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JELD-WEN reported weaker first-quarter 2026 results as soft demand, inflation, and negative price-cost dynamics weighed on revenue and profitability. The company also raised its full-year revenue outlook, citing improving service levels and a smaller expected share-loss headwind, while keeping its adjusted EBITDA guidance unchanged.
JELD-WEN posted first-quarter net revenue of $722 million, down 7% from $776 million a year earlier. Management said the decline was driven primarily by lower volumes, with mix down slightly year over year. Core revenue declined 10%, while foreign exchange provided a $30 million tailwind, supported by a stronger euro versus the dollar.
Adjusted EBITDA fell to $6 million from $22 million in the prior-year quarter, and the adjusted EBITDA margin declined to 0.9% from 2.8%. The CFO, Samantha Stoddard, attributed the earnings decline to lower volume mix and negative price-cost dynamics, noting that inflation was not fully offset by pricing. She said those pressures were partially offset by “significantly improved productivity” year over year.
Operating cash flow was a $91 million use of cash in the quarter, reflecting lower adjusted EBITDA and a $43 million working capital use. Stoddard said the first quarter is typically the company’s highest working capital quarter and that management expects “significant working capital improvement” through the remainder of 2026.
Net debt leverage increased to 11.3 times at quarter-end, and JELD-WEN drew $40 million on its revolver.
In North America, first-quarter revenue fell to $453 million from $531 million a year earlier. Stoddard said the decline was primarily due to lower volumes and the court-ordered Towanda divestiture, which had a partial impact in the first quarter of 2025. North America adjusted EBITDA was $4 million, down from $16 million, and the adjusted EBITDA margin declined to 0.8% from 2.9%.
In Europe, revenue rose to EUR 269 million from EUR 245 million a year earlier, an increase of 10% in euros. Stoddard said the improvement was driven primarily by foreign exchange and slightly better pricing, partly offset by continued volume declines. Foreign exchange contributed approximately 11.5 percentage points to the year-over-year revenue change. Europe adjusted EBITDA was $7 million, down from $11 million, and the adjusted EBITDA margin declined to 2.6% from 3.4%.
CEO Bill Christensen said European conditions appear to be stabilizing, with the company expecting volumes to be roughly flat year over year. He added that demand remains subdued but that the company is not seeing further deterioration from current levels.
JELD-WEN raised its full-year 2026 net revenue outlook to a range of $3.05 billion to $3.2 billion, up from its prior range of $2.95 billion to $3.1 billion. Management now expects core revenue to decline 3% to 6% year over year, compared with a prior expected decline of 5% to 10%.
Christensen said the higher revenue outlook reflects a modest benefit from improving service levels, bringing company volume assumptions more in line with the underlying market. He also noted that April sales were in line with expectations.
The company maintained its full-year adjusted EBITDA guidance of $100 million to $150 million. Christensen said improved volumes are being offset by incremental price-cost headwinds versus prior assumptions, including higher freight costs and competitive pricing in certain areas.
JELD-WEN also maintained its cash flow outlook, expecting operating cash flow of approximately $40 million and free cash flow use of approximately $60 million. Capital expenditures are expected to be approximately $100 million and “largely maintenance in nature.” The guidance assumes no portfolio changes.
For 2026 end-market assumptions, management said it expects the North American windows and doors market to be down low to mid-single digits. New single-family construction is expected to be down low single digits, repair and remodel down mid-single digits, U.S. multifamily up significantly year over year, and Canada down high single digits. In Europe, volumes are expected to be roughly flat.
During the question-and-answer session, Stoddard said second-quarter adjusted EBITDA is expected to improve from the first quarter primarily due to normal seasonality, higher sales volume, better labor absorption, and pricing actions implemented in the first quarter that should flow through more meaningfully in the second quarter. She also said normal incremental margins in an improving volume environment are expected to be in the 25% to 30% range.
Management emphasized progress on customer service, particularly in North America. Christensen said On-Time In-Full delivery (OTIF) has improved to more than 90% over the past year, with a goal of consistently operating above 95%. He said customers are noticing the improvement, with better engagement, more consistent order patterns, and more opportunities to quote and compete for new business.
Christensen said JELD-WEN has deployed its A3 Management System across the network to improve issue identification, root-cause problem solving, and plant-level consistency. The company also made targeted service investments, including higher transportation spending such as shipping partial loads when needed, while maintaining staffing levels despite lower volumes.
On productivity initiatives, Stoddard said $35 million of transformation carryover benefits are 100% complete, while more than 80% of base productivity and rightsizing initiatives are done.
Christensen said JELD-WEN continues to progress its strategic review of the European business but has nothing to announce. He said the review could provide meaningful liquidity and help strengthen the balance sheet.
In response to analyst questions about other potential asset sales, Christensen said the company continues to evaluate options to improve liquidity, including sales of other assets and potential sale-leaseback transactions. He said JELD-WEN expects to address near-term maturities before they become current in December.
“Cash and liquidity remain a priority,” Christensen said, adding that the company is taking actions to preserve cash and continues to evaluate opportunities to strengthen liquidity and maintain flexibility in an uncertain environment.
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