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Jul 01, 2023

JELD-WEN Q2 2023 Earnings Report

JELD-WEN's second quarter performance in 2023 reflected solid results and updated full-year guidance.

Key Takeaways

JELD-WEN reported a decrease in net revenues by 4.5% driven by a decline in Core Revenue, but achieved year-over-year improvements in both margin and cash flow. The company completed the sale of its Australasia business and is raising its full-year guidance to reflect the solid second quarter results.

Net revenues from continuing operations decreased 4.5% due to a decline in Core Revenue.

Net income from continuing operations was $22.5 million, compared to $35.0 million in the same quarter last year.

Adjusted EPS from continuing operations was $0.44, compared to $0.45 in the same quarter last year.

Adjusted EBITDA from continuing operations increased to $108.9 million with a margin increase of 50 basis points year-over-year to 9.7%.

Total Revenue
$1.13B
Previous year: $1.33B
-15.4%
EPS
$0.44
Previous year: $0.57
-22.8%
Adjusted EBITDA Margin
9.7%
Previous year: 9.5%
+2.1%
Gross Profit
$226M
Previous year: $244M
-7.7%
Cash and Equivalents
$189M
Previous year: $273M
-30.7%
Free Cash Flow
$134M
Previous year: -$201M
-166.6%
Total Assets
$3.55B
Previous year: $3.82B
-7.1%

JELD-WEN

JELD-WEN

JELD-WEN Revenue by Segment

JELD-WEN Revenue by Geographic Location

Forward Guidance

JELD-WEN is raising its guidance to reflect the solid second quarter performance. The Company now expects 2023 net revenue of $4.2 to $4.4 billion and Adjusted EBITDA from continuing operations to be within the range of $350 to $370 million.

Positive Outlook

  • Solid price/cost results
  • Ongoing cost reductions

Challenges Ahead

  • Continued macroeconomic uncertainty
  • Weak demand across our markets
  • Low double digit decline in volume/mix across its portfolio of products and geographies in North America and Europe.
  • Core Revenues are forecasted to be down 4% to 8% as price realization partially offsets lower market demand.
  • Lower year-over-year volumes and a reduction in other income

Revenue & Expenses

Visualization of income flow from segment revenue to net income