JELD-WEN Q3 Adjusted EBITDA Rises 23% as Revenue Slips

JELD-WEN reported higher third-quarter adjusted earnings despite a modest revenue decline, as productivity gains, cost savings and a tariff refund outweighed continued volume and price-cost pressure. The company maintained its 2026 guidance even as its market outlook called for volume declines in both North America and Europe.

Net revenue for the quarter ended September 26 fell 1.4% year over year to $799 million from $809 million. Core revenue declined 1%, reflecting a 2% decrease from volume and mix that more than offset a 1% pricing contribution. Foreign exchange had a minimal negative effect.

Adjusted EBITDA from continuing operations rose 23% to $54.4 million from $44.4 million, while adjusted EBITDA margin increased to 6.8% from 5.5%. JELD-WEN attributed the improvement to $10 million of productivity benefits, a $12 million tariff refund and a $7 million contribution from SG&A, other income and foreign exchange. Those gains offset a $14 million price-cost headwind and a $6 million impact from volume and mix.

The company recorded a GAAP loss from continuing operations of $17.2 million, or $0.20 per diluted share, compared with a loss of $367.6 million, or $4.30 per share, a year earlier. The prior-year period included a $196.9 million goodwill impairment and substantial tax-related special items. Adjusted net income from continuing operations was $4.4 million, or $0.05 per share, compared with an adjusted loss of $17.3 million, or $0.20 per share.

North America drives margin improvement

North America revenue declined 3% to $530 million, primarily because of lower volume. Segment adjusted EBITDA increased to $48 million from $38 million, lifting the adjusted EBITDA margin to 9.1% from 6.9%. Revenue was nearly unchanged from the second quarter, while adjusted EBITDA rose from $41 million.

European revenue increased 2% year over year to $269 million. Core revenue grew 3%, with a 4% pricing contribution partially offset by a 1% volume-and-mix decline, while foreign exchange reduced reported growth by one percentage point. Adjusted EBITDA slipped to $15 million from $16 million, and margin narrowed to 5.6% from 6.1%. Compared with the second quarter, however, European adjusted EBITDA rose from $13 million as revenue declined from $289 million.

JELD-WEN also said it had concluded its strategic review of Europe, without providing further details in the presentation. In North America, on-time, in-full service levels recovered following summer wildfires.

Full-year guidance maintained

For 2026, JELD-WEN continues to expect net revenue of $3.1 billion to $3.2 billion, with core revenue down 2% to 5%. Adjusted EBITDA is projected at $120 million to $150 million. The company expects approximately $10 million of operating cash flow, about $85 million of capital expenditures and negative free cash flow of roughly $75 million.

Management’s assumptions include negative price-cost performance compared with 2025 and foreign-exchange translation benefits from a weaker U.S. dollar. The outlook does not include share repurchases, acquisitions or divestitures. JELD-WEN said share recovery, business rightsizing, base productivity and transformation carryover are expected to counter market volume, mix and price-cost pressures.

The company’s market outlook calls for a mid-single-digit volume decline in North America and a low-single-digit decline in Europe. It expects North American new single-family construction and repair-and-remodel activity to decline by mid-single-digit percentages, while multifamily construction and Canada are expected to be approximately flat. European residential construction and commercial projects are each expected to decline by low-single-digit percentages.

Leverage and cash flow remain constraints

For the first nine months of 2026, revenue declined to $2.34 billion from $2.41 billion, with core revenue down 4% as market-related volume and mix weakness outweighed pricing. Adjusted EBITDA was $102.9 million, compared with $105.3 million, leaving the adjusted margin unchanged at 4.4%.

Year-to-date free cash outflow narrowed to $130 million from $142 million, helped by capital expenditures falling to $57 million from $104 million. However, net cash used in operating activities increased to $73 million from $38 million.

At September 26, total debt stood at $1.28 billion and cash at $97 million, producing net debt of $1.18 billion. Net debt leverage increased to 10.3 times trailing-12-month adjusted EBITDA from 8.8 times at the end of 2025, while liquidity declined to $269 million from $485 million. JELD-WEN said it had launched a debt refinancing tender and exchange as part of its focus on financial flexibility.

The company cautioned that its guidance and strategic plans are subject to risks and uncertainties. Its current outlook depends in part on executing cost reductions and operational improvements while navigating lower market volumes, competitive price-cost pressure, elevated leverage and negative free cash flow.