Q2 2026 JELD-WEN Holding Inc Earnings Call Transcript
Key Points
- JELD-WEN Holding Inc (JELD) reported its first year-over-year adjusted EBITDA increase in 10 quarters, with adjusted EBITDA up 8% to $42 million and margin expanding 50 basis points to 5.2%.
- The company is seeing tangible results from its service improvements, with on-time in-full (OTIF) delivery recovering to above 90% and customer feedback leading to regained business and improved commercial results.
- JELD-WEN Holding Inc (JELD) raised the low end of its full-year 2026 revenue and adjusted EBITDA guidance, reflecting stronger productivity, less share loss, and a modestly better sales performance than previously expected.
- Productivity gains were a significant driver, contributing a $36 million benefit in the quarter and leading to an increased total productivity expectation of approximately $120 million for the year.
- The company's multifamily (VPI) business is performing strongly, with significant year-over-year growth and a robust pipeline expected to continue into next year, supported by successful investments in the East Coast.
- JELD-WEN Holding Inc (JELD) is making progress on its strategic review of its European business and is actively evaluating options to address near-term debt maturities, aiming to preserve liquidity and financial flexibility.
- JELD-WEN Holding Inc (JELD) continues to face significant price/cost headwinds, which increased to an expected $50 million headwind for the year, driven primarily by freight and material cost inflation that is outpacing pricing actions.
- The company's free cash flow was a use of $28 million in the second quarter due to higher working capital, and full-year free cash flow is now expected to be a use of approximately $75 million, a deterioration from prior expectations.
- Overall market volumes remain soft, with the company expecting continued declines in North America (low to mid-single-digits) and challenging conditions in Canada (high single-digit declines), with no meaningful near-term recovery assumed.
- North America OTIF delivery performance declined modestly in June and remained below 90% in July due to temporary disruptions, including Canadian wildfire smoke and freight provider challenges, highlighting ongoing operational risks.
- The company's net debt leverage remains very high at 11.3 times, and it has $80 million drawn on its revolving credit facility, underscoring the financial strain and the critical need to address upcoming debt maturities.
- Adjusted EBITDA in the Europe segment declined to $13 million from $17 million in the prior year, driven primarily by price/cost pressure that was not fully offset by productivity and volume mix improvements.
(Operator Instructions)
I would now like to turn the call over to James Armstrong, Vice President of Investor Relations. Please go ahead.
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(technical difficulty) the second quarter progress would not have been possible without their commitment, focus and hard work. Our teams have continued to execute in a challenging environment, improve how we operate, and provide our customers with a more dependable and consistent service experience. I want to thank everyone across the organization for the role they played in delivering these results.
I would also like to welcome Christian Michel, who joined JELD-WEN in June as Executive Vice President and President of Europe. Christian brings more than 25 years of international leadership experience across manufacturing and industrial businesses. His experience in operational improvement
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