JELD-WEN Reports Dramatic Financial Decline for First Quarter 2025

JELD-WEN's Financial Performance in Q1 2025

JELD-WEN Holding, Inc. released its financial results for the first quarter of 2025, revealing a bleak outlook and significant declines in multiple key areas. The manufacturer, known for its interior and exterior doors, windows, and related building products, faced a number of challenges that led to a substantial decrease in revenue and a significant net loss.

Key Highlights

For the three months ending March 29, 2025, JELD-WEN recorded net revenues totaling $776.0 million. This marks a dramatic drop of 19.1% compared to $959.1 million for the same period last year. The decline was attributed largely to the court-ordered divestiture of the Towanda facility and a core revenue decline driven by a 16% reduction in volume amid challenging macroeconomic conditions.

The company experienced a net loss of $179.8 million, equating to a loss of $2.12 per share. This is a stark contrast to the net loss of $27.7 million or $0.32 per share reported in the previous year’s first quarter. Notably, a non-cash goodwill impairment charge of approximately $125 million heavily impacted these figures.

Operational Factors

The operating loss margin for the quarter was reported at -22.1%, increasing significantly when compared to -2.9% from the same timeframe in the prior year. Adjusted EBITDA also reflected a downturn, reported at $21.9 million, down by $46.8 million from $68.7 million in Q1 2024.

JELD-WEN's CEO, William J. Christensen, stated, “While market conditions remained very challenging during the first quarter, they developed mostly as expected. We continued to execute our transformation, removing costs and improving focus across the business.” He expressed optimism about some recent improvements in quality and service levels and anticipated further gains in the upcoming quarter, though visibility remains limited given the rapidly changing macro environment.

Regional Performance

Examining performance by geography, the North American segment saw net revenue decrease to $530.6 million, a 22.0% decline year-on-year, largely due to the same facility divestiture and an unfavorable shift in volume/mix driven by decreased market demand. Meanwhile, Europe reported a lesser decline of 12.1%, with net revenues of $245.4 million.

The overall adjusted net loss for the first quarter was recorded at $14.2 million, a notable decrease of $32.6 million from an adjusted net income of $18.4 million in the prior year's first quarter.

Cash Flow Challenges

In terms of cash flow, net cash used in operating activities rose sharply to $83.5 million, up from $11.0 million in the same quarter last year. The company's capital expenditures increased by $7.2 million to reach $42.0 million, totaling a free cash flow of -$125.4 million.

Looking Forward

Management will hold a conference call on May 6, 2025, at 8 a.m. ET to further discuss these financial results and outline steps being taken to stabilize the business. Interested parties can access the call via the company's Investor Relations page.

JELD-WEN, headquartered in Charlotte, North Carolina, acknowledges the significance of the current economic landscape and expresses its commitment to long-term success and effective partnerships with its customers.

For more detailed information, stakeholders are encouraged to visit JELD-WEN's corporate website and review the comprehensive financial reports provided there. As the company navigates these difficulties, its focus on product quality and market sustainability will remain pivotal in overcoming the hurdles posed by today's economic challenges.