JELD-WEN Reports Third Quarter 2024 Results

JELD-WEN Holding, Inc. (“JELD-WEN” or the “Company”) announced results for the three and nine months ended September 28, 2024. Comparability is to the same period in the prior year and all periods presented reflect the Company’s Australasia segment as a discontinued operation, as appropriate and unless otherwise noted.

Third Quarter Highlights

• Net revenues from continuing operations of $934.7 million decreased (13.2%) in the third quarter driven by a (13%) Core Revenue decline as a result of (13%) lower volume/mix due to weak macro-economic conditions and a continued demand shift to entry level products.
• Net loss from continuing operations was ($73.0) million or ($0.86) per share, compared to net income from continuing operations of $16.9 million, or $0.20 per share, during the same quarter a year ago. The net loss from continuing operations includes a non-cash goodwill impairment charge in the Europe segment. Operating income margin was (5.6%) and 4.5% for the quarters ended September 28, 2024 and September 30, 2023, respectively.
• Adjusted EBITDA from continuing operations was $81.6 million, a decrease of ($24.1) million compared to $105.7 million during the same quarter a year ago. Adjusted EBITDA Margin from continuing operations was 8.7%, a decrease of (110) basis points year-over-year as lower volume/mix and higher costs in labor and materials was only partially offset by lower SG&A expense and improved productivity.

“We continue to make progress on our transformation journey, expecting $115 million of Adjusted EBITDA in 2024 from our efforts, which positions JELD-WEN for future success,” said Chief Executive Officer William J. Christensen. “Market conditions continue to deteriorate which have significantly impacted volume/mix in the near-term. In response, we continue to work diligently to align our costs with the softer market conditions while also preparing for future growth. I am proud of our associates for their dedication in implementing the necessary changes in this challenging environment.”

Third Quarter 2024 Results

Net revenues from continuing operations for the three months ended September 28, 2024 was $934.7 million, a decrease of ($142.3) million, or (13.2%), compared to $1,077.0 million for the same period last year. The decrease in net revenues was driven by a (13%) decline in Core Revenue as a result of (13%) lower volume/mix due to weak macro-economic conditions and demand shifting to entry level products.

Net loss from continuing operations was ($73.0) million in the third quarter, compared to net income from continuing operations of $16.9 million in the same period last year, a decrease of ($89.9) million. The decrease was mostly driven by a $63.4 million pre-tax, non-cash goodwill impairment charge, lower volume/mix, and increased costs to execute on JELD-WEN’s transformation journey, partially offset by lower SG&A expense and improved productivity. Adjusted Net Income from continuing operations for the third quarter was $27.6 million, a decrease of ($18.0) million compared to $45.6 million in the same period last year. 

Net loss per share from continuing operations for the third quarter was ($0.86), compared to EPS of $0.20 in the same quarter last year. Adjusted EPS from continuing operations for the third quarter was $0.32 compared to $0.53 in the same quarter last year. Adjusted EPS for the quarter ended September 28, 2024 excludes net after-tax charges of $100.5 million, or $1.17 per diluted share, associated mainly with costs to execute on the Company’s transformation journey. Adjusted EPS for the quarter ended September 30, 2023 excludes net after-tax charges of $28.7 million or $0.33 per diluted share.

Adjusted EBITDA from continuing operations was $81.6 million, a decline of ($24.1) million compared to $105.7 million during the same quarter last year. Adjusted EBITDA Margin from continuing operations was 8.7%, a decline of (110) basis points as lower volume/mix and higher costs in labor and materials was only partially offset by lower SG&A expense and improved productivity.

On a segment basis for the third quarter of 2024, compared to the same period last year:

• North America – Net revenue was $677.9 million, a decline of ($112.3) million, or (14.2%), driven by a (14%) decline in Core Revenue due to (14%) lower volume/mix related to weaker market demand and a demand shift towards entry level products. Net income was $35.8 million, a decline of ($4.7) million year-over-year. Operating income margin was 6.3% for the quarter ended September 28, 2024 and 8.8% for the quarter ended September 30, 2023. Adjusted EBITDA was $74.8 million, a decline of ($25.2) million while Adjusted EBITDA Margin decreased by (160) basis points to 11.0%.
• Europe – Net revenue was $256.8 million, a decline of ($29.9) million, or (10.4%), due to a (12%) decline in Core Revenue partially offset by 1% in FX translation. Core Revenue declined due to lower volume/mix (12%) related to market softness across the region. Net loss was ($66.7) million, a decline of ($77.3) million year-over-year, which includes a goodwill impairment charge of $63.4 million. Operating income margin was (24.8%) for the quarter ended September 28, 2024 and 6.0% for the quarter ended September 30, 2023. Adjusted EBITDA was $16.3 million, a decline of ($8.2) million, while Adjusted EBITDA Margin decreased by (220) basis points to 6.3%.

Cash Flow ⁽¹⁾

Net cash flow provided by operations was $78.0 million during the first nine months of 2024, a ($195.0) million decrease compared to net cash flow provided by operations of $273.0 million during the same period a year ago. The decreased operating cash flow was due to a change in net income of ($217.8) million and a decline in accrued expenses of ($48.6) million, both of which were partially offset by a $8.5 million improvement in cash flow associated with working capital.

Capital expenditures in the first nine months of 2024 increased by $37.7 million to $118.0 million, up from $80.4 million in the first nine months of 2023.

Free Cash Flow used in the first nine months of 2024 was ($40.0) million, compared to Free Cash Flow provided in the nine months of 2023 of $192.6 million.

(1)           Cash flow for the nine months ended September 30, 2023 includes the Australasia segment.

Full Year 2024 Guidance

JELD-WEN is lowering its 2024 revenue guidance to a range of $3.7 to $3.75 billion which reflects Core Revenues that are down (13%) to (14%) compared to 2023. Further, the Company is lowering its expected 2024 Adjusted EBITDA, and now expects it will be within the range of $265 to $280 million.

	Revenue	Adjusted EBITDA	Core Revenue Decline
May 2024 Guidance	$3.9 to $4.1 billion	$340 to $380 million	(5%) to (9%)
Updated Guidance	$3.7 to $3.75 billion	$265 to $280 million	(13%) to (14%)

Due to the reduced Adjusted EBITDA guidance, the Company now expects 2024 operating cash flow to be approximately $125 million compared to the previous outlook of approximately $200 million.

For full results click here.

About JELD-WEN Holding, Inc.

JELD-WEN Holding, Inc. (NYSE: JELD) is a leading global designer, manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products serving the new construction and repair and remodeling sectors. Based in Charlotte, North Carolina, the company operates facilities in 15 countries in North America and Europe and employs approximately 18,000 associates dedicated to bringing beauty and security to the spaces that touch our lives. The JELD-WEN family of brands includes JELD-WEN® worldwide, LaCantina™ and VPI™ in North America, and Swedoor® and DANA® in Europe.  For more information, visit corporate.JELD-WEN.com or follow LinkedIn.

Contact:

Caryn Klebba – Head of Global Public Relations – mediana@jeldwen.com – (704) 807-1275

Source: JELD-WEN Holding, Inc.