10-Q: JELD-WEN Reports Q1 2026 Results: Revenue Down, Net Loss Widens

JELD-WEN Holding, Inc. reported a decrease in net revenues and a wider net loss for the first quarter of 2026, impacted by lower volume/mix and increased SG&A expenses.

Summary

• Net revenues for the first quarter of 2026 decreased by 6.9% to $722.1 million, down from $776.0 million in the prior year's comparable period.
• The decrease in net revenues was primarily attributed to a 10% decrease in Core Revenues and a 1% decrease from the divestiture of Towanda, partially offset by a 4% favorable foreign exchange impact.
• Gross margin declined by 17.3% to $92.7 million, with the gross margin percentage falling to 12.8% from 14.4% year-over-year, due to negative price/cost impacts and decremental volume/mix.
• Selling, General, and Administrative (SG&A) expenses increased by 0.8% to $146.0 million, primarily due to a legal settlement, despite lower headcount.
• The company reported an operating loss of $55.2 million, compared to a loss of $184.9 million in the prior year, which included a significant goodwill impairment charge.
• Net loss for the quarter was $76.8 million, or $0.90 per share, compared to a net loss of $190.1 million, or $2.24 per share, in the first quarter of 2025.
• Adjusted EBITDA decreased significantly by 71.9% to $6.1 million from $21.9 million in the prior year, with North America Adjusted EBITDA down 76.7% and Europe down 33.6%.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant decline in revenues, widening net loss (when considering operational performance excluding prior year impairments), and substantial drop in Adjusted EBITDA, indicating worsening financial performance.

Positives

• Favorable foreign exchange impact of 4% partially offset the decrease in net revenues.
• Productivity improvements partially offset negative price/cost impacts on gross margin.
• Lower headcount contributed to a decrease in SG&A expenses.
• The company's North America segment saw a favorable impact from higher inventory purchases on accounts payable.
• The company has $259.5 million available for borrowing under its ABL Facility, contributing to total liquidity of $309.9 million.

Negatives

• Net revenues decreased by 6.9% to $722.1 million.
• Gross margin percentage decreased to 12.8% from 14.4%.
• SG&A expenses increased by 0.8% to $146.0 million, driven by a legal settlement.
• Operating loss was $55.2 million.
• Net loss for the quarter was $76.8 million.
• Adjusted EBITDA decreased by 71.9% to $6.1 million.
• North America segment Adjusted EBITDA decreased by 76.7%.
• Total liquidity decreased to $309.9 million from $484.7 million at the end of the previous year.

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 new homes and home construction/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.
• Failure to retain and recruit executives, managers, and employees.
• Disruptions in operations due to weather events, natural disasters, public health crises, armed conflicts, 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.
• Delays or interruptions in the delivery of raw materials, finished goods, or component parts.
• Changes to tariff, trade, or investment policies or laws.
• Economic and geopolitical uncertainty and risks from operating a multinational business.
• Exchange rate fluctuations.
• Product liability claims, product recalls, or warranty claims.
• Adverse outcome of pending or future litigation.
• Acquisitions, divestitures, or investments that may not be successful.
• Inability to protect intellectual property.
• Increases in labor costs, potential labor disputes, and work stoppages.
• Pension plan obligations.
• Security breaches and other cybersecurity incidents.
• Emerging issues related to the integration and use of AI.
• Changes in building codes that could increase product costs or lower demand.
• Compliance costs and liabilities under environmental, health, and safety laws and regulations.
• Availability and cost of credit.
• The company's current level of indebtedness and the effect of restrictive covenants under existing or future indebtedness.
• The company may be required to undertake various actions to service its indebtedness, including refinancing, strategic reviews of assets, sale-leaseback transactions, or adjusting capital expenditures.
• The company has $400 million of Senior Notes due in December 2027 for which it is unlikely that cash flows from operations will be sufficient to fully repay.

Future Outlook

The company believes that cash provided by operations and other sources of liquidity, including cash, cash equivalents, and availability under revolving credit facilities, will provide adequate liquidity for ongoing operations, planned capital expenditures, other investments, and debt service requirements for at least the next twelve months. However, the company notes that it has $400 million of Senior Notes due in December 2027 for which it is unlikely that cash flows from operations will be sufficient to fully repay, and may need to undertake various actions to service its indebtedness.

Management Comments

• The company believes Core Revenues assists management, investors, and analysts in understanding the organic performance of its operations.
• The company believes Adjusted EBITDA assists investors and analysts in comparing operating performance across reporting periods on a consistent basis by excluding items not indicative of core operating performance.
• The company believes that cash provided by operations and other sources of liquidity will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments, and debt service requirements for at least the next twelve months.

Industry Context

StockSavvy.ai notes that JELD-WEN's performance in the building products sector is influenced by broader trends in new housing starts, residential and non-residential construction, and repair/remodeling activity. The reported decline in revenues and margins reflects challenges within these end markets, potentially exacerbated by broader economic conditions and competitive pressures.

Comparison to Industry Standards

• The filing does not provide specific comparisons to industry benchmarks or competitors' results.
• The company's gross margin percentage of 12.8% and SG&A as a percentage of revenue of 20.2% for Q1 2026 are internal metrics and not directly compared to industry averages in this filing.

Legal Proceedings

• The company settled the Steves & Sons, Inc. v JELD-WEN, Inc. antitrust and contract dispute, resulting in a legal settlement expense of $8.5 million recognized in the three months ended March 28, 2026. The appeal was dismissed, and the action was administratively closed.
• The company was involved in a Wood Moulding and Millworks Products (WMMP) Anti-dumping and Countervailing Duty (AD/CVD) Investigation, which resulted in an expense of $2.1 million recognized in the year ended December 31, 2025.
• The company is involved in various other legal proceedings, claims, and government audits arising in the ordinary course of business.

Stakeholder Impact

• Shareholders may be concerned by the decrease in revenue, widening net loss, and significant drop in Adjusted EBITDA, potentially impacting stock valuation.
• Employees may be affected by ongoing restructuring and headcount reductions, as indicated by lower salaries and benefits expenses.
• Creditors and lenders may review the company's debt levels and ability to service its obligations, particularly the $400 million Senior Notes due in 2027.

Next Steps

• The company will continue to monitor and manage its liquidity and debt service requirements.
• The company may explore refinancing, repricing, extending, retiring, or modifying its outstanding debt.
• The company may seek to retire or purchase outstanding debt through cash purchases and/or exchanges.
• The company will continue to implement its transformation journey initiatives focused on productivity, manufacturing realignment, cost reduction, and global footprint rationalization.
• The company expects to substantially complete the closure of its Chiloquin, Oregon facility by the end of 2026.
• The company expects to substantially complete the closure of its Sheffield, England facility by the end of 2026.

Key Dates

Recommendation

While the company reported a significant decline in revenue and a substantial drop in Adjusted EBITDA, the net loss was lower than the prior year due to a large goodwill impairment in the prior period. The company has liquidity and is undertaking restructuring efforts. However, the persistent operational challenges and significant debt obligations warrant a cautious 'hold' stance until a clear turnaround in performance is demonstrated.

Keywords

JELD-WEN Holding, Form 10-Q, Quarterly Report, Financial Results, Revenue, Net Loss, Operating Loss, Adjusted EBITDA, North America, Europe, Manufacturing, Building Products, SEC Filing