Jeld-Wen (JELD) Q1 2025 earnings summary

Executive summary

• Net revenues declined 19% year-over-year to $776 million, primarily due to lower demand, the court-ordered divestiture of the Towanda facility, and unfavorable FX impacts.

• Net loss widened to $190.1 million from $27.7 million, mainly due to a $137.7 million goodwill impairment in North America and lower sales volume.

• Adjusted EBITDA fell 68% to $21.9 million, with margin down to 2.8%, as cost savings were outweighed by lower volume and productivity.

• Transformation initiatives and operational improvements continued, including network changes, headcount reductions, and restructuring charges.

Financial highlights

• Gross margin dropped to 14.4% from 18.0% year-over-year, with gross profit down $60.5 million.

• Free cash flow was a use of $125 million, including $42 million in capital investments.

• Net debt leverage ratio increased to 4.6x, above the target range of 2-2.5x.

• Cash and cash equivalents at quarter-end were $132.5 million, with total liquidity of $499.4 million.

• Adjusted net loss was $14.2 million, with adjusted EPS of ($0.17).

Outlook and guidance

• Full-year guidance was withdrawn due to increased market volatility and tariff-related uncertainty.

• Q2 adjusted EBITDA expected to be slightly above Q1 levels, with a muted seasonal uptick.

• Transformation initiatives expected to deliver $100 million in ongoing benefits and $50 million in additional short-term benefits in 2025.

• Capital expenditures for 2025 anticipated at approximately $150 million.

• Management expects continued headwinds from lower demand, inflation, and elevated interest rates.