American Woodmark (AMWD) - 2026 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 FY2026 decreased by $57.8 million, or 12.8%, to $394.6 million compared to the same quarter last fiscal year[3] - Net income for Q2 FY2026 was $6.1 million, or 1.5% of net sales, down from $27.7 million, or 6.1% of net sales, in the same quarter last fiscal year[3] - Adjusted EBITDA for Q2 FY2026 decreased by $20.6 million, or 34.1%, to $39.6 million, representing 10.0% of net sales, compared to 13.3% of net sales in the same quarter last fiscal year[3] - Year-to-date net sales for FY2026 decreased by $113.9 million, or 12.5%, to $797.7 million compared to the same period last fiscal year[5] - Year-to-date net income for FY2026 was $20.7 million, or 2.6% of net sales, down from $57.3 million, or 6.3% of net sales, in the same period last fiscal year[5] - Adjusted EPS per diluted share for Q2 FY2026 was $0.76, down from $2.08 in the same quarter last fiscal year[3] - Net income for the three months ended October 31, 2025, was $6,097,000, compared to $27,686,000 for the same period in 2024, reflecting a decrease of 78%[26] - Adjusted EBITDA for the six months ended October 31, 2025, was $81,878,000, down from $123,084,000 in 2024, representing a decline of 33.5%[26] - Net sales for the three months ended October 31, 2025, were $394,637,000, compared to $452,482,000 in 2024, indicating a decrease of 12.7%[26] - Free cash flow for the six months ended October 31, 2025, was $24,014,000, down from $30,141,000 in 2024, a reduction of 20.5%[32] - Adjusted net income for the three months ended October 31, 2025, was $11,170,000, compared to $32,048,000 in 2024, a decrease of 65.1%[30] - The net income margin for the three months ended October 31, 2025, was 1.5%, down from 6.1% in 2024[26] - Adjusted EBITDA margin for the three months ended October 31, 2025, was 10.0%, compared to 13.3% in 2024, reflecting a decline of 24.8%[26] Cash Flow and Liquidity - Cash provided by operating activities for the first six months of FY2026 was $44.3 million, with free cash flow totaling $24.0 million[8] - As of October 31, 2025, the Company had $52.1 million in cash and $315.2 million available under its revolving credit facility[7] Merger and Restructuring - The Company is focused on closing the merger transaction with MasterBrand, Inc. to expand its product portfolio and innovation capabilities[2] - The company incurred merger-related expenses of $6,484,000 for the three months ended October 31, 2025, related to the pending merger with MasterBrand, Inc.[28] - Restructuring charges for the three months ended October 31, 2025, totaled $1,458,000, associated with workforce reductions and facility closures[28] Tariff Impact - The estimated unmitigated tariff impact is approximately 4-4.5% of the Company's annualized net sales, varying by product category[2] Leverage Ratio - The company reported a net leverage ratio of 1.90 as of October 31, 2025, calculated as net debt of $318,719,000 divided by Adjusted EBITDA of $167,421,000[34]