JELD-WEN Reports 19.1% Revenue Decline and $190.1 Million Net Loss in Q1 2025

JELD-WEN Holding, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenues falling to $776.0 million, a decrease of 19.1% from $959.1 million in the same period last year. The company attributed this decline primarily to a 15% drop in Core Revenues, driven by a 16% decrease in volume/mix, alongside a 3% reduction in revenues from the court-ordered divestiture of its Towanda operations. The gross margin also suffered, decreasing by 35.1% to $112.1 million, resulting in a gross margin percentage of 14.4%, down from 18.0% in the prior year.

The company recorded a net loss of $190.1 million for the quarter, compared to a loss of $27.7 million in the first quarter of 2024. This loss included a substantial goodwill impairment charge of $137.7 million related to its North America reporting unit, reflecting deteriorating market conditions and reduced demand forecasts. Operating expenses were also impacted, with selling, general, and administrative expenses decreasing to $144.8 million, down from $182.8 million, primarily due to lower amortization expenses and reduced headcount.

In terms of strategic developments, JELD-WEN completed the sale of its Towanda operations for $115 million in January 2025, which was part of a court-ordered divestiture. This divestiture is expected to streamline operations, although it contributed to the revenue decline in the current quarter. The company continues to focus on restructuring efforts, with $14.5 million in restructuring and asset-related charges recorded during the quarter, a decrease from $18.1 million in the previous year.

Operationally, JELD-WEN's North America segment saw revenues drop by 22.0% to $530.6 million, while the Europe segment experienced a smaller decline of 12.1% to $245.4 million. The company reported a total employee headcount reduction as part of its ongoing restructuring initiatives, which are aimed at improving productivity and operational efficiency. As of March 29, 2025, JELD-WEN had total liquidity of $499.4 million, down from $566.7 million at the end of 2024, reflecting the challenges in cash flow generation amid declining revenues.

Looking ahead, JELD-WEN anticipates continued challenges due to macroeconomic conditions, including inflation and elevated interest rates, which may further impact demand for its products. The company is actively monitoring market conditions and adjusting its strategies accordingly, including potential pricing adjustments and supply chain optimizations to mitigate the effects of these external pressures.