JELD-WEN Holding, Inc. (JELD) is a leading global manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products, serving both the new construction and repair and remodel (R&R) sectors. With a rich history spanning over six decades, the company has evolved to become a diversified, vertically integrated player in the building products industry.
Business Overview and History
JELD-WEN was founded in 1960 in Oregon by Richard L. Wendt and four business partners, who acquired a local millwork plant. Over the following decades, the company experienced significant expansion and growth, both organically and through strategic acquisitions, entering new product categories such as interior doors, exterior steel doors, and vinyl windows. JELD-WEN's first overseas acquisition was Norma Doors in Spain in 1992, marking the beginning of its global expansion. Since then, the company has acquired or established numerous businesses in Europe and Canada, solidifying its position as a global operation.
Throughout its history, JELD-WEN has faced various challenges, including environmental and legal issues. In 2007, the company was identified by the Washington State Department of Ecology as a Potentially Liable Party regarding environmental contamination at a former manufacturing site in Everett, Washington. This led to an agreement with the state to assess the contamination and develop a cleanup action plan, which the company continues to work through.
In 2016, JELD-WEN faced an antitrust lawsuit filed by Steves Sons, Inc., alleging that the company's acquisition of CraftMaster Manufacturing, Inc. (CMI) violated antitrust laws. After years of litigation, JELD-WEN prevailed on the antitrust claims but was ordered to divest its Towanda, Pennsylvania facility. This divestiture was completed in January 2025.
Today, JELD-WEN operates 79 manufacturing and distribution facilities across 14 countries, primarily in North America and Europe. The company's product portfolio includes a wide range of interior and exterior doors, windows, and related building products, catering to residential and non-residential applications. JELD-WEN's vertically integrated manufacturing processes enable the company to enhance its capabilities, innovate, and maintain quality control, while also providing supply chain, transportation, and working capital savings.
Financial Performance and Key Metrics
For the fiscal year ended December 31, 2024, JELD-WEN reported total revenue of $3.78 billion, a 12.3% decrease compared to the prior year. The company's net loss from continuing operations was $187.58 million, or $2.22 per diluted share. JELD-WEN's adjusted EBITDA from continuing operations was $275.25 million, with a margin of 7.3%.
The company's annual operating cash flow for 2024 was $106.21 million, while the annual free cash flow was negative $67.50 million. In the most recent quarter (Q4 2024), JELD-WEN reported revenue of $895.7 million and a net loss of $68.4 million. The quarterly free cash flow for Q4 2024 was negative $28 million.
Financials
JELD-WEN's balance sheet as of December 31, 2024, showed total assets of $2.62 billion and total liabilities of $2.00 billion, resulting in a debt-to-equity ratio of 2.08. The company's current ratio was 1.92, and its quick ratio was 1.18, indicating a strong liquidity position.
Liquidity
As of December 31, 2024, JELD-WEN had a cash balance of $150.34 million and $416.4 million available under its ABL Facility. The company's return on assets (ROA) and return on equity (ROE) for the fiscal year ended December 31, 2024, were -7.21% and -25.88%, respectively, reflecting the impact of the challenging market conditions on JELD-WEN's financial performance.
Operational Highlights and Transformation Initiatives
JELD-WEN has been implementing a strategic transformation journey to strengthen its operational efficiency, optimize its global footprint, and enhance its financial performance. In 2024, the company delivered approximately $115 million in transformation benefits, which helped offset a portion of the headwinds faced during the year.
Key initiatives within JELD-WEN's transformation efforts include:
1. Productivity and Cost Reduction: The company is focused on reducing labor, overtime, and waste costs through facility consolidation, improving manufacturing processes, and investing in automation.
2. Global Footprint Rationalization: JELD-WEN is realigning its manufacturing network to ensure optimal capacity and product capabilities in strategic locations, minimizing customer disruptions and enhancing service levels.
3. Commercial Excellence: The company is investing in its sales force effectiveness, leveraging digital tools and technologies to improve the customer experience, and targeting opportunities in higher-margin product categories and applications.
4. Capital Allocation Discipline: JELD-WEN is taking a disciplined approach to capital expenditures, targeting investments that align with its strategic priorities and drive improved returns.
Navigating Market Challenges and Outlook
The building products industry, including JELD-WEN's end markets, has faced significant headwinds in recent years. The company has navigated these challenges by implementing its transformation initiatives, which have helped mitigate the impact of factors such as softening demand, inflationary pressures, and global supply chain disruptions.
For the fiscal year 2025, JELD-WEN expects continued market challenges, particularly in North America, with projected declines in both new construction and R&R demand for windows and doors. The company is guiding for a 4% to 9% decrease in core revenues, driven by a weaker market, the required divestiture of its Towanda, Pennsylvania facility, and strategic pruning of unprofitable business.
Specifically, JELD-WEN expects net revenues to range between $3.2 billion and $3.4 billion for 2025. The company forecasts an adjusted EBITDA range of $215 million to $265 million, with lower volumes expected to flow through to EBITDA at an approximate 30% decremental rate, partially offset by ongoing transformation initiatives. JELD-WEN anticipates operating cash flow of approximately $15 million in 2025, with capital expenditures of approximately $150 million, resulting in a projected use of free cash flow of approximately $135 million.
For Q1 2025, the company currently expects sales between $750 million and $775 million, with adjusted EBITDA of approximately $20 million. JELD-WEN aims to deliver another $100 million in annualized adjusted EBITDA improvements in 2025 through its transformation initiatives.
To address these near-term pressures, JELD-WEN is taking further actions to optimize its cost structure and align its operations with current market realities. This includes right-sizing its factory workforce, preparing for a higher tariff environment, and accelerating automation investments. The company is implementing $50 million in near-term cost reduction initiatives to further improve efficiency and adapt to the ongoing market dynamics. These initiatives are expected to generate approximately $50 million in annual savings, which, combined with the ongoing transformation efforts, should help the company navigate the challenging environment.
Looking ahead, JELD-WEN remains focused on strengthening its customer partnerships, optimizing its manufacturing network, and continuing to invest in cost and efficiency gains. While 2025 is expected to be another challenging year, the company's strategic initiatives and diversified business model position it for long-term success as market conditions eventually improve.
Segment Performance
JELD-WEN operates in two reportable segments organized and managed principally by geographic region: North America and Europe.
North America Segment: This segment supplies windows and doors for residential and commercial markets, serving both new construction and R&R projects. Products are distributed through direct and indirect channels, including dealer and distribution networks. In 2024, the North America segment accounted for approximately 72% of JELD-WEN's net revenues, contributing $2.71 billion. The segment generated an adjusted EBITDA of $254.07 million.
Europe Segment: In Europe, JELD-WEN manufactures and supplies interior doors, doorsets, and door kits to retailers, merchants, house-builders, and construction companies. The European market for doors is highly fragmented, and JELD-WEN has the only platform in the industry capable of serving nearly all European countries. In 2024, the Europe segment accounted for approximately 28% of the company's net revenues, contributing $1.07 billion. The segment generated an adjusted EBITDA of $67.71 million.
Industry Trends and Competition
The door and window industry is highly competitive, with JELD-WEN facing regional and international competitors. Competition is largely based on product quality, service, distribution capabilities, and price. The industry's growth is tied to activity levels in the new residential construction and repair/remodel markets, which have been facing some headwinds recently due to factors like rising interest rates and economic uncertainty.
JELD-WEN is the only manufacturer that offers a full line of interior and exterior door and window products in North America, allowing it to offer a more complete solution to its customer base. In Europe, the company has a unique platform capable of serving nearly all European countries, giving it a competitive advantage in the fragmented market.
Risks and Considerations
JELD-WEN operates in a highly competitive industry, with exposure to various risks, including:
1. Macroeconomic and Industry Conditions: The company's performance is closely tied to the cyclical nature of the residential and non-residential construction markets, which can be significantly impacted by factors such as interest rates, housing starts, and consumer confidence.
2. Raw Material Cost Volatility: Fluctuations in the prices of key raw materials, such as wood, steel, and vinyl, can affect JELD-WEN's cost of goods sold and profitability.
3. Supply Chain Disruptions: Disruptions in the global supply chain, including logistical challenges and component shortages, can impact the company's ability to meet customer demand and maintain operational efficiency.
4. Regulatory and Compliance Risks: JELD-WEN's operations are subject to various environmental, health, and safety regulations, which can result in compliance costs and liabilities.
5. Litigation and Legal Matters: The company is involved in various legal proceedings, including an ongoing court-ordered divestiture of its Towanda, Pennsylvania facility, which could result in financial and operational impacts.
Conclusion
JELD-WEN Holding, Inc. is a leading global manufacturer of building products, with a diversified portfolio and a strategic focus on operational excellence and transformation. While the company has faced significant market challenges in recent years, its ongoing initiatives to optimize its cost structure, rationalize its global footprint, and enhance customer partnerships position it for long-term resilience and growth as market conditions eventually improve. With a strong presence in both North America and Europe, JELD-WEN is well-positioned to capitalize on opportunities in the global door and window market as it navigates the current headwinds and implements its strategic transformation initiatives.