JELD WEN : First Quarter 2025 Presentation

Published: 2025-05-05 22:03:21 ET JELD

Published on 05/05/2025 at 22:03

May 6, 2025

‌Speakers

Bill Christensen CEO

Samantha Stoddard CFO

First Quarter 2025

Sales of $776 million

Adjusted EBITDA of $22 million

2.8% of Sales

Transformation cost measures on track

MARKET UNCERTAINTY IMPACTING FY OUTLOOK 4

‌Q1 2025 Financial Results

USD in Millions

$959

$776

-19%

$69

$22

-68%

7.2%

2.8%

-440 bps

Q1 2024

Q1 2025

Q1 2024

Q1 2025

Q1 2024 Q1 2025

Core Revenue down (15%) driven by lower volume / mix

Volume / mix challenges driving lower earnings

MACROECONOMIC HEADWINDS PERSIST 6

USD in Millions

($149)

($29)

$776

($10)

Core Revenue (15%)

$959 $5

Q1 2024 Price Volume / Mix

Divestiture

Foreign Exchange Q1 2025

LOWER VOLUME / MIX FROM PERSISTING MARKET HEADWINDS 7

USD in Millions

$69

$13

($10)

($5)

($39)

($5)

Adj. Margin

7.2%

Adj. Margin

2.8%

$22

Q1 2024 Price / Cost Volume / Mix Productivity SG&A / Other

Income

Divestiture Q1 2025

Note: Amounts do not foot due to rounding

LOWER VOLUME/MIX OFFSETS COST SAVINGS MEASURES 8

USD in Millions

North America

Q1 2025

Q1 2024

(Prior Year)

Q4 2024

(Previous Quarter)

Net Revenue

$531

$680

$640

Adjusted EBITDA

$16

$61

$42

Adjusted EBITDA margin

2.9%

9.0%

6.6%

Europe

Q1 2025

Q1 2024

(Prior Year)

Q4 2024

(Previous Quarter)

Net Revenue

$245

$279

$256

Adjusted EBITDA

$11

$15

$17

Adjusted EBITDA margin

4.3%

5.2%

6.5%

Segment Highlights

Lower volume / mix

North America down (18%)

Mainly driven by volume

Europe down (10%)

Mainly driven by volume

USD in Millions - Tariffs as of April 29th

2024 North America Direct Material Costs Exposed to Tariffs

Percent of Material Costs By Country With Exposure to Tariffs

Tier 1

No Exposure

87%

5% Tier 2

Annualized tariff impact: ~$55M

Approx. $30M in 2025

Expect to pass on tariff impacts

Slight negative impact to EBITDA in Q2 due to timing

China Cambodia,

Brazil, all others

Tier 2 Suppliers*

* China accounts for ~65% of Tier 2 exposure

‌Outlook

Actively reducing lead times to customers

Addressing new builder needs in changing market

Balancing headcount with market demand

PROACTIVELY ADJUSTING TO MARKET DYNAMICS 12

Expect Q2 Adjusted EBITDA to be slightly better seasonally compared to Q1

CAPEX to remain elevated at ~$150 million

TARIFF IMPACT ON DEMAND STILL UNKNOWN 13

Service Level Improvement

Network Optimization

Investing to Reduce Costs

IN THE NEXT PHASE OF OUR TRANSFORMATION 14

‌Appendix

Q1 2025

JELD-WEN

North America

Europe

Price

Volume / Mix

(16%)

(18%)

(10%)

Core Revenue Growth

(15%)

(17%)

(9%)

(1%)

(3%)

Divestiture

(3%)

(4%)

Total

(19.1%)

(22.0%)

(12.1%)

USD in Millions

Cash Flow

Q1 2025

Q1 2024

Net cash used in operating activities

($83)

($11)

Capital Expenditures(1)

($42)

($35)

Free Cash Flow(2)

($125)

($46)

Balance Sheet

March 29, 2025

December 31, 2024

Total Debt

$1,182

$1,183

Cash

$132

$150

Net Debt(3)

$1,050

$1,033

Divided by trailing twelve months Adjusted

EBITDA(4)

$228

$275

Net Debt Leverage(3)

4.6x

3.8x

Liquidity(5)

$499

$567

Includes purchases of property, equipment and intangible assets.

Free Cash Flow is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Free Cash Flow see the Q1 2025 earnings release.

Net Debt and Net Debt Leverage are financial measures that are not calculated in accordance with GAAP. For a discussion of our presentation of Net Debt Leverage see the earnings press release.

Trailing twelve months Adjusted EBITDA for both periods. Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA, see 17

the earnings press release.

Liquidity includes cash and cash equivalents and availability from undrawn committed credit facilities.

USD in Millions

Three Months Ended

March 29, 2025

March 30, 2024

Loss, net of tax

(179.8) $

(27.7)

Special items:(1)

Net legal and professional expenses and settlements

11.9

17.2

Goodwill impairment

124.6

Restructuring and asset-related charges

14.5

18.1

M&A related costs

(0.6)

1.1

Net gain on sale of business, property and equipment

(0.7)

(2.9)

Loss on extinguishment and refinancing of debt

0.2

1.4

Share-based compensation expense

3.2

5.1

Non-cash foreign exchange transaction/translation gain

(1.5)

Accelerated amortization of an ERP system(2)

14.1

Other special items

2.8

4.3

Tax impact of special items(3)

(7.0)

(13.4)

Tax special items(4)

16.5

2.6

Adjusted Net (Loss) Income

(14.2) $

18.4

Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed above.

Accelerated amortization of an ERP that we are no longer utilizing after we completed our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024.

Except as otherwise noted, adjustments to net (loss) income and net (loss) income per share are tax-effected at the jurisdictional statutory tax rate.

Tax special items for the three months ended March 29, 2025, were primarily driven by valuation expense recorded against our U.S. tax attributes of $14.2 million and $1.1 million of tax expense attributable to share-based compensation.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Three Months Ended

March 29, 2025

March 30, 2024

Diluted loss per share

(2.12) $

(0.32)

Special items:(1)

Net legal and professional expenses and settlements

0.14

0.20

Goodwill impairment

1.47

Restructuring and asset-related charges

0.17

0.21

M&A related costs

(0.01)

0.01

Net gain on sale of business, property and equipment

(0.01)

(0.03)

Loss on extinguishment and refinancing of debt

0.02

Share-based compensation expense

0.04

0.06

Non-cash foreign exchange transaction/translation gain

(0.02)

Accelerated amortization of an ERP system(2)

0.16

Other special items

0.03

0.05

Tax impact of special items(3)

(0.08)

(0.15)

Tax special items(4)

0.19

0.03

Adjusted Net (Loss) Income per share

(0.17) $

0.21

Weighted average diluted shares

84,917,294

87,096,028

Less: Effect of dilutive securities

1,575,883

Weighted average basic shares

84,917,294

85,520,145

Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed above.

Accelerated amortization of an ERP that we are no longer utilizing after we completed our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024.

Except as otherwise noted, adjustments to net (loss) income and net (loss) income per share are tax-effected at the jurisdictional statutory tax rate.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

USD in Millions

Three Months Ended

March 29, 2025

March 30, 2024

Loss, net of tax

(179.8) $

(27.7)

Income tax expense (benefit)

3.4

(3.4)

Depreciation and amortization(1)

27.3

41.4

Interest expense, net

14.9

15.7

Special items:

Net legal and professional expenses and settlements(2)

11.9

17.2

Goodwill impairment(3)

124.6

Restructuring and asset-related charges(4)(5)

14.5

18.1

M&A related costs(6)

(0.6)

1.1

Net gain on sale of business, property and equipment(7)

(0.7)

(2.9)

Loss on extinguishment and refinancing of debt(8)

0.2

1.4

Share-based compensation expense(9)

3.2

5.1

Non-cash foreign exchange transaction/translation gain(10)

(1.5)

Other special items(11) 2.8 4.3 Adjusted EBITDA $ 21.9 $ 68.7

Depreciation and amortization expense includes accelerated amortization of $14.1 million in the three months ended March 30, 2024, in Corporate and unallocated costs for an ERP system that we are no longer utilizing after we completed

our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024.

Net legal and professional expenses and settlements include non-recurring transformation journey expenses of $11.2 million and $16.4 million in the three months ended March 29, 2025 and March 30, 2024, respectively. For the three months ended March 29, 2025, these expenses primarily relate to project-based consulting fees that directly support the transformation journey that are not expected to recur in the foreseeable future. These projects include the centralization of human resources processes, North America supply chain network optimization strategy and other projects related to our transformation journey. For the three months ended March 30, 2024, these expenses primarily relate to the engagement of a transformation consultant for a period spanning from the third quarter of 2023 through January 2025, for which we incurred $14.6 million during the quarter. Expenses for this transformation consultant's engagement, which was extended by ten weeks into 2025, included $2.1 million in the three months ended March 29, 2025. Additionally, net legal and professional expenses and settlements include $0.6 million and $1.1 million in the three months ended March 29, 2025 and March 30, 2024, respectively, relating to litigation of historic legal matters.

Goodwill impairment consists of goodwill impairment charges associated with our North America reporting unit.

Represents severance, accelerated depreciation and amortization, equipment relocation and other expenses directly incurred as a result of restructuring events. The restructuring charges primarily relate to charges incurred to change the operating structure, eliminate certain roles, and close certain manufacturing facilities in our North America and Europe segments.

Product and inventory-related charges related to announced facility closures were detrimental to Adjusted EBITDA.

M&A related costs consist primarily of legal and professional expenses related to the court-ordered divestiture of Towanda.

Net gain on sale of business, property and equipment in the three months ended March 29, 2025, primarily relates to the sale of our Towanda business. Net gain on sale of business, property and equipment in the three months ended March

30, 2024, primarily relates to the sale of properties in Chile.

Loss on extinguishment and refinancing of debt consists of $0.2 million in the three months ended March 29, 2025, associated with an amendment of our ABL Facility and $1.4 million in the three months ended March 30, 2024, associated with an amendment of our Term Loan Facility.

Represents non-cash equity-based compensation expense related to the issuance of share-based awards.

Non-cash foreign exchange transaction/translation gain primarily associated with fair value adjustments of foreign currency derivatives and revaluation of balances denominated in foreign currencies. 20

Other special items not core to ongoing business activity include: (i) in the three months ended March 30, 2024, a loss of $4.3 million of cumulative foreign currency translation adjustments related to the substantial liquidation of a foreign subsidiary in Chile in our North America segment and ($1.5) million of cash received on an impaired note in Corporate and unallocated costs.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

USD in Millions

Three Months Ended March 29, 2025

Corporate

North America Europe

and Unallocated Costs

Total Consolidated

Loss, net of tax

$ (150.9) $

(3.5) $

(25.4)

$ (179.8)

Income tax expense (benefit)

12.2

1.9

(10.6)

3.4

Depreciation and amortization

17.3

7.6

2.4

27.3

Interest (income) expense, net

(0.6)

15.5

14.9

Special items:(1)

Net legal and professional expenses and settlements

0.7

1.0

10.2

11.9

Goodwill impairment

124.6

Restructuring and asset-related charges

10.7

3.1

0.7

14.5

M&A related costs

(0.6)

Net gain on sale of business, property and equipment

(0.7)

Loss on extinguishment and refinancing of debt

0.2

Share-based compensation expense

0.5

0.4

2.3

3.2

Other special items

1.8

1.1

2.8

Adjusted EBITDA

$ 15.5 $

10.7 $

(4.3) $

21.9

(1) Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed above.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

USD in Millions

Three Months Ended March 30, 2024

Corporate

North America Europe

and Unallocated Costs

Total Consolidated

Income (loss), net of tax

$ 16.3 $

- $

(44.0)

$ (27.7)

Income tax expense (benefit)

7.4

2.9

(13.7)

(3.4)

Depreciation and amortization(1)

18.0

7.5

15.9

41.4

Interest expense, net

0.7

0.3

14.6

15.7

Special items:(2)

Net legal and professional expenses and settlements

0.8

0.3

16.1

17.2

Restructuring and asset-related charges

13.9

4.0

0.2

18.1

M&A related costs

1.1

Net gain on sale of business, property and equipment

(2.8)

(2.9)

Loss on extinguishment and refinancing of debt

1.4

Share-based compensation expense

1.2

0.5

3.3

5.1

Non-cash foreign exchange transaction/translation loss (gain)

(0.9)

(0.6)

(1.5)

Other special items

5.6

(1.4)

4.3

Adjusted EBITDA

$ 61.2 $

14.5 $

(7.0)

$ 68.7

Corporate and unallocated depreciation and amortization expense in the three months ended March 30, 2024, includes accelerated amortization of $14.1 million for an ERP system that we are no longer utilizing after we completed our related obligations under the JW Australia Transition Services Agreement.

Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed above.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

USD in Millions

Three Months Ended December 31, 2024

Corporate

North America

Europe and Total

Unallocated Consolidated

Costs

Income (loss) from continuing operations, net of tax

$ 0.1

$ 7.3

$ (75.8)

$ (68.4)

Income tax (benefit) expense

(8.1)

(7.7)

19.2

3.4

Depreciation and amortization

18.5

7.8

2.0

28.2

Interest expense, net

0.5

1.2

17.0

18.7

Special items:(1)

Net legal and professional expenses and settlements

0.6

2.4

10.0

12.9

Goodwill impairment

31.4

Restructuring and asset-related charges

2.6

5.3

0.2

8.0

M&A related costs

6.1

Net gain on sale of business, property, and equipment

(5.6)

Share-based compensation expense

0.5

0.3

2.1

2.9

Other special items

2.1

0.4

2.5

Adjusted EBITDA from continuing operations

$ 42.4

$ 16.5

$ (18.9)

$ 40.1

Refer to the calculation of Adjusted EBITDA from continuing operations for a discussion of the Special items listed above.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

USD in Millions

Year Ended December 31, 2024

Corporate

North America Europe

and Unallocated

Total Consolidated

Costs

Income (loss) from continuing operations, net of tax

$ 82.8

$ (64.3)

$ (206.1)

$ (187.6)

Income tax expense (benefit)

18.7

8.1

(10.0)

16.8

Depreciation and amortization(1)

73.5

30.7

21.6

125.8

Interest expense, net

2.6

2.1

62.5

67.2

Special items:(2)

Net legal and professional expenses and settlements

2.9

4.7

55.1

62.7

Goodwill impairment

31.4

63.4

94.8

Restructuring and asset-related charges

42.8

23.7

1.5

68.1

M&A related costs

15.3

Net gain on sale property and equipment

(13.4)

(0.2)

(13.8)

Loss on extinguishment and refinancing of debt

1.9

Share-based compensation expense

3.1

1.3

11.1

15.5

Non-cash foreign exchange transaction/translation loss (gain)

0.3

(3.8)

0.4

(3.1)

Other special items

9.3

1.9

0.4

11.6

Adjusted EBITDA from continuing operations

$ 254.1

$ 67.7

$ (46.5)

$ 275.2

Corporate and unallocated depreciation and amortization expense includes software accelerated amortization of $14.1 million for an ERP that we are no longer utilizing after we completed our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024.

Refer to the calculation of Adjusted EBITDA from continuing operations for a discussion of the Special items listed above.

Due to rounding, numbers presented may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Disclaimer

Jeld-Wen Holding Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 01:53 UTC.