•
Oct 31, 2024

American Woodmark Q2 2025 Earnings Report

American Woodmark's Q2 2025 financial results were announced, revealing a slight decrease in net sales and a new stock repurchase program.

Key Takeaways

American Woodmark Corporation reported a decrease in net sales by 4.5% to $452.5 million for the second quarter of fiscal year 2025, with net income decreasing to $27.7 million. The company reaffirmed its outlook for a low single-digit decline in net sales for the full fiscal year and tightened its Adjusted EBITDA range to $225 million to $235 million.

Net sales reached $452.5 million.

Net income was $27.7 million, representing 6.1% of net sales.

GAAP EPS stood at $1.79, with adjusted EPS at $2.08.

The board approved an additional $125 million authorization for future share repurchases.

Total Revenue
$452M
Previous year: $474M
-4.5%
EPS
$2.08
Previous year: $2.36
-11.9%
Adjusted EBITDA margin
13.3%
Previous year: 15.3%
-13.1%
Gross Profit
$85.7M
Previous year: $103M
-16.9%
Cash and Equivalents
$56.7M
Previous year: $96.4M
-41.2%
Free Cash Flow
$700K
Previous year: $37.4M
-98.1%
Total Assets
$1.61B
Previous year: $1.53B
+4.9%

American Woodmark

American Woodmark

Forward Guidance

For fiscal year 2025, American Woodmark anticipates a low single-digit decline in net sales year-over-year and expects Adjusted EBITDA to be in the range of $225 million to $235 million.

Positive Outlook

  • Teams remain dedicated and focused on controlling discretionary spend.
  • Focus on operational improvements.
  • Strongly positioned in the marketplace when macro-housing conditions improve.
  • Committed to investment back in the business.
  • Continued returns to shareholders as shown by repurchasing 4.1% of shares outstanding during the first six months of fiscal 2025.

Challenges Ahead

  • Expect the demand trends to remain challenging.
  • Continued softer demand in the remodel market.
  • Slowdown in new construction single family starts over the summer.
  • Macro-economic housing headwinds.
  • Cannot estimate on a forward-looking basis the impact of income and expense items on its reported net income, which could be significant, are difficult to predict, and may be highly variable.