Core Insights - JELD-WEN UK has achieved its second Cradle to Cradle Certified® product certification in 2025, enhancing its portfolio of sustainable doors and reinforcing its commitment to responsible innovation across Europe [1][3][5] Sustainability Commitment - Cradle to Cradle Certified® is recognized as one of the most advanced product sustainability standards, assessing products based on material health, circularity, climate protection, water stewardship, and social fairness [2] - The newly certified Bronze-level products include various door types from Latvia, Estonia, Denmark, Sweden, and the United Kingdom, showcasing the company's alignment of sustainability with manufacturing excellence [3] Strategic Positioning - The certification highlights how sustainability is integral to JELD-WEN's innovation and operational performance, positioning the company favorably ahead of regulatory changes like the EU Deforestation Regulation (EUDR) [4] - By adhering to Cradle to Cradle Certified® standards, JELD-WEN ensures responsible sourcing and sustainability throughout the product lifecycle, enhancing transparency and long-term value for stakeholders [4] Global ESG Goals - The expansion of Cradle to Cradle certification marks a significant milestone in JELD-WEN's sustainability journey, reflecting the company's commitment to designing safe, circular, and responsibly made products [5] - JELD-WEN aims to provide sustainable solutions that benefit customers, communities, and the planet, aligning with its global ESG objectives [5] Company Overview - JELD-WEN Holding, Inc. is a leading global designer, manufacturer, and distributor of high-performance building products, operating in 14 countries and employing approximately 16,000 associates [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $776 million, representing a 19% decline year over year, with approximately 15% attributed to lower core revenues and 4% due to the divestiture of the Towanda operations [11][12] - Adjusted EBITDA for the quarter was $22 million, a decrease of $47 million compared to the prior year, resulting in an adjusted EBITDA margin of 2.8% [12][15] - Free cash flow was a use of $125 million in Q1, compared to a $46 million use in Q1 2024, primarily driven by lower EBITDA and unfavorable working capital dynamics [13][14] - The net debt leverage ratio increased to 4.6 times, exceeding the targeted range of 2 to 2.5 times [14] Business Line Data and Key Metrics Changes - North America segment reported revenue of $531 million for Q1, a 22% decline year over year, with core revenues down 17% primarily due to lower volume [16] - Adjusted EBITDA for North America declined to $16 million from $61 million in the same quarter last year [16] - Europe segment revenue was $245 million, down 12% year over year, driven almost entirely by lower volume, with adjusted EBITDA at $11 million, a decline of $4 million from the prior year [17] Market Data and Key Metrics Changes - Both North America and Europe segments experienced double-digit volume declines during the quarter [8] - The company faced ongoing product mix challenges, although the mix has stabilized compared to prior quarters [14][15] - Tariffs are expected to have an annualized impact of approximately $55 million, with about $30 million anticipated to affect 2025 results [18] Company Strategy and Development Direction - The company is focused on enhancing production capabilities, optimizing manufacturing and distribution networks, and investing in automation to drive efficiency [22][27][28] - The strategic priorities include reestablishing strong partnerships with customers, optimizing operational footprint, and investing in automation to reduce costs [27][28] - The company anticipates achieving approximately $100 million in ongoing transformation benefits and $50 million from short-term actions in 2025 [26] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the challenging macroeconomic environment, with elevated interest rates and declining consumer confidence impacting new home construction [21] - The likelihood of a global recession is estimated at approximately 50%, which is affecting repair and remodel activity [21] - Despite the challenges, the management remains focused on cash flow maintenance and generation, with expectations for Q2 adjusted EBITDA to be slightly above Q1 levels [25] Other Important Information - The company is withdrawing its full-year guidance due to significant short-term volatility and ongoing market uncertainties [9] - The management has made difficult decisions to reduce headcount and align operations with current order rates [10][24] Q&A Session Summary Question: Confidence in passing along tariff impacts to customers - Management is in constant negotiation with key customers and believes they can pass through the $30 million tariff impact, while also optimizing their cost structure [33][35] Question: Expectations for Q2 EBITDA - Management expects a seasonal uptick in Q2, but it will be muted compared to historical trends, with sales tracking down roughly 19% [37][38] Question: Managing liquidity risk and balance sheet improvement - The company has ample liquidity and is evaluating options like sale-leaseback or asset sales to strengthen the balance sheet [51][54] Question: Market share opportunities as a U.S.-based producer - Management sees opportunities to regain market share due to tariff impacts on imports, particularly in fiberglass doors [60][62] Question: Progress on standardizing build specifications - Management is making progress on optimizing cost to serve and reducing product complexity, which will aid in future footprint consolidation [88][89] Question: New business wins with builder customers - Management is ahead of expectations for gaining new business, but the materialization of sales will take time due to the cyclical nature of the business [90][92]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $776 million, representing a 19% decline year over year, with approximately 15% attributed to lower core revenues and 4% due to the divestiture of the Towanda operations [11][12] - Adjusted EBITDA for the quarter was $22 million, a decrease of $47 million compared to the prior year, resulting in an adjusted EBITDA margin of 2.8% [12][15] - Free cash flow was a use of $125 million in Q1 2025, compared to a $46 million use in Q1 2024, primarily driven by lower EBITDA and unfavorable working capital dynamics [13][14] - The net debt leverage ratio increased to 4.6 times, exceeding the targeted range of 2 to 2.5 times, with reducing leverage being a high priority for the company [14] Business Line Data and Key Metrics Changes - North America segment reported revenue of $531 million for Q1 2025, a 22% decline year over year, with core revenues decreasing by 17% primarily due to lower volume [16] - Adjusted EBITDA for North America declined to $16 million compared to $61 million in the same quarter last year, reflecting negative impacts from lower volume and productivity challenges [16] - Europe segment revenue for Q1 was $245 million, down 12% year over year, driven almost entirely by lower volume, with adjusted EBITDA of $11 million, a decline of $4 million from the prior year [17] Market Data and Key Metrics Changes - The company experienced double-digit volume declines in both North America and Europe segments during the quarter, with ongoing market declines impacting revenue [7][11] - Tariffs introduced additional planning uncertainty, leading to the withdrawal of full-year guidance [8] - The anticipated annualized impact of tariffs is approximately $55 million, with about $30 million expected to affect 2025 results [18][19] Company Strategy and Development Direction - The company is focused on enhancing production capabilities, optimizing manufacturing and distribution networks, and investing in automation to drive efficiency and reduce costs [28][29] - The strategic priorities include reestablishing strong partnerships with customers, optimizing operational footprint, and investing in automation to enhance productivity [28][29] - The company remains committed to its transformation initiatives, expecting to achieve approximately $100 million in ongoing transformation benefits this year [27] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenging macroeconomic environment, with elevated interest rates and declining consumer confidence impacting new home construction and repair activities [22] - Despite significant headwinds, the company anticipates that Q2 adjusted EBITDA will be slightly above Q1 levels, driven by cost reduction initiatives [26] - The management expressed confidence in navigating current challenges and believes the company will be well-positioned once markets stabilize [30] Other Important Information - The company has made difficult decisions to reduce headcount and consolidate workflows to adapt to the current business environment [25] - The company is actively managing working capital and reviewing capital expenditure requests to strengthen its balance sheet [52] Q&A Session Summary Question: Confidence in passing along tariff impact to customers - Management is in constant negotiation with key customers regarding tariff impacts and believes they can pass through surcharges while optimizing cost structures [34][35] Question: Expectations for Q2 EBITDA improvement - Management expects a seasonal uptick in Q2, but it will be muted compared to historical trends due to ongoing uncertainty [38][39] Question: Confidence in offsetting non-tariff inflation - Management maintains that $50 million is still a good estimate for non-tariff related input cost increases, with a focus on service and quality to remain competitive [79] Question: Update on Towanda divestiture impact - Management expects to see results towards the higher end of the EBITDA impact range from the Towanda divestiture [82] Question: Progress on standardizing build specifications - Management reports progress in optimizing cost to serve and reducing product complexity, which will aid in future footprint consolidation [90] Question: CapEx outlook and flexibility - Management has flexibility with CapEx and is focused on balancing short-term and long-term investments, with potential reductions if market conditions worsen [100]