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]

Financial Performance - First quarter 2025 sales reached $776 million[11], a 19% decrease compared to $959 million in the first quarter of 2024[16] - Core revenue decreased by 15% due to lower volume and mix[16, 18] - Adjusted EBITDA for the first quarter of 2025 was $22 million, representing 2.8% of sales, a significant decrease from $69 million and 7.2% in the first quarter of 2024[11, 16] - North America net revenue decreased to $531 million in Q1 2025 from $680 million in Q1 2024, with adjusted EBITDA at $16 million (2.9% margin) compared to $61 million (9.0% margin) in the prior year[23] - Europe net revenue decreased to $245 million in Q1 2025 from $279 million in Q1 2024, with adjusted EBITDA at $11 million (4.3% margin) compared to $15 million (5.2% margin) in the prior year[23] - Free cash flow was negative $125 million in Q1 2025, compared to negative $46 million in Q1 2024[38] Factors Affecting Performance - Lower volume and mix due to persisting macroeconomic headwinds impacted earnings[16, 19] - Volume/mix offset cost savings measures, impacting Adjusted EBITDA[22] - North America and Europe both experienced lower volume/mix, driving revenue decline[24] Outlook and Strategy - The company expects Q2 Adjusted EBITDA to be slightly better seasonally compared to Q1[32] - Capital expenditures are expected to remain elevated at approximately $150 million[32] - The company is actively reducing lead times, addressing new builder needs, and balancing headcount with market demand[30] Tariffs - The annualized tariff impact is estimated to be approximately $55 million, with approximately $30 million expected in 2025[27] - The company expects to pass on tariff impacts, with a slight negative impact to EBITDA in Q2 due to timing[25]

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].

Financial Performance - Q4 2024 - Net Revenue decreased by 12% from $1021 million in Q4 2023 to $896 million in Q4 2024[15] - Adjusted EBITDA decreased by 54% from $87 million in Q4 2023 to $40 million in Q4 2024[17] - Adjusted EBITDA Margin decreased by 400 bps from 85% in Q4 2023 to 45% in Q4 2024[17] Financial Performance - Full Year 2024 - Net Revenue decreased by 12% from $4304 million in 2023 to $3776 million in 2024[30] - Adjusted EBITDA decreased by 28% from $380 million in 2023 to $275 million in 2024[32] - Adjusted EBITDA Margin decreased by 150 bps from 88% in 2023 to 73% in 2024[32] Segment Performance - Q4 2024 - North America Net Revenue decreased from $748 million to $640 million, and Adjusted EBITDA decreased from $94 million to $42 million[26] - Europe Net Revenue decreased from $273 million to $256 million, while Adjusted EBITDA increased from $16 million to $17 million[26] 2025 Guidance - Net Revenue is projected to be between $32 billion and $34 billion, with Core Revenue down 4% to 9%[42] - Adjusted EBITDA is projected to be between $215 million and $265 million[42] - Free Cash Flow is projected to be approximately negative $135 million[42]