Jeld-Wen (JELD) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues declined 12.4% year-over-year to $986 million, driven by lower volume/mix and persistent macroeconomic headwinds in North America and Europe.

• Adjusted EBITDA fell 22% to $84.8 million (8.6% margin), with productivity and SG&A improvements partially offsetting volume declines and transformation costs.

• Net loss from continuing operations was $18.5 million, or $(0.22) per share, compared to net income of $22.5 million in Q2 2023.

• Samantha Stoddard was promoted to CFO; 1.6 million shares were repurchased at an average price of $15.18.

• Transformation initiatives advanced, including leadership training, facility closures, and automation projects to drive cultural and operational improvements.

Financial highlights

• Q2 2024 net revenues: $986 million (down 12.4% year-over-year); adjusted EBITDA: $84.8 million (8.6% margin); adjusted net income: $29.4 million; adjusted EPS: $0.34.

• Gross margin fell 15.7% to $190 million; operating income dropped to $5.1 million from $56.3 million in Q2 2023.

• Free cash flow for H1 2024 was $(33.8) million, compared to $106.4 million in the prior year period.

• Net debt leverage increased to 2.9x from 2.5x at year-end 2023; liquidity at quarter-end was $692 million.

• Capital expenditures increased to $74.1 million in H1 2024, focused on efficiency and automation.

Outlook and guidance

• 2024 revenue guidance maintained at $3.9–$4.1 billion, with core revenues expected to decline 5–9%.

• Adjusted EBITDA guidance is $340–$380 million, trending toward the lower end due to macroeconomic weakness.

• Free cash flow projected at $25–$50 million for the year; operating cash flow outlook revised to ~$200 million.

• No further share repurchases or acquisitions planned for 2024.

• Price/cost expected to be down 1% year-over-year, offset by further SG&A reductions and productivity gains.