JELD-WEN reports steep revenue decline and rising losses in Q4 and full-year 2024

JELD-WEN Holding, Inc. (NYSE: JELD-WEN), a global leader in manufacturing doors, windows, and building products, has reported a significant downturn in financial performance for the fourth quarter and full-year 2024. The company experienced a sharp decline in revenue, growing net losses, and margin pressures, reflecting ongoing economic challenges, shifting consumer demand, and restructuring-related expenses.

Why Did JELD-WEN’s Revenue Decline in Q4 2024?

JELD-WEN’s net revenue from continuing operations for the fourth quarter of 2024 fell to $895.7 million, marking a 12.3% decline compared to $1.02 billion in the same period the previous year. The drop in revenue was primarily driven by a 12% decrease in core revenue, largely due to weaker demand and a shift toward entry-level products. The company’s North America and Europe segments both recorded lower sales volumes as customers responded to economic uncertainty and higher financing costs for home improvements and construction projects.

The impact of these market conditions extended beyond revenue losses, with JELD-WEN reporting a net loss of $68.4 million for Q4 2024. This represents a widening of losses compared to the $22.6 million net loss recorded in the fourth quarter of 2023. A key factor in this decline was a $31.4 million goodwill impairment charge, linked to the court-ordered divestiture of the Towanda facility, which negatively affected the company’s North America segment.

JELD-WEN’s operating loss margin stood at negative 5.7%, significantly lower than the 0.7% margin recorded in Q4 2023. Adjusted EBITDA from continuing operations also fell sharply to $40.1 million, representing a $46.5 million decline from the previous year’s $86.5 million. The company’s adjusted EBITDA margin dropped by 400 basis points to 4.5%, reflecting the impact of lower sales, rising costs in materials and labor, and the company’s ongoing transformation efforts.

How Did JELD-WEN Perform Over the Full Year of 2024?

For the full year, JELD-WEN reported net revenues of $3.78 billion, a 12.3% year-over-year decline, mirroring the same revenue contraction experienced in the fourth quarter. The decrease in revenue was driven by a 12% drop in core revenue, influenced by a slowdown in both new construction and remodeling demand.

The company’s net loss for the year expanded to $187.6 million, a stark contrast to the net income of $25.2 million recorded in 2023. This downturn was largely attributed to impairment charges related to both its North American and European operations, as well as ongoing restructuring and transformation initiatives. The operating income margin turned negative at 3.3%, reversing from a positive 3.3% margin in 2023.

JELD-WEN’s adjusted EBITDA for 2024 was $275.2 million, marking a $105.2 million decline from the previous year’s $380.4 million. The adjusted EBITDA margin fell by 150 basis points to 7.3%, primarily due to lower sales volumes, unfavorable pricing conditions, and rising costs for raw materials and labor. While the company was able to realize some efficiency gains through its transformation program, these improvements were not sufficient to offset the broader market pressures.

What Are JELD-WEN’s Key Business Challenges?

One of the most significant factors affecting JELD-WEN’s performance has been the weak macroeconomic environment, which has impacted demand for its products across North America and Europe. In particular, high interest rates and economic uncertainty have dampened new construction activity and slowed spending in the repair and remodeling sector.

Additionally, JELD-WEN has faced rising costs in materials and labor, which have weighed heavily on margins. While the company has attempted to mitigate these pressures through productivity improvements and cost reductions, the impact of lower revenue and weaker operating leverage has overshadowed these efforts.

The company’s transformation program, while aimed at long-term operational efficiency, has also contributed to higher short-term costs, further pressuring profitability. As part of these efforts, JELD-WEN has streamlined its operations and divested non-core assets, including the court-mandated sale of its Towanda facility to Woodgrain Inc. for $115 million.

What Is JELD-WEN’s Outlook for 2025?

Looking ahead, JELD-WEN has issued 2025 revenue guidance in the range of $3.2 billion to $3.4 billion, suggesting a further decline in core revenue of 4% to 9% compared to 2024. The company also forecasts adjusted EBITDA between $215 million and $265 million, reflecting continued profitability pressures despite ongoing cost-saving initiatives.

The company expects 2025 operating cash flow to be approximately $15 million, marking a substantial decline from the $106.2 million in 2024. This suggests that cash flow constraints could remain a key concern for the company as it continues to navigate market headwinds and execute its transformation strategy.

Can JELD-WEN Overcome These Financial Challenges?

Despite these near-term pressures, JELD-WEN’s leadership remains optimistic about its long-term strategy. Chief Executive Officer William J. Christensen emphasized that while the company has faced challenging market conditions, it has made significant progress in its transformation efforts. He reiterated the company’s commitment to delivering high-quality products on time while strengthening its market position through operational improvements.

Christensen stated that as the market recovers, JELD-WEN will be well-positioned to capitalize on growth opportunities and drive long-term shareholder value. However, given the continued decline in revenue, rising costs, and uncertain economic conditions, the company may face an uphill battle in restoring profitability and achieving sustainable growth in the coming year.

Will JELD-WEN’s Strategy Pay Off?

JELD-WEN’s 2024 financial performance reflects the broader challenges in the housing and construction markets, with net revenue decline, falling adjusted EBITDA margin, and higher net losses all pointing to a difficult business environment. The company’s transformation strategy and restructuring efforts are intended to position it for future success, but the near-term outlook remains highly uncertain.

As JELD-WEN moves forward, its ability to stabilize revenue, manage costs, and improve cash flow will be critical in determining whether it can successfully navigate the current downturn and emerge stronger in the years ahead.