JELD-WEN's Q2 2025 Earnings Call: Navigating Tariffs, Transformation, and Market Contradictions

Tariff impact and recovery strategy, volume leverage and transformation benefits, European business strategy, pricing and inflationary pressure, and volume and market expectations are the key contradictions discussed in JELD-WEN Holding's latest 2025Q2 earnings call.



Revenue and Volume Trends:
- JELD-WEN reported revenue of $824 million for Q2 2025, representing a 16% decline year-over-year.
- The decline was primarily due to a 13% reduction in core revenues from lower volumes across both North America and Europe segments, and the impact of the court-ordered divestiture of the Towanda operation.

Profitability and Cost Challenges:
- Adjusted EBITDA for the quarter was $39 million, a $46 million decrease from the prior year.
- The decline in profitability was driven by significantly lower volumes and slightly unfavorable mix, resulting in an adjusted EBITDA margin of 4.7%. The company also faced notable cost pressures from labor and material inflation.

Tariff and Supply Chain Impact:
- JELD-WEN estimates the annualized impact of tariffs on its business to be approximately $40 million, with $17 million expected to affect 2025 results.
- The company has implemented customer surcharges to recover tariff costs and has kept direct sourcing from China to less than 1% of total material spend.

North America Market Dynamics:
- The North America segment reported revenue of $556 million, a 22% decline from the prior year, with core revenues decreasing by 15% due to lower volumes.
- Volume pressures persisted across all product categories and end markets, and the company is addressing this by consolidating operations and aligning capacity with demand.