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JH

JELD-WEN Holding, Inc. (JELD)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 was materially weak: net revenues fell 13.4% to $809.5M, Adjusted EBITDA declined 46% YoY to $44.4M (5.5% margin), and GAAP diluted EPS plunged to ($4.30) driven by $196.9M goodwill impairment and $122.3M tax special items .
  • Wall Street comparison: revenue missed consensus ($809.5M vs $823.6M), EPS missed as Adjusted EPS was ($0.20) vs consensus +$0.14; EBITDA also missed consensus materially. Bold miss drivers: volume/mix decline, negative price/cost, tariff pass-through resistance at large accounts. Values retrieved from S&P Global.
  • Guidance cut sharply: FY25 revenue lowered to $3.1–$3.2B (was $3.2–$3.4B) and Adjusted EBITDA to $105–$120M (was $170–$200M); operating cash flow now expected to be a ~$45M use (was ~$10M use) .
  • Strategic actions: ~11% workforce reduction (~850 roles), strategic review of Europe, and portfolio simplification; charges of ~$10–$20M expected in Q4 2025 for restructuring .
  • Near-term stock reaction catalysts: the magnitude of the guide-down, impairment/tax special items, and the Europe review (potential deleveraging path) are likely to dominate investor focus .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA improved sequentially to $44.4M from $39.0M as productivity and lower SG&A partially offset headwinds (still far below prior year) .
  • Europe held relatively better on revenue (+2.6% YoY on FX tailwind) with Adjusted EBITDA roughly flat; productivity actions and price realization partially offset volume softness .
  • Management is taking decisive actions: 11% NA/Corporate headcount reduction, strategic review of Europe, footprint rationalization and SKU simplification (~30% SKU reduction underway) to realign costs and improve service .

What Went Wrong

  • Core Revenues down 10% (volume/mix -11%, price +1%) and Towanda divestiture impact (-5%) drove the top-line decline; negative price/cost and volume deleverage compressed margins (Adjusted EBITDA margin down 320 bps YoY) .
  • Significant non-cash goodwill impairment ($196.9M) and tax special items ($122.3M) led to GAAP net loss of ($367.6)M and diluted EPS of ($4.30) .
  • Tariffs and macro: intensified price-cost headwinds; large customers pushed back on tariff surcharges, muting recovery; operational challenges also limited planned share gains .

Financial Results

Consolidated Performance vs prior year and prior quarter

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$934.7 $823.7 $809.5
Gross Margin ($USD Millions)$179.9 $143.4 $140.9
Operating Loss Margin (%)(5.6%) (1.7%) (25.0%)
Adjusted EBITDA ($USD Millions)$81.6 $39.0 $44.4
Adjusted EBITDA Margin (%)8.7% 4.7% 5.5%
GAAP Diluted EPS ($)(0.88) (0.26) (4.30)
Adjusted EPS ($)0.32 (0.04) (0.20)

Key drivers:

  • Core Revenues down 10% YoY; Towanda divestiture (-5% YoY); FX +2% YoY .
  • Adjusted EBITDA decline due to unfavorable volume/mix and negative price/cost, partly offset by productivity and lower SG&A .

Segment Breakdown – Q3 2025

SegmentRevenue ($USD Millions)YoYAdjusted EBITDA ($USD Millions)YoY
North America$546.1 (19.4%) $37.7 (49.6%)
Europe$263.3 +2.6% $16.0 (1.3%)
Total$809.5 (13.4%) $44.4 (45.6%)

Notes:

  • NA core revenues down 13% with 13% volume/mix decline; Towanda impact -7%; mix slightly positive .
  • Europe core revenues down 4%; FX +6%; volume/mix -6%; price +2% .

KPIs and Balance Sheet

KPIQ3 2025YTD 2025Prior Period
Cash & Equivalents ($M)$106.7 —$150.3 (12/31/24)
Net Debt ($M)$1,076.0 —$1,033.1 (12/31/24)
Net Debt Leverage (TTM Adj. EBITDA)7.4x —3.8x (12/31/24)
Op. Cash Flow ($M)—(37.7) 78.0 (Nine months 2024)
Capital Expenditures ($M)—103.9 118.0 (Nine months 2024)
Free Cash Flow ($M)—(141.6) (40.0) (Nine months 2024)

Liquidity & covenants: ~$100M cash and ~$400M revolver availability; minimum liquidity covenant ~ $40M; no near-term maturities until Dec 2027 .

Guidance Changes

MetricPeriodPrevious Guidance (Aug 2025)Current Guidance (Nov 2025)Change
RevenueFY 2025$3.2–$3.4B $3.1–$3.2B Lowered
Adjusted EBITDAFY 2025$170–$200M $105–$120M Lowered
Core Revenue DeclineFY 2025Down (4%)–(9%) Down (10%)–(13%) Lowered
Operating Cash FlowFY 2025~$10M use ~$45M use (incl. $10–$20M restructuring costs) Lowered
CapExFY 2025~$150M (Q2 call) ~$125M (Q3 call) Lowered
Workforce Reduction ChargesQ4 2025—$10–$20M charges New

Management rationale: further weakening in demand, limited share gains vs plan, intensified price/cost, and slower operational improvement pace drove the cut .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Tariffs/macroEst. annualized ~$55M impact; ~$30M in 2025 with pass-through; high uncertainty Annualized ~$40–45M; ~$17M in 2025; most pass-through; competitive pressure persists ~$45M annualized; ~$17M 2025; resistance from large accounts increasing Headwinds intensifying
Pricing & price/costSlightly price/cost negative expected Price/cost negative; competition at low end Price/cost more negative in Q4; intensified pricing pressure and tariff pushback Worsening
Operations & productivityUnderutilization; footprint consolidation; CapEx for automation; $100M transformation + $50M short-term actions (40/60 H1/H2) Footprint actions (e.g., Grinnell, Copell, Chiloquin); productivity still pressured by volume Sequential EBITDA improvement; base productivity negative; workforce -11% by year-end Gradual progress; volume drag persists
Share/mixMix down stabilized; volume the bigger issue Volume >95% of decline; Towanda and Midwest retailer effects Share loss modest; mix slightly positive; planned gains didn’t materialize Stabilized mix; share recovery delayed
Liquidity/leverageNet leverage 4.6x; ample revolver Net leverage 5.7x; exploring asset sales, sale-leasebacks Liquidity ~ $500M; covenant min liquidity ~$40M; strategic review of Europe Elevated leverage; deleveraging options
Portfolio actionsTowanda divestiture effects; network optimization Considering distribution business sale-leasebacks; evaluating Europe Strategic review of Europe announced; portfolio simplification Escalating actions
Technology/automationInvesting in automation; Garland door facility ramp Automation initiatives progressing Ongoing automation; simplification to reduce complexity and cost Continuing

Management Commentary

  • CEO: “Third-quarter results fell short… We are focused on accelerating operational improvements, while rebalancing our North American and Corporate workforce by approximately 11%… initiating a strategic review of our European segment” .
  • CFO: “Adjusted EBITDA came in at $44M, or 5.5% of sales… lower margin primarily reflected continued price-cost pressure, unfavorable volume, and staffing levels set in anticipation of market share gains that did not materialize” .
  • Liquidity: “Approximately $100 million in cash and approximately $400 million of revolver availability… only relevant covenant requires an approximate minimum of $40 million in total liquidity” .
  • Europe review: “Assessing a range of options… to unlock additional value” .

Q&A Highlights

  • Share loss and SKU simplification: management cited regional share losses amid aggressive competitor pricing and a portfolio simplification targeting ~30% SKU reduction; most change vs prior plan was lower-than-expected share gains rather than incremental loss .
  • Savings cadence: ~$150M mitigation actions (transformation + short-term) largely “fully baked”; base productivity negative due to staffing against share gains and volume decline; more benefit expected to flow in 2H and into 2026 .
  • Guidance reset drivers: softer demand than anticipated, operational issues, increased price/cost headwinds; hence EBITDA/Revenue guide-down vs August .
  • Liquidity: plan not to draw revolver in Q4; pursuing select sale-leasebacks; drive to FCF neutrality in Q4 via CapEx pullback and tighter working capital .
  • Strategic review of Europe: early innings; intent would be deleveraging if capital is generated; assessing whether JELD-WEN is the best long-term owner .

Estimates Context

MetricConsensus (Q3 2025)Actual (Q3 2025)Surprise
Revenue ($USD)823,636,240809,482,000 Miss ($14.2M, ~1.7%)
Primary EPS ($)0.1377(0.20) Miss ($0.34)
EBITDA ($USD)57,564,00029,127,000Miss ($28.4M)

Values retrieved from S&P Global. Note: Company reports Adjusted EBITDA of $44.4M (non-GAAP); SPGI “EBITDA” may reflect a different definition than company “Adjusted EBITDA” .

Implications: Consensus likely to reset lower on FY25 revenue and EBITDA given guidance cut and intensified price/cost/tariff headwinds .

Key Takeaways for Investors

  • Expect estimate cuts and multiple compression risk: revenue/EBITDA guide-down and Q3 miss on both top-line and EPS warrant near-term reset of Street models; watch Q4 price/cost dynamics where management guides further pressure .
  • Strategy pivot to deleveraging: Europe strategic review and select asset monetizations are key to addressing net leverage (7.4x); outcomes will drive medium-term equity value and credit risk .
  • Execution matters: sequential EBITDA improvement is a positive, but base productivity remains negative; the 11% workforce reduction and network actions must translate to sustained margin stability despite weak volumes .
  • Tariff exposure manageable but recovery rate under pressure: surcharge pass-through faces resistance at large accounts; price-cost negativity likely persists near term .
  • Liquidity runway adequate: cash + undrawn revolver (~$500M) and minimal covenant constraints reduce near-term financing risk; no maturities until Dec 2027 .
  • Segment lens: Europe more resilient on revenue (FX tailwind), NA bears the brunt of volume/mix and Towanda effects; monitor NA demand trends and share recovery with builders .
  • 2026 setup: management targets ~$100M annual transformation carryover plus ~$50M workforce benefits in 2026; volume trajectory will determine how much of this falls to EBITDA .

Additional Q3 2025 Documents

  • Q3 2025 earnings press release (Item 2.02 furnished in 8-K), including full reconciliations and guidance .
  • Strategic review press release for Europe segment .
  • 8-K outlining workforce reduction (~11%) and restructuring charges ($10–$20M) .

Cross-References and Disclosures:

  • Non-GAAP measures (Adjusted EBITDA, Adjusted EPS) are reconciled in the company’s press materials; differences vs SPGI definitions may cause comparability variances .
  • All period comparisons reference the quarter ended September 27, 2025 vs September 28, 2024, and prior quarter June 28, 2025 as disclosed in company filings .