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Jul 31
American Woodmark Q1 2026 Earnings Report
American Woodmark reported lower revenue and net income in Q1 FY2026 due to weak market demand and increased costs, but maintained profitability with disciplined execution.
Key Takeaways
Q1 FY2026 saw a 12.2% revenue decline and a 50.7% drop in net income amid challenging market conditions and elevated costs, yet the company achieved a 10.5% adjusted EBITDA margin.
Revenue fell 12.2% YoY to $403.0 million due to continued softness in new construction and remodel markets.
Net income dropped to $14.6 million, impacted by lower volume, tariffs, and ERP/merger-related costs.
Adjusted EPS declined to $1.01 from $2.14 in the prior-year quarter.
Company maintained profitability with $24.9 million in free cash flow and disciplined cost management.
American Woodmark
American Woodmark
Forward Guidance
Due to the proposed merger with MasterBrand, Inc., the company did not provide forward financial guidance for FY2026.
Positive Outlook
- Maintained profitability despite headwinds.
- Controlled discretionary spending supported margins.
- Generated positive free cash flow of $24.9 million.
- Improved cash position to $54.9 million.
- Strong operational discipline amid lower demand.
Challenges Ahead
- Revenue and earnings declined sharply YoY.
- Unfavorable mix shift to value-based products.
- Higher input and tariff-related costs affected margins.
- Increased ERP and merger-related expenses.
- Macroeconomic conditions remain challenging.