JELD-WEN's 2024 Year-End Summary: Key Financial Insights
JELD-WEN Holding, Inc. Reports Financial Results for 2024
JELD-WEN Holding, Inc. (NYSE: JELD) has recently released its financial results for the year ending December 31, 2024. Despite facing significant macroeconomic challenges, the company remains committed to its transformation strategy that aims to enhance its market position.
Fourth Quarter Performance Overview
In the fourth quarter of 2024, JELD-WEN reported net revenues of $895.7 million. This figure represents a 12.3% decrease compared to the same quarter in the previous year, primarily due to lower sales volumes and a shift in customer preferences towards entry-level products. The company registered a net loss of $68.4 million for this quarter, compared to a loss of $22.6 million during the fourth quarter of the prior year, due to factors like a non-cash goodwill impairment related to divestitures.
Key Highlights
- Fourth quarter adjusted EBITDA decreased to $40.1 million from $86.5 million year-over-year.
- Operating loss margin for the quarter stood at (5.7%), a significant decline from the previous year's positive margin of 0.7%.
- The declining performance reflects ongoing pressures from rising material costs and a challenging economic environment.
Full Year Financial Summary
For the entire year, JELD-WEN reported total revenues of $3,775.6 million, which is also a 12.3% decrease compared to 2023. The net loss for the year was $187.6 million, or $2.21 per share, contrasting with a positive net income of $25.2 million, or $0.29 per share, from the previous year. The loss included non-cash goodwill impairment charges that affected the North America and Europe regions.
Annual Highlights
- Full year adjusted EBITDA from continuing operations totaled $275.2 million down from $380.4 million.
- The overall loss margin for the year was (3.3%), a drop from a profit margin of 3.3% the prior year.
- Strategic initiatives led to improved productivity, partially offsetting the financial headwinds.
Company’s Outlook and Guidance
Looking forward, JELD-WEN has introduced its revenue guidance for 2025, forecasting between $3.2 billion and $3.4 billion, indicating a projected core revenue decline of 4% to 9%. Additionally, the company expects adjusted EBITDA to fall between $215 million to $265 million. This guidance reflects a cautious optimism as JELD-WEN navigates through continuing market pressures.
Management's Perspective
William J. Christensen, the Chief Executive Officer, expressed optimism regarding the company's transformation efforts. He emphasized the commitment to maintaining high-quality service and products, stating, "Our transformation is proving effective, allowing us to strengthen our market presence. As conditions improve, JELD-WEN is prepared to leverage emerging opportunities with its customers."
Segment Analysis
In the fourth quarter comparisons, JELD-WEN's North America segment generated $639.8 million in revenue, a decline of 14.4% due to a decrease in core revenue. Conversely, the Europe segment reported $255.9 million, showing a smaller decline of 6.4%. Adjusted EBITDA for each segment reflected ongoing challenges, yet management remains focused on driving efficiencies and innovation.
Cash Flow and Investment Plans
During 2024, JELD-WEN experienced a decrease in net cash provided by operating activities, which totaled $106.2 million compared to $345.2 million the previous year. Capital expenditures increased to $173.7 million as the company invests in modernization and future growth opportunities.
Frequently Asked Questions
What was JELD-WEN's adjusted EBITDA for the fourth quarter of 2024?
JELD-WEN's adjusted EBITDA for the fourth quarter of 2024 was $40.1 million, a significant decrease from $86.5 million in the same period last year.
How much did JELD-WEN lose in 2024?
In 2024, JELD-WEN reported a net loss of $187.6 million, or $2.21 per share.
What challenges did JELD-WEN face in 2024?
The company faced challenges such as lower sales volumes, a shift to entry-level products, and rising material costs, contributing to its overall financial performance decline.
What guidance has JELD-WEN provided for 2025?
JELD-WEN expects revenue in the range of $3.2 billion to $3.4 billion for 2025, with an anticipated decline in core revenues.
Who is the CEO of JELD-WEN?
William J. Christensen is the Chief Executive Officer of JELD-WEN, focusing on the company's transformation and customer success.
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