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- **Revenue Decline**: Core revenue expected to drop 10-13% YoY due to market softness and operational challenges.
- **Cost Actions**: 11% headcount reduction in North America and strategic European review to address $45 million annual tariff impact.
- **Financial Pressure**: Q3 EBITDA of $44 million (-46% YoY) reflects volume declines and price/cost headwinds, with full-year EBITDA guidance lowered to $105-120 million.
- **Liquidity Management**: Maintaining strong cash position ($500 million total liquidity) despite negative free cash flow, with no immediate debt concerns.

**【CEO Summary Section】**
- **Market Challenges**: Q3 2025 saw further softening in North America and Europe, with weaker demand and operational inefficiencies leading to a 10-13% year-over-year decline in core revenue.
- **Strategic Actions**: Announced an 11% reduction in North America and corporate headcount, and initiated a strategic review of the European business to address debt maturities and improve balance sheet flexibility.
- **Tariff Impact**: Estimated annualized tariff impact of $45 million, with $17 million expected in 2025. Despite successful surcharge pass-through to most customers, larger accounts are resisting price increases.
- **Liquidity**: Maintained strong liquidity with $100 million cash and $400 million revolver availability, no debt maturities until 2027.

**【CFO Financial Commentary】**
- **Revenue and EBITDA**: Q3 revenue of $809 million (-10% YoY), Adjusted EBITDA of $44 million (5.5% of sales), down 46% YoY due to volume declines and price/cost headwinds.
- **Segment Performance**: North America revenue down 19% YoY, Europe flat YoY. Europe's EBITDA remained stable at $16 million due to cost actions offsetting volume loss.
- **Cash Flow**: Negative free cash flow in Q3 due to earnings pressure and transformation investments. Full-year free cash flow use expected at $45 million, including $15 million restructuring costs.
- **Leverage**: Net debt leverage increased to 7.4x, with a focus on reducing leverage through strategic asset reviews.

**【Q&A Highlights】**
- **Share Loss**: Driven by base effects from 2024 Midwest retailer loss, regional pricing competition, and portfolio simplification efforts. Q4 volumes expected to remain soft with no significant recovery.
- **Productivity Savings**: $150 million in headwind mitigation and transformation savings (e.g., plant closures, automation) offsetting $100 million in base productivity headwinds. Full-year savings expected to roll into 2026.
- **Tariff Resistance**: Larger customers pushing back on tariff surcharges, contributing to $50 million price/cost headwind in 2025. Cost inflation in materials, freight, and labor accelerating.
- **Liquidity Strategy**: Evaluating sale-leaseback transactions and smaller asset divestitures to generate liquidity, with no immediate revolver draw plans.

JELD-WEN Holding, Inc. (JELD) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

JELD

JELD fundamentals

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