AMWD

• Growth: Navigated challenging macroeconomic environment, delivered product innovation, capacity investments, and channel expansion. Over 30% of made-to-order sales from products launched in the last three years. Facility expansions in Mexico and NC. Transitioned independent distributors to 1951 Cabinetry.
• Digital transformation: Advanced ERP cloud strategy, improved cybersecurity, invested in digital channels for better performance.
• Platform design: Executed improvement plans at Mexico and NC sites, closed Orange, VA facility to streamline operations, focused on cost efficiency and supply chain resilience.

• Net sales for fiscal 2026 expected to be low single-digit declines to low single-digit increases, with first half challenged and second half expected to recover. - Adjusted EBITDA for fiscal 2026 projected to be $175 million to $200 million. - Capital allocation priorities: Invest in digital transformation and platform design, opportunistic share repurchasing, deprioritize debt repayments due to current leverage ratio.

Net sales for the fourth fiscal quarter were $400.4 million, a decline of 11.7% versus the prior year. Remodel net sales (combining home centers and independent dealer and distributors) decreased 10.4%, with new construction net sales down 13.4%. Gross profit margin for the fourth quarter of fiscal year 2025 decreased 160 basis points. For the full fiscal year 2025, net sales were $1.7 billion, a decrease of 7.5%, with gross profit margin at 17.9% versus 20.4% the prior year.

• Uncertainty regarding tariff policies impacting demand and sales. - Macroeconomic factors like declining consumer confidence and low housing resale activity. - Input cost inflation including lumber, particle, plywood, etc. - Labor and transportation cost impacts.

Q: How much of an impact are tariffs expected to have, split between China and non-China tariffs, and how much headwind is expected to be offset in fiscal '26?

A: Outlook range significantly influenced by tariffs, with $20 million of cost assumed based on tariffs in place at end of May 28, 2025, and modeled recovery scenarios from 0% to 100% included in $175M-$200M adjusted EBITDA range.

Q: What drove the sequential improvement in gross margins?

A: Teams right-sized operations and footprint towards end of Q3 and start of Q4, leading to margin rebound in Q4.

Q: What's embedded for pricing at the midpoint of revenue guidance?

A: A host of scenarios including tariff impacts and inflation are embedded, with modeling of various recovery and inflation scenarios.

Q: How much savings are expected from the closure of the components facility?

A: Closure of the facility should yield about $5 million to $6 million of savings and benefits annually on an EBITDA perspective.

Q: What's the progress on automation gains and how it helps 2026 results?

A: Still in early innings of automation journey, with over $10 million spent in fiscal '25 on automation-related investments, realizing labor demand reduction benefits, and more projects teed up for '26 and beyond.