Can management elaborate on the drivers of the deteriorating price-cost situation, specifically the shift between price and inflation across regions, and their ability to secure pricing in the current environment?

Management confirmed continued select price pressure but highlighted that the larger change is cost inflation, mainly from inbound and outbound freight, and European energy prices. They noted that productivity and SG&A savings are offsetting the near-term gap, and they are working with customers on longer-term price-cost dynamics. Samantha added that positive pricing is being realized but is offset by increased inflation, with approximately two-thirds being material inflation and one-third freight inflation, tied to fuel prices. “So there is continued select price pressure, but the larger change as we had signaled in our prepared remarks versus prior expectations is cost inflation and that's mainly inbound and outbound freight, as well as European energy price impact.”

Where are the business wins happening, and is there any concentration in specific areas?

Bill Christensen stated that the wins are fairly balanced, with some pickups on the interior door side in North America and progress in regaining vinyl window business. He noted it's a balanced rebound of volume across traditional sales channels and R&R, representing share that "we probably never should have lost" connected to OTIF improvements. “I would say, hey, Steven, good morning, Bill. It's fairly balanced, definitely on the interior door side in North America. We are seeing some small pickups.”

How are JELD-WEN's sales tracking against the robust multifamily market demand, is there share gain, and will benefits carry into next year?

Management confirmed that their VPI business (multifamily) is significantly up, with teams doing a phenomenal job gaining new business and projects, and this will "clearly roll into next year." They are seeing robust Q4 pipelines. Samantha added that an investment to grow the sales base on the East Coast a few years ago is paying off, expanding beyond their primary Northwest base. “This will clearly, clearly roll in to next year. I mean, we're already looking right now at Q4 pipeline lines that continue to be very robust, so we feel comfortable and confident about the trajectory.”

JELD

JELD-WEN (JELD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 4, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Net Revenue	$3.1 billion to $3.2 billion high materiality	Full Year 2026 · FY26	High
Core Revenue Decline	2% to 5% year over year high materiality	Full Year 2026 · FY26	High
Adjusted EBITDA	$120 million to $150 million high materiality	Full Year 2026 · FY26	High
Incremental Margin Flow-through	approximately 25% to 30% medium materiality	Full Year 2026 · FY26	Medium
Capital Expenditures	approximately $85 million medium materiality	Full Year 2026 · FY26	High
Operating Cash Flow	approximately $10 million high materiality	Full Year 2026 · FY26	Medium
Free Cash Flow	use of approximately $75 million high materiality	Full Year 2026 · FY26	Medium
North America Windows and Doors Market Decline	low to mid single digits medium materiality	Full Year 2026 · FY26	High
New Single Family Construction Decline	low single digits medium materiality	Full Year 2026 · FY26	High
Repair and Remodel Activity Decline	mid single digit range medium materiality	Full Year 2026 · FY26	High
US Multifamily Increase	significantly year over year medium materiality	Full Year 2026 · FY26	High
Canada Market Decline	high single-digit declines medium materiality	Full Year 2026 · FY26	High
Europe Volumes	approximately flat year over year medium materiality	Full Year 2026 · FY26	High
Productivity Benefit	approximately $120 million medium materiality	Full Year 2026 · FY26	High
Net Share Loss Headwind	approximately $20 million medium materiality	Full Year 2026 · FY26	High
Price Cost Headwind	approximately $50 million medium materiality	Full Year 2026 · FY26	High
Volume Mix Headwind	approximately $25 million medium materiality	Full Year 2026 · FY26	High
Productivity Benefit	roughly $30 million medium materiality	Full Year 2027 · FY27	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 million	8%	—	—

Deals & partnerships

European business Strategic 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

Soft Market Volumes Q2 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 Headwinds Q2 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 Maturities Near-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 Disruptions Q2 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 Use Q2 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 Costs Full 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

North America OTIF Performance

next quarter (August onwards)

Current below 90% in July

Target return 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.

Find out whether JELD delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.