Executive Summary

Q4 2024 deteriorated sequentially as weak demand and mix shift to entry-level products cut revenue to $895.7M (-12.3% YoY) and compressed adjusted EBITDA to $40.1M (4.5% margin) from $81.6M (8.7%) in Q3; GAAP net loss widened to ($68.4M), including a $31.4M Towanda-related goodwill impairment .
2025 outlook implies another down year: revenue $3.2–$3.4B (Core Revenue -4% to -9%) and adjusted EBITDA $215–$265M, with operating cash flow ~ $15M; Q1 guide is especially weak with sales $750–$775M and ~ $20M adj. EBITDA as share losses, divestiture, and seasonality bite .
Management delivered ~~$115M of 2024 transformation benefits but volume/mix headwinds, inflation (~~$50M cost headwind planned to be offset with price), and negative price/cost in 2024 outweighed gains; leverage increased to 3.8x at year-end .
Strategic actions are accelerating: NA network optimization and automation (targeting another ~$60M+ mid‑term benefits), plus ~$50M near-term cost mitigations in 2025 atop a planned ~$100M transformation run‑rate; tariff risks are not in the guide .
S&P Global consensus estimates were unavailable at time of analysis due to API limit; we cannot quantify beats/misses versus Street for Q4 or guidance.

What Went Well and What Went Wrong

What Went Well
- Transformation delivery: “we delivered approximately $115 million of transformation benefits in 2024” and see another ~$100M annualized improvements in 2025 from actions in our control .
- Europe margin resilience: despite -6% core revenue, Europe’s adjusted EBITDA rose to $16.5M in Q4 (+$1.0M YoY) on productivity gains; Q4 margin 6.5% .
- Focused network optimization and automation: management launched a comprehensive NA network optimization (right product, capacity, location) and is accelerating automation to enable consolidation and efficiency, aiming for ~$60M+ mid‑term benefits .
What Went Wrong
- Demand/mix deterioration: Q4 Core Revenue -12% entirely from -12% volume/mix (trade-down to entry-level); adjusted EBITDA margin fell 400 bps YoY to 4.5% .
- Non-cash impairment and legal overhang: $31.4M NA goodwill impairment tied to the court-ordered Towanda divestiture (Towanda sold 1/17/25 for $115M), with management estimating $150–$200M annual revenue and $25–$50M EBITDA reduction post-sale .
- Leverage and cash flow: year-end net debt leverage rose to 3.8x; 2024 free cash flow was ($67.5M), and Q4 FCF was a use of $28M on $56M capex .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$986.0	$934.7	$895.7
Adjusted EBITDA ($M)	$84.8	$81.6	$40.1
Adjusted EBITDA Margin %	8.6%	8.7%	4.5%
Operating Income Margin %	0.5%	(5.6)%	(5.7)%
GAAP EPS (Cont. Ops)	($0.22)	($0.86)	($0.81)
Adjusted EPS	$0.34	$0.32	($0.10)

Year-over-year (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Revenue ($M)	$1,021.1	$895.7
Adjusted EBITDA ($M)	$86.5	$40.1
Adjusted EBITDA Margin %	8.5%	4.5%
Operating Income Margin %	0.7%	(5.7)%
GAAP EPS (Cont. Ops)	($0.27)	($0.81)
Adjusted EPS	$0.37	($0.10)

Segment breakdown (Net Revenue and Adj. EBITDA; oldest → newest)

Segment	Q2 2024 Net Rev ($M)	Q3 2024 Net Rev ($M)	Q4 2024 Net Rev ($M)
North America	710.6	677.9	639.8
Europe	275.4	256.8	255.9

Segment	Q2 2024 Adj. EBITDA ($M)	Q3 2024 Adj. EBITDA ($M)	Q4 2024 Adj. EBITDA ($M)
North America	75.6	74.8	42.4
Europe	20.4	16.3	16.5

KPIs (Q4 and FY context)

KPI	Value
Core Revenue decline (Q4)	(12%) (all volume/mix)
Q4 free cash flow	($28M) use; capex $56M
FY2024 Operating cash flow	$106.2M
FY2024 Capex	$173.7M
FY2024 Free cash flow	($67.5M)
Year-end Net Debt Leverage	3.8x (Net Debt $1,033.1M; TTM Adj. EBITDA $275.2M)

Notes: Q4 Adjusted EPS excludes $0.70 per share net after-tax charges (mainly transformation costs and Towanda-related impairment) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	N/A	$3.2–$3.4B	New
Adjusted EBITDA	FY2025	N/A	$215–$265M	New
Core Revenue YoY	FY2025 vs 2024	N/A	(4%) to (9%)	New
Operating Cash Flow	FY2025	N/A	≈ $15M	New
Capital Expenditures	FY2025	N/A	≈ $150M	New
Free Cash Flow	FY2025	N/A	≈ ($135M) (implied)	New
Sales (Revenue)	Q1 2025	N/A	$750–$775M	New
Adjusted EBITDA	Q1 2025	N/A	≈ $20M	New

Management also indicated a targeted Q4 2025 adjusted EBITDA margin exit rate of ~8–9% as initiatives ramp (commentary, not formal guidance) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Demand/mix (entry-level trade-down)	Q2: Core Rev -12% on -12% volume/mix; shift to lower-priced products . Q3: Core Rev -13% on -13% volume/mix; continued demand shift .	Q4: Core Rev -12% entirely volume/mix; continued shift to entry-level .	Persistent negative mix; volumes still weak.
Price/cost and inflation	Q2: negative price/cost cited . Q3: negative price/cost and productivity headwinds .	2025 inflation headwind ~$50M; aiming for price/cost neutrality; tariffs not in guide .	Inflation persists; pricing actions taken; tariff risk rising.
Transformation savings	Q2: transformation ongoing; EBITDA pressured . Q3: expected $115M 2024 benefits .	Delivered ~$115M in 2024; targeting ~$100M more in 2025 plus ~$50M near-term mitigations .	Executing; scaling savings into 2025.
Network optimization/automation	—	Launching NA network optimization; accelerating automation to enable consolidation; potential $60M+ mid-term benefits .	New, intensifying.
Product/brand performance	Q3: VPI/LaCantina pressured by higher-end/multifamily slowdown .	VPI/LaCantina affected by higher-end and multifamily decline; interior doors stable with share gains .	High-end soft; interior doors relative strength.
Regional outlook	Q2/Q3: Europe soft; productivity partially offsets .	Europe adjusted EBITDA +$1M YoY in Q4; recovery expected 2026, not before .	Europe stabilizing; longer-dated recovery.
Legal/regulatory (Towanda)	Q3: preparing for potential disposition .	Q4 impairment $31.4M; sale completed 1/17/25 for $115M; expected revenue impact $150–$200M and EBITDA $25–$50M over next 12 months .	Legal overhang transitioning to operational impact in 2025.

Management Commentary

CEO: “we delivered approximately $115 million of transformation benefits in 2024… initiatives are helping us navigate the environment… although we’re pleased… market conditions remain challenging… consumers [are] trading down” .
CEO: “launching a comprehensive program to optimize our North America network… accelerating automation… could generate an additional $60 million or more in benefits… once fully implemented” .
CFO: “Adjusted EBITDA for the quarter was $40 million… margin of 4.5%… Free cash flow in the fourth quarter was a use of $28 million, including $56 million in capital investments… net debt leverage ratio increased to 3.8x” .
CEO on tariffs/costs: “we expect… around $50 million in headwind on the cost side… very little [metal] exposure from China… we’re running scenarios… [tariffs] not baked into guidance” .
CEO on 2025: “we expect net revenues [FY25] $3.2–$3.4 billion… adjusted EBITDA $215–$265 million… operating cash flow ~ $15 million… CapEx ~ $150 million… Q1 sales $750–$775 million; adjusted EBITDA ~ $20 million” .

Q&A Highlights

Sequencing of 2025 earnings: Savings from ~$15M near-term actions and broader transformation begin to impact from Q2; normal seasonality also helps progression from Q1 trough .
Price/cost and tariffs: 2025 includes ~$50M non-tariff inflation headwinds with price actions to stay near neutral; tariff impacts (China/Canada) are being scenario-planned but excluded from guidance .
Savings conviction: ~80–85% of $100M transformation projects are already in-flight; $50M cost mitigation is incremental for a demand-challenged year .
Mix dynamics: Entry-level mix headwind is now “baked in” as a run-rate; market still expected down low-to-mid single digits in new build and R&R .
Share loss anniversary: Large Midwest retail window stocking loss laps around September (Q3) .
Corporate expense: Expect $15–$20M headwind YoY from reinstated variable comp in 2025; corporate likely between 2023 and 2024 levels .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS, revenue, and EBITDA were not retrievable due to request limits at the time of analysis; as a result, we cannot provide beat/miss versus Street or consensus dispersion. If desired, we can refresh and append an estimates comparison once access is restored.

Key Takeaways for Investors

Q4 2024 confirmed a sequential step-down: revenue fell to $895.7M and adjusted EBITDA margin halved to 4.5% as volumes and mix deteriorated; non-cash Towanda impairment deepened GAAP losses .
2025 setup is conservative with Q1 guide implying a trough; FY guide embeds Core Revenue down 4–9% and adjusted EBITDA $215–$265M; tariffs are a key unmodeled risk .
Execution alpha: transformation program delivered ~$115M in 2024; management is layering ~$100M more plus ~$50M near-term mitigations and a network optimization/automation program targeting ~$60M+ mid-term benefits .
Europe offers relative stability with productivity-led EBITDA improvement; North America remains the primary swing factor given mix-down, network actions, and prior share losses .
Balance sheet/cash: leverage rose to 3.8x; FY24 FCF was negative; FY25 operating cash flow is guided to ~ $15M with CapEx ~ $150M as they continue to fund transformation .
Legal overhang transitioning to execution: Towanda sale closed for $115M; expect 12-month headwind of ~$150–$200M revenue and ~$25–$50M EBITDA from the divestiture .
Near-term trading implication: sentiment likely tracks confidence in savings ramp and Q1 trough dynamic; watch for evidence of margin recovery toward the 8–9% exit-rate commentary, tariff developments, and stabilization in NA volumes .

JELD-WEN Holding, Inc. (JELD)·Q4 2024 Earnings Summary