American Woodmark 2026 Q2 Earnings Net Income Plummets 78%, Misses Expectations

American Woodmark (AMWD) reported fiscal 2026 Q2 earnings on Nov 25, 2025, with results significantly below expectations. Revenue fell 12.8% to $394.64 million, and non-GAAP EPS of $0.76 missed by $0.44. The company cited lower demand and higher costs, while citing the pending MasterBrand merger as the reason for withholding guidance.

Revenue

Total revenue declined 12.8% year-over-year to $394.64 million, missing consensus estimates by $16.02 million. The drop was attributed to reduced demand in new construction and remodel markets, alongside elevated tariff and input costs.

Earnings/Net Income

Net income plummeted 78.0% to $6.10 million, with EPS falling 76.8% to $0.42. Adjusted EPS of $0.76 also missed estimates. The steep declines underscored margin pressures from tariffs and input costs, despite cost-control measures. The earnings performance reflects a challenging operating environment.

Post-Earnings Price Action Review

The strategy of buying AMWD shares after revenue growth and holding for 30 days delivered moderate returns but underperformed the market, with a CAGR of 3.47%, trailing the benchmark by 62.32 percentage points. The approach had minimal risk (0.00% maximum drawdown) but conservative returns, appealing to stability-focused investors.

CEO Commentary

CEO Scott Culbreth highlighted 10.0% Adjusted EBITDA margins despite lower volumes, emphasizing cost reductions, supplier negotiations, and price increases. He reiterated the focus on the MasterBrand merger to expand product offerings and innovation, while noting potential tariff impacts of 4-4.5% of annualized sales.

Guidance

The company will not provide or update fiscal 2026 guidance due to the pending merger. This decision aligns with the August 6, 2025, announcement prioritizing merger execution over near-term financial projections.

Additional News

American Woodmark is advancing its $2.1 billion merger with MasterBrand, Inc., announced in August 2025, to expand product portfolios and enhance innovation. The deal, pending FTC approval, aims to streamline operations and create synergies. Meanwhile, the company repurchased 1.4% of shares ($12.4 million) in fiscal 2026’s first half and plans to maintain disciplined capital allocation. The merger’s complexity and regulatory scrutiny remain key near-term risks.

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American Woodmark (AMWD) reported its fiscal 2026 Q2 earnings on Nov 25, 2025, with a significant decline in revenue and earnings. The company’s stock price has shown mixed performance post-earnings, reflecting investor caution around its strategic merger and market challenges.

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