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Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $776 million, representing a 19% decline year over year, with approximately 15% attributed to lower core revenues and 4% due to the divestiture of the Towanda operations [11][12] - Adjusted EBITDA for the quarter was $22 million, a decrease of $47 million compared to the prior year, resulting in an adjusted EBITDA margin of 2.8% [12][15] - Free cash flow was a use of $125 million in Q1, compared to a $46 million use in Q1 2024, primarily driven by lower EBITDA and unfavorable working capital dynamics [13][14] - The net debt leverage ratio increased to 4.6 times, exceeding the targeted range of 2 to 2.5 times [14] Business Line Data and Key Metrics Changes - North America segment reported revenue of $531 million for Q1, a 22% decline year over year, with core revenues down 17% primarily due to lower volume [16] - Adjusted EBITDA for North America declined to $16 million from $61 million in the same quarter last year [16] - Europe segment revenue was $245 million, down 12% year over year, driven almost entirely by lower volume, with adjusted EBITDA at $11 million, a decline of $4 million from the prior year [17] Market Data and Key Metrics Changes - Both North America and Europe segments experienced double-digit volume declines during the quarter [8] - The company faced ongoing product mix challenges, although the mix has stabilized compared to prior quarters [14][15] - Tariffs are expected to have an annualized impact of approximately $55 million, with about $30 million anticipated to affect 2025 results [18] Company Strategy and Development Direction - The company is focused on enhancing production capabilities, optimizing manufacturing and distribution networks, and investing in automation to drive efficiency [22][27][28] - The strategic priorities include reestablishing strong partnerships with customers, optimizing operational footprint, and investing in automation to reduce costs [27][28] - The company anticipates achieving approximately $100 million in ongoing transformation benefits and $50 million from short-term actions in 2025 [26] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the challenging macroeconomic environment, with elevated interest rates and declining consumer confidence impacting new home construction [21] - The likelihood of a global recession is estimated at approximately 50%, which is affecting repair and remodel activity [21] - Despite the challenges, the management remains focused on cash flow maintenance and generation, with expectations for Q2 adjusted EBITDA to be slightly above Q1 levels [25] Other Important Information - The company is withdrawing its full-year guidance due to significant short-term volatility and ongoing market uncertainties [9] - The management has made difficult decisions to reduce headcount and align operations with current order rates [10][24] Q&A Session Summary Question: Confidence in passing along tariff impacts to customers - Management is in constant negotiation with key customers and believes they can pass through the $30 million tariff impact, while also optimizing their cost structure [33][35] Question: Expectations for Q2 EBITDA - Management expects a seasonal uptick in Q2, but it will be muted compared to historical trends, with sales tracking down roughly 19% [37][38] Question: Managing liquidity risk and balance sheet improvement - The company has ample liquidity and is evaluating options like sale-leaseback or asset sales to strengthen the balance sheet [51][54] Question: Market share opportunities as a U.S.-based producer - Management sees opportunities to regain market share due to tariff impacts on imports, particularly in fiberglass doors [60][62] Question: Progress on standardizing build specifications - Management is making progress on optimizing cost to serve and reducing product complexity, which will aid in future footprint consolidation [88][89] Question: New business wins with builder customers - Management is ahead of expectations for gaining new business, but the materialization of sales will take time due to the cyclical nature of the business [90][92]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $776 million, representing a 19% decline year over year, with approximately 15% attributed to lower core revenues and 4% due to the divestiture of the Towanda operations [11][12] - Adjusted EBITDA for the quarter was $22 million, a decrease of $47 million compared to the prior year, resulting in an adjusted EBITDA margin of 2.8% [12][15] - Free cash flow was a use of $125 million in Q1 2025, compared to a $46 million use in Q1 2024, primarily driven by lower EBITDA and unfavorable working capital dynamics [13][14] - The net debt leverage ratio increased to 4.6 times, exceeding the targeted range of 2 to 2.5 times, with reducing leverage being a high priority for the company [14] Business Line Data and Key Metrics Changes - North America segment reported revenue of $531 million for Q1 2025, a 22% decline year over year, with core revenues decreasing by 17% primarily due to lower volume [16] - Adjusted EBITDA for North America declined to $16 million compared to $61 million in the same quarter last year, reflecting negative impacts from lower volume and productivity challenges [16] - Europe segment revenue for Q1 was $245 million, down 12% year over year, driven almost entirely by lower volume, with adjusted EBITDA of $11 million, a decline of $4 million from the prior year [17] Market Data and Key Metrics Changes - The company experienced double-digit volume declines in both North America and Europe segments during the quarter, with ongoing market declines impacting revenue [7][11] - Tariffs introduced additional planning uncertainty, leading to the withdrawal of full-year guidance [8] - The anticipated annualized impact of tariffs is approximately $55 million, with about $30 million expected to affect 2025 results [18][19] Company Strategy and Development Direction - The company is focused on enhancing production capabilities, optimizing manufacturing and distribution networks, and investing in automation to drive efficiency and reduce costs [28][29] - The strategic priorities include reestablishing strong partnerships with customers, optimizing operational footprint, and investing in automation to enhance productivity [28][29] - The company remains committed to its transformation initiatives, expecting to achieve approximately $100 million in ongoing transformation benefits this year [27] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenging macroeconomic environment, with elevated interest rates and declining consumer confidence impacting new home construction and repair activities [22] - Despite significant headwinds, the company anticipates that Q2 adjusted EBITDA will be slightly above Q1 levels, driven by cost reduction initiatives [26] - The management expressed confidence in navigating current challenges and believes the company will be well-positioned once markets stabilize [30] Other Important Information - The company has made difficult decisions to reduce headcount and consolidate workflows to adapt to the current business environment [25] - The company is actively managing working capital and reviewing capital expenditure requests to strengthen its balance sheet [52] Q&A Session Summary Question: Confidence in passing along tariff impact to customers - Management is in constant negotiation with key customers regarding tariff impacts and believes they can pass through surcharges while optimizing cost structures [34][35] Question: Expectations for Q2 EBITDA improvement - Management expects a seasonal uptick in Q2, but it will be muted compared to historical trends due to ongoing uncertainty [38][39] Question: Confidence in offsetting non-tariff inflation - Management maintains that $50 million is still a good estimate for non-tariff related input cost increases, with a focus on service and quality to remain competitive [79] Question: Update on Towanda divestiture impact - Management expects to see results towards the higher end of the EBITDA impact range from the Towanda divestiture [82] Question: Progress on standardizing build specifications - Management reports progress in optimizing cost to serve and reducing product complexity, which will aid in future footprint consolidation [90] Question: CapEx outlook and flexibility - Management has flexibility with CapEx and is focused on balancing short-term and long-term investments, with potential reductions if market conditions worsen [100]

Core Viewpoint - JELD-WEN reported a quarterly loss of $0.17 per share, which was better than the Zacks Consensus Estimate of a loss of $0.19, but a decline from earnings of $0.21 per share a year ago, indicating a significant earnings surprise of 10.53% [1] Financial Performance - The company posted revenues of $776 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.13%, but down from $959.1 million in the same quarter last year [2] - Over the last four quarters, JELD-WEN has exceeded consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - JELD-WEN shares have declined approximately 29.6% since the beginning of the year, contrasting with the S&P 500's decline of 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $852.1 million, and for the current fiscal year, it is $0.50 on revenues of $3.32 billion [7] Industry Outlook - The Building Products - Wood industry, to which JELD-WEN belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating a challenging environment [8] - The performance of JELD-WEN's stock may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and earnings estimate revisions [5][8]

First Quarter 2025 Results May 6, 2025 Speakers Disclosures Bill Christensen CEO Samantha Stoddard CFO 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 May 6, 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 fi ...

Financial Performance - Net revenues for Q1 2025 were $776.0 million, a decrease of $183.1 million, or 19.1%, compared to $959.1 million in Q1 2024, primarily due to the divestiture of the Towanda facility and a 15% decline in Core Revenue[5][10] - The net loss for Q1 2025 was $179.8 million, compared to a net loss of $27.7 million in the same period last year, an increase of $152.1 million, largely due to a $125 million non-cash goodwill impairment charge[6][10] - Adjusted EBITDA for Q1 2025 was $21.9 million, a decline of $46.8 million from $68.7 million in Q1 2024, with an Adjusted EBITDA Margin of 2.8%, down 440 basis points year-over-year[8][10] - Adjusted EPS for Q1 2025 was ($0.17), compared to $0.21 in Q1 2024, reflecting the impact of the non-cash goodwill impairment charge[7][10] - The operating loss margin for Q1 2025 was (22.1%), compared to (2.9%) for the same quarter last year[10] - Gross margin declined by 35.1% to $112.1 million, down from $172.6 million year-over-year[31] - Operating loss increased significantly to $171.8 million, compared to a loss of $28.3 million in the prior year, representing a 507.5% increase[31] - Net loss for the quarter was $179.8 million, a 548.4% increase from a loss of $27.7 million in the same quarter last year[31] - Adjusted net loss income was $(14.2) million for Q1 2025, a significant decline from adjusted net income of $18.4 million in Q1 2024[39] - The company reported a diluted net loss per share of $2.12, compared to $0.32 in the same quarter last year[31] Cash Flow and Working Capital - Net cash used in operating activities increased to $83.5 million in Q1 2025, up from $11.0 million in Q1 2024, primarily due to unfavorable earnings changes and a decrease in working capital[11] - Free cash flow for Q1 2025 was $(125.4) million, compared to $(45.7) million in Q1 2024[44] - Accounts receivable increased to $453.6 million from $388.4 million, indicating a rise in outstanding customer payments[33] Segment Performance - North America segment net revenue was $530.6 million, a decline of $149.4 million, or 22.0%, driven by a 17% decrease in Core Revenue due to weaker market demand[17] - Europe segment net revenue was $245.4 million, a decline of $33.7 million, or 12.1%, primarily due to a 9% decrease in Core Revenue from market softness[17] - North America revenues fell by 22.0% to $530.6 million, while Europe revenues decreased by 12.1% to $245.4 million[46] Asset and Liability Changes - Total assets decreased to $2,429.3 million from $2,620.2 million at the end of the previous year[33] - Cash and cash equivalents decreased to $132.5 million from $150.3 million at the end of the previous year[33] - Net debt increased to $1,049.7 million as of March 29, 2025, compared to $1,033.1 million at the end of 2024[44] - The net debt leverage ratio rose to 4.6x, up from 3.8x in the previous quarter[44] Impairment and Charges - Goodwill impairment charge of $124.6 million was recorded, reflecting significant asset valuation adjustments[31] - The company incurred a goodwill impairment of $124.6 million in Q1 2025, which was not present in Q1 2024[39] - The company recorded $11.9 million in net legal and professional expenses and settlements during Q1 2025[41] Strategic Focus - The company remains committed to its transformation strategy, focusing on cost reduction and improving quality and service levels despite challenging market conditions[4]

Core Insights - JELD-WEN Holding, Inc. reported a net revenue of $776.0 million for Q1 2025, a decrease of 19.1% compared to $959.1 million in the same period last year, primarily due to the divestiture of the Towanda facility and a 15% decline in Core Revenue driven by weak macroeconomic conditions [4][9]. - The company experienced a net loss of $179.8 million in Q1 2025, significantly higher than the net loss of $27.7 million in Q1 2024, largely due to a $125 million non-cash goodwill impairment charge and lower volume/mix [5][9]. - Adjusted EBITDA for the quarter was $21.9 million, down 68.1% from $68.7 million in the same quarter last year, with an Adjusted EBITDA Margin of 2.8%, a decrease of 440 basis points year-over-year [7][9]. Financial Performance - The net loss per share for Q1 2025 was $2.12, compared to a loss of $0.32 per share in Q1 2024, reflecting the significant increase in net loss [6][9]. - Adjusted Net Loss for the first quarter was $14.2 million, a decrease of $32.6 million compared to Adjusted Net Income of $18.4 million in the same period last year [5][38]. - The company reported a cash flow from operating activities of $(83.5) million, an increase in cash used compared to $(11.0) million in the same period last year [11][45]. Segment Performance - In North America, net revenue was $530.6 million, a decline of 22.0%, with a net loss of $150.9 million, reflecting a significant year-over-year decrease [8][9]. - European operations reported net revenue of $245.4 million, down 12.1%, with a net loss of $3.5 million, primarily due to unfavorable volume/mix driven by market softness [10][9]. Cash Flow and Capital Expenditures - Capital expenditures in Q1 2025 increased to $42.0 million from $34.7 million in Q1 2024, while Free Cash Flow used was $(125.4) million, compared to $(45.7) million in the prior year [12][45]. - The company’s total debt stood at $1,182.2 million as of March 29, 2025, with a Net Debt of $1,049.7 million, resulting in a Net Debt Leverage of 4.6x [46].

Core Insights - JELD-WEN has been recognized for its commitment to sustainability and climate action, aiming for net zero direct and indirect greenhouse gas emissions by 2050 [1][2] - The company is implementing energy efficiency projects and renewable energy solutions as part of its strategy to achieve its sustainability goals [1] - JELD-WEN earned a place on USA TODAY's list of America's Climate Leaders through a rigorous evaluation of its emissions data and environmental performance [2] Company Overview - JELD-WEN Holding, Inc. is a leading global designer, manufacturer, and distributor of high-performance doors, windows, and related building products, serving both new construction and remodeling sectors [4] - The company is headquartered 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®, LaCantina®, VPI™, Swedoor®, and DANA® [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 operates facilities in 14 countries across North America and Europe, employing approximately 16,000 associates [3] Upcoming Financial Results - JELD-WEN will release its first quarter 2025 results after the market close on May 5, 2025 [1] - A conference call to discuss the results will take place at 8 a.m. EST on May 6, 2025 [1] Accessing the Conference Call - Interested parties can access the call via webcast on the company's Investor Relations 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]

Financial Performance - The company reported net revenues of $3,776 million for the year ended December 31, 2024[27]. - Net revenues decreased by $528.7 million, or 12.3%, to $3,775.6 million for the year ended December 31, 2024, compared to $4,304.3 million in 2023[228]. - Net revenues decreased by $239.5 million, or 5.3%, to $4,304.3 million in the year ended December 31, 2023, compared to $4,543.8 million in 2022, driven by a 5% decrease in Core Revenues[239]. - The company reported a net loss from continuing operations of $(187,580) for the year ended December 31, 2024[257]. - The effective tax rate for the year ended December 31, 2023, was 71.5%, significantly higher than 59.6% in 2022, primarily due to a $32.7 million net valuation allowance[247]. - The company reported a net income of $62.4 million in 2023, compared to $45.7 million in 2022, reflecting an increase of 36.6%[238]. Revenue Sources - Door sales accounted for 63% of net revenues, while window sales contributed 20% and other products accounted for 17%[33]. - Approximately 46% of the company's net revenues in 2024 came from its top ten customers, with The Home Depot and Lowe's representing 16% and 12% of consolidated net revenues, respectively[52]. - The percentage of total consolidated net revenues from North America was 71.7% in 2024, down from 72.6% in 2023[261]. Cost and Expenses - Gross margin decreased by $143.6 million, or 17.3%, to $689.0 million, with a gross margin percentage of 18.2% in 2024, down from 19.3% in 2023[229]. - SG&A expenses decreased by $2.8 million, or 0.4%, to $652.5 million, with SG&A as a percentage of net revenues increasing to 17.3% in 2024 from 15.2% in 2023[230]. - Restructuring and asset-related charges increased by $32.4 million, or 90.5%, to $68.1 million in 2024, primarily due to facility closures in North America and Europe[232]. Market Conditions - The North America segment is expected to face headwinds in 2025 due to high interest rates and inflation in labor, freight, and raw materials[40]. - The European market is anticipated to experience softness in residential and non-residential markets in 2025 due to economic weakness and high interest rates[41]. Operational Insights - The company operates 79 manufacturing and distribution facilities across 14 countries, focusing on optimizing its global footprint to enhance performance and profit margins[29]. - The company has a diversified business model serving both new construction and repair and remodel sectors[25]. - The company’s manufacturing processes are vertically integrated, which enhances capabilities and quality control while providing supply chain savings[31]. - The company has made significant investments in innovation and product development to meet customer needs and market trends[34]. - The company is focused on disciplined capital allocation and working capital management to maximize shareholder returns[35]. Environmental and Regulatory Matters - The company is subject to extensive environmental, health, and safety laws and regulations across its global operations, which may impact financial position[65]. - The company’s operations involve handling hazardous wastes, exposing it to potential liabilities and claims associated with contamination[66]. - The company has been involved in environmental regulatory actions, but does not expect these to materially affect its financial position[67]. - The company continues to evaluate and modify its manufacturing processes to further reduce environmental impact[64]. Employee Engagement and Development - The company is committed to employee engagement and development, with various programs aimed at attracting and retaining talent[61]. - The company’s organizational health is measured annually through a global employee survey, focusing on employee experiences and engagement levels[63]. Cash Flow and Liquidity - Total liquidity as of December 31, 2024, was $566.7 million, a decrease from $750.6 million as of December 31, 2023, primarily due to lower cash balances[274]. - Net cash provided by operating activities decreased by $239.0 million to $106.2 million in the year ended December 31, 2024, compared to $345.2 million in 2023[287]. - Net cash used in investing activities was $153.3 million in the year ended December 31, 2024, compared to cash provided by investing activities of $279.2 million in 2023, primarily due to $365.6 million proceeds related to the sale of JW Australia in 2023[289]. Debt and Financing - Outstanding debt balance as of December 31, 2024, was $1,192.0 million, with estimated interest payments of $72.9 million due in 2025 and $280.4 million due in 2026 and thereafter[285]. - In August 2024, the company issued $350.0 million of Senior Notes at 7.00% interest, proceeds used to repay $150.0 million of the Term Loan Facility and redeem $200.0 million of 4.63% Senior Notes[283]. Goodwill and Impairment - Goodwill impairment charges totaled $94.8 million in 2024, including $63.4 million related to the Europe reporting unit and $31.4 million for North America[231]. - The carrying amount of the Europe reporting unit exceeded its fair value, resulting in a goodwill impairment charge of $63.4 million in the third quarter of 2024[305]. - The company recorded a goodwill impairment charge of $54.9 million for the Europe reporting unit during the year ended December 31, 2022[303]. Currency and Hedging - The company held foreign currency derivative contracts with a total notional amount of $148.4 million as of December 31, 2024, to manage exchange fluctuations[326]. - The average exchange rate for the U.S. dollar strengthened against the Canadian dollar and the Euro by 9% and 6%, respectively, impacting Adjusted EBITDA by (1%)[324]. - The company has implemented a hedging program to manage potential changes in value associated with raw material purchases denominated in foreign currencies[327].