JELD-WEN Holding, Inc. Q4 FY2025 earnings call

Thanked teams across JELD-WEN; macro environment soft in fourth quarter with end markets not improving; delivered results at high end of expectations; took labor and cost actions; completed sale leaseback of Coral Springs facility; made progress improving service levels in second half of year; implementing common manufacturing operating system; focusing on controlling what can be controlled; continuing strategic review of European business; evaluating other actions for liquidity; focused on execution and decisions within control; improving service and aligning costs while not undermining service.

In North America, fourth quarter revenue was $522 million compared to $640 million in the prior year. Adjusted EBITDA for North America was $14 million compared to $42 million last year, with adjusted EBITDA margin declining to 2.6% from 6.6%. In Europe, revenue was $280 million, up from $256 million in the prior year. Adjusted EBITDA for Europe was $12 million compared to $17 million last year, with adjusted EBITDA margin of 4.1% versus 6.5% in the prior year.

Expect overall market for windows and doors in North America to be down low to mid-single digits; Europe volumes broadly flat; 2026 net revenue range $2.95 billion to $3.1 billion; adjusted EBITDA range $100 million to $150 million; operating cash flow approx $40 million, capital expenditures approx $100 million, free cash flow use approx $60 million; expect to use revolver in first quarter and pay down by year-end; guidance reflects cautious market view, disciplined pricing and cost management.

Macro environment remains soft putting volume and margins under pressure; service performance still needing work; market conditions soft with no near-term recovery; ongoing strategic review of European business involves uncertainty.

Q: Around price versus volume dynamic.

A: Pricing actions into market, still expect price/cost headwind but in reasonable pocket, pricing phased with Q2 fully into financials.

Q: On implementing operating model across business.

A: 85% of the way there through 2025, system working, controlling what can be controlled, productivity opportunity with volume recovery.