American Woodmark 2025 Q4 Earnings Net Income Declines 4.6% Amid Sales Drop

American Woodmark (AMWD) reported its fiscal 2025 Q4 earnings on June 25th, 2025. The total revenue decreased by 11.7% to $400.39 million, down from $453.28 million in 2024 Q4. American Woodmark's EPS rose 2.2% to $1.75 in 2025 Q4 from $1.71 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's net income declined to $25.57 million in 2025 Q4, down 4.6% from $26.80 million reported in 2024 Q4.

Despite the challenging revenue environment, American Woodmark managed to raise its EPS, which indicates an improvement in profitability measures.

Revenue

Earnings/Net Income

American Woodmark's EPS rose 2.2% to $1.75 in 2025 Q4 from $1.71 in 2024 Q4, while net income declined to $25.57 million, down 4.6% from $26.80 million in 2024 Q4. The EPS improvement reflects a positive earnings environment despite revenue challenges.

Price Action

Post-Earnings Price Action Review

The strategy of buying AMWD when revenues miss and holding for 30 days resulted in poor performance. It yielded an excess return of -128.07% and a CAGR of -6.94%, underperforming the benchmark significantly. The strategy also experienced a high maximum drawdown of -60.72%, highlighting substantial downside risk. With a Sharpe ratio of -0.17, the risk-adjusted returns were unfavorable. Despite the slight uptick in the latest trading week, the overall month-to-date performance showed a decline, reflecting investor caution and market volatility. These results suggest a need for reassessment of investment strategies in light of current market conditions and company performance metrics.

CEO Commentary

Scott Culbreth, President and CEO of American Woodmark Corporation, noted that demand for their products in the new construction and remodel market was weaker than anticipated due to tariff uncertainties and declining consumer confidence. Despite these challenges, he highlighted that the team executed well, achieving adjusted EBITDA margins of 11.8% in the fourth fiscal quarter. Culbreth indicated a cautious outlook for fiscal year 2026, acknowledging that demand trends are expected to remain difficult, with net sales anticipated to fluctuate between low-single digit declines to low-single digit increases, while still aiming to outperform market growth rates.

Guidance

For fiscal year 2026, American Woodmark expects net sales to range from low-single digit declines to low-single digit increases. The company guides for adjusted EBITDA between $175 million and $200 million, reflecting the impact of known tariffs and ongoing economic uncertainties, as well as operational enhancements and prudent spending measures.

Additional News

In recent weeks, American Woodmark has announced several significant changes at the executive level. On June 16, 2025, the company confirmed the resignation of Paul Joachimczyk as Chief Financial Officer, effective June 27, 2025. This move follows a series of management restructuring efforts aimed at navigating through challenging market conditions. Additionally, the company continues to actively engage in its share repurchase program, with $117.8 million remaining authorized for buybacks as of April 30, 2025. The ongoing repurchase efforts signal management's confidence in the company's long-term prospects amidst a tough economic landscape. The transition in financial leadership and continued focus on capital management underscore American Woodmark's strategic emphasis on stability and shareholder value.