Jeld-wen Holding, Inc. · NYSE:JELD
Jeld-wen — Q4 2024 Earnings Presentation
35 slides from Jeld-wen's earnings presentation, Feb 18, 2025
Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results February 18, 2025
Slide 2: Speakers
Speakers Bill Christensen CEO Samantha Stoddard CFO
Slide 3: Disclosures
Disclosures Certain statements in this presentation, including our guidance and business strategies, are forward- looking statements that involve risk, uncertainty and assumptions, and are based on information as of February 18, 2025. Actual results may differ materially from those set forth in such
Slide 4: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Fourth Quarter 2024 ▪ Sales of $896 million ▪ Adjusted EBITDA of $40 million ❑ 4.5% of Sales ▪ Transformation journey measures on track ▪ Continuing to optimize footprint MARKET HEADWINDS INCREASED THROUGHOUT THE QUARTER 4
Slide 5: Q4 2024 Financial Results
Q4 2024 Financial Results mm i My ‘
Slide 6: Q4 2024 Financial Summary
Q4 2024 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -400 bps -12% -54% $1,021 $87 8.5% $896 $40 4.5% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Core Revenue down (12%) driven Volume / mix challenges driving lower earnings by lower volume / mix MACROECONO
Slide 7: Q4 2024 Revenue Bridge
Q4 2024 Revenue Bridge USD in Millions $1,021 $2 $896 ($126) ($1) Core Revenue (12%) Q4 2023 Price Volume / Mix Foreign Exchange Q4 2024 LOWER VOLUME / MIX FROM PERSISTING MARKET HEADWINDS 7
Slide 8: Q4 2024 Adjusted EBITDA Bridge
Q4 2024 Adjusted EBITDA Bridge USD in Millions $87 ($9) $1 $40 ($34) ($4) Adj. Margin Adj. Margin 8.5% 4.5% Q4 2023 Price / Cost Volume / Mix Productivity SG&A / Other Income Q4 2024 Note: Amounts do not foot due to rounding LOWER VOLUME/MIX MORE THAN OFFSETS TRANSFORMATION SAVINGS 8
Slide 9: Q4 2024 Segment Results
Q4 2024 Segment Results USD in Millions Q4 2023 Q3 2024 Segment Highlights North America Q4 2024 (Prior Year) (Previous Quarter) Net Revenue $640 $748 $678 ▪ Lower volume / mix Adjusted EBITDA $42 $94 $75 - North America down (14%) Adjusted EBITDA margin 6.6% 12.6% 11.0% • ~60% mix, ~40% volume Euro
Slide 10: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary USD in Millions Net Revenue Adjusted EBITDA Adjusted EBITDA Margin -150 bps -12% -28% $4,304 $380 8.8% $3,776 7.3% $275 2023 2024 2023 2024 2023 2024 Core Revenue down (12%) driven Volume / mix challenges driving lower earnings by lower volume / mix MACROECONOMIC HEA
Slide 11: 2025 Drivers
2025 Drivers i
Slide 12: Market Outlook
Market Outlook North America Europe Mid Single-Digit Low Single-Digit Volume Decline Volume Declines New single-family construction Residential construction Down low-to-mid single-digits Down mid single-digits Repair & Remodel Commercial projects Down low-to-mid single-digits Down slightly Multi-fam
Slide 13: Strategic Optimization of North American Network
Strategic Optimization of North American Network Developing JELD-WEN’s Network of the Future Further Footprint Optimization <$10 Million ▪ Aligning network to support forward EBITDA impact in 2025 looking commercial plans ▪ Accelerating automation >$60 Million Annual EBITDA improvement by 2028 STREN
Slide 14: Planned Actions to Mitigate Market Headwinds
Planned Actions to Mitigate Market Headwinds Near-Term Focus Areas Expect ▪ Right-sizing factories ~$50 Million ▪ Adjusting salaried workforce In 2025 ▪ Shifting supply chain TARGETING PRODUCTIVITY AND MARKET ADJUSTMENTS 14
Slide 15: 2025 Guidance
2025 Guidance
Slide 16: 2025 Guidance
2025 Guidance Net Revenue Operating Cash Flow $3.2B to $3.4B ~$15M Core Revenue* Cap Ex Down (4%) to (9%) ~$150M Adjusted EBITDA Free Cash Flow $215M to $265M ~($135M) *Core Revenue excludes divestitures, including the court-ordered divestiture of Towanda EXPECTING CONTINUED VOLUME WEAKNESS 16
Slide 17: Guidance Bridge
Guidance Bridge Adjusted EBITDA; USD in Millions $100 $275 $240 $240 ($38) ($35) ($10) $50 ($57) ($45) 2024 EBITDA Towanda 2024 EBITDA Market Pruning / Headwind Transformation Variable Other / FX 2025 EBITDA Without Volume / Mix Share Loss Mitigation Comp / Guidance Towanda from ’24 One Time Midpoin
Slide 18: Transformation Guidance
Transformation Guidance 2025 Transformation Impact ✓ $100 million of additional Adjusted EBITDA from Transformation Projects ✓ Capital investments of approximately $150 million ✓ Expanded footprint actions to right-size network Mid-Term Transformation Impact ✓ Expect similar Transformation impacts i
Slide 19: Segment Guidance
Segment Guidance North America Europe – Market declining – Slightly softer market – Pruning / Share Loss + Transformation / Productivity + Transformation / Productivity +/– Price / Cost +/– Price / Cost EXPECTING EBITDA SOFTNESS IN NORTH AMERICA; IMPROVEMENT IN EUROP E 19
Slide 20: JELD-WEN In 2025
JELD-WEN In 2025 Service Level Optimizing Investing to Improvement Our Network Reduce Costs ENTERING THE NEXT PHASE OF OUR TRANSFORMATION 20
Slide 21: Appendix
Appendix
Slide 22: Q4 2024 Net Revenue Walk
Q4 2024 Net Revenue Walk Q4 2024 JELD-WEN North America Europe Price -% -% 1% Volume / Mix (12%) (14%) (7%) Core Revenue Growth (12%) (14%) (6%) FX -% -% -% Total (12.3%) (14.4%) (6.4%) 22
Slide 23: Full Year 2024 Net Revenue Walk
Full Year 2024 Net Revenue Walk Full Year 2024 JELD-WEN North America Europe Price -% -% 1% Volume / Mix (12%) (13%) (11%) Core Revenue Growth (12%) (13%) (10%) FX -% -% -% Total (12.3%) (13.3%) (9.7%) 23
Slide 24: Key Assumptions for 2025
Key Assumptions for 2025 USD in Millions Key Assumption 2025 Estimate Depreciation and Amortization ~$105 Interest Expense, net $65 to $70 Tax Rate (Adjusted Earnings) ~33% Diluted Share Count ~88 million ✓ Full-year EBITDA split ~35% in 1H ✓ Price / Cost ~roughly flat versus 2024 ✓ Expect foreign e
Slide 25: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow USD in Millions Cash Flow(1) Q4 2024 Q4 2023 Net cash provided by operating activities $106 $345 Capital Expenditures(2) ($174) ($111) Free Cash Flow(3) ($68) $234 Balance Sheet(4) December 31, 2024 December 31, 2023 Total Debt $1,183 $1,226 Cash $150 $288 Net Debt(5) $1,
Slide 26: Full Year 2024 Revenue Bridge
Full Year 2024 Revenue Bridge USD in Millions $4,304 $3 $2 $3,776 ($534) Core Revenue (12%) 2023 Price Volume / Mix Foreign Exchange 2024 Note: Amounts do not foot due to rounding LOWER VOLUME / MIX REFLECTS MARKET HEADWINDS 26
Slide 27: Full Year 2024 Adjusted EBITDA Bridge
Full Year 2024 Adjusted EBITDA Bridge USD in Millions $380 ($40) $46 $275 $46 ($157) Adj. Margin Adj. Margin 8.8% 7.3% 2023 Price / Cost Volume / Mix Productivity SG&A / Other Income 2024 PRODUCTIVITY / SG&A PARTIALLY MITIGATES LOWER VOLUME / MIX 27
Slide 28: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation USD in Millions Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 (Loss) income from continuing operations, net of tax $ (68.4) $ (22.6) $ (187.6) $ 25.2 Special items:(1) Net legal and professional expenses and s
Slide 29: Adjusted Net Income Per Share Reconciliation
Adjusted Net Income Per Share Reconciliation Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Diluted (loss) income per share from continuing operations $ (0.81) $ (0.27) $ (2.21) $ 0.29 Impact of additional dilutive shares on the reported dilutiv
Slide 30: Adjusted EBITDA From Continuing Operations Reconciliation
Adjusted EBITDA From Continuing Operations Reconciliation USD in Millions Three Months Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (Loss) income from continuing operations, net of tax $ (68.4) $ (22.6) $ (187.6) $ 25.2 Income tax expense(1) 3.4 31.7 16.8
Slide 31: Q4 2024 QTD Segment Adjusted EBITDA Reconciliation
Q4 2024 QTD Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended December 31, 2024 Corporate and Total North America Europe Unallocated Consolidated Costs Income (loss) from continuing operations, net of tax $ 0.1 $ 7.3 $ (75.8) $ (68.4) Income tax (benefit) expense (8.1) (7.7)
Slide 32: Q4 2023 QTD Segment Adjusted EBITDA Reconciliation
Q4 2023 QTD Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended December 31, 2023 Corporate and Total North America Europe Unallocated Consolidated Costs Income (loss) from continuing operations, net of tax $ 49.0 $ (32.0) $ (39.7) $ (22.6) Income tax expense (benefit)(1) 16.1
Slide 33: Q3 2024 Segment Adjusted EBITDA Reconciliation
Q3 2024 Segment Adjusted EBITDA Reconciliation USD in Millions Three Months Ended September 28, 2024 Corporate North and Total Europe America Unallocated Consolidated Costs Income (loss) from continuing operations, net of tax $ 35.8 $ (66.7) $ (42.1) $ (73.0) Income tax expense (benefit) 6.5 2.6 (1.
Slide 34: Q4 2024 YTD Segment Adjusted EBITDA Reconciliation
Q4 2024 YTD Segment Adjusted EBITDA Reconciliation USD in Millions Year Ended December 31, 2024 Corporate and Total North America Europe Unallocated Consolidated Costs Income (loss) from continuing operations, net of tax $ 82.8 $ (64.3) $ (206.1) $ (187.6) Income tax expense (benefit) 18.7 8.1 (10.0
Slide 35: Q4 2023 YTD Segment Adjusted EBITDA Reconciliation
Q4 2023 YTD Segment Adjusted EBITDA Reconciliation USD in Millions Year Ended December 31, 2023 Corporate and Total North America Europe Unallocated Consolidated Costs Income (loss) from continuing operations, net of tax $ 176.0 $ (3.3) $ (147.4) $ 25.2 Income tax expense (benefit)(1) 79.2 44.1 (60.