News
NEWS +VOX: JELD WEN’s quarterly downturn intensifies as Europe becomes a growing focus
JELD-WEN reported another difficult quarter as soft demand, pricing pressure and substantial non-cash charges drove a deeper loss, prompting the door and window manufacturer to place new attention on the direction of its European business. For the third quarter ended September 27, the company posted net revenues of $809.5 million, down 13.4% from the prior year. Core Revenues fell 10% after an 11% slide in volume, while the mandated divestiture of the Towanda facility reduced sales by an additional 5%. Currency movements offered slight relief, lifting reported results by 2%.
The company recorded a net loss from continuing operations of $367.6 million, compared with a $73 million loss a year earlier. The larger deficit reflects a $196.9 million goodwill charge related to the firm’s North America and Europe units, along with $122.3 million in tax-related items. Operating loss margin moved sharply lower to 25%, versus 5.6% in last year’s third quarter.
Adjusted EBITDA fell to $44.4 million from $81.6 million, as lower volume and price-cost pressure outweighed operational gains and reduced overhead. Adjusted EBITDA margin came in at 5.5%.
Chief Executive William J. Christensen said the results mirrored the ongoing strain in most of the company’s markets. Alongside planned workforce reductions across North America and the corporate office, Christensen disclosed that the company is preparing a review of its European division to clarify its long-term role within the broader organisation.
Europe has become a central point of consideration for JELD-WEN as results in the region paint a mixed picture. Net revenues reached $263.3 million, a 2.6% increase primarily tied to a 6% currency benefit. Underlying Core Revenues, however, slipped 4% as volume contracted by 6% amid subdued market demand. Price realisation gave a modest 2% offset, but not enough to counter the broader slowdown.
The European unit posted a net loss from continuing operations of $153.4 million, widening by $86.7 million from a year earlier. Adjusted EBITDA held at $16 million, roughly flat with the prior-year quarter. While productivity gains provided some relief, the unit’s results underline the challenge of maintaining stability in a region where construction markets remain under pressure and recovery has yet to take hold.
By contrast, North America saw a 19.4% decline in net revenues to $546.1 million, driven by weakened demand and the impact of the Towanda divestiture. The segment’s net loss reached $181.3 million, while Adjusted EBITDA fell sharply to $37.7 million.
Christensen said the company remains focused on strengthening operations and restoring performance. The European review, he noted, will be a key element in determining how the firm positions itself for steadier results once broader conditions improve.
Why This Matters: Slow demand, rising costs and pricing pressures are common issues across the global fenestration market. The pressure is for manufacturers to adjust their strategies to adapt to the current market conditions. Increasing manufacturing efficiencies and reducing workforce numbers look like two of the key paths to follow – and it looks like JELD-WEN will follow this path. The next step of reviewing of its European division to clarify its long-term role within the broader organisation will be interesting. Other leading players in the sector will be keeping a keen eye on how this major player will adapt to the changing landscape.
