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    JELD
    Earnings call· Jun 2026(Q2 FY26)

    JELD-WEN Holding Q2 FY26 earnings call JELD

    Aug 4, 2026 Source

    Executive summary

    JELD-WEN Q2 FY26 — Adjusted EBITDA up 8% YoY, Guidance Raised

    JELD-WEN delivered Q2 results consistent with expectations, showing an 8% year-over-year increase in Adjusted EBITDA, the first in 10 quarters, driven by productivity gains and cost management. The company raised its full-year revenue and Adjusted EBITDA guidance, citing improved service levels leading to share recovery. Despite ongoing price-cost headwinds and a significant free cash flow use in the quarter, management remains focused on operational execution, debt maturities, and the strategic review of its European business.

    Highlights

    5

    • Adjusted EBITDA increased 8% year-over-year to $42 million, marking the first YoY increase in 10 quarters.

    • Adjusted EBITDA margin improved by 50 basis points to 5.2% despite lower market volumes.

    • Full-year revenue guidance raised to $3.1 billion - $3.2 billion, reflecting improved service levels and share recovery.

    • Full-year Adjusted EBITDA guidance midpoint increased to $135 million, driven by stronger productivity and less share loss.

    • North America Adjusted EBITDA margin improved to 7.7% from 6.3% last year, driven by productivity and SG&A improvements.

    Concerns

    5

    • Free cash flow was a $28 million use of cash in Q2 due to higher working capital, with full-year FCF expected to be a use of $75 million.

    • Net debt leverage remained high at 11.3 times at the end of Q2.

    • Price-cost headwinds increased to an expected $50 million for the full year, primarily due to freight and material cost inflation.

    • North America OTIF declined modestly in June and remained below 90% in July due to temporary disruptions, including Canadian wildfires.

    • Europe Adjusted EBITDA declined to $13 million from $17 million last year, primarily due to price-cost pressure.

    Guidance & targets

    18
    CategoryTargetConfidence
    Net Revenue
    $3.1 billion to $3.2 billion
    high materiality
    High
    Core Revenue Decline
    2% to 5% year over year
    high materiality
    High
    Adjusted EBITDA
    $120 million to $150 million
    high materiality
    High
    Incremental Margin Flow-through
    approximately 25% to 30%
    medium materiality
    Medium
    Capital Expenditures
    approximately $85 million
    medium materiality
    High
    Operating Cash Flow
    approximately $10 million
    high materiality
    Medium
    Free Cash Flow
    use of approximately $75 million
    high materiality
    Medium
    North America Windows and Doors Market Decline
    low to mid single digits
    medium materiality
    High
    New Single Family Construction Decline
    low single digits
    medium materiality
    High
    Repair and Remodel Activity Decline
    mid single digit range
    medium materiality
    High
    US Multifamily Increase
    significantly year over year
    medium materiality
    High
    Canada Market Decline
    high single-digit declines
    medium materiality
    High
    Europe Volumes
    approximately flat year over year
    medium materiality
    High
    Productivity Benefit
    approximately $120 million
    medium materiality
    High
    Net Share Loss Headwind
    approximately $20 million
    medium materiality
    High
    Price Cost Headwind
    approximately $50 million
    medium materiality
    High
    Volume Mix Headwind
    approximately $25 million
    medium materiality
    High
    Productivity Benefit
    roughly $30 million
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    North America
    Revenue declined year-over-year from $556 million, primarily due to lower volume mix. Adjusted EBITDA improved from $35 million last year, with margin increasing from 6.3%, driven by productivity gains and SG&A improvements, offsetting price-cost headwinds and lower volumes.
    Adjusted EBITDA: $41 million
    		$529 million——7.7%
    Europe
    Revenue increased 8% year-over-year from $268 million, driven by better volume mix, favorable foreign exchange (3 percentage points), and higher pricing. Adjusted EBITDA declined from $17 million last year, primarily due to price-cost pressure where higher pricing was insufficient to offset material cost inflation. Partially offset by improved productivity and favorable volume mix.
    Adjusted EBITDA: $13 million
    		$289 million8%——

    Operational metrics

    22
    Adjusted EBITDA
    $42 millionup 8% YoY
    Q2 FY26

    Improvement driven primarily by continued productivity gains, offsetting price-cost headwinds and lower volume mix.

    Adjusted EBITDA Margin
    5.2%up 50 bps YoY
    Q2 FY26

    Improved despite continued pressure from lower market volumes, demonstrating progress through improved execution, productivity, and disciplined cost management.

    Net Debt Leverage
    11.3 timesflat sequentially
    Q2 FY26 end

    Helped by higher adjusted EBITDA despite the use of cash during the quarter.

    Revolving Credit Facility Draw
    $80 million
    Q2 FY26 end

    Drawn to support seasonal working capital investment.

    Core Revenue Decline
    2%
    Q2 FY26

    Reported revenue declined 1% YoY, with core revenue declining 2% and foreign exchange contributing $9 million benefit.

    Foreign Exchange Benefit to Revenue
    $9 million
    Q2 FY26

    Partially offset lower volume mix and contributed to a 1% reported revenue decline.

    Productivity Benefit
    $36 million
    Q2 FY26

    Led to year-over-year improvement in Adjusted EBITDA, more than offsetting a portion of price-cost headwinds and lower volume mix.

    SG&A and Other Items Net Benefit
    $1 million
    Q2 FY26

    Contributed to Adjusted EBITDA improvement.

    Price Cost Headwind
    $29 million
    Q2 FY26

    Partially offset by productivity and SG&A savings.

    Volume Mix Headwind
    $5 million
    Q2 FY26

    Additional headwind to Adjusted EBITDA.

    Adjusted EBITDA
    $41 millionup from $35 million YoY
    Q2 FY26

    Increase reflects continued productivity gains and meaningful SG&A improvements.

    Adjusted EBITDA Margin
    7.7%up from 6.3% YoY
    Q2 FY26

    Improvement driven by productivity and SG&A, offsetting price-cost and volume pressures.

    Adjusted EBITDA
    $13 milliondown from $17 million YoY
    Q2 FY26

    Decline driven primarily by price-cost pressure, where higher pricing was not sufficient to offset material cost inflation.

    Foreign Exchange Contribution to Revenue
    3 percentage points
    Q2 FY26

    Contributed to the 8% year-over-year revenue increase in Europe.

    Adjusted EBITDA
    $118 million
    FY25

    Baseline for the 2026 Adjusted EBITDA bridge.

    Adjusted EBITDA Midpoint
    $135 million
    FY26

    Updated midpoint of the full-year guidance.

    Net Headwind from Remaining Items
    $8 million
    FY26

    Part of the bridge to the updated Adjusted EBITDA guidance midpoint.

    OTIF Performance
    below 90%declined modestly
    June-July FY26

    Expected to return above 90% going forward as impact from wildfires subsided and freight challenges are addressed.

    OTIF Performance Target
    above 95%
    Ongoing

    Sustaining this level is a priority to strengthen customer relationships and support share position.

    Additional Sales from Service Improvement
    $25 million
    FY26

    Picked up in the latest update of top-line guidance, mainly due to ability to perform against customer expectations.

    Tariff Refund
    approximately $1 million
    Q2 FY26

    Received during the second quarter.

    Net Tariff Benefit
    mid single digit millions
    Q3 FY26

    Expected from additional tariff refunds.

    Industry KPIs

    2
    MetricValueDetails
    Price cost$29 million headwindUSD
    Orders bookings growth by verticalsignificantly up

    Deals & partnerships

    1
    European businessStrategic review of European business operations

    The process remains ongoing, and the company is carefully evaluating available alternatives. No further announcements at this time.

    Risks & headwinds

    6
    Soft Market VolumesQ2 FY26 and Full Year 2026

    Volume mix represented a $5 million headwind in Q2 FY26; expected $25 million headwind for FY26

    Mitigation: Improved execution, productivity, disciplined cost management, and focus on consistent service.

    Price-Cost HeadwindsQ2 FY26 and Full Year 2026

    $29 million headwind in Q2 FY26; expected $50 million headwind for FY26 (up from $40 million previously)

    Mitigation: Productivity gains, SG&A savings, working constructively with customers on pricing, managing freight and material costs closely.

    Near-Term Debt MaturitiesNear-term

    Net debt leverage at 11.3 times at Q2 end

    Mitigation: Actively evaluating options to address, including potential refinancing alternatives, working with advisors to preserve liquidity and maintain financial flexibility.

    Temporary Production DisruptionsQ2 FY26

    Caused OTIF to decline modestly in June and remain below 90% in July in North America

    Mitigation: Impact has largely subsided, facilities returned to normal operations, actively addressing freight challenges, monitoring ongoing wildfires.

    Higher Working Capital / Free Cash Flow UseQ2 FY26 and Full Year 2026

    $28 million use of cash in Q2 FY26; full-year FCF expected to be a use of $75 million

    Mitigation: Tightly managing capital expenditures, disciplined working capital management, expecting improved cash generation in H2 from seasonal cycle and improved earnings.

    Restructuring and One-Time CostsFull Year 2026

    Primarily due to additional restructuring costs associated with rightsizing SG&A structure and other one-time costs

    Mitigation: Partially offset by continued discipline on capital spending.

    What to watch in Q3 FY26

    5

    North America OTIF Performance

    next quarter (August onwards)
    Currentbelow 90% in July
    Targetreturn above 90%

    Why it matters

    Sustained OTIF above 90% is critical for strengthening customer relationships, supporting market share, and delivering improved performance.

    Based on the progress, we would expect OTIF to return above 90% going forward⏳.

    Q&A highlights

    6

    How is JELD-WEN addressing freight challenges to improve service levels, and how will this impact market share gains in H2 2026 and beyond?

    Management stated that OTIF (On-Time In-Full) delivery is the key metric, which saw a temporary dip in June/July due to wildfires but is recovering to above 90% in August. They are seeing positive customer feedback and this improvement is already translating into an estimated $25 million in additional sales in the updated guidance. They expect continued progress despite ongoing wildfire monitoring.

    “So we picked up probably 25 million in our latest update of top line guidance. of additional sales based, we think, mainly on our ability to really perform against customer expectations.”

    asked by Charles Perron · answered by William Christensen

    2 min read5 chapters

    Detailed Narrative

    01

    Operational Improvements and Cost Management

    JELD-WEN delivered Q2 results consistent with expectations, achieving an 8% year-over-year increase in Adjusted EBITDA to $42 million, marking the first such increase in 10 quarters. This improvement was driven by strong productivity gains of $36 million and meaningful SG&A savings, which collectively offset continued price-cost headwinds and lower volume mix. The company's focus on cost discipline and improved execution is enabling it to compete for and win back business.

    02

    Service Level Recovery and Commercial Impact

    The company has made significant progress in improving its On-Time In-Full (OTIF) delivery performance, which is a key measure of customer service. While OTIF modestly declined in June and July due to temporary disruptions like Canadian wildfires, it is expected to return above 90% in North America. This enhanced service consistency is translating into improved commercial results, with an estimated $25 million in additional sales picked up in the latest top-line guidance update.

    03

    Market Outlook and Segment Performance

    The macro environment in Q2 was in line with expectations, with overall market volumes remaining soft but moderating in year-over-year decline. North America is expected to see low to mid-single-digit declines in the windows and doors market, with residential R&R down mid-single digits, while US multifamily is projected to increase significantly. Europe's market conditions appear to be stabilizing, with volumes expected to be approximately flat year-over-year.

    04

    Balance Sheet and Strategic Review

    JELD-WEN is actively evaluating options to address near-term debt maturities, working with advisors on potential refinancing alternatives to preserve liquidity and maintain financial flexibility. The strategic review of its European business is also ongoing, with a focus on long-term shareholder value, though no further announcements were made at this time. Net debt leverage remained flat sequentially at 11.3 times at the end of Q2.

    05

    Price-Cost Dynamics

    The company continues to face significant price-cost headwinds, which are now expected to be an approximately $50 million headwind for the full year, up from $40 million previously. This increase is primarily driven by continued freight and material cost inflation that is exceeding the benefits from pricing. Management is working constructively with customers to address these persistent pressures, noting that positive pricing is still being realized but is offset by inflation.

    AI-generated summary of the company’s earnings call. Not investment advice.