JELD-WEN Q1 Earnings Call Highlights

Key Points

• JELD-WEN’s Q1 results weakened as revenue fell 7% year over year to $722 million and adjusted EBITDA dropped to $6 million, pressured by lower volumes, inflation, and negative price-cost dynamics. Operating cash flow was a $91 million use of cash, and net debt leverage rose to 11.3x.
• North America remained under pressure while Europe showed signs of stabilization. North American revenue declined sharply to $453 million, while Europe revenue rose 10% in euros, helped by foreign exchange and slightly better pricing, though volumes still fell.
• Management lifted full-year revenue guidance to $3.05 billion-$3.2 billion, citing improving service levels and a smaller expected share-loss headwind, but kept EBITDA guidance unchanged at $100 million-$150 million. The company also said it is continuing a strategic review of its European business and other liquidity options.

JELD-WEN NYSE: JELD reported lower first-quarter 2026 revenue and earnings as weak demand, inflation and negative price-cost dynamics weighed on results, while management raised its full-year revenue outlook based on improving service levels and a smaller expected share-loss headwind.

The windows and doors manufacturer posted first-quarter net revenue of $722 million, down 7% from $776 million a year earlier. Chief Financial Officer Samantha Stoddard said the decline was driven primarily by lower volumes, with mix down slightly year over year. Core revenue declined 10%, while foreign exchange provided a $30 million tailwind, helped by a stronger euro relative to the dollar.

Adjusted EBITDA fell to $6 million from $22 million in the prior-year quarter, and adjusted EBITDA margin declined to 0.9% from 2.8%. Stoddard said the earnings decline reflected lower volume mix and negative price-cost dynamics, with inflation not fully offset by pricing. She said those pressures were partially offset by “significantly improved productivity year-over-year.”

Soft Markets Pressure First-Quarter Results

Chief Executive Officer Bill Christensen said the macro environment remained soft in the quarter, consistent with the company’s expectations. He noted that the first quarter is typically JELD-WEN’s seasonal low period and said the company anticipates improvement through the rest of the year.

“We delivered the quarter within our expectations and managed through a difficult volume environment,” Christensen said.

Stoddard said first-quarter adjusted EBITDA was hurt by a $21 million price-cost headwind, as pricing was slightly positive but was outweighed by inflation in areas including glass, metals and transportation. Volume mix created another $22 million headwind. Those pressures were offset in part by a $22 million productivity benefit and a $6 million improvement in selling, general and administrative and other expenses, despite a $10 million other income headwind from the prior year.

Operating cash flow was a $91 million use of cash in the quarter, reflecting lower adjusted EBITDA and a $43 million working capital use. Stoddard said the first quarter is typically the company’s highest working capital quarter, and management expects “significant working capital improvement” through the remainder of 2026. Net debt leverage increased to 11.3 times at quarter-end, and the company drew $40 million on its revolver.

North America Declines, Europe Stabilizes

In North America, first-quarter revenue was $453 million, down from $531 million a year earlier. Stoddard attributed the decline primarily to lower volumes and the court-ordered Towanda divestiture, which had a partial impact in the first quarter of 2025. North America adjusted EBITDA was $4 million, down from $16 million, while adjusted EBITDA margin fell to 0.8% from 2.9%.

Stoddard said North American profitability was pressured by inflation and lower volumes, partly offset by significant productivity and SG&A improvements.

In Europe, revenue was EUR 269 million, up from EUR 245 million a year earlier, a 10% increase. Stoddard said the improvement was driven primarily by foreign exchange and slightly better pricing, partly offset by continued volume declines. Foreign exchange contributed approximately 11.5 percentage points to the year-over-year revenue change. Europe adjusted EBITDA was $7 million, down from $11 million, and adjusted EBITDA margin declined to 2.6% from 4.3%.

Christensen said European conditions appear to be stabilizing, with the company expecting volumes to be roughly flat year over year. “Demand remains subdued, but we are not seeing further deterioration from current levels,” he said.

Guidance Updated as Service Improvements Support Sales Outlook

JELD-WEN raised its full-year 2026 net revenue outlook to a range of $3.05 billion to $3.2 billion, up from its prior range of $2.95 billion to $3.1 billion. Management now expects core revenue to decline 3% to 6% year over year, compared with a prior expected decline of 5% to 10%.

Christensen said the higher revenue outlook reflects a modest benefit from improving service levels, bringing company volume assumptions more in line with the underlying market. He added that April sales were in line with expectations.

The company maintained its full-year adjusted EBITDA guidance of $100 million to $150 million. Christensen said improved volumes are being offset by incremental price-cost headwinds versus prior assumptions, including higher freight costs and competitive pricing in certain areas.

JELD-WEN also maintained its cash flow outlook, expecting operating cash flow of approximately $40 million and a free cash flow use of approximately $60 million. Capital expenditures are expected to be approximately $100 million and “largely maintenance in nature.” The guidance assumes no portfolio changes.

For 2026 end-market assumptions, management said it expects the North American windows and doors market to be down low to mid-single digits. New single-family construction is expected to be down low single digits, repair and remodel down mid-single digits, U.S. multifamily up significantly year over year, and Canada down high single digits. In Europe, volumes are expected to be roughly flat.

Service Levels and Productivity Remain Key Focus Areas

Management emphasized progress on customer service, particularly in North America. Christensen said On-Time In-Full delivery, or OTIF, has improved to more than 90% over the past year, with a goal of consistently operating above 95%.

“Customers are noticing the improvement,” Christensen said, adding that JELD-WEN is seeing better engagement, more consistent order patterns and more opportunities to quote and compete for new business.

He said the company has deployed its A3 Management System across the network to improve issue identification, root-cause problem solving and plant-level consistency. JELD-WEN has also made targeted service investments, including higher transportation spending such as shipping partial loads when needed, while maintaining staffing levels despite lower volumes.

During the question-and-answer session, Stoddard said the company expects second-quarter adjusted EBITDA to improve from the first quarter primarily because of normal seasonality, higher sales volume, better labor absorption and pricing actions implemented in the first quarter that should flow through more meaningfully in the second quarter.

Stoddard also said the company’s normal incremental margins in an improving volume environment are expected to be in the 25% to 30% range. On productivity initiatives, she said $35 million of transformation carryover benefits are 100% complete, while more than 80% of base productivity and rightsizing initiatives are done.

Strategic Review of Europe Continues

Christensen said JELD-WEN continues to progress its strategic review of the European business, but has nothing to announce. He said the review could provide meaningful liquidity and help strengthen the balance sheet.

In response to an analyst question about other potential asset sales, Christensen said the company continues to evaluate options to improve liquidity, including sales of other assets and potential sale-leaseback transactions. He said JELD-WEN expects to address near-term maturities before they become current in December.

“Cash and liquidity remain a priority,” Christensen said. “We are taking actions to preserve cash, and we continue to evaluate opportunities to strengthen liquidity and maintain flexibility in an uncertain environment.”

About JELD-WEN NYSE: JELD

JELD-WEN is a global manufacturer of windows and doors and related building products, serving both residential and commercial markets. The company's portfolio includes wood, vinyl and aluminum windows; interior wood doors; and exterior doors crafted from steel, fiberglass and composite materials. JELD-WEN's products are designed for new construction and remodeling applications, with an emphasis on quality, durability and energy efficiency.

Founded in 1960 in Klamath Falls, Oregon, JELD-WEN has grown through a combination of organic expansion and strategic acquisitions to establish a manufacturing footprint in North America, Europe and Australasia.

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