Jeld-Wen Holding Inc. announced results for the three and six months ended July 1, 2023. The company is raising its full-year guidance for continuing operations to reflect its solid second-quarter results. It now expects 2023 net revenue of $4.2 to $4.4 billion, which reflects a 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.
Q2 2023 highlights
- Net revenues from continuing operations of $1,125.8 million decreased 4.5% in the second quarter driven by a 4% decline in core revenue. The core revenue decline was driven by 11% lower volume/mix partially offset by +7% price realization.
- Net income from continuing operations was $22.5 million or $0.26 per share, compared to net income from continuing operations of $35.0 million or $0.40 per share during the same quarter a year ago. Operating income margin was 5.0% and 4.1% for the quarters ended July 1, 2023, and June 25, 2022, respectively.
- Adjusted EPS from continuing operations was $0.44, compared to adjusted EPS of $0.45 in the same quarter a year ago. Adjusted EPS includes net after-tax charges of $15.3 million or $0.18 per share, compared to net after-tax charges of $4.6 million or $0.05 per share during the same quarter a year ago.
- Adjusted EBITDA from continuing operations was $108.9 million, compared to $108.3 million during the same quarter a year ago. Adjusted EBITDA margin from continuing operations increased by 50 basis points year-over-year to 9.7%.
- On July 2, 2023, the company completed the sale of its Australasia segment (previously announced on April 17, 2023) for approximately $446 million in net proceeds. On August 3, 2023, the company repaid $450 million of senior notes funded by the divestiture proceeds.
Corporate response
"In the second quarter, our global associates continued to execute against our near-term goals of simplifying and strengthening Jeld-Wen while improving profitability and generating strong cash flow," says CEO William Christensen. "While our end markets remained dynamic with volume declining in line with our expectations, we achieved year-over-year improvements in both margin and cash flow. In addition, we remained focused on delivering on our commitments, including closing the sale of our Australasia business in early July. This important milestone allows us to focus on our core businesses and strengthen our balance sheet."
"For the remainder of 2023, we expect continued macroeconomic uncertainty and weak demand across our markets that we are mitigating with ongoing cost reductions," Christensen continues. "As our second-quarter results were above our expectations, we are narrowing the ranges and raising the midpoints of our 2023 revenue and adjusted EBITDA guidance."
