Executive Summary

Q2 2025 was operationally tougher but slightly better sequentially: revenue rose to $823.7M, Adjusted EBITDA to $39.0M and Adjusted EPS to $(0.04), while GAAP diluted EPS was $(0.26). Year-over-year declines reflect volume/mix pressure and Towanda divestiture; North America volumes and pricing dynamics were the biggest drag .
Results beat Street on revenue, Adjusted EPS and Adjusted EBITDA: revenue $823.7M vs $810.2M consensus*, Adjusted EPS $(0.04) vs $(0.105), Adjusted EBITDA $39.0M vs $30.6M. Management cited cost actions and transformation benefits offsetting volume headwinds. Values retrieved from S&P Global .
Guidance reinstated and lowered: FY25 Adjusted EBITDA cut to $170–$200M (from $215–$265M in Feb), revenue unchanged at $3.2–$3.4B, and operating cash flow now expected to be an ~$10M use (vs +$15M prior). Cash flow pressure, negative price/cost and productivity on lower volumes drove the reset .
Balance sheet strain intensified: Net Debt Leverage rose to 5.7x TTM Adjusted EBITDA. Management is evaluating strategic options to reduce leverage, including potential divestitures (e.g., North American distribution, assessing long‑term ownership of Europe) and aims to provide clarity to capital markets before year-end .
Near-term stock catalysts: clarity on capital structure actions, progress on customer service/OTIF restoration by Q3, tariff pass-through execution, and any asset sale announcements. Transformation and cost measures are back-half weighted and should support margins if volumes stabilize .

What Went Well and What Went Wrong

What Went Well

“We managed the uncertainty effectively, delivering cost reductions across the business” and began “bank[ing] the benefits” of actions taken, helping Adjusted EBITDA finish at the high end of internal expectations despite soft demand .
Europe resilience: revenue down only (2.7%) YoY with FX tailwind and selective pricing; Adjusted EBITDA $17.0M as productivity and price/cost offset volumes, with margin 6.4% .
Reinstated FY25 guidance and affirmed transformation cadence ($100M in-year benefits) with targeted commercial efforts to regain share; back-half EBITDA expected similar in Q3/Q4 as actions flow through .

What Went Wrong

Core revenue down (13%) from (14%) volume/mix; North America net revenue down (21.8%) and Adjusted EBITDA down ($40.9M) on unfavorable volume/mix, price/cost, productivity, partly offset by lower SG&A .
Adjusted EBITDA margin compressed 390 bps YoY to 4.7% on lower sales, negative price/cost, and operational inefficiencies from reduced throughput .
Leverage increased (5.7x), operating cash flow was a use YTD and free cash flow deeply negative given lower EBITDA and continued transformation capex; management flagged high leverage above target range and will evaluate strategic options .

Financial Results

Quarterly trend (sequential)

Metric	Q4 2024	Q1 2025	Q2 2025
Net Revenues ($USD Millions)	$895.7	$776.0	$823.7
Diluted EPS (GAAP, $)	$(0.81)	$(2.12)	$(0.26)
Adjusted EPS ($)	$(0.10)	$(0.17)	$(0.04)
Adjusted EBITDA ($USD Millions)	$40.1	$21.9	$39.0
Adjusted EBITDA Margin (%)	4.5%	2.8%	4.7%

Year-over-year

Metric	Q2 2024	Q2 2025
Net Revenues ($USD Millions)	$986.0	$823.7
Diluted EPS (GAAP, $)	$(0.22)	$(0.26)
Adjusted EPS ($)	$0.34	$(0.04)
Adjusted EBITDA ($USD Millions)	$84.8	$39.0
Adjusted EBITDA Margin (%)	8.6%	4.7%

Versus S&P Global consensus (Q2 2025)

Metric	Consensus*	Actual
Revenue ($USD Millions)	810.2*	$823.7
Primary EPS ($)	$(0.105)*	$(0.04)
EBITDA ($USD Millions)	30.6*	$39.0 (Adjusted EBITDA)

Values retrieved from S&P Global. Consensus EBITDA refers to S&P Global EBITDA; company reports Adjusted EBITDA.

Segment breakdown (Q2)

Segment	Net Revenues ($USD Millions) Q2 2024	Net Revenues ($USD Millions) Q2 2025	Adjusted EBITDA ($USD Millions) Q2 2024	Adjusted EBITDA ($USD Millions) Q2 2025
North America	$710.6	$555.7	$75.6	$34.7
Europe	$275.4	$268.1	$20.4	$17.0
Total	$986.0	$823.7	$84.8	$39.0

KPIs (June 28, 2025 unless noted)

KPI	Value
Net Debt Leverage (TTM Adjusted EBITDA)	5.7x
Total Debt ($USD Millions)	$1,178.6
Cash & Equivalents ($USD Millions)	$134.1
Operating Cash Flow (6M) ($USD Millions)	$(48.9)
Capital Expenditures (6M) ($USD Millions)	$76.1
Free Cash Flow (6M) ($USD Millions)	$(125.1)

Guidance Changes

Metric	Period	Previous Guidance (Feb 17, 2025)	Current Guidance (Aug 5, 2025)	Change
Revenue	FY 2025	$3.2–$3.4B	$3.2–$3.4B	Maintained
Adjusted EBITDA	FY 2025	$215–$265M	$170–$200M	Lowered
Core Revenue Decline	FY 2025 vs 2024	Down (4%) to (9%)	Down (4%) to (9%)	Maintained
Operating Cash Flow	FY 2025	~+$15M	~$(10)M use	Lowered

Management expects FY25 free cash flow to be an approximate $150M use, driven by EBITDA outlook and transformation capex .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 & Q1 2025)	Current Period (Q2 2025)	Trend
Tariffs/macro	Potential tariff headwinds, price-cost neutral target; Q1 withdrew guidance amid tariff uncertainty; annualized tariff impact ~$55M with ~$30M in 2025; pass-through planned	Updated tariff impact ~$40M annualized, ~$17M expected in 2025; surcharges largely recovering costs; modest direct China exposure (<1% Tier 1, ~5% incl. Tier 2)	Impact moderated vs Q1; pass-through progressing; uncertainty persists
Price/cost dynamics	Neutral to slightly negative expected; inflation (labor/material) pressure	Slight negative price/cost; selective pricing concessions to defend volume	Negative bias persists
Supply chain/network optimization	Idled Grinnell; footprint actions planned; automation ramp (Garland TX)	Additional footprint actions (Coppell TX repurpose; Grinnell closure/repurpose; announce Chiloquin closure); slower consolidations to protect service/capital	Actions ongoing; pacing moderated to protect service
Customer service/quality	Focus on OTIF, lead times; pipeline building with builders	Expect majority OTIF restored by end of Q3; disciplined execution, site accountability	Improving
Leverage/capital structure	Net debt leverage 3.8x (Q4); evaluating sale‑leaseback/asset sales	Net debt leverage 5.7x; considering options incl. North American distribution and assessing Europe long‑term ownership; clarity before year-end	Priority heightened
Regional trends	NA: mix down, builder softness; Europe: declines but productivity offset	NA volumes down mid-single digits expected; Europe low single-digit declines with FX tailwind; commercial mixed	Rate of decline slowing
Product performance	Interior doors relatively stable; windows lost Midwest retail stock business	Windows vs doors: mix-down largely completed in 2024; 95% of revenue pressure now volume	Volume-driven headwinds

Management Commentary

CEO: “While the second quarter brought continued challenges, we managed the uncertainty effectively, delivering cost reductions across the business… we are reinstating full year guidance” .
CFO: “Our net debt leverage ratio increased to 5.7 times. This level of leverage far exceeds our targeted range, and reducing leverage remains one of my highest priorities” .
CFO on tariffs: “We estimate the annualized impact of tariffs… approximately $40M, with around $17M expected to affect our financial results in 2025… pricing actions are designed to recover the vast majority of these costs” .
CEO on strategic options: “We are assessing various options including smaller business areas… and larger portfolio questions including evaluating whether we are the right long-term owner of our European operations… provide clarity… before the end of this year” .

Q&A Highlights

Leverage reduction path: No covenant issues; $500M undrawn revolver; exploring asset sales (distribution, Europe) with no time pressure; clarity targeted before year-end .
Back-half EBITDA uplift drivers: ~30% flow-through on volume plus discrete actions (plant closures, reductions in force) and transformation benefits; 2H weighted realization .
Volume/mix: 2025 pressure predominantly volume (>95%), mix down largely occurred in 2024; Midwest retailer impact laps in Q4 .
Pricing: Tariff surcharges in market; selective pricing to defend volume; price/cost negative expected in 2H .
Europe strategy: Evaluating best-owner question; improving operations; potential proceeds could reduce debt materially .

Estimates Context

Q2 2025 delivered beats vs consensus: revenue $823.7M vs $810.2M*, Primary EPS $(0.04) vs $(0.105), and Adjusted EBITDA $39.0M vs EBITDA consensus $30.6M. Management’s reset of FY25 EBITDA guidance implies sell-side estimates likely need to move lower for 2H if volume softness and price/cost persist. Values retrieved from S&P Global .

Key Takeaways for Investors

Near-term: Guidance reset and higher leverage are overhangs; watch for capital structure actions and service metric recovery by Q3 as potential catalysts .
Medium-term: Back-half weighted cost/transform benefits should stabilize margins; sequential EBITDA improvement likely if volumes hold and OTIF restores; expect neutral-to-negative price/cost bias to persist .
Segment lens: North America remains the swing factor; Europe is relatively stable with productivity offsets and FX tailwinds; any strategic moves on Europe could de-lever materially .
Tariffs: Exposure manageable and mostly pass-through; ensure surcharges stick without compromising share; monitor evolving corridors and second-order demand impacts .
Cash/Capex discipline: Operating cash use and FCF headwinds continue in 2025 due to EBITDA and elevated transformation capex; management indicated 2026 capex could be cut if market remains soft .
Share dynamics: Lost Midwest retail windows business laps in Q4; targeted builder initiatives and stock-build programs could aid volumes late-year but are unlikely to be material in 2025 .
Risk/reward: Execution on transformation/service recovery plus credible de-leveraging plan before year-end would de-risk equity; misses on price-cost pass-through or slower volume stabilization would pressure margins further .

Notes: 
- *Values retrieved from S&P Global.

JELD-WEN Holding, Inc. (JELD)·Q2 2025 Earnings Summary