American Woodmark Corporation Announces Second Quarter Results

Core Insights - American Woodmark Corporation reported a significant decline in net sales and net income for the second quarter of fiscal 2026, reflecting ongoing challenges in the new construction and remodel markets [4][5][8] - The company is actively implementing measures to mitigate the impacts of tariffs and lower demand, including cost reductions and supplier negotiations [4][6] Financial Highlights for Second Quarter Fiscal 2026 - Net sales decreased by $57.8 million, or 12.8%, to $394.6 million compared to the same quarter last fiscal year [5][6] - Net income fell to $6.1 million, or $0.42 per diluted share, down from $27.7 million, or $1.79 per diluted share, in the same quarter last year [5][7] - Adjusted EBITDA decreased by $20.6 million, or 34.1%, to $39.6 million, representing 10.0% of net sales [7][8] Year-to-Date Financial Highlights for Fiscal 2026 - For the first six months, net sales decreased by $113.9 million, or 12.5%, to $797.7 million compared to the same period last fiscal year [8] - Year-to-date net income was $20.7 million, or $1.42 per diluted share, down from $57.3 million, or $3.68 per diluted share, in the prior year [8][9] - Adjusted EBITDA for the first half of fiscal 2026 decreased by $41.2 million, or 33.5%, to $81.9 million, or 10.3% of net sales [8][9] Balance Sheet and Cash Flow - As of October 31, 2025, the company had $52.1 million in cash and access to $315.2 million under its revolving credit facility [10] - Cash provided by operating activities for the first six months was $44.3 million, with free cash flow totaling $24.0 million [11][10] - The company repurchased 209,757 shares, approximately 1.4% of shares outstanding, for $12.4 million during the first half of fiscal 2026 [11] Strategic Focus - The company is focused on closing the merger transaction with MasterBrand, Inc., which is expected to enhance its product portfolio and innovation capabilities [4][9] - Management is taking steps to address the impacts of tariffs, estimating an unmitigated tariff impact of approximately 4-4.5% of annualized net sales [4][6]