What JELD-WEN (JELD) Said on Its Q3 Earnings Call

Key Points

• Adjusted EBITDA increased to $54 million from $44 million, largely due to $11.6 million in tariff refunds and productivity savings; revenue fell 1% to $799 million.
• JELD-WEN lowered its 2026 market outlook, anticipating a mid-single-digit decline in North American market volumes and a low-single-digit decline in Europe, but maintained its full-year revenue and adjusted EBITDA guidance.
• The company plans to retain its European business and expects to refinance debt by the end of November, extending maturities to 2031 but adding about $50 million in annual interest expense. CFO Samantha Stoddard is stepping down, with Jeff Embt named interim CFO.

JELD-WEN NYSE: JELD reported higher adjusted earnings for the third quarter of 2026, helped by tariff refunds and cost savings, while warning that demand for windows and doors was weaker than expected.

The company maintained its full-year revenue and adjusted EBITDA guidance despite lowering its market outlook. It also said it would retain its European business following a strategic review and expects to complete a debt refinancing by the end of November.

Chief Executive Officer Bill Christensen said improved customer service was helping the company regain business it had previously lost. At the same time, he said softer demand observed in October was likely to continue through the fourth quarter and into 2027.

Tariff Refunds Boost Quarterly Earnings

Third-quarter net revenue fell 1% to $799 million from $809 million a year earlier. Chief Financial Officer Samantha Stoddard attributed the decline primarily to lower volume mix and a modest foreign exchange headwind, partly offset by higher pricing.

Adjusted EBITDA rose to $54 million from $44 million, and adjusted EBITDA margin increased to 6.8% from 5.5%. The latest quarter included $11.6 million in net tariff refunds, which Stoddard said accounted for most of the year-over-year earnings improvement.

Productivity contributed a $10 million benefit, while selling, general and administrative expense savings and other items produced a $7 million net benefit. Those gains were offset in part by a $14 million price-cost headwind and a $6 million headwind from lower volume mix.

JELD-WEN generated $15 million in free cash flow during the quarter. Net debt leverage declined to 10.3 times at quarter end from 11.3 times at the end of the second quarter, and the company had $115 million drawn on its revolving credit facility.

North America revenue declined to $530 million from $546 million, while the segment’s adjusted EBITDA rose to $48 million from $38 million. Europe revenue increased to $269 million from $263 million, but adjusted EBITDA slipped to $15 million from $16 million as price-cost pressures and lower volumes outweighed productivity gains.

Market Outlook Softens, Guidance Maintained

JELD-WEN now expects the North American windows and doors market to decline by a mid-single-digit percentage in 2026, compared with its prior forecast for a low- to mid-single-digit decline. It also expects European market volumes to fall by a low-single-digit percentage, having previously anticipated roughly flat volumes.

Despite those changes, the company maintained its full-year forecast for:

• Net revenue of $3.1 billion to $3.2 billion, with core revenue down 2% to 5% year over year.
• Adjusted EBITDA of $120 million to $150 million, with no further tariff refunds assumed in the fourth quarter.
• Operating cash flow of approximately $10 million and free cash flow use of approximately $75 million.
• Capital expenditures of approximately $85 million.

The cash flow forecasts exclude refinancing fees, which the company said it does not expect to affect operating or free cash flow.

Christensen said cost reductions and opportunities to regain market share were helping offset weaker demand. The company now expects net share loss to be a $5 million headwind to full-year adjusted EBITDA, compared with its previous estimate of $20 million. It raised its expected price-cost headwind to $60 million from $50 million, citing inflation, particularly in freight and transportation costs embedded in purchased materials.

JELD-WEN continues to expect approximately $120 million in full-year productivity benefits. Stoddard said most of the initiatives generating those savings had already been implemented.

Europe Review, Refinancing and CFO Transition

After reviewing alternatives for its European business, JELD-WEN concluded that retaining it and improving its performance offered the greatest opportunity to create long-term value, Christensen said. He said Christian Michel is leading the European operation, with a focus on operational improvements and costs.

The company also expects a refinancing transaction to extend debt maturities by approximately five years to 2031. Christensen said the transaction would add approximately $50 million in annual interest expense.

Stoddard has decided to step down as CFO. Chief Accounting Officer Jeff Embt will assume the interim CFO role alongside his current responsibilities, Christensen said.

Service Improvements Support Share Recovery

North American on-time, in-full delivery performance recovered from approximately 85% in July, when Canadian wildfires caused temporary disruptions, to just under 90% in September and October. Christensen said the company aims to sustain performance above 90%.

In response to an analyst’s question, Christensen said Europe’s on-time, in-full performance was roughly 95%. He also said the company believed it had maintained and potentially gained some share in its central European region, which includes Germany, Austria and Switzerland, though he did not provide specific market-share figures.

About JELD-WEN (NYSE:JELD)

JELD-WEN Holding, Inc is a manufacturer of windows and doors for residential and commercial construction and remodeling markets. Its products include vinyl, wood, aluminum and composite windows, as well as interior and exterior doors, patio doors and related building products.

The company sells products through building-product distributors, dealers, retail outlets and other channels. Its brands and product offerings serve new construction, repair and remodeling, and replacement applications, with products designed for homes, offices and other buildings.

Founded in 1960 in Klamath Falls, Oregon, JELD-WEN has expanded into an international building-products company serving customers in North America, Europe and Australia.

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