodwill | $196.6M | $315.2M | | Total Assets | $2,542.9M | $2,620.2M | | Total Liabilities | $2,065.8M | $2,000.1M | | Total Shareholders' Equity | $477.1M | $620.1M | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company used $48.9 million in cash from operations in H1 2025, a significant reversal from the prior year's cash generation Six Months 2025 Cash Flow Activities (vs. Six Months 2024) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($48.9)M | $40.4M | | Net Cash Provided by (Used in) Investing Activities | $36.8M | ($69.6)M | | Net Cash Used in Financing Activities | ($12.8)M | ($39.8)M | | **Net Decrease in Cash** | **($16.2)M** | **($75.5)M** | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section details reconciliations from GAAP net loss to non-GAAP metrics, with a goodwill impairment being the largest adjustment - For the six months ended June 28, 2025, **Loss from continuing operations of ($212.4) million** was reconciled to **Adjusted EBITDA of $60.9 million**[40](index=40&type=chunk) - Key adjustments to calculate Adjusted EBITDA for H1 2025 included a **$137.7 million goodwill impairment**, $54.7 million in depreciation & amortization, $31.4 million in net interest expense, $23.4 million in restructuring charges, and $20.5 million in net legal/professional expenses[40](index=40&type=chunk) - Transformation journey expenses, included in 'Net legal and professional expenses', amounted to **$8.1 million for Q2** and **$19.3 million for the first six months of 2025**[40](index=40&type=chunk)

Core Insights - JELD-WEN reported a net revenue of $823.7 million for Q2 2025, a decrease of 16.5% compared to $986.0 million in Q2 2024, primarily due to a 13% decline in Core Revenues and a 5% decrease from the divestiture of Towanda [4][11] - The company experienced a net loss from continuing operations of $22.3 million, or $0.26 per share, compared to a net loss of $18.5 million, or $0.22 per share, in the same quarter last year [5][6][11] - Adjusted EBITDA from continuing operations was $39.0 million, down 54.0% from $84.8 million in Q2 2024, with an Adjusted EBITDA Margin of 4.7%, a decrease of 390 basis points [7][11] Financial Performance - For the six months ended June 28, 2025, net revenues totaled $1.6 billion, a decline of 17.8% from $1.9 billion in the same period last year [35] - The company reported a net loss of $211.7 million for the six months ended June 28, 2025, compared to a net loss of $46.2 million in the same period last year [38] - Free Cash Flow used in the six months ended June 28, 2025, was ($125.1) million, compared to ($33.8) million in the same period last year [9] Segment Performance - In North America, net revenue was $555.7 million, a decline of 21.8%, driven by a 15% decrease in Core Revenues and a 7% decrease from the divestiture of Towanda [12] - In Europe, net revenue was $268.1 million, a decline of 2.7%, with Core Revenues decreasing by 8% but partially offset by a 5% favorable foreign exchange impact [12] Guidance and Outlook - The company reinstated its full-year 2025 revenue guidance of $3.2 to $3.4 billion, reflecting a year-over-year decline in Core Revenues of approximately 4% to 9% compared to 2024 [14][15] - Adjusted EBITDA is expected to be in the range of $170 to $200 million, indicating continued pressure from competitive pricing and volume environment [14][15]

Core Viewpoint - JELD-WEN Holding, Inc. has made significant progress in its sustainability efforts, emphasizing that sustainability is a key business driver and integral to its operations and product design [3][4]. Summary by Categories Products - JELD-WEN is committed to ensuring that all wood used in production is responsibly sourced by 2030 [3]. Environmental Stewardship - The company has achieved a 10% reduction in Scope 1 and Scope 2 greenhouse gas emissions since 2021 [8]. - There has been a 12% reduction in metric tons of waste sent to landfills year-over-year [8]. - Energy consumption has decreased by 7% year-over-year [8]. Social Responsibility - JELD-WEN aims to achieve a Total Recordable Incident Rate (TRIR) of less than 1.0 by 2030 [3]. - The company has reported a 5% reduction in lost time injury rate year-over-year [8]. Governance - JELD-WEN's Global Sourcing Policy compliance stands at 63% among wood suppliers [8].