JELD-WEN（JELD）2026年第3四半期決算説明会：需要軟化の中でガイダンスを維持

主なポイント

• JELD-WENが発表した2026年第3四半期の売上高は前年同期比1%減の7億9900万ドルとなりました。販売数量および製品ミックスの低下とわずかな為替の逆風が、価格引き上げの効果を相殺しました。
• 調整後EBITDAは前年同期の4400万ドルから5400万ドルに増加し、調整後EBITDA利益率は130ベーシスポイント上昇して6.8%となりました。この実績には1160万ドルの純関税払い戻し金が含まれています。
• フリーキャッシュフローは1500万ドルのプラスとなりました。純負債レバレッジ比率は第2四半期末の11.3倍から10.3倍へと改善し、リボルビング信用枠からの借入残高は1億1500万ドルでした。
• 経営陣は、北米および欧州市場の前提条件を引き下げたものの、通期の売上高見通し（31億ドル〜32億ドル）および調整後EBITDA見通し（1億2000万ドル〜1億5000万ドル）を据え置きました。
• JELD-WENは11月末までにリファイナンス取引を完了する見込みで、これにより債務の返済期限が約5年延長されて2031年となる一方、年間の利息費用は約5000万ドル増加します。
• 同社は欧州事業の戦略的見直しを終了し、同事業を継続保有することを決定しました。今後はオペレーションの改善、構造の簡素化、コスト削減に注力します。

主要財務データ

調整後EBITDAの増減分析（ブリッジ）では、生産性向上による1000万ドルのプラス効果、販売管理費（SG&A）減少等による700万ドルの純プラス効果、および1160万ドルの純関税払い戻し金が計上されました。これらの増益要因が、価格/コスト面の1400万ドルの逆風や、販売数量・ミックス面の600万ドルの逆風を十分に相殺しました。

事業および業績ハイライト

北米部門

北米の売上高は前年同期の5億4600万ドルから5億3000万ドルに減少しました。主に販売数量の低下により、コア売上高は3%減少しました。

調整後EBITDAは3800万ドルから4800万ドルに増加し、利益率は6.9%から9.1%へと拡大しました。生産性向上と関税払い戻し金が、価格/コスト圧力や販売数量低下の影響を十分に吸収しました。

北米におけるOTIF（完全期日内納入率）は、7月の約85%から9月および10月には90%弱まで回復しました。経営陣は、目標として90%超の安定維持を掲げつつも、サービスレベルの向上によって過去に失った取引の奪還につながっていると述べました。

欧州部門

欧州の売上高は前年同期の2億6300万ドルから2%増の2億6900万ドルとなりました。主に価格引き上げが牽引し、一部は為替の逆風により相殺されました。

調整後EBITDAは1600万ドルから1500万ドルに減少し、利益率は6.1%から5.6%に低下しました。生産性向上の取り組みがあったものの、価格/コスト圧力、販売数量の低下、わずかな為替逆風の影響がそれを上回りました。

欧州のOTIF率は約95%でした。経営陣によると、DACH地域（ドイツ、オーストリア、スイス）はJELD-WENにとって欧州最大の市場であり、高いサービスレベルが同地域でのシェア維持、さらにはわずかな拡大にも貢献しているとのことです。

戦略的見直しの結果、JELD-WENは欧州事業を継続保有します。経営陣は、欧州トップのクリスチャン・ミシェル（Christian Michel）氏のもと、オペレーションの改善、構造の効率化、幅広いコスト削減の機会に取り組む計画です。

業績見通し（ガイダンス）

JELD-WENは、市場環境の見通しが悪化しているものの、2026年通期の業績ガイダンスを維持しました。

調整後EBITDAの見通しには、第4四半期における追加の関税払い戻し金は含まれていません。キャッシュフローの見通しには、計画中のリファイナンスに関連する手数料が含まれておらず、経営陣は営業キャッシュフローおよびフリーキャッシュフローへの影響はないと見込んでいます。

経営陣は現在、2026年の北米窓・ドア市場が1桁台半ばの減少になると予想しており、従来の1桁台前半〜半ばの減少という前提から引き下げました。米国の戸建て住宅新築件数も、従来の1桁台前半の減少予想に対し、1桁台半ばの減少を見込んでいます。

欧州市場の販売数量については、従来のほぼ横ばいという前提に対し、通期で1桁台前半の減少と見込んでいます。

2026年の調整後EBITDA増減分析（ブリッジ）において、経営陣は販売数量・ミックスの逆風予想を従来の2500万ドルから約3000万ドルへ、価格/コストの逆風予想を5000万ドルから約6000万ドルへとそれぞれ引き上げました。一方、純シェア低下による逆風予想は2000万ドルから500万ドルへと改善しました。同社は引き続き、約1億2000万ドルの生産性向上効果を見込んでいます。

リスクおよび注視点

• 経営陣によると、第3四半期の需要は想定以上に軟調であり、10月の売上高は需要の低迷が第4四半期、さらには2027年まで続く可能性を示唆しています。
• インフレによるコスト増加が引き続き価格引き上げの効果を上回っています。原材料購入費用に含まれる運賃や物流費の上昇が主な圧迫要因となっています。
• 価格競争が依然として極めて激しく、コストインフレを完全に相殺する同社の能力が制限されています。
• 計画中のリファイナンスにより返済期限は2031年まで延長されるものの、年間の利息費用は約5000万ドル増加する見通しです。
• 純負債レバレッジ比率は前四半期比で1.0ポイント改善したものの、10.3倍と依然として高水準にとどまっています。
• 経営陣は、原材料コストの高止まり、高金利、そして大きなボラティリティを理由に挙げて、2027年の詳細なガイダンスの提示を見送りました。

アナリスト質疑応答のハイライト

経営陣は、2026年の見通しを支える生産性向上策の大部分はすでに実行されており、その効果が損益計算書に反映されつつあると説明しました。通期の生産性向上の前提は前四半期から変更ありません。

2027年の見通しについて、経営陣は具体的なガイダンスを提供しませんでした。現在の市場の低迷は第4四半期を通じて、おそらく2027年まで続くと見込んでおり、より詳細な見通しは2026年第4四半期および通期決算発表時に公表する予定です。

欧州において、同社は北米よりも効果的に価格設定とコスト圧力のバランスを取っていると経営陣は述べました。また、需要の低迷が続いているため通期の市場見通しは引き下げられたものの、欧州市場は底打ちに近い可能性があるとも指摘しました。

決算説明会 文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Hello, everyone. Thank you for joining us, and welcome to the JELD-WEN Third Quarter Earnings Call. [Operator Instructions] I will now hand the conference call over to James Armstrong, Vice President of Investor Relations. Please go ahead.

James Armstrong

Thank you, and good morning. We issued our third quarter 2026 earnings release last night and posted a slide presentation to the Investor Relations portion of our website, which can be found at investors.jeld-wen.com. We will be referencing this presentation during our call. Today, I am joined by Bill Christensen, Chief Executive Officer; Samantha Stoddard, Chief Financial Officer; and Jeff Embt, Chief Accounting Officer.

Before I turn it over to Bill, I would like to remind everyone that during this call, we will make certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties, including those set forth in our earnings release and provided in our Forms 10-K and 10-Q filed with the SEC. JELD-WEN does not undertake any duty to update forward-looking statements, including the guidance we are providing with respect to certain expectations for future results.

Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to their most directly comparable financial measures calculated under GAAP can be found in our earnings release and in the appendix to our earnings presentation.

With that, I would like to now turn the call over to Bill.

William Christensen

Thank you, James, and good morning, everyone. Before turning to our results, I want to recognize the continued dedication of our associates across JELD-WEN. Our teams are working through a challenging environment while staying focused on our customers, improving how we operate and finding ways to make our business more efficient. Their efforts continue to make a meaningful difference, and I want to thank everyone for their continued commitment and hard work.

Turning to the business. The macro environment in the third quarter was slightly weaker than we had anticipated. We continue to experience soft market demand, and in some areas, we are seeing additional pressure on volume. Despite these headwinds, we continue to make progress in the areas within our control. We are managing our costs, improving productivity and maintaining our focus on customer service. Importantly, we believe our improved service levels are helping us regain market share that we had previously lost.

As shown on Slide 4, third quarter sales were $799 million. Our On-Time, In-Full delivery performance improved throughout the quarter, reaching just under 90% in September following some temporary disruptions early in the quarter that we discussed during our last earnings call. While we work towards more consistent performance above 90%, our customers continue to recognize the improvements we have made. Adjusted EBITDA was $54 million for the quarter, which included $11.6 million of net tariff refunds. Adjusted EBITDA margin was 6.8%, an increase of 130 basis points year-over-year.

Our results continue to reflect the benefits of improved execution, productivity and disciplined cost management as we manage through continued pressure on volumes and price/cost. Free cash flow was positive $15 million during the quarter, supported by tightly managed capital expenditures and sequential improvements in working capital. Cash generation remains an important priority, and we continue to take a disciplined approach to capital spending.

Looking ahead to the fourth quarter, we expect market conditions to remain challenging with some additional demand pressure relative to what we experienced earlier in the year. We will continue to focus on what we can control, including aligning our operations and cost base with current demand. At the same time, we remain committed to providing our customers with dependable service, which is helping us regain business and improve our competitive position. I also want to spend a few minutes discussing 2 important strategic developments.

First, we have concluded the strategic review of our European business. After carefully evaluating the available alternatives, we believe the greatest opportunity to create long-term value is retaining the business with continued improvement of performance. With Christian Michel now leading Europe, we have the leadership and experience in place to accelerate operational improvements, streamline the business structure and address broader cost opportunities. We also believe that the European market is beginning to stabilize with opportunities for growth in the coming years. By improving our cost structure today, we believe we can position the business to deliver significantly stronger performance as market conditions improve.

Second, we are in the final stages of addressing our near-term debt maturities. We have made significant progress on a refinancing transaction that we expect to conclude at the end of November. Once completed, the transaction is expected to extend our debt maturities by approximately 5 years to 2031. We expect approximately $50 million in higher annual interest expense as a result of the refinancing. The refinancing would be an important milestone for JELD-WEN, providing greater financial flexibility and allowing us to focus more fully on improving the underlying performance of the business.

Importantly, it would give us additional time to execute our operational priorities, manage through the current soft demand environment and better position the company to benefit when our end markets recover. Taken together, we believe these developments represent meaningful progress in strengthening JELD-WEN for the future. We remain focused on improving execution, serving our customers and building a more efficient and competitive company.

Finally, I want to take a moment to recognize Samantha Stoddard, who has informed us of her decision to step down as Chief Financial Officer. I want to personally thank Samantha for her leadership, dedication and contributions to JELD-WEN, particularly as we have navigated a challenging period for our business. We appreciate her efforts and wish her all the best in the future. As part of this transition, Jeff Embt will assume the role of Interim Chief Financial Officer, in addition to his current role as Chief Accounting Officer. We are confident in Jeff's ability to provide continuity and leadership as we continue executing against our priorities, and I am pleased to have Jeff on our call today.

With that, I will hand it over to Samantha to review our financial results in greater detail.

Samantha Stoddard

Thank you, Bill. I want to thank Bill, the Board and my JELD-WEN colleagues for the opportunity to serve as CFO. I wish Jeff and the entire team all the best. Turning to the financial results on Slide 6. Third quarter net revenue was $799 million compared to $809 million in the third quarter of 2025, a decline of 1% year-over-year. The decrease was driven primarily by lower volume mix and a slight foreign exchange headwind, partially offset by higher pricing.

Adjusted EBITDA for the quarter was $54 million compared to $44 million in the prior year period. As Bill mentioned earlier, our results included $11.6 million of net tariff refunds, which accounted for the majority of the year-over-year improvement. Excluding this benefit, continued productivity improvements were largely offset by ongoing price/cost pressure and lower volume mix.

Turning to cash flow. We generated $15 million of free cash flow during the third quarter, supported by continued discipline on capital expenditures and sequential improvements in working capital. We remain focused on managing cash closely, reducing working capital requirements and maintaining a disciplined approach to spending across the business. With improved earnings and cash generation, net debt leverage declined to 10.3x at the end of the third quarter, an improvement of 1 full turn from 11.3x at the end of the second quarter. At quarter end, we had $115 million drawn on our revolving credit facility. We remain focused on improving earnings, generating cash and maintaining balance sheet flexibility as we continue to manage through the current market environment.

Turning to Slide 7. The year-over-year change in revenue was driven by lower volume mix and a slight foreign exchange headwind, partially offset by higher pricing. Core revenue declined 1%, while foreign exchange represented a $3 million headwind. Taken together, these items resulted in a 1% decline in reported revenue for the quarter.

Turning to Slide 8. Adjusted EBITDA for the third quarter was $54 million compared to $44 million in the prior year quarter. The year-over-year improvement was driven by continued productivity gains, lower SG&A expenses and the benefit of net tariff refunds. Productivity contributed a $10 million benefit as we continue to drive costs out of the business. We also delivered meaningful SG&A savings, which combined with other items, resulted in a $7 million net benefit.

Additionally, we recognized $11.6 million of net tariff refunds during the quarter. These improvements more than offset continued market and cost pressures. Price/cost represented a $14 million headwind as inflation continued to exceed the benefit from pricing. Lower volume mix represented an additional $6 million headwind. While the market environment remains challenging, we continue to make meaningful improvements to our underlying cost structure. Our ongoing productivity initiatives and lower SG&A expense are helping us manage through softer demand and persistent cost pressures while positioning the business for improved profitability over time.

Turning to Slide 9 and our segment results. North America revenue was $530 million compared to $546 million in the prior year quarter. Core revenue declined 3% year-over-year, driven primarily by lower volumes. Adjusted EBITDA for North America was $48 million compared to $38 million last year. Adjusted EBITDA margin improved to 9.1% from 6.9%, an increase of 220 basis points. The improvement was driven by continued productivity gains and the benefit of tariff refunds, which more than offset ongoing price/cost headwinds and lower volumes.

In Europe, revenue was $269 million compared to $263 million in the prior year quarter, an increase of 2%. The improvement was driven primarily by higher pricing, partially offset by unfavorable foreign exchange. Adjusted EBITDA for Europe was $15 million compared to $16 million last year. Adjusted EBITDA margin was 5.6% compared to 6.1% in the prior year quarter. While we continue to deliver productivity improvements, those benefits were more than offset by price/cost pressures, lower volumes and a slight foreign exchange headwind.

I will now hand it back to Bill to discuss our market outlook.

William Christensen

Thanks, Samantha. Turning to Slide 11. I want to provide an update on our market outlook and the assumptions supporting our expectations for the remainder of 2026. As we move through the second half of the year, we are seeing softer demand conditions than we anticipated earlier in the year. The overall environment remains challenging, and we are adjusting our outlook to reflect the additional pressure we are seeing across our end markets.

In North America, we now expect the overall windows and doors market to decline in the mid-single digits compared to our previous expectation of low to mid-single digits. Within that outlook, we now anticipate U.S. new single-family construction to decline in the mid-single digits compared to low single digits previously. In Europe, we have also moderated our expectations and now anticipate full year market volumes to decline in the low single digits compared to our previous outlook for approximately flat volumes year-over-year. While we continue to believe the market is beginning to stabilize, demand is softer than we had previously anticipated.

At the company level, our performance remains broadly aligned with the underlying markets. Importantly, we believe our improved service levels are helping us regain some of the share we had previously lost. Customers continue to recognize the improvements we have made, and we continue to discuss opportunities to win additional business despite the softer market environment. However, pricing remains highly competitive, and we continue to take a disciplined approach to our commercial activities. As we manage through these conditions, our priorities remain in the areas where we can make the greatest impact.

We continue to take cost out of the business, improve productivity and align our operations with current demand levels while maintaining the service our customers expect. Overall, our market expectations have softened. However, we remain focused on improving the performance of our business through better execution, stronger customer relationships and continued cost discipline, positioning JELD-WEN to benefit when market conditions improve.

Turning to Slide 12. I want to walk through our updated full year 2026 guidance. Despite the softer market outlook we just discussed, we are maintaining our previous revenue and adjusted EBITDA guidance. Our continued progress in taking costs out of the business, combined with opportunities to regain market share through improved service, is helping to partially offset the additional pressure we are seeing in our end markets. We continue to expect net revenue in the range of $3.1 billion to $3.2 billion, with core revenue declining between 2% and 5% year-over-year.

While market volumes remain challenging, we are encouraged by the customer response to our improved service levels and the additional business opportunities we are seeing as a result. We are also maintaining our adjusted EBITDA guidance of $120 million to $150 million. This range does not assume any further tariff refunds in the fourth quarter. Our teams continue to identify and execute additional productivity initiatives and cost reductions across the business. These actions are helping us manage through lower market demand and persistent price/cost pressures.

Turning to cash flow. We are also maintaining our full year expectations. We continue to expect operating cash flow of approximately $10 million and free cash flow to be a use of approximately $75 million for the year. These expectations do not include the fees associated with our refinancing transaction, which we do not expect to impact operating or free cash flow. We continue to closely manage working capital and remain disciplined with capital spending, with full year capital expenditures expected to be approximately $85 million.

Turning to Slide 13. This chart bridges our 2025 adjusted EBITDA of $118 million to the midpoint of our 2026 adjusted EBITDA guidance of $135 million. Starting with the market, we now expect volume mix to represent an approximately $30 million headwind compared to $25 million previously. This reflects the further softening across our end markets that I discussed on the prior slide and is expected to continue through the current quarter. Partially offsetting this, we are seeing further improvements in our share position as our service levels continue to help us regain business with customers. As a result, we now expect net share loss to be a $5 million headwind compared to $20 million previously. This reflects the progress we are making in strengthening customer relationships and winning back business that we had previously lost.

We also continue to expect approximately $120 million of productivity benefits, including the carryover from our transformation initiatives and continued business rightsizing. Our teams remain focused on identifying additional opportunities to improve efficiency and reduce costs across the organization. These improvements are being offset by continued market and price/cost pressure. We now expect price/cost to be an approximately $60 million headwind compared to $50 million previously. The increase primarily reflects ongoing inflation, particularly in freight, and the impact of higher transportation costs on our purchased materials.

While we continue to take pricing actions where appropriate, the competitive environment remains challenging and cost pressures continue to exceed the benefits from pricing. The remaining items represent a net headwind of approximately $8 million, including variable compensation and other timing-related factors, partially offset by foreign exchange and other items.

Turning to Slide 14. I want to provide an update on our North America On-Time, In-Full performance and the progress we are making on customer service. As we discussed last quarter, our OTIF performance declined to approximately 85% in July, primarily due to temporary disruptions from Canadian wildfires. As those disruptions subsided, we saw a steady recovery throughout the third quarter, with OTIF improving to just under 90% in September and October. While we are encouraged by this improvement, our focus remains on returning to and sustaining service levels above 90% to build greater consistency across our operations.

As we have discussed previously, dependable service is critical to strengthening our customer relationships and improving our competitive position. Our customers continue to recognize the progress we have made, and we believe these improvements are helping us regain business that we have previously lost. We still have work to do, but the progress we are making reinforces our confidence in the actions we have taken. Maintaining strong service levels remains a priority as we continue to build customer trust, pursue new business opportunities and further improve overall performance.

Turning to Slide 15. I want to close by highlighting the priorities that will continue to guide us as we finish the year and look ahead. First, delivering consistent and dependable service remains a top priority. We have made significant improvements over the past year, and our customers are responding positively. We are seeing that progress translate into stronger relationships and opportunities to both regain business that we had previously lost and win new business as a result. While we are encouraged by these results, we need to continue building on this progress and consistently deliver the level of service our customers expect.

At the same time, we remain focused on improving the underlying performance of our business. With market conditions remaining challenging, we are continuing to take cost out of the organization, improve productivity and align our operations with current demand. We are also maintaining a disciplined approach to working capital and capital spending as we work to improve cash generation. Importantly, we are making meaningful progress on strengthening the company's longer-term financial position.

We expect to complete our debt refinancing by the end of November, which will provide additional financial flexibility and allow us to concentrate on executing our operational priorities. With the strategic review of Europe now concluded, we have a path forward in place to further improve the performance of that business and better position it for future growth.

Finally, I want to recognize our associates across JELD-WEN. The improvements we are making reflect their continued dedication, hard work and commitment to serving our customers. We know there's more work ahead, particularly in this difficult market environment, but I am encouraged by the progress we are making and the opportunities we have to build a stronger and more competitive company.

With that, I'll now turn the call back over to James for questions.

James Armstrong

Thanks, Bill. Operator, we're now ready to begin Q&A.

Operator

[Operator Instructions] Your first question comes from the line of Matthew Bouley with Barclays.

質疑応答

Anika Dholakia

Anika Dholakia on for Matt today. So first off, I want to start off on some of the productivity. So the full year guide implies a step-up in that productivity piece of the bridge from 3Q. I'm wondering how much of the required savings are already implemented versus dependent on maybe actions still underway? And then what types of initiatives would fall into this bucket?

Samantha Stoddard

Yes. This is Samantha. I can address that question. So versus 2Q, our productivity hasn't changed versus what we previously reported to the midpoint of our guidance. And the reason for that is most of this productivity has already been implemented. And so we are now reaping the benefits. The initiatives are completed, and we're seeing that play out in our P&L. The only change that we saw in our Q3 was that we did have a tariff refund that happened in Q3 that we had planned for and expected, and that we've called that out separately. But on the full year, there's been no change on the productivity.

Anika Dholakia

Okay. Great. That's helpful. And then secondly, I guess -- so you recently gave some 2027 color alongside the maturity extensions. And I'm wondering, first off, does this outlook still hold given some of the softer end market trends that you guys have been seeing for 2026? And then second, what are some planning assumptions around each of the market trends as we get into 2027?

William Christensen

Yes. Thanks for your question. So as we shared, obviously, the market conditions currently are softer than we had expected. We've adjusted down our market expectations on growth, both in North America and in Europe. Based on our October sales, that softness is continuing. We would expect that to roll through the fourth quarter and likely into '27. We're not today planning to give specific guidance outside of saying that there is a lot of volatility in expectations, given input costs that are elevated and also interest rates that remain elevated. And so we would expect to be sharing a lot more detail in our February 4Q and 2026 results readout on how we're thinking about 2027. But I would support your hypothesis that the market is soft and continues to stay soft based on what we're seeing currently.

Operator

Your next question comes from the line of Leonie Zirn with UBS.

Leonie Zirn

One question on your European business a bit in detail. I mean, I see that you achieved 4% price increases, but volume only dipped minus 1%. So I'm just trying to understand, have competitors also increased prices? So overall, the industry maintained price levels? Or are you gaining some competitive advantages like you alluded to market shares before, in particular in Europe? And if so, any particular regions to highlight?

William Christensen

Yes, Leonie, thank you for your call. So we remain confident in our team's ability to execute on the pricing actions that we've talked about for many quarters across our different subsegments in the European market. So there are regions where we are able to put price through. As you know, the economic headwinds have accelerated dramatically based on some of the input costs, and we're focused on trying to balance that price/cost dynamic in Europe. And I think we're definitely doing a better job in Europe than we are in North America on that front.

I would say, overall, we don't typically comment on how other competitors are utilizing price in the market. I would signal, however, that we feel we've reached the bottom roughly, but we have actually called down our market outlook for the full year in Europe slightly versus what we had it pegged in Q2. So there is continued softness that we see. But we're very pleased with the results of our team across Europe being able to better balance the price/cost dynamic.

Leonie Zirn

Okay. And then one follow-up, focusing on Germany. I was wondering how large are your German revenues of total Europe? Can maybe -- can you give a broad share like 20% or more or less? And then also, what demand do you specifically see there? And is pricing in Germany tougher than in other markets because construction is not picking up there versus Eastern Europe or Spain, where construction is much better? And have you been gaining market share in Germany as a consequence?

William Christensen

Okay. There's a number of questions to unpack there. So our Central region is our largest in Europe, and our Central region is comprised of the classical DACH countries, so Germany, Switzerland, Austria. We have a phenomenal team who's been doing an excellent job through various cycles of maintaining service levels to our customers. And I believe that our level of service in the current market is market-leading. And as a result, we feel that we've definitely been able to maintain share and potentially gain a little bit of share in the market environment.

Some of our competitors have signaled that there's some pretty significant headwinds. I wouldn't really want to comment on the outlook outside of saying that we are very confident in our team's ability and what they've been delivering in Central Europe, and we have an excellent franchise. I think that's, kind of, where I'd want to leave it. We're not going to share specific market share details, et cetera, outside of saying our DACH region is the largest in our European portfolio.

Leonie Zirn

Okay. Perfect. And maybe just one smaller question. The delivery performance and the 90% you talked about, was this referred to the Group or to Europe? And is Europe better or worse than the Group?

William Christensen

It's a split. So that was mainly driven by North America because we've been reporting out on the last couple of quarters on our OTIF improvements in North America. So Europe is roughly at 95% On-Time, In-Full, then 90% refers to North America. And there's different metrics, obviously, that we look at, line fill rates, On-Time, In-Full. The key message is the progress continues in North America, and we're maintaining our high level of service across Europe.

Operator

We have reached the end of the Q&A session. I will now turn the call back over to James Armstrong for closing remarks.

James Armstrong

Thanks, everyone, for joining us today. If you have any follow-up questions, please feel free to reach out. We appreciate your time and interest in JELD-WEN. Have a great day.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.