American Woodmark Corporation Announces Second Quarter Results
Fiscal Second Quarter 2026 Financial Highlights:
-
Net sales of
$394.6 million
-
Net income of
$6.1 million 1.5% of net sales
-
Adjusted EBITDA of
$39.6 million 10.0% of net sales
-
Cash provided by operating activities of
$11.2 million $0.9 million
Fiscal 2026 Year to Date Financial Highlights:
-
Net sales of
$797.7 million
-
Net income of
$20.7 million 2.6% of net sales
-
Adjusted EBITDA of
$81.9 million 10.3% of net sales
-
Cash provided by operating activities of
$44.3 million $24.0 million
“Demand trends remain challenged in both the new construction and remodel markets. Our teams are executing well despite the lower volumes and delivered Adjusted EBITDA margins of
Second Quarter Results
Net sales for the second quarter of fiscal 2026 decreased
Fiscal Year to Date Results
Net sales for the first six months of fiscal 2026 decreased
In light of our pending merger with MasterBrand, Inc., previously announced on August 6, 2025, we will not be holding a conference call to discuss our second quarter of fiscal 2026 results and we will not be providing or updating previously issued financial guidance.
Balance Sheet & Cash Flow
As of October 31, 2025, the Company had
Cash provided by operating activities for the first six months of fiscal 2026 was
About American Woodmark
American Woodmark celebrates the creativity in all of us. With over 7,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own.
Use of Non-GAAP Financial Measures
We have presented certain financial measures in this press release which have not been prepared in accordance with
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, actual outcomes and results may differ materially from those expressed or implied in any such forward looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
AMERICAN WOODMARK CORPORATION |
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Unaudited Financial Highlights |
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(in thousands, except share data) |
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Operating Results |
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Three Months Ended |
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Six Months Ended |
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October 31, |
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October 31, |
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2025 |
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2024 |
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2025 |
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2024 |
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Net sales |
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$ |
394,637 |
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$ |
452,482 |
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$ |
797,683 |
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$ |
911,610 |
Cost of sales & distribution |
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334,734 |
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366,771 |
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670,290 |
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733,033 |
Gross profit |
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59,903 |
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85,711 |
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127,393 |
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178,577 |
Sales & marketing expense |
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21,728 |
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21,738 |
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45,291 |
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46,075 |
General & administrative expense |
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24,368 |
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20,237 |
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47,281 |
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41,739 |
Restructuring charges, net |
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1,458 |
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1,133 |
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2,280 |
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1,133 |
Operating income |
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12,349 |
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42,603 |
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32,541 |
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89,630 |
Interest expense, net |
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4,531 |
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2,448 |
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8,667 |
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|
4,738 |
Other (income) expense, net |
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(1,079 |
) |
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4,702 |
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(4,698 |
) |
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9,942 |
Income tax expense |
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2,800 |
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7,767 |
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7,880 |
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|
17,631 |
Net income |
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$ |
6,097 |
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$ |
27,686 |
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$ |
20,692 |
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$ |
57,319 |
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Earnings Per Share: |
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Weighted average shares outstanding - diluted |
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14,622,814 |
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15,435,311 |
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14,601,845 |
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15,557,210 |
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Net income per diluted share |
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$ |
0.42 |
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$ |
1.79 |
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$ |
1.42 |
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$ |
3.68 |
Condensed Consolidated Balance Sheet |
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(Unaudited) |
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October 31, |
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April 30, |
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2025 |
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2025 |
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Cash & cash equivalents |
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$ |
52,066 |
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$ |
48,195 |
Customer receivables, net |
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104,191 |
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111,171 |
Inventories |
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184,836 |
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178,111 |
Income taxes receivable |
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4,986 |
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2,567 |
Prepaid expenses and other |
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35,289 |
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24,409 |
Total current assets |
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381,368 |
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364,453 |
Property, plant and equipment, net |
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238,970 |
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244,989 |
Operating lease right-of-use assets |
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116,877 |
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128,907 |
Goodwill, net |
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767,612 |
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767,612 |
Other long-term assets, net |
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61,024 |
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64,608 |
Total assets |
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$ |
1,565,851 |
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$ |
1,570,569 |
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Current maturities of long-term debt |
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$ |
7,501 |
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$ |
7,659 |
Short-term lease liability - operating |
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33,383 |
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33,598 |
Accounts payable & accrued expenses |
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136,381 |
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141,685 |
Total current liabilities |
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177,265 |
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182,942 |
Long-term debt, less current maturities |
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363,284 |
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365,825 |
Deferred income taxes |
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3,792 |
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— |
Long-term lease liability - operating |
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90,570 |
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102,846 |
Other long-term liabilities |
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2,700 |
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2,958 |
Total liabilities |
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637,611 |
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654,571 |
Stockholders' equity |
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928,240 |
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915,998 |
Total liabilities & stockholders' equity |
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$ |
1,565,851 |
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$ |
1,570,569 |
Condensed Consolidated Statements of Cash Flows |
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(Unaudited) |
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Six Months Ended |
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October 31, |
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2025 |
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2024 |
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Net cash provided by operating activities |
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$ |
44,251 |
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$ |
52,733 |
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Net cash used by investing activities |
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(20,221 |
) |
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(22,587 |
) |
Net cash used by financing activities |
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(20,159 |
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(60,827 |
) |
Net increase (decrease) in cash and cash equivalents |
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3,871 |
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(30,681 |
) |
Cash and cash equivalents, beginning of period |
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48,195 |
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87,398 |
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Cash and cash equivalents, end of period |
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$ |
52,066 |
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$ |
56,717 |
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Non-GAAP Financial Measures
We have reported our financial results in accordance with GAAP, and have discussed our financial results using the non-GAAP measures described below.
Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin
We use EBITDA, Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. Additionally, Adjusted EBITDA is a key measurement used in our Term Loans to determine interest rates and financial covenant compliance.
We define EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, and (3) depreciation and amortization expense. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the pending merger with MasterBrand, Inc., (2) restructuring charges, net, (3) net gain/loss on debt modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, and (6) change in fair value of foreign exchange forward contracts. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.
We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.
Adjusted EPS per diluted share
We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the currently proposed merger with MasterBrand, (2) restructuring charges, net, (3) net gain/loss on debt modification, (4) change in fair value of foreign exchange forward contracts, and (5) the tax benefit of items (1) - (4).
Free cash flow
We use free cash flow to better understand cash flow trends in our business. We believe this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. We define free cash flow as net cash provided by operating activities less capital expenditures consisting of (1) cash payments to acquire property, plant and equipment and (2) cash investments in promotional displays.
Net leverage
Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.
We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing-twelve months Adjusted EBITDA.
A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin |
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Three Months Ended |
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Six Months Ended |
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October 31, |
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October 31, |
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(in thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
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Net income (GAAP) |
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$ |
6,097 |
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$ |
27,686 |
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$ |
20,692 |
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$ |
57,319 |
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Add back: |
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Income tax expense |
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2,800 |
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7,767 |
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7,880 |
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17,631 |
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Interest expense, net |
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4,531 |
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|
2,448 |
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8,667 |
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|
4,738 |
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Depreciation and amortization expense |
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16,388 |
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13,466 |
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32,192 |
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26,268 |
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EBITDA (Non-GAAP) |
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$ |
29,816 |
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$ |
51,367 |
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$ |
69,431 |
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$ |
105,956 |
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Add back: |
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Merger related expenses (1) |
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6,484 |
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— |
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|
9,285 |
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|
— |
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Restructuring charges, net (2) |
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|
1,458 |
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|
|
1,133 |
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|
|
2,280 |
|
|
|
1,133 |
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Net loss on debt modification |
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|
— |
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|
364 |
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|
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— |
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|
364 |
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Change in fair value of foreign exchange forward contracts (3) |
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|
(1,058 |
) |
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|
4,375 |
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|
(4,614 |
) |
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|
9,684 |
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Stock-based compensation expense |
|
|
2,627 |
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|
|
2,864 |
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|
|
4,887 |
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|
|
5,805 |
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Net loss on disposal of property, plant and equipment |
|
|
315 |
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|
|
84 |
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|
609 |
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|
|
142 |
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Adjusted EBITDA (Non-GAAP) |
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$ |
39,642 |
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$ |
60,187 |
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|
$ |
81,878 |
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|
$ |
123,084 |
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Net Sales |
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$ |
394,637 |
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$ |
452,482 |
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$ |
797,683 |
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$ |
911,610 |
|
Net income margin (GAAP) |
|
|
1.5 |
% |
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|
6.1 |
% |
|
|
2.6 |
% |
|
|
6.3 |
% |
Adjusted EBITDA margin (Non-GAAP) |
|
|
10.0 |
% |
|
|
13.3 |
% |
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|
10.3 |
% |
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|
13.5 |
% |
(1) Merger-related expenses are comprised of expenses related to the pending merger with MasterBrand, Inc. |
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(2) Restructuring charges, net are comprised of expenses incurred related to the reduction in force implemented in the first and second quarters of fiscal 2026 in the |
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(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. |
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Reconciliation of Net Income to Adjusted Net Income |
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Three Months Ended |
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Six Months Ended |
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October 31, |
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October 31, |
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(in thousands, except share data) |
|
2025 |
|
2024 |
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2025 |
|
2024 |
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Net income (GAAP) |
|
$ |
6,097 |
|
|
$ |
27,686 |
|
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$ |
20,692 |
|
|
$ |
57,319 |
|
Add back: |
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|
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Merger related expenses |
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|
6,484 |
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|
|
— |
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|
9,285 |
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|
|
— |
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Restructuring charges, net |
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|
1,458 |
|
|
|
1,133 |
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|
|
2,280 |
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|
1,133 |
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Change in fair value of foreign exchange forward contracts |
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|
(1,058 |
) |
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|
4,375 |
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|
(4,614 |
) |
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|
9,684 |
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Tax benefit of add backs |
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|
(1,811 |
) |
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(1,510 |
) |
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|
(1,828 |
) |
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|
(2,874 |
) |
Adjusted net income (Non-GAAP) |
|
$ |
11,170 |
|
|
$ |
32,048 |
|
|
$ |
25,815 |
|
|
$ |
65,626 |
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Weighted average diluted shares (GAAP) |
|
|
14,622,814 |
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|
|
15,435,311 |
|
|
|
14,601,845 |
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|
15,557,210 |
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EPS per diluted share (GAAP) |
|
$ |
0.42 |
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|
$ |
1.79 |
|
|
$ |
1.42 |
|
|
$ |
3.68 |
|
Adjusted EPS per diluted share (Non-GAAP) |
|
$ |
0.76 |
|
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$ |
2.08 |
|
|
$ |
1.77 |
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$ |
4.22 |
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Free Cash Flow |
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Six Months Ended |
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October 31, |
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|
2025 |
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2024 |
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|
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Net cash provided by operating activities |
|
$ |
44,251 |
|
$ |
52,733 |
Less: Capital expenditures (1) |
|
|
20,237 |
|
|
22,592 |
Free cash flow |
|
$ |
24,014 |
|
$ |
30,141 |
(1) Capital expenditures consist of cash payments to acquire property, plant and equipment and cash investments in promotional displays. |
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Net Leverage |
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Twelve Months Ended |
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|
October 31, |
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(in thousands) |
|
2025 |
||
|
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|
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Net income (GAAP) |
|
$ |
62,829 |
|
Add back: |
|
|
||
Income tax expense |
|
|
17,331 |
|
Interest expense, net |
|
|
14,269 |
|
Depreciation and amortization expense |
|
|
61,089 |
|
EBITDA (Non-GAAP) |
|
$ |
155,518 |
|
Add back: |
|
|
||
Merger related expenses (1) |
|
|
9,285 |
|
Restructuring charges, net (2) |
|
|
5,755 |
|
Net gain on debt modification |
|
|
(374 |
) |
Change in fair value of foreign exchange forward contracts (3) |
|
|
(10,763 |
) |
Stock-based compensation expense |
|
|
7,071 |
|
Net loss on disposal of property, plant and equipment |
|
|
929 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
167,421 |
|
|
|
|
||
|
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As of |
||
|
|
October 31, |
||
|
|
2025 |
||
Current maturities of long-term debt |
|
$ |
7,501 |
|
Long-term debt, less current maturities |
|
|
363,284 |
|
Total debt |
|
|
370,785 |
|
Less: Cash and cash equivalents |
|
|
(52,066 |
) |
Net debt |
|
$ |
318,719 |
|
|
|
|
||
Net leverage (4) |
|
|
1.90 |
|
(1) Merger-related expenses are comprised of expenses related to the pending merger with MasterBrand, Inc. |
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(2) Restructuring charges, net are comprised of expenses incurred related to the reduction in force implemented in the first and second quarters of fiscal 2026 in the |
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(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results. |
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(4) Net debt divided by Adjusted EBITDA for the twelve months ended October 31, 2025. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20251125095474/en/
Bradley Kosler
VP Finance
540-665-9100
Source: American Woodmark Corporation
