American Woodmark 2026 Q2 Earnings Sharp EPS Drop of 76.8%, Revenue Falls 12.8%

American Woodmark (AMWD) reported Q2 2026 earnings on Nov 25, 2025, with results significantly below expectations. The company’s revenue declined 12.8% year-over-year to $394.64 million, and non-GAAP EPS of $0.76 missed estimates by $0.44. The company will not provide updated guidance or hold a conference call due to its pending merger with MasterBrand.

Revenue

Revenue for Q2 2026 totaled $394.64 million, a 12.8% decline from $452.48 million in the prior year. Home center retailers accounted for $166.70 million, while builders contributed $164.73 million. Independent dealers and distributors generated $63.20 million in net sales. The sequential drop reflects weaker demand in new construction and remodeling markets, according to management.

Earnings/Net Income

American Woodmark’s GAAP EPS fell 76.8% to $0.42, compared to $1.81 in Q2 2025. Net income declined 78.0% to $6.10 million from $27.69 million. Adjusted EBITDA stood at $39.6 million, or 10.0% of net sales. The sharp EPS contraction highlights the company’s struggle to offset higher tariffs and input costs despite cost-cutting measures.

Post-Earnings Price Action Review

The strategy of buying American Woodmark shares after revenue growth and holding for 30 days underperformed the market, delivering a CAGR of 3.47%, 62.32 percentage points below the benchmark. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.10, the approach posed minimal risk but offered conservative returns, suitable for stability-focused investors.

CEO Commentary

CEO Scott Culbreth acknowledged challenges in construction and remodeling markets but emphasized 10.0% Adjusted EBITDA margins despite lower volumes. Strategic priorities include cost reductions, supplier renegotiations, and the MasterBrand merger to expand product portfolios and innovation capabilities.

Guidance

The company will not provide updated guidance or host a call due to the pending merger. Forward-looking statements note unmitigated tariff impacts of 4-4.5% of annualized net sales and a focus on closing the merger to drive growth.

Additional News

American Woodmark’s pending merger with MasterBrand, announced in August 2025, remains a strategic priority. The company faces estimated tariff impacts of 4-4.5% of annualized net sales, excluding potential 50% Section 232 hikes. Analysts highlight a 3-year revenue decline of -0.1% and a gross margin contraction to 17.01% from a historical median of 20.11%. The company’s Altman Z-Score of 2.66 signals financial stress, though its current ratio of 2.04 and debt-to-equity ratio of 0.55 suggest moderate leverage.