JELD-WEN Reports Fourth Quarter and Full Year 2025 Results, Establishes 2026 Guidance

Core Insights - JELD-WEN reported a significant decline in financial performance for both the fourth quarter and full year of 2025, with adjusted EBITDA from continuing operations dropping to $14.8 million in Q4 and $120.1 million for the year, down from $40.1 million and $275.2 million respectively in the prior year [1][2][5] - The company experienced a net loss from continuing operations of $40.1 million in Q4 2025, an improvement from a loss of $68.4 million in Q4 2024, while the full year net loss was $620.1 million compared to $187.6 million in 2024 [1][2][5] - JELD-WEN's net revenues decreased by 10.5% in Q4 to $802.0 million and by 14.9% for the full year to $3.21 billion, primarily due to declines in core revenues and the impact of a court-ordered divestiture [1][2][5] Fourth Quarter Highlights - Adjusted EBITDA margin from continuing operations was 1.8%, down 270 basis points year-over-year, attributed to unfavorable price/cost dynamics and volume/mix [1][2] - Core revenues decreased by 8% in Q4, with a notable decline in volume/mix contributing to the downturn [1][2] - The company reported a favorable foreign exchange impact of 3% in Q4, which partially offset revenue declines [1][2] Full Year Highlights - The adjusted EBITDA margin for the full year was 3.7%, a decrease of 360 basis points compared to the previous year, driven by unfavorable volume/mix and price/cost [1][2] - The full year net revenues of $3.21 billion reflected a 14.9% decrease, with core revenues down 12% and a 4% decline from the divestiture of Towanda [1][2] - The net loss for the year included significant non-cash goodwill impairment charges of $334.6 million and a valuation expense of $129.2 million related to U.S. tax attributes [1][2] Segment Performance - In Europe, net revenues increased by 9.4% to $280.0 million in Q4, primarily due to favorable foreign exchange impacts, while adjusted EBITDA decreased by 30% to $11.6 million [1][2] - North America saw a revenue decline of 18.4% to $522.0 million in Q4, with core revenues down 12% and a 6% decrease from the divestiture of Towanda [1][2] - For the full year, North America revenues decreased by 20.5% to $2.15 billion, with adjusted EBITDA down 60% to $101.6 million [1][2] Cash Flow and Capital Expenditures - Net cash used in operating activities was ($4.9) million for the year, a significant decline from $106.2 million in the previous year, primarily due to decreased earnings and increased working capital needs [3][6] - Capital expenditures decreased by $37.8 million to $135.9 million in 2025, reflecting a focus on cost management [3][6] 2026 Guidance - JELD-WEN provided revenue guidance for 2026 in the range of $2.95 to $3.1 billion, indicating a projected decline in core revenues of approximately 5% to 10% compared to 2025 [3][6] - The company expects adjusted EBITDA for 2026 to be between $100 million and $150 million, reflecting ongoing cost reductions amid continued volume pressure [3][6]