JELD-WEN Q2 Earnings Call Highlights

Key Points

• JELD-WEN’s second-quarter revenue fell 1% to $818 million, but adjusted EBITDA rose 8% to $42 million, with margin improving to 5.2% as productivity and cost savings offset lower volumes and price-cost pressures.
• North America delivered stronger profitability despite lower revenue, while Europe’s revenue increased 8% but adjusted EBITDA declined because pricing did not fully offset material-cost inflation. Improved service levels are also helping the company recover lost business.
• The company raised the low end of its 2026 guidance, now targeting $3.1 billion-$3.2 billion in revenue and $120 million-$150 million in adjusted EBITDA, while increasing its productivity target but also expecting greater price-cost headwinds and continued cash-flow use.

JELD-WEN NYSE: JELD reported second-quarter 2026 revenue of $818 million, down 1% from $824 million a year earlier, as lower volume and mix were partly offset by pricing and favorable foreign exchange. Adjusted EBITDA rose 8% to $42 million, marking the company’s first year-over-year increase in adjusted EBITDA in 10 quarters.

Chief Executive Officer Bill Christensen said the company operated in a soft demand environment but saw the pace of year-over-year market declines begin to moderate. He said JELD-WEN’s results reflected improved execution, productivity initiatives and disciplined cost management despite continued pressure from lower market volumes and inflation.

Adjusted EBITDA margin increased to 5.2% from 4.7% in the prior-year quarter. Chief Financial Officer Samantha Stoddard said productivity delivered a $36 million benefit during the quarter, while SG&A savings and other items contributed a net $1 million benefit. Those gains more than offset a $29 million price-cost headwind and a $5 million impact from lower volume and mix.

Segment Performance

North America revenue fell to $529 million from $556 million in the second quarter of 2025, primarily because of lower volumes and mix. However, North America adjusted EBITDA increased to $41 million from $35 million, and the segment’s adjusted EBITDA margin rose to 7.7% from 6.3%.

Stoddard attributed the North American margin improvement to productivity gains and SG&A improvements, which more than offset some of the effects of price-cost pressure and lower volumes.

European revenue increased 8% to $289 million from $268 million. The increase reflected better volume mix, pricing and favorable foreign exchange, with currency contributing about three percentage points of the revenue growth. Europe adjusted EBITDA declined to $13 million from $17 million, however, as price increases did not fully offset material-cost inflation. Improved productivity and volume mix partially mitigated those pressures.

Christensen also announced that Christian Michel joined the company in June as executive vice president and president of Europe. Michel has more than 25 years of leadership experience in manufacturing and industrial businesses, Christensen said.

Service Improvements and Share Recovery

The company said its customer-service performance has supported efforts to regain business previously lost. JELD-WEN tracks On Time In Full delivery, or OTIF, as a key service measure. North American OTIF declined modestly in June and remained in the high-80% range in July, affected by temporary production disruptions tied to Canadian wildfire smoke and service issues with certain freight providers.

Christensen said the wildfire-related impact had largely subsided and facilities had returned to normal operations. The company expects North American OTIF to return above 90% going forward, while Europe is expected to sustain OTIF above 95%.

During the question-and-answer session, Christensen said August service performance was tracking above 90% in North America and that the company had not received significant negative customer feedback over the preceding several months. He said improved service was contributing to additional sales opportunities and cited roughly $25 million of additional sales in the latest revenue outlook, largely tied to the company’s ability to meet customer expectations.

He said recovered business was relatively balanced across North America, with gains in interior doors and vinyl windows. The company also reported strong activity in its VPI multifamily business, particularly on the U.S. East Coast, where Stoddard said an earlier sales investment was beginning to produce results.

Updated 2026 Outlook

JELD-WEN raised the low end of its full-year revenue and adjusted EBITDA outlooks. The company now expects:

• Net revenue of $3.1 billion to $3.2 billion, compared with prior guidance of $3.05 billion to $3.2 billion.
• Core revenue to decline 2% to 5%, compared with its earlier expectation of a 3% to 6% decline.
• Adjusted EBITDA of $120 million to $150 million, compared with previous guidance of $100 million to $150 million.
• Operating cash flow of about $10 million and free cash flow usage of about $75 million.
• Capital expenditures of approximately $85 million.

Christensen said the company expects the improved revenue outlook to produce an incremental margin of roughly 25% to 30%. The company also increased its estimated productivity benefit for 2026 to approximately $120 million from $110 million, while reducing its projected net share-loss headwind to $20 million from $30 million.

At the same time, JELD-WEN increased its expected price-cost headwind to approximately $50 million from $40 million. Christensen said the larger headwind was primarily driven by inbound and outbound freight costs as well as European energy costs. Stoddard said material inflation represented roughly two-thirds of the pressure, with freight accounting for the remaining third.

Cash Flow, Debt and Market Conditions

Free cash flow was a use of $28 million in the second quarter, driven by higher working capital and the timing of accounts receivable following higher sales near quarter-end. Net debt leverage was flat sequentially at 11.3 times adjusted EBITDA, and the company had $80 million drawn on its revolving credit facility to support seasonal working-capital needs.

Christensen said JELD-WEN is evaluating options to address near-term debt maturities, including potential refinancing alternatives, with the goal of preserving liquidity and financial flexibility. The company also said its strategic review of the European business remains ongoing, with no further announcement at this time.

For its end markets, JELD-WEN continues to expect the North American windows and doors market to decline by low- to mid-single digits in 2026. The company expects low-single-digit declines in U.S. single-family construction and mid-single-digit declines in repair and remodel activity, while U.S. multifamily activity is expected to increase significantly. Canada is expected to experience high-single-digit declines, and European volumes are expected to be approximately flat as conditions stabilize.

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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