Jeld-wen (JELD) Q2 Revenue Falls 17%

Jeld-wen (JELD -3.31%), a global manufacturer of doors and windows, released its second quarter results for 2025 on August 5, 2025. The most notable news was a year-over-year decline in GAAP revenue, operating margin, and net profit. despite the company outperforming modest analyst estimates, with both non-GAAP EPS and GAAP revenue exceeding consensus. GAAP revenue was $823.7 million, beating the average analyst estimate of $810.1 million. Non-GAAP earnings per share (EPS) were a loss of $0.04, narrower than the projected $0.08 non-GAAP loss. While these figures outpaced market expectations, both sales and profitability fell sharply compared to the same quarter last year. Guidance for fiscal 2025 was also reinstated, indicating continued sales and margin pressure. Overall, the period showed limited financial progress and ongoing market weakness, with cautious steps forward in cost reduction and operational streamlining.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Recent Focuses

Jeld-wen is among the world’s largest manufacturers of doors and windows, supplying both residential and commercial building markets. It operates 79 manufacturing and distribution facilities across 14 countries, enabling the company to serve diverse geographic markets and deliver products efficiently. Its product portfolio consists mainly of door systems (such as interior doors, exterior doors, and patio doors) and window systems, designed for various types of construction and renovation needs.

The company’s recent strategic focus has been on modernizing and consolidating its manufacturing network, driving cost reductions, and leveraging proprietary technologies like AuraLast (a wood protection treatment). Jeld-wen aims to maintain quality and speed by vertically integrating its production, innovating product offerings, and closely managing customer relationships with large retailers and contractors. Environmental and regulatory compliance, particularly around sustainability and energy efficiency, is now a central part of its business as well.

Quarter in Review: Key Results, Developments, and Drivers

GAAP revenue fell 16.5% year-over-year, with the decline driven primarily by weak demand in North America and the impact of a court-mandated divestiture. In the North America segment, revenue dropped 21.8%. due to a 16% decrease in volume and mix, along with a 7% revenue loss from the divestiture of the Towanda manufacturing facility. Segment adjusted EBITDA fell sharply, declining 54.1% to $34.7 million.

The Europe segment was more stable, with revenue down 2.7%. Here, an unfavorable 10% shift in volume and mix was partly offset by a 2% gain from price increases. A 5% boost from currency movements offset the total core revenue decline. Adjusted EBITDA for the Europe segment decreased by 16.6%. but showed less margin erosion than in North America. The company's total adjusted EBITDA margin fell to 4.7%, reflecting continued operational deleverage and persistent high fixed costs even as sales declined.

Driven by lower volumes and ongoing underutilization of production facilities. Cost savings and transformation measures, including site closures and supply chain improvements, helped offset some of the losses but could not fully match the scale of volume decline. Jeld-wen continued to invest in automating select door manufacturing sites in Texas, targeting long-term cost competitiveness despite short-term negative impacts.

Additional charges impacted results for the second quarter. These included $8.6 million in professional and legal expenses (not expected to recur long-term). and the lingering financial impact of the Towanda plant divestiture. Tariff costs represented another headwind, though management expects to pass this $30 million annual burden through to customers over time. Accounts receivable and inventory both increased despite lower sales, creating added pressure on working capital and liquidity. The net debt leverage ratio (non-GAAP) reached 5.7x, notably higher than the company’s historical range and highlighting liquidity concerns going forward.

Product Portfolio Highlights and Operational Actions

Jeld-wen’s core products include interior and exterior doors (door systems) and a broad range of window solutions tailored for residential and commercial clients. Its proprietary AuraLast wood treatment is designed to extend product life by protecting against wood rot and decay. No major new product launches were reported in the period, but management did highlight ongoing investments in automation and reductions in product complexity across door slab manufacturing sites.

These actions reflect a larger goal of optimizing manufacturing footprint and addressing excess capacity due to falling demand. While cost-reduction efforts resulted in an 11.9% year-over-year drop in selling, general, and administrative expenses (GAAP), underutilization of plants and lower throughput continue to weigh on results. Jeld-wen’s focus on building relationships with high-volume production builder customers has not yet resulted in a notable increase in sales but is expected to show incremental benefit in the second half of the year. Vertical integration—bringing more component production in-house—enhances capabilities, quality control, and supply chain efficiency.

Looking Forward: Guidance, Risks, and What to Watch

Management reinstated full-year guidance, forecasting FY2025 revenue between $3.2 billion and $3.4 billion, reflecting a 4% to 9% decline in core revenues year-over-year. Adjusted EBITDA for FY2025 is expected to range from $170 million to $200 million, well below the prior year. Operating cash flow for FY2025 is projected to be a use of approximately $10 million, reflecting continued pressure on profit margins and weak demand across core product lines. Guidance assumes the company is able to pass through anticipated tariff costs and to capture additional benefits from ongoing transformation programs.

Leadership indicated that actual results could vary substantially, citing the uncertain demand landscape and evolving effects of global tariffs on raw materials costs. Jeld-wen’s ability to stabilize operating cash flow, control leverage, and make further progress in network optimization will be critical watchpoints in coming quarters.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.