Jeld-Wen (JELD) Q4 2024 earnings summary

Executive summary

• Q4 and full year 2024 net revenues declined 12%–12.3% year-over-year, driven by lower volumes, mix, and a shift to entry-level products, especially in North America and Europe.

• Adjusted EBITDA for Q4 was $40M–$40.1M, down $46.5M–$47M year-over-year, with a margin of 4.5%.

• Net loss from continuing operations was $68.4M in Q4 and $187.6M for the year, impacted by goodwill impairment charges and transformation costs.

• Transformation initiatives delivered $115M in benefits in 2024, with further optimization and automation planned.

• Free cash flow for Q4 was negative $28M to $68M, with capital investments of $56M.

Financial highlights

• Q4 2024 revenue was $895.7M–$896M, down 12%–12.3% year-over-year, primarily due to a $126M drop in volume/mix.

• Full year 2024 net revenue was $3,775.6M–$3.78B, down 12%–12.3%; adjusted EBITDA was $275M–$275.2M, down 28%.

• Q4 adjusted EBITDA margin dropped 400 bps to 4.5%; full year margin was 7.3%, down from 8.8%.

• Q4 net loss per share was $(0.81); full year net loss per share was $(2.21); adjusted EPS for the year was $0.78.

• Net debt leverage ratio increased to 3.8x, above the target range.

Outlook and guidance

• 2025 net revenue guidance: $3.2B–$3.4B, reflecting a 4%–9% core revenue decline.

• 2025 adjusted EBITDA expected between $215M–$265M; operating cash flow projected at ~$15M.

• Free cash flow use projected at $135M, with CapEx guidance at $150M.

• Q1 2025 sales expected between $750M–$775M, with Adjusted EBITDA of ~$20M.

• Transformation projects expected to deliver $100M incremental adjusted EBITDA in 2025.