American Woodmark Reports 7.5% Net Sales Decline to $1.71 Billion for Fiscal Year 2025

American Woodmark Corporation reported a net sales decline of 7.5% for the fiscal year ending April 30, 2025, totaling $1.71 billion, down from $1.85 billion in the previous year. The decrease was attributed to lower sales across all channels, including a 9.3% drop in the home center segment and an 8.9% decline in independent dealer and distributor sales. The builder channel also saw a 5.1% reduction, primarily due to weaker housing completions and high mortgage rates impacting consumer confidence. Gross profit margins fell to 17.9%, down from 20.4% in fiscal 2024, reflecting fixed cost deleverage and rising input costs, despite operational efficiencies and controlled spending.

The company’s net income decreased by $16.8 million to $99.5 million, influenced by the aforementioned sales decline and restructuring charges of $4.6 million related to workforce reductions and the closure of its Orange, Virginia manufacturing plant. General and administrative expenses were significantly reduced by 39.1% to $75.5 million, largely due to the cessation of amortization of customer relationship intangibles, which ended in the prior fiscal year. Selling and marketing expenses remained stable at 5.0% of net sales, reflecting a focus on maintaining promotional levels in line with market activity.

American Woodmark continues to pursue strategic growth initiatives, including investments in digital transformation and automation. The company is implementing a cloud-based ERP system and enhancing its customer relationship management platforms. Additionally, it has authorized a stock repurchase program totaling $250 million, with $117.8 million remaining as of April 30, 2025. The company’s workforce stood at over 7,800 employees, with a commitment to fostering a culture of safety and inclusivity, as evidenced by its OSHA recordable incident rate of 1.48, significantly better than the industry average.

Looking ahead, American Woodmark anticipates a range of low single-digit changes in net sales for fiscal 2026, with expectations for recovery in the second half of the year. The company projects Adjusted EBITDA between $175 million and $200 million, driven by increased operational costs and input inflation, but offset by ongoing operational excellence initiatives. The outlook remains contingent on broader economic conditions, including housing market trends, interest rates, and consumer behavior, as well as the successful execution of its strategic initiatives.