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].

Financial Data and Key Metrics Changes - Fourth quarter revenue was $896 million, down 12% year-over-year, primarily due to lower core revenues and a shift towards more affordable options [15][22] - Adjusted EBITDA for the quarter was $40 million, a decline of $47 million from the prior year, resulting in an adjusted EBITDA margin of 4.5% [16][18] - Free cash flow in the fourth quarter was a use of $28 million, with net debt leverage ratio increasing to 3.8 times, above the target range of 2 to 2.5 times [16][17] Business Line Data and Key Metrics Changes - North America segment generated $640 million in revenue for the fourth quarter, a 14% decline year-over-year, with adjusted EBITDA declining to $42 million from $94 million [19][20] - Europe segment revenue for the fourth quarter was $256 million, with adjusted EBITDA of $17 million, reflecting a 6% decline in core revenues but improved adjusted EBITDA by $1 million [20][21] Market Data and Key Metrics Changes - The overall market remains soft, with consumers trading down and delaying larger remodeling projects, impacting volume and mix [12][13] - Housing starts have remained stable, but there has been a significant decline in multi-family and higher-end home construction, affecting specific business lines [12][13] Company Strategy and Development Direction - The company is focusing on transformation initiatives, delivering approximately $115 million in benefits in 2024, while implementing cost reduction initiatives to improve efficiency [10][13] - A comprehensive program to optimize the North American network is being launched to align with long-term commercial strategy, including facility consolidation and automation investments [29][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued volatility in North America due to potential tariffs, high interest rates, and new home inventory at a decade high [26][27] - For 2025, the company expects net revenues to range between $3.2 billion and $3.4 billion, reflecting a projected 4% to 9% decline in core revenues [35][36] Other Important Information - The company plans to adjust capital expenditures to approximately $150 million, considering expected elevated leverage levels by year-end [36][37] - The first quarter of 2025 is expected to be particularly challenging, with anticipated sales between $750 million and $775 million and adjusted EBITDA of approximately $20 million [39][40] Q&A Session Summary Question: Earnings progression from Q1 to Q2 - Management indicated that near-term actions and transformation initiatives will begin to take effect in Q2, leading to expected normal seasonality [55][56] Question: Price cost standpoint and tariffs - Management confirmed that the $50 million cost headwind does not account for any potential tariffs, and they are modeling scenarios for the evolving tariff landscape [60][63] Question: Confidence in achieving savings - Management expressed confidence in achieving the $100 million transformation savings, with 80%-85% of the initiatives already in progress [71][72] Question: Organic efforts to regain market share - Management is focusing on improving sales effectiveness and service levels to regain market share lost in previous years [85][88] Question: Corporate costs and headwinds - Management noted a $15 million to $20 million headwind in corporate costs due to reinstated variable compensation in 2025 [115][116] Question: Mix pressure and pricing - Management believes the mix pressure is predictable and that they will work hard to control costs while passing through necessary price increases [122][123]

Financial Performance - Net revenues from continuing operations for Q4 2024 were $895.7 million, a decrease of $125.3 million or 12.3% compared to $1,021.1 million in Q4 2023[6]. - Net loss from continuing operations in Q4 2024 was $68.4 million, compared to a net loss of $22.6 million in the same period last year, reflecting a decrease of $45.8 million[7]. - Adjusted EBITDA from continuing operations for Q4 2024 was $40.1 million, a decline of $46.5 million compared to $86.5 million in Q4 2023, with an adjusted EBITDA margin of 4.5%[10]. - Full year 2024 net revenues from continuing operations were $3,775.6 million, a decrease of 12.3% compared to the previous year[8]. - Full year 2024 net loss from continuing operations was $187.6 million or $2.21 per share, compared to net income of $25.2 million or $0.29 per share in 2023[8]. - Adjusted EBITDA for the full year 2024 was $275.2 million, a decrease of 27.7% from $380.4 million in 2023[34]. - The company reported a net loss from continuing operations of $(187.6) million for the year ended December 31, 2024, compared to a net income of $25.2 million in 2023[43]. - Adjusted EBITDA from continuing operations for the year ended December 31, 2024, was $275.2 million, down from $380.4 million in 2023, reflecting a decrease of about 28%[40]. Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $239.0 million to $106.2 million for the year ended December 31, 2024[11]. - The net cash provided by operating activities decreased to $106.2 million in 2024 from $345.2 million in 2023, representing a decline of approximately 69%[38]. - The company reported a net cash used in investing activities of $153.3 million in 2024, compared to net cash provided of $279.2 million in 2023[38]. - Capital expenditures for 2024 increased by $62.8 million to $173.7 million, up from $110.9 million in 2023[12]. Debt and Liabilities - The company’s total liabilities were $2,000.1 million as of December 31, 2024, compared to $2,129.5 million as of December 31, 2023[36]. - The company’s long-term debt and payments of debt extinguishment costs amounted to $55.2 million in 2024, a significant reduction from $561.3 million in 2023[38]. - Total debt decreased from $1,226.3 million in 2023 to $1,183.4 million in 2024, resulting in a net debt increase from $938.0 million to $1,033.1 million[58]. - Net Debt Leverage increased from 2.5x in 2023 to 3.8x in 2024, indicating a higher leverage ratio[58]. Segment Performance - North America segment net revenue was $639.8 million, a decline of $107.8 million or 14.4%, driven by a 14% decrease in core revenue[17]. - North America net revenues for the year ended December 31, 2024, were $2,708.4 million, down 13.3% from $3,123.1 million in 2023[60]. - Adjusted EBITDA from continuing operations for North America decreased by 33.5% from $382.2 million in 2023 to $254.1 million in 2024[60]. Impairments and Special Items - The company incurred a goodwill impairment of $94.8 million for the full year 2024, compared to no impairment in 2023[34]. - The company incurred goodwill impairment charges of $31.4 million in Q4 2024, with total goodwill impairment for the year amounting to $94.8 million[43]. - The company reported total special items of $62.7 million for the year ended December 31, 2024, which included legal expenses, restructuring charges, and goodwill impairment[50]. - The company incurred special items totaling $35.7 million related to restructuring and asset-related charges during the year[53]. Future Outlook - The company expects 2025 revenue guidance to range from $3.2 billion to $3.4 billion, reflecting a core revenue decline of 4% to 9% compared to 2024[13]. - Adjusted EBITDA for 2025 is projected to be between $215 million and $265 million[14]. - The company plans to continue focusing on restructuring and cost management strategies to improve future performance[44].

Fourth Quarter 2024 Results February 18, 2025 Speakers Bill Christensen CEO Samantha Stoddard CFO Disclosures 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 February 18, 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, ...

Core Insights - JELD-WEN made significant progress in its transformation during 2024 despite challenging market conditions, focusing on delivering quality products on time [4] - The company reported a net revenue decline of 12.3% in Q4 2024 compared to the same period last year, primarily due to a decrease in Core Revenue and lower volume/mix [5][10] - The net loss from continuing operations for Q4 2024 was $68.4 million, a significant increase from a loss of $22.6 million in the same quarter last year, largely due to an impairment charge and increased transformation costs [6][10] Fourth Quarter Highlights - Net revenues from continuing operations for Q4 2024 were $895.7 million, down from $1,021.1 million in Q4 2023 [5][10] - Adjusted EBITDA from continuing operations was $40.1 million, a decline of $46.5 million compared to $86.5 million in the same quarter last year [8][10] - The adjusted EBITDA margin decreased to 4.5%, down 400 basis points year-over-year due to lower volume/mix and higher costs [8][10] Full Year Highlights - For the full year 2024, net revenues were $3,775.6 million, a decrease of 12.3% from $4,304.3 million in 2023 [10][32] - The company reported a net loss from continuing operations of $187.6 million, compared to a net income of $25.2 million in the prior year [10][32] - Adjusted EBITDA for the full year was $275.2 million, down from $380.4 million in 2023, with an adjusted EBITDA margin of 7.3% [10][33] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased to $106.2 million in 2024 from $345.2 million in 2023, primarily due to unfavorable changes in earnings [12] - Capital expenditures increased to $173.7 million in 2024, up from $110.9 million in 2023 [13] - Free cash flow used in 2024 was $67.5 million, compared to free cash flow provided of $234.3 million in 2023 [13] 2025 Guidance - JELD-WEN expects 2025 revenue to be in the range of $3.2 to $3.4 billion, reflecting a Core Revenue decline of 4% to 9% compared to 2024 [14][15] - The company anticipates 2025 adjusted EBITDA to be between $215 million and $265 million [14][15]

Core Insights - JELD-WEN is expected to report a quarterly loss of $0.07 per share, reflecting a decline of 118.9% year-over-year [1] - Analysts forecast revenues of $843.77 million, indicating a decrease of 17.4% compared to the previous year [1] - The consensus EPS estimate has been revised 22.2% lower in the last 30 days, showing a reevaluation of initial estimates by analysts [1][2] Revenue Estimates - 'Revenues- Europe' are expected to be $229.20 million, representing a year-over-year decline of 16.2% [4] - 'Revenues- North America' are projected at $614.54 million, indicating a decrease of 17.8% from the same quarter last year [4] EBITDA Estimates - Estimated 'Adjusted EBITDA- North America' is $41.60 million, down from $94.20 million in the same quarter last year [5] - 'Adjusted EBITDA- Europe' is expected to reach $8.15 million, compared to $15.50 million in the previous year [5] Stock Performance - JELD-WEN shares have changed by +3.9% in the past month, compared to a +4.2% move of the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance relative to the overall market [6]

Core Points - JELD-WEN Holding, Inc. has completed the sale of its Towanda, Pennsylvania business to Woodgrain Inc. for a purchase price of $115 million, in compliance with a court-ordered divestiture [1] Company Overview - JELD-WEN Holding, Inc. is a global designer, manufacturer, and distributor of high-performance building products, including interior and exterior doors and windows, serving both new construction and repair and remodeling sectors [2] - The company is based in Charlotte, North Carolina, operates in 15 countries across North America and Europe, and employs approximately 18,000 associates [2] - JELD-WEN's brand portfolio includes JELD-WEN®, LaCantina®, VPI™, Swedoor®, and DANA® [2]

Core Viewpoint - JELD-WEN Holding, Inc. will release its fourth quarter 2024 results on February 17, 2025, followed by a conference call on February 18, 2025, at 8 a.m. EST to discuss the results [1] 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 and is based in Charlotte, North Carolina [3] - JELD-WEN operates facilities in 15 countries across North America and Europe, employing approximately 18,000 associates [3] - The company's brand portfolio includes JELD-WEN®, LaCantina®, VPI™, Swedoor®, and DANA® [3]