JELD-WEN’s second quarter was marked by ongoing demand softness, yet the company’s results surpassed Wall Street’s expectations, leading to a strong positive market reaction. Management credited disciplined cost reduction, further footprint actions—including plant closures and consolidations—and operational transformation as key drivers in offsetting volume declines. CEO William Christensen emphasized the impact of fixed cost reductions and improved service levels, while CFO Samantha Stoddard pointed to realized SG&A savings and selective pricing actions to recover tariff-related costs. The company continues to navigate a challenging market environment, focusing on what it can control and adapting its operations accordingly.
Is now the time to buy JELD? Find out in our full research report (it’s free).
JELD-WEN (JELD) Q2 CY2025 Highlights:
- Revenue: $823.7 million vs analyst estimates of $810.3 million (16.5% year-on-year decline, 1.7% beat)
- Adjusted EPS: -$0.04 vs analyst estimates of -$0.10 (61.9% beat)
- Adjusted EBITDA: $39 million vs analyst estimates of $30.6 million (4.7% margin, 27.5% beat)
- EBITDA guidance for the full year is $185 million at the midpoint, above analyst estimates of $146.6 million
- Operating Margin: -1.7%, down from 0.5% in the same quarter last year
- Organic Revenue fell 13% year on year, in line with the same quarter last year
- Market Capitalization: $447.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From JELD-WEN’s Q2 Earnings Call
- Susan Marie Maklari (Goldman Sachs) asked about the status and expected near-term margin impact of network optimization. CEO William Christensen explained the pace of consolidation is slowing to preserve capital and limit customer disruption, but all actions for 2025 are included in transformation benefits.
- John Lovallo (UBS) inquired about the urgency and progress on strategic options to reduce financial leverage. Christensen said ample liquidity allows for a thoughtful process, with options under review and a detailed capital structure plan expected by year-end.
- Phil Ng (Jefferies) (Fiona on the call) questioned North America and Europe volume trends and the role of mix. Christensen highlighted that volume declines are slowing and softness is market- and share-driven, while Stoddard clarified that nearly all recent headwinds are volume-related, not mix.
- Keith Brian Hughes (Truist) asked if changes in Europe are strategic or balance sheet-driven. Christensen responded that both operational progress and capital needs are under evaluation, and the company is assessing whether it is the best long-term owner of its European business.
- Anika Dholakia (Barclays) requested clarity on transformation-driven productivity and its prospects in a low-volume environment. Stoddard stated that while transformation offsets some inefficiency, negative base productivity from underutilized capacity remains a headwind until volumes recover.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) continued realization of transformation and cost actions—including automation and network optimization—(2) execution and communication of the company’s capital structure and deleveraging plan, and (3) stabilization or improvement in core volumes, especially in North America. Any additional asset sales or shifts in the tariff landscape will also be critical signposts for the company’s ability to manage risk and position for eventual market recovery.
JELD-WEN currently trades at $5.14, up from $4.65 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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