JELD-WEN (NYSE:JELD) executives said the company finished fiscal 2025 in a “very soft” demand environment, but delivered fourth-quarter results at the high end of its expectations through stronger-than-anticipated sales performance and cost actions aimed at aligning the business with current market conditions.
On the company’s fourth-quarter and full-year 2025 earnings call, CEO Bill Christensen credited improved operational execution and customer service progress—particularly in on-time, in-full delivery—alongside structural labor reductions implemented throughout the year. CFO Samantha Stoddard added that lower volumes and price-cost pressures drove year-over-year profitability declines, partially offset by productivity gains and lower SG&A.
Fourth-quarter results: revenue down, profitability pressured by volume and costs
Adjusted EBITDA in the quarter was $15 million, or 1.8% of sales, compared to $40 million, or 4.5% of sales, in the prior-year period. Management attributed the decline largely to unfavorable operating leverage from lower volumes and continued price-cost pressure. Stoddard said cost inflation—particularly tied to tariffs, glass, and metals—continued to outpace pricing recovery.
The company noted several items that influenced quarter comparisons and performance, including:
- Approximately $7 million of timing-related items that management said are not expected to recur.
- A $41 million revenue reduction tied to the court-ordered divestiture of the Towanda operation, with a $7 million reduction in adjusted EBITDA from that divestiture in the year-over-year comparison.
- A $22 million revenue tailwind from foreign exchange translation due to a weaker U.S. dollar.
Cost actions, cash flow, and liquidity
Christensen said the company reduced full-time positions by approximately 14% in full-year 2025, representing about 2,300 people, describing the changes as structural and based on an expectation that demand is “unlikely to improve meaningfully in the near term.” He emphasized the company is balancing cost reductions with maintaining customer service.
Cash performance in the quarter improved versus expectations. Christensen said free cash flow came in about $20 million ahead of the company’s expectations, even with higher capital spending due to carryover projects, citing tighter working capital management and the benefits of cost actions. Stoddard said the quarter was roughly free cash flow neutral, as operating cash flow was largely offset by capital spending, but net working capital fell $55 million due mainly to lower accounts receivable and inventory, consistent with typical fourth-quarter seasonality.
During the fourth quarter, JELD-WEN completed a sale-leaseback of its Coral Springs, Florida, facility, generating net proceeds of approximately $38 million, which management said increased liquidity.
At year-end, Christensen said the company had about $136 million of cash and approximately $350 million of availability on its revolver. He noted there are no debt maturities until December 2027, and said the company expects to address those maturities “before they become current.” Stoddard said net debt leverage increased to 8.6x at year-end due to lower earnings rather than additional borrowing, adding that the company did not draw on the revolver in the fourth quarter.
Full-year 2025: $3.2 billion of sales and $120 million of adjusted EBITDA
For the full year, management reported sales of $3.2 billion and adjusted EBITDA of $120 million. Christensen said the result was at the high end of the guidance issued after the third quarter but below where the company expected to finish when the year began, citing weakness in retail and lower-priced new housing as demand failed to recover as initially anticipated.
Christensen also said the company experienced more disruption from service challenges earlier in the year than expected as it rightsized the business, repositioned operations, and implemented more standardized ways of working. He said service levels improved over the second half as production transitions tied to consolidations were completed in North America and Europe, backlogs were worked down, and operations stabilized.
Segment performance: North America down on volume; Europe aided by FX
In North America, fourth-quarter revenue was $522 million versus $640 million in the prior year, driven primarily by lower volume and the impact of the Towanda divestiture. North America adjusted EBITDA was $14 million compared with $42 million last year, and adjusted EBITDA margin declined to 2.6% from 6.6% due to volume pressure and price-cost headwinds, partially offset by productivity actions.
In Europe, revenue rose to $280 million from $256 million, which management attributed primarily to foreign exchange. On a constant currency basis, Stoddard said volumes and mix were lower year-over-year. Europe adjusted EBITDA was $12 million compared to $17 million last year, with margin of 4.1% versus 6.5%, as lower volume/mix and higher SG&A outweighed slightly positive productivity.
2026 outlook: cautious demand assumptions, disciplined pricing, and planned cash use
Management described its 2026 outlook as conservative and not dependent on a near-term market recovery. Christensen said JELD-WEN expects the overall North American windows and doors market to be down low- to mid-single digits, including low-single-digit declines in new single-family construction and mid-single-digit declines in repair and remodel activity. Multifamily is expected to be relatively stable in the U.S., while Canada is expected to decline at a high-single-digit rate. In Europe, the company expects volumes to be broadly flat year-over-year, with signs of stabilization but no material improvement.
For full-year 2026, JELD-WEN guided to:
- Net revenue: $2.95 billion to $3.1 billion
- Core revenue: down 5% to 10%
- Adjusted EBITDA: $100 million to $150 million
- Operating cash flow: approximately $40 million
- Capital expenditures: approximately $100 million
- Free cash flow: approximately a $60 million use
Christensen and Stoddard said the adjusted EBITDA range is driven primarily by volume uncertainty rather than execution risk. The company also expects to use its revolver in the first quarter due to seasonal working capital needs and to pay down much of that usage by year-end.
In discussing the bridge from 2025 adjusted EBITDA of $120 million to the midpoint of 2026 guidance of $125 million, Christensen outlined expected headwinds from market volume/mix (about $25 million), share loss (about $60 million), and price-cost (about $10 million), offset by benefits from rightsizing and base productivity (about $75 million) and carryover benefits from the transformation program (about $35 million).
Christensen also said the company continues a strategic review of its European business, though he said there was “nothing to announce at this time.” He said the review or other potential actions could provide liquidity and strengthen the balance sheet, and the company is also evaluating smaller non-core asset actions and selective sale-leaseback opportunities.
During Q&A, management said pricing actions are “more or less into the market,” with the financial impact expected to be fully reflected by the second quarter. Stoddard said the company expects the first quarter to be down year-over-year with slightly positive EBITDA, citing pricing phasing, the absence of Towanda in 2026 results, and winter storms. Management also said it is prioritizing pricing discipline even if it results in intentional volume loss, and it is not assuming service-driven volume recovery in its outlook.
Christensen highlighted the company’s shift from its prior JELD-WEN Excellence Model to an “A3 Operating System” across manufacturing sites to improve problem-solving and execution. As an example, he said the Kissimmee, Florida, facility improved on-time, in-full, right-first-time performance from roughly 55% in 2024 to consistently above 95% by the end of 2025, while past-due orders fell from more than $5 million entering 2025 to about $200,000 by December.
About JELD-WEN (NYSE:JELD)
JELD-WEN is a global manufacturer of windows and doors and related building products, serving both residential and commercial markets. The company’s portfolio includes wood, vinyl and aluminum windows; interior wood doors; and exterior doors crafted from steel, fiberglass and composite materials. JELD-WEN’s products are designed for new construction and remodeling applications, with an emphasis on quality, durability and energy efficiency.
Founded in 1960 in Klamath Falls, Oregon, JELD-WEN has grown through a combination of organic expansion and strategic acquisitions to establish a manufacturing footprint in North America, Europe and Australasia.
