JELD-WEN Reports Third Quarter 2025 Results, Announces Workforce Reductions and Significant Strategic Actions

Core Insights - JELD-WEN's third-quarter results for 2025 fell short of expectations due to ongoing market challenges and price-cost pressures, prompting the company to initiate workforce reductions and a strategic review of its European segment [2][3][10] Financial Performance - Net revenues for Q3 2025 were $809.5 million, a decrease of 13.4% from $934.7 million in Q3 2024, primarily due to a 10% decline in Core Revenues and a 5% decrease from the divestiture of Towanda, partially offset by a 2% favorable foreign exchange impact [3][11] - The net loss from continuing operations was $367.6 million, compared to a loss of $73.0 million in the same quarter last year, resulting in a net loss per share of $4.30 versus $0.86 [4][5][11] - Adjusted EBITDA from continuing operations was $44.4 million, down from $81.6 million in Q3 2024, with an Adjusted EBITDA Margin of 5.5%, a decrease of 320 basis points [6][11] Segment Performance - North America reported net revenues of $546.1 million, a decline of 19.4%, driven by a 13% decrease in Core Revenues and a 7% decrease from the divestiture of Towanda [12] - Europe saw net revenues increase by 2.6% to $263.3 million, primarily due to a favorable foreign exchange impact, despite a 4% decrease in Core Revenues [12] Cash Flow and Capital Expenditures - Net cash used in operating activities was $37.7 million for the nine months ended September 27, 2025, compared to cash provided of $78.0 million in the same period last year, largely due to a decrease in earnings [7][8] - Capital expenditures decreased by $14.1 million to $103.9 million for the nine months ended September 27, 2025 [8] Workforce and Strategic Actions - The company plans to reduce its North American and Corporate workforce by approximately 850 positions, representing about 11% of the teams, to improve operational efficiency [9] - A strategic review of the European segment has been initiated to enhance long-term positioning [9] Updated Guidance - JELD-WEN has lowered its 2025 revenue guidance to between $3.1 billion and $3.2 billion, reflecting a year-over-year decline in Core Revenues of approximately 10% to 13% [10]