10-K: JELD-WEN Plunges to $621M Loss Amid Goodwill Impairments

JELD-WEN Holding, Inc. reported a substantial net loss of $621.2 million in 2025, driven by significant goodwill impairments and declining revenues across its segments.

Summary

• Net revenues decreased by $564.4 million, or 14.9%, to $3.21 billion in the year ended December 31, 2025, from $3.78 billion in 2024.
• Core Revenues declined by 12% in 2025, primarily due to a 13% decrease in volume/mix, partially offset by a 1% benefit from price realization.
• Gross margin decreased by $174.8 million, or 25.4%, to $514.2 million in 2025, with the gross margin percentage falling to 16.0% from 18.2% in 2024.
• Operating loss widened significantly to $416.0 million in 2025 from $126.4 million in 2024.
• Net loss was $621.2 million in 2025, compared to a net loss of $189.0 million in 2024.
• Goodwill impairment charges totaled $334.6 million in 2025, related to the full impairment of goodwill in both the North America and Europe reporting units.
• Restructuring and asset-related charges, net, decreased by $23.6 million, or 34.6%, to $44.5 million in 2025.
• Adjusted EBITDA from continuing operations decreased by 57.1% to $118.0 million in 2025 from $275.2 million in 2024.
• Net cash used in operating activities was $4.9 million in 2025, a significant change from $106.2 million provided in 2024.
• The company completed the court-ordered divestiture of its Towanda, PA operations on January 17, 2025, for $115.0 million in cash proceeds.
• A sale-leaseback transaction for an industrial warehouse in Coral Springs, Florida, generated $38.0 million in cash proceeds and a pre-tax gain of $34.3 million in 2025.
• The ABL Facility maturity date was extended from July 2026 to March 2028.
• The U.S. defined benefit pension plan completed a risk mitigation action by purchasing group annuity contracts, settling approximately $113.7 million of projected benefit obligations and recognizing a pre-tax pension settlement charge of $6.6 million.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing as highly negative due to significant financial underperformance, including substantial net losses, goodwill impairments, and declining revenues and cash flow from operations, coupled with a dramatic drop in stock value compared to peers.

Positives

• A favorable foreign exchange impact of 1% partially offset revenue declines in 2025.
• Price realization contributed a 1% benefit to Core Revenues in 2025.
• Selling, general and administrative (SG&A) expenses decreased by $101.4 million (15.5%) in 2025, driven by lower professional fees, gains on asset sales, and headcount reduction.
• Restructuring and asset-related charges, net, decreased by $23.6 million (34.6%) in 2025, indicating progress in operational efficiency initiatives.
• The company successfully completed the court-ordered divestiture of its Towanda, PA operations, generating $115.0 million in cash proceeds.
• A sale-leaseback transaction for an industrial warehouse in Coral Springs, Florida, generated $38.0 million in cash proceeds and a $34.3 million pre-tax gain.
• The ABL Facility maturity date was extended from July 2026 to March 2028, enhancing liquidity and financial flexibility.
• The U.S. defined benefit pension plan completed a risk mitigation action, transferring $113.7 million of pension obligations to an insurer.
• Internal control over financial reporting was effective as of December 31, 2025.

Negatives

• Net revenues decreased by 14.9% to $3.21 billion in 2025, reflecting significant market demand weakness.
• Core Revenues declined by 12% in 2025, primarily due to a 13% decrease in volume/mix.
• Gross margin decreased by 25.4% to $514.2 million, with the gross margin percentage falling to 16.0% in 2025 from 18.2% in 2024.
• Operating loss widened substantially to $416.0 million in 2025 from $126.4 million in 2024.
• Net loss significantly increased to $621.2 million in 2025 from $189.0 million in 2024.
• Goodwill impairment charges of $334.6 million in 2025 fully impaired goodwill in both North America and Europe reporting units, indicating a substantial loss in perceived value.
• Income tax expense increased to $147.9 million in 2025 from $16.8 million in 2024, primarily due to a $174.8 million increase in valuation allowances on foreign and U.S. tax attributes and $55.4 million tax expense from nondeductible goodwill impairment.
• Adjusted EBITDA from continuing operations decreased by 57.1% to $118.0 million in 2025.
• Net cash used in operating activities was $4.9 million in 2025, a negative shift from cash provided by operations in 2024.
• North America segment net revenues decreased by 20.5% in 2025 due to weaker market demand and the Towanda divestiture.
• Europe segment net revenues decreased by 1.0% in 2025 due to market softness and unfavorable volume/mix.
• An additional $6.7 million warranty expense was recognized in Q4 2025 due to a calculation correction.
• The company recognized $2.1 million in expense in 2025 related to anti-dumping and countervailing duties on wood moulding and millwork products from China.
• The common stock price declined from $100.00 on December 31, 2020, to $9.70 on December 31, 2025, indicating significant shareholder value erosion.

Risks

• Negative trends in overall business, financial market, and economic conditions, and/or activity levels in end markets.
• Increases in interest rates, sustained periods of elevated interest rates, and reduced availability of financing for the purchase of new homes and home construction and improvements.
• Declines in relationships with and/or consolidation of key customers.
• Highly competitive business environment.
• Failure to effectively manage and successfully implement strategic and transformation journey initiatives, including productivity, manufacturing realignment, cost reduction, and global footprint rationalization initiatives.
• Failure to retain and recruit executives, managers, and employees.
• Disruptions in operations due to changes in weather patterns and related extreme weather events, natural disasters, public health crises, and armed conflicts, acts of terrorism and civil unrest.
• Failure to timely identify or effectively respond to consumer needs, expectations, or trends.
• Seasonal business with varying revenue and profit.
• Fluctuations in the prices of raw materials used to manufacture products, freight, energy, and other critical inputs.
• Delays or interruptions in the delivery of raw materials, finished goods, or certain component parts.
• Changes to tariff, trade, or investment policies or laws.
• Economic and geopolitical uncertainty and risks that arise from operating a multinational business, including threat of fraud, public sector corruption, and other forms of criminal activity involving government officials.
• Exchange rate fluctuations.
• Product liability claims, product recalls, or warranty claims.
• Adverse outcome of pending or future litigation, including the ongoing appeal in Steves & Sons, Inc. v JELD-WEN, Inc.
• Acquisitions, divestitures, or investments in other businesses that may not be successful.
• Inability to protect intellectual property.
• Increases in labor costs, potential labor disputes, and work stoppages at facilities.
• Pension plan obligations, which are currently not fully funded and may require significant cash payments.
• Security breaches and other cybersecurity incidents.
• Emerging issues related to the integration and use of AI.
• Changes in building codes that could increase the cost of products or lower the demand for windows and doors.
• Compliance costs and liabilities under environmental, health, and safety laws and regulations, such as the Everett, Washington WADOE Action.
• Availability and cost of credit.
• Current level of indebtedness and the effect of restrictive covenants under existing or future indebtedness.
• The market price of common stock may be highly volatile.
• Potential securities litigation.
• Reliance on dividends, distributions, and transfers of funds from subsidiaries as a holding company.

Future Outlook

North American markets are expected to continue facing headwinds in 2026 due to historically high interest rates and persistent labor, freight, and raw material inflation. European markets are anticipated to remain broadly flat in 2026, with the Nordics, UK, and France showing signs of growth, while the DACH region is expected to experience continued softness until late 2026, when conditions are projected to improve. Renovation activity is expected to outpace new builds in some European regions, driven by government incentives. Capital expenditures will be focused on supporting cost reduction, efficiency improvement projects, and sustaining current manufacturing operations.

Management Comments

• "We strive to achieve solid financial performance, and shareholder returns through the systematic execution of our strategy which includes: streamlining and simplifying the business, refining our product and brand strategies, rationalizing our global footprint, and strategically sourcing our raw materials."
• "We believe that our manufacturing network allows us to deliver our broad portfolio of products to a wide range of customers across the globe, while improving our customer service and strengthening our market positions."
• "Our senior management team has a proven history of implementing operational excellence programs at various large, global manufacturing businesses, and we believe the same successes can be realized at JELD-WEN."
• "We believe that our broad product portfolio of both doors and windows in North America is a competitive advantage as it allows us to cross-sell our door and window products to our end customers."
• "As of the date of this Form 10-K, we do not believe any risk from any cybersecurity threats or incidents have had, or are reasonably likely to have, a material impact on us."

Industry Context

StockSavvy.ai notes that the building products industry, particularly for residential and non-residential construction and R&R sectors, is highly sensitive to macroeconomic factors such as interest rates, consumer confidence, and labor/material costs. The company's reported revenue declines and goodwill impairments reflect broader industry headwinds, especially in North America, where high interest rates and inflation are impacting demand. The European market also faces softness, though some regions show signs of growth driven by renovation and government incentives. The competitive landscape remains fragmented, with larger players like Andersen, Pella, and Masonite, requiring JELD-WEN to focus on strategic pricing, cost reduction, and innovation to maintain market position.

Comparison to Industry Standards

• The company's significant net loss and goodwill impairment suggest underperformance relative to industry peers that may be navigating similar macroeconomic challenges more effectively or have different market exposures.
• The decline in gross margin percentage from 18.2% to 16.0% indicates pressure on profitability, which could be worse than some competitors who have better cost control or pricing power in the current environment.
• The stock performance graph shows JELD-WEN's stock declining significantly from $100.00 to $9.70 between December 31, 2020, and December 31, 2025, while the Russell 3000 and a self-selected peer group (including American Woodmark Corporation, Fortune Brands Innovations, Inc., Interface Inc, Masco Corporation, Mohawk Industries, Inc., and Owens Corning) showed positive returns over the same period. This indicates substantial underperformance compared to both the broader market and direct competitors.

Management Changes

Corporate Governance

Legal Proceedings

• **Steves & Sons, Inc. v JELD-WEN, Inc.**: An ongoing appeal regarding the court-ordered divestiture of Towanda operations. JELD-WEN filed a notice of appeal on February 6, 2025, and oral argument was held on January 29, 2026. The Fourth Circuit affirmed the finding of antitrust injury and $36.5 million in past antitrust damages, and the divestiture order, but vacated the alternative $139.4 million lost-profits award.
• **Wood Moulding and Millworks Products (WMMP) Anti-dumping and Countervailing Duty (AD/CVD) Investigation**: The U.S. Department of Commerce's Preliminary Results in June 2025 indicated potential additional AD/CVD duties for products imported from China between January 1, 2023, and January 31, 2024. The company recognized $2.1 million in expense in 2025 and is evaluating potential appeals after receiving final rulings in Q1 2026.
• **Canadian Antitrust Litigation**: Class action lawsuits against the company and Masonite in Quebec and Federal Court of Canada, alleging illegal conspiracy on prices, market shares, and production levels of interior molded doors. An agreement in principle was reached in July 2023 for an immaterial amount, and a formal settlement was executed on March 27, 2024. The settlement was approved by courts in June 2025, concluding the matters.
• **Everett, Washington WADOE Action**: Environmental remediation liability for a former manufacturing site. The company adjusted its provision to $21.0 million in December 2025, recognizing a $5.6 million long-term receivable for loss recoveries, with a total range of possible outcomes between $17.4 million and $33.6 million.
• **Towanda, Pennsylvania Consent Order**: Obligations to remove a wood fiber waste pile were closed in December 2024, with $1.4 million in bonds posted as of December 31, 2024.

Stakeholder Impact

• **Shareholders**: Significant negative impact due to substantial net losses, goodwill impairments, and a dramatic decline in stock price. No cash dividends are planned for the foreseeable future.
• **Employees**: Workforce reductions are part of ongoing restructuring efforts, impacting headcount. Management changes include new appointments in North America and Chief Accounting Officer roles. Pension plan obligations are being actively managed, including a significant settlement charge in 2025.
• **Customers**: Weaker market demand and the company's pricing discipline may affect customer relationships, though efforts are being made to enhance customer experience through technology and service.
• **Creditors**: The company remains in compliance with debt covenants, but high indebtedness and declining cash flow from operations could raise concerns. The extension of the ABL facility maturity provides some relief.
• **Suppliers**: Supply chain disruptions and material cost fluctuations remain a risk, potentially impacting the cost and availability of raw materials.

Next Steps

• Substantially complete workforce reductions by the end of the second quarter of 2026.
• Substantially complete European facility closures by the end of 2026.
• Continue to evaluate and modify manufacturing and other processes to further reduce environmental impact.
• Continue to monitor and evaluate legislative developments related to GloBE established by the OECD Pillar Two framework.
• Evaluate potential appeals regarding AD/CVD duties on wood moulding and millwork products after receiving final rulings in Q1 2026.
• The Board of Directors will determine any future dividends based on results of operations, cash requirements, financial condition, and contractual restrictions.
• The company may refinance, reprice, extend, retire, or otherwise modify outstanding debt.
• The company may seek to retire or purchase outstanding debt through cash purchases and/or exchanges for equity or debt.
• The Audit Committee will continue to receive periodic reports from the CIO and CISO on cybersecurity initiatives, metrics, and trends.
• The CIO and CISO will provide a cybersecurity update to the full Board at least annually.

Key Dates

Recommendation

The company's 2025 financial results are exceptionally poor, marked by a massive net loss of $621.2 million, a 14.9% revenue decline, and a 57.1% drop in Adjusted EBITDA. The full impairment of goodwill in both North America and Europe signals a significant destruction of shareholder value and a bleak outlook for future earnings potential. Cash flow from operations turned negative, indicating fundamental operational challenges. The stock performance graph further underscores severe underperformance compared to both the broader market and industry peers. While management is undertaking restructuring, the magnitude of the losses and the negative market outlook for 2026 suggest that the company faces profound challenges that are likely to continue to depress its share price. Investors should consider divesting.

Keywords

Doors, Windows, Building Products, Manufacturing, North America, Europe, Residential Construction, Repair & Remodel, Financial Performance, Goodwill Impairment, Revenue Decline, Cost Reduction, Supply Chain, Cybersecurity, ESG, Debt, SEC Filing, 10-K, JELD-WEN