American Woodmark 2026 Q2 Earnings Net Income Plummets 78% Amid Market Challenges

American Woodmark (AMWD) reported its fiscal 2026 Q2 earnings on Nov 25, 2025, with results falling short of expectations. The company’s non-GAAP EPS of $0.76 missed estimates by $0.44, while revenue of $394.6M declined 12.8% year-over-year. Management cited weaker demand in construction and remodeling markets, along with higher tariffs and input costs. Notably, the company will not provide guidance or host a conference call due to its pending merger with MasterBrand.

Revenue

Home center retailers led the revenue streams with $166.70 million, followed by builders contributing $164.73 million. Independent dealers and distributors added $63.20 million to the total net sales of $394.64 million. The 12.8% year-over-year decline reflects reduced demand in key markets and pricing pressures.

Earnings/Net Income

American Woodmark’s EPS plummeted 76.8% to $0.42 in Q2 2026, down from $1.81 a year ago, while net income fell to $6.10 million—a 78.0% drop from $27.69 million. The sharp decline underscores the challenging market conditions and operational pressures faced by the company.

Price Action

The stock price of American Woodmark has climbed 7.19% during the latest trading day, has jumped 14.62% during the most recent full trading week, and has plummeted 15.33% month-to-date.

Post-Earnings Price Action Review

The strategy of buying American Woodmark (AMWD) shares after its revenue raises quarter-over-quarter on the financial report released date and holding for 30 days resulted in a -41.29% return. This underperformed the benchmark significantly, achieving an excess return of -119.71% and a CAGR of -10.35%. The strategy also exhibited high volatility, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.25, indicating a risky and disappointing investment approach.

CEO Commentary

Scott Culbreth, President and CEO, highlighted challenging demand trends in new construction and remodel markets, noting the company’s 10.0% Adjusted EBITDA margin despite lower volumes. He outlined mitigation strategies, including structural cost reductions, supplier negotiations, alternative sourcing, and price increases. Culbreth estimated unmitigated tariffs at 4-4.5% of annualized net sales (excluding potential 50% Section 232 tariff increases) and emphasized advancing the pending merger with MasterBrand to expand product portfolios, innovation capabilities, and opportunities for team members.

Guidance

The company stated it would not hold a conference call or provide/revise financial guidance due to the pending MasterBrand merger. It estimated unmitigated tariffs at 4-4.5% of annualized net sales, with impacts varying by product category. No additional forward-looking financial targets were provided, and the focus remains on closing the merger to achieve strategic growth objectives.

Additional News

American Woodmark’s pending merger with MasterBrand, Inc. remains a focal point, with the company citing strategic benefits such as expanded product portfolios and innovation capabilities. Management emphasized the need to close the deal to mitigate ongoing tariff pressures and enhance market competitiveness. Additionally, the company reported a net leverage ratio of 1.90 as of October 31, 2025, with $52.1 million in cash and $315.2 million in revolving credit availability. Analysts remain cautious, with a “buy” average rating but mixed valuation metrics, including a P/E ratio of 9.26 and a P/S ratio near a two-year low. Institutional ownership remains high at 94.98%, reflecting confidence from large investors.