JELD-WEN(JELD) - 2025 Q2 - Quarterly Results

JELD-WEN Second Quarter 2025 Earnings Release Second Quarter 2025 Financial Highlights 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][9] - 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][9] - 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] Segment Performance (Q2 2025) 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] - 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] Financial Position and Cash Flow (Six Months Ended June 28, 2025) 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] - 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] Full Year 2025 Guidance 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] - The company now expects operating cash flow to be an approximate $10 million use of cash for the full year[14] Financial Statements and Non-GAAP Reconciliations This section provides detailed unaudited financial statements and reconciliations of GAAP to non-GAAP measures like Adjusted EBITDA Consolidated Statements of Operations 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 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 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 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] - 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] - 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]