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]

JELD-WEN Holding, Inc. (JELD) , a leading global building products manufacturer, announced the sale of its Towanda facility, PA and related assets to Woodgrain Inc. for approximately $115 million.This transaction is part of a court-ordered divestiture process. The sale is expected to close by Dec. 31, 2024, subject to adjustments and closing conditions.JELD’s Transformation and Impact of Towanda Facility SaleJELD-WEN sees strong opportunities to improve its operations and drive long-term success through thi ...

JELD-WEN Proceeds to Close Divestiture Transaction CHARLOTTE, N.C., Dec. 16, 2024 /PRNewswire/ -- JELD-WEN Holding, Inc. (NYSE: JELD) ("JELD-WEN" or the "Company"), a leading global manufacturer of building products, today announced that, in compliance with the court-ordered divestiture of its Towanda, Pennsylvania business and related assets (collectively, "Towanda"), JELD-WEN has entered into an asset purchase agreement for the sale of Towanda to Woodgrain Inc. ("Woodgrain") for approximately $115 million ...

Group 1 - The previous investment outlook for JELD-WEN Holding was a hold rating due to a bearish perspective on the US housing market, indicating that demand is unlikely to improve [1] - The investment strategy focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities, emphasizing a bottom-up analysis of individual companies [1] - The investment duration is medium to long-term, with the goal of identifying companies that possess solid fundamentals, sustainable competitive advantages, and growth potential [1]

Company Overview - JELD-WEN Holding, Inc. (JELD) is experiencing significant activity in the options market, particularly with the Jan 17, 2025 $7.50 Put option showing high implied volatility, indicating potential for a major price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future stock movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] Analyst Sentiment - JELD-WEN currently holds a Zacks Rank of 5 (Strong Sell) within the Building Products - Wood industry, placing it in the bottom 25% of the Zacks Industry Rank. Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while three have lowered their estimates, resulting in a drop in the Zacks Consensus Estimate from earnings of 49 cents per share to 10 cents [3] Trading Strategy Implications - The high implied volatility surrounding JELD-WEN may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as anticipated [4]

Financial Data and Key Metrics Changes - Third quarter revenues were $935 million, down 13% year-over-year, primarily due to market-driven volume declines in North America and Europe, along with a significant mix shift from higher-priced to lower-priced products [19][20] - Adjusted EBITDA was $82 million, a decrease of $24 million year-over-year, resulting in an adjusted EBITDA margin of 8.7% [20][22] - Free cash flow was a use of cash of $6 million, including $44 million of capital investments, leading to a net debt leverage ratio of 3.1x, above the target range [20][49] Business Line Data and Key Metrics Changes - North America segment generated $678 million in revenue, a decline of 14% year-over-year, with adjusted EBITDA decreasing to $75 million from $100 million [25][26] - Europe segment revenue was $257 million with adjusted EBITDA of $16 million, reflecting a 12% year-over-year decline in core revenues [26] Market Data and Key Metrics Changes - North American market is expected to decline by low double digits, with repair and remodel activity anticipated to decrease by mid to high single digits [28][30] - The European market remains under pressure, with expectations of low double-digit volume declines [30] Company Strategy and Development Direction - The company is focusing on cost reduction initiatives and improving operational efficiency in response to market challenges [15][17] - Strategic initiatives include consolidating manufacturing operations and enhancing customer acquisition efforts [16][17] - The company aims to achieve $115 million in cost savings for the year, exceeding the previous target of $100 million [24][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the softer demand environment impacting results but expressed confidence in aligning costs with current market conditions [8][10] - The company anticipates continued challenges in the fourth quarter, revising revenue guidance for 2024 to a range of $3.7 billion to $3.75 billion [46][47] - Future expectations include a potential recovery in the second half of 2025, contingent on improved market conditions [56][84] Other Important Information - The company is undergoing a transformation journey, with over 350 active projects aimed at improving efficiency and performance [53][100] - The loss of a Midwest retailer customer is expected to impact sales by approximately $20 million to $25 million in 2024 [69][70] Q&A Session Summary Question: Can you provide more details on the quality issues and their impact? - Management clarified that the loss of the Midwest customer was not due to quality issues, but rather a strategic decision by the customer [68] - Quality issues are being addressed, with significant improvements noted in door skin production [66][67] Question: What is the outlook for sales and margins moving forward? - Management expects continued low levels of volume and mix in the first part of next year, with a turning point anticipated in the second half of 2025 [70][71] Question: How are channel inventories positioned? - Inventories are stable but low, with a need for the resale market to improve to drive demand [106][107] Question: What is the impact of the loss of the Midwest customer on revenue? - The loss is estimated to impact revenue by $20 million to $25 million in 2024, with efforts underway to mitigate this loss [69][70] Question: How does the company plan to handle the current market challenges? - The company is focusing on cost initiatives and optimizing its footprint to improve long-term performance [102][103]

Financial Performance - Q3 2024 - Sales decreased to $935 million, a 13% decrease compared to $1,077 million in Q3 2023 [5] - Adjusted EBITDA decreased to $82 million, a 23% decrease compared to $106 million in Q3 2023 [5] - Adjusted EBITDA margin was 8.7%, a decrease of 110 bps compared to 9.8% in Q3 2023 [5] - North America net revenue decreased to $678 million from $790 million in the prior year, a 14% decrease [6] - Europe net revenue decreased to $257 million from $287 million in the prior year, a 12% decrease [6] Financial Performance - Year to Date (YTD) 2024 - Core revenue decreased by 12%, from $3,283 million to $2,880 million [24] - Adjusted EBITDA decreased to $235 million from $294 million [24] 2024 Guidance - Net revenue is projected to be $3.9 billion to $4.1 billion [13] - Core revenue is expected to be down 5% to 9% [13] - Adjusted EBITDA is projected to be $340 million to $380 million [13] - Free cash flow is expected to be $25 million to $50 million [15] Transformation Initiatives - Transformation projects are expected to contribute an additional $100 million of Adjusted EBITDA in 2025 [17] - Capital investments of approximately $175 million to $200 million are planned for transformation projects [17]

Company Performance - JELD-WEN reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.40 per share, and down from $0.53 per share a year ago, representing an earnings surprise of -20% [1] - The company posted revenues of $934.7 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 6.40%, and down from $1.08 billion year-over-year [2] - Over the last four quarters, JELD-WEN has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - JELD-WEN shares have lost approximately 24.6% since the beginning of the year, contrasting with the S&P 500's gain of 20.1% [3] - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $970.7 million, and for the current fiscal year, it is $1.45 on revenues of $3.91 billion [7] Industry Outlook - The Building Products - Wood industry, to which JELD-WEN belongs, is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of JELD-WEN's stock may be influenced by the overall outlook for the industry [8]