Jeld-Wen Holding 2025 Q2 Earnings Worse Performance as Net Loss Widens 13.6%

Jeld-Wen Holding reported second-quarter 2025 earnings on August 7, 2025, showing a deepened loss compared to the prior year. The company’s revenue dropped 16.5% year-over-year to $823.73 million, while net loss expanded to $21.52 million, or $0.25 per share, from $18.49 million, or $0.22 per share. The firm also reinstated and adjusted full-year guidance amid ongoing market uncertainties.

Revenue

Revenue for Jeld-Wen Holding declined significantly in the second quarter, totaling $823.73 million, a 16.5% decrease from $986.02 million in the same period last year. This drop was primarily attributed to a 13% reduction in core revenues and a 5% decline from the court-ordered divestiture of Towanda, partially offset by a favorable foreign exchange impact of 1%. The core revenue drop was driven by a 14% decrease in volume/mix, with some relief from a 1% benefit from price realization. In terms of business segments, North America reported $555.7 million in net revenue, a 21.8% decline year-over-year, while Europe reported $268.1 million, a 2.7% decrease.

Earnings/Net Income

Jeld-Wen Holding's net loss widened to $21.52 million, or $0.25 per share, in the second quarter of 2025, compared to a $18.49 million, or $0.22 per share, loss in the same period last year. Adjusted EBITDA from continuing operations declined to $39.0 million, a 54.0% drop from $84.8 million a year ago. This decline was attributed to lower sales, negative price/cost dynamics, and reduced productivity, partially offset by favorable productivity and lower SG&A expenses. The EPS outcome reflects a worsening performance, as the net loss per share increased by 13.6%.

Price Action

The stock price of Jeld-Wen Holding dropped 3.89% during the latest trading day, but has surged 20.67% during the most recent full trading week and 25.40% month-to-date. This mixed price performance contrasts with a historically underperforming post-earnings strategy.

Post-Earnings Price Action Review

Despite the company's revenue growth quarter-over-quarter following the earnings report, buying Jeld-Wen Holding shares and holding them for 30 days has historically led to underperformance. Over the past three years, this strategy has yielded a return of -67.19%, lagging the benchmark by 117.85%. The strategy's CAGR was -31.58%, indicating a substantial loss in value. With a maximum drawdown of 0.00%, a Sharpe ratio of -0.54, and a volatility of 58.60%, the strategy highlights significant risk and underperformance relative to the benchmark.

CEO Commentary

CEO William J. Christensen acknowledged the second quarter's challenges, emphasizing the company's effective cost reductions and progress in quality and service. He highlighted disciplined execution and navigating an uncertain macro environment, reaffirming commitment to customer needs and positioning for long-term success as demand normalizes. Christensen noted the impact of market softness, particularly in North America, while underlining transformation efforts to enhance productivity and reduce SG&A expenses. He expressed cautious optimism, recognizing ongoing challenges but emphasizing the importance of strategic focus and operational improvements in driving resilience.

Guidance

JELD-WEN provided 2025 full-year guidance with revenue expected between $3.2 billion and $3.4 billion, reflecting a core revenue decline of 4% to 9% year-over-year. Adjusted EBITDA is projected to range from $170 million to $200 million. The company anticipates operating cash flow to be an approximate $10 million use of cash. This guidance reflects continued pressure from competitive pricing and volume challenges, with the CEO and CFO emphasizing transformation benefits, cost reductions, and incremental volume to drive second-half EBITDA improvements.

Additional News

JELD-WEN Holding, Inc. reported second-quarter 2025 results on August 5, 2025, with net revenues of $823.7 million, a 16.5% decrease year-over-year. The decline was driven by a 13% drop in core revenues and a 5% decrease from the court-ordered divestiture of Towanda. The company reported a net loss of $22.3 million, or $0.26 per share, compared to a $18.5 million, or $0.22 per share, loss a year ago. Adjusted EBITDA from continuing operations was $39.0 million, a $45.8 million decline from $84.8 million in the same quarter the previous year. Management noted effective cost reductions and progress in quality and service, despite ongoing market challenges. The company also reinstated and updated its full-year 2025 financial outlook amid ongoing economic uncertainties.