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JH

JELD-WEN Holding, Inc. (JELD)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was very weak on volume with net revenues $776.0M (-19.1% YoY) and Adjusted EBITDA $21.9M (2.8% margin), pressured by a court‑ordered Towanda divestiture and a ~16% volume/mix decline; a ~$125M non‑cash goodwill impairment drove GAAP net loss to ($179.8)M .
  • Versus S&P Global consensus, JELD slightly beat on revenue ($776.0M vs $769.7M*) and Adjusted EPS (-$0.17 vs -$0.19*); management withdrew full‑year 2025 guidance due to tariff uncertainty, but expects Q2 Adjusted EBITDA to be “slightly above” Q1 .
  • Segment results: North America revenue $530.6M (-22.0% YoY) and Europe $245.4M (-12.1% YoY); both saw lower volumes, with NA impacted by Towanda and prior Midwest retailer loss; Adjusted EBITDA fell across segments .
  • Balance sheet/cash: Net cash used in operations ($83.5M), capex $42.0M, Free Cash Flow ($125.4M); Net Debt rose to $1,049.7M and leverage to 4.6x (TTM Adjusted EBITDA) from 3.8x at YE2024 .
  • Stock reaction catalysts: withdrawal of full‑year guidance, tariff pass‑through plan (~$55M annualized, ~$30M in 2025) and rising leverage; management nevertheless reiterated ~$150M capex and ~$100M transformation plus ~$50M short‑term cost actions in 2025 .

What Went Well and What Went Wrong

What Went Well

  • Management executing transformation: Q1 Adjusted EBITDA $21.9M despite volume shock; reiterated ~$100M transformation benefits and ~$50M short‑term actions with 40% H1/60% H2 cadence .
  • Early operational improvements and customer service focus: CEO highlighted quality and OTIF gains (e.g., Kissimmee sprint) and new builder wins ahead of plan, albeit not yet material in P&L .
  • Tariff exposure manageable and pass‑through strategy: annualized impact ~$55M, ~$30M in 2025; limited direct China materials (<1% Tier 1/2), planning to pass through surcharges to customers .

What Went Wrong

  • Severe volume/mix headwinds: Core Revenue down ~15% and total volume/mix down ~16%, larger hit in North America; Adjusted EBITDA margin fell 440bps YoY to 2.8% .
  • Non‑cash goodwill impairment (~$124.6M pre‑tax) in North America drove GAAP net loss to ($179.8)M and operating loss margin to (22.1%) .
  • Cash burn and leverage increased: FCF ($125.4M) in Q1; Net Debt Leverage up to 4.6x; management withdrew FY25 guidance given escalating tariff/macro uncertainty .

Financial Results

Actuals vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$934.7 $895.7 $776.0
Adjusted EPS ($)$0.32 ($0.10) ($0.17)
Operating (Loss) Margin (%)(5.6%) (5.7%) (22.1%)
Adjusted EBITDA ($USD Millions)$81.6 $40.1 $21.9
Adjusted EBITDA Margin (%)8.7% 4.5% 2.8%

Q1 2025 Actual vs S&P Global Consensus

MetricQ1 2025 ActualQ1 2025 Consensus
Revenue ($USD Millions)$776.0$769.7*
Primary EPS ($)($0.17)($0.19)*
EBITDA ($USD Millions, SPGI basis)($6.26)*$20.76*

Values retrieved from S&P Global.
Note: Company reports Adjusted EBITDA of $21.9M; SPGI “EBITDA” may be non‑adjusted and not directly comparable .

Segment Breakdown (Q1 2025 vs Q1 2024)

SegmentNet Revenue Q1 2024 ($M)Net Revenue Q1 2025 ($M)YoY %Adjusted EBITDA Q1 2024 ($M)Adjusted EBITDA Q1 2025 ($M)
North America$680.0 $530.6 (22.0%) $61.2 $15.5
Europe$279.1 $245.4 (12.1%) $14.5 $10.7

KPIs and Balance Sheet

KPIQ1 2024Q1 2025Reference
Net Cash from Operating Activities ($M)($11.0) ($83.5) Statements of Cash Flows
Capital Expenditures ($M)$34.7 $42.0 Cash Flow/Disclosure
Free Cash Flow ($M)($45.7) ($125.4) Reconciliation
Total Debt ($M)—$1,182.2 Q1 balance snapshot
Cash and Equivalents ($M)—$132.5 Balance Sheet
Net Debt ($M)$1,033.1 (Dec‑31‑2024) $1,049.7 (Mar‑29‑2025) Net Debt
Net Debt Leverage (x)3.8x (Dec‑31‑2024) 4.6x (Mar‑29‑2025) Net Debt Leverage

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$3.2–$3.4B Withdrawn Withdrawn
Adjusted EBITDAFY 2025$215–$265M Withdrawn Withdrawn
Operating Cash FlowFY 2025~ $15M Withdrawn Withdrawn
Capital ExpendituresFY 2025~ $150M ~ $150M (maintained) Maintained
Q2 Adjusted EBITDA (directional)Q2 2025—Slightly above Q1 New directional comment

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Tariffs/MacroAnticipated market decline; price/cost headwinds; potential tariff scenarios discussed Annualized tariff impact ~$55M; ~$30M in 2025; plan to pass through surcharges; withdrew FY guidance Uncertainty rising; guidance withdrawn
Product Mix & AffordabilityMix shift to entry‑level products hurt margins Mix has stabilized at lower level; declines now predominantly volume Stabilized mix; volume weakness persists
Transformation/Cost Actions2024 delivered ~$115M; 2025 plan ~$100M + ~$50M short‑term 40% H1 / 60% H2 realization; productivity tied to volumes Ongoing; back‑half weighted
Network Optimization/FootprintIdled Grinnell; broader NA optimization program Additional network changes (Grinnell, Chiloquin) and automation investments Accelerating consolidation/automation
Liquidity/LeverageYE2024 leverage 3.8x; operating cash flow guide ~$15M Leverage 4.6x; ample liquidity including undrawn $500M revolver Leverage up; liquidity intact
Builder Relationships/SharePipeline building; service improvements planned New builder wins ahead of plan; H2 contribution small; focus on service/quality Early traction; long gestation

Management Commentary

  • CEO: “We continued to execute our transformation, removing cost and improving focus… However, the pace of market deterioration continues to outweigh the benefits of our cost actions.”
  • CFO: “Revenue for the first quarter was $776 million… Adjusted EBITDA for the quarter came in at $22 million… Free cash flow was a use of $125 million” .
  • CEO on tariff strategy: “We don’t see significant challenges in getting the surcharges into the market… we are onshoring capacity… to create maybe in the short term, a higher cost base, but longer term, a lower cost base” .
  • CEO on Q2 outlook: “We anticipate that our second quarter adjusted EBITDA will be slightly above first quarter levels.” .

Q&A Highlights

  • Tariff pass‑through confidence: Management plans to pass ~$30M of 2025 tariff costs to customers; limited direct China exposure; timing impacts in Q2 expected to be immaterial .
  • Seasonality muted: Q2 uptick expected but off a low base; April demand remained softer than expected .
  • Transformation cadence and productivity: ~$150M benefits in 2025 (100 + 50), with 40/60 H1/H2; productivity remains challenged at low volumes due to underutilized sites .
  • Balance sheet/liquidity: Leverage 4.6x; ample liquidity including undrawn $500M revolver; evaluating sale‑leaseback and asset sales .
  • Towanda impact: EBITDA impact trending toward higher end of $25–$50M range, per retention outcomes .

Estimates Context

  • Revenue: Actual $776.0M vs consensus $769.7M* (small beat).
  • EPS: Adjusted EPS ($0.17) vs consensus ($0.19)* (beat).
  • EBITDA: SPGI “EBITDA” consensus $20.76M* vs SPGI actual ($6.26M)*; company’s Adjusted EBITDA was $21.9M, indicating measure mismatch (non‑GAAP vs SPGI basis) .
    Values retrieved from S&P Global.

Where estimates may adjust:

  • Street likely reduces outer‑quarter growth assumptions given guidance withdrawal and muted Q2 seasonality commentary; tariff pass‑through should mitigate price/cost, but demand elasticity remains unclear .
  • Segment EBITDA trajectories likely revised down for North America amid persistent volume underutilization and Towanda headwinds .

Key Takeaways for Investors

  • Narrative headwinds intensified: guidance withdrawal, deep volume declines, and goodwill impairment underscore a tougher macro/tariff backdrop; near‑term trading likely driven by tariff headlines and Q2 demand cadence .
  • Tactical positive: Q2 Adjusted EBITDA guided “slightly above” Q1 and tariff surcharges planned; watch for evidence of pass‑through effectiveness and margin stabilization in Q2 print .
  • Transformation remains the structural thesis: ~$100M core plus ~$50M near‑term cost actions in 2025, with automation/network consolidation to reset cost base; back‑half weighted benefits .
  • Liquidity cushion but elevated leverage: Net Debt Leverage 4.6x and FCF burn in Q1; monitor working capital discipline, capex pacing (~$150M maintained), and potential sale‑leaseback/asset sales .
  • Segment watch: North America volume underutilization is the main drag; Europe seeing productivity offsets but still volume‑soft; any stabilization in builder traffic/new wins could be upside optionality in H2 .
  • Estimate risk skew: modest beats vs Q1 consensus on revenue/EPS; Street likely revisits H2 uplift assumptions until demand/seasonality normalize and tariff visibility improves .

Citations:

*Values retrieved from S&P Global.