On November 6, 2023, JELD-WEN Holding Inc (JELD, Financial) released its earnings report for the third quarter of 2023. Despite a decrease in net revenues, the company reported a significant increase in net income from continuing operations and raised its full-year guidance.
Financial Highlights
JELD-WEN's net revenues from continuing operations for Q3 2023 were $1,077.0 million, a decrease of 5.5% compared to the same period in the prior year. This decrease was primarily driven by a 7% decline in Core Revenue, which was a result of a 10% lower volume/mix, partially offset by a 3% increase in price realization.
However, the company's net income from continuing operations was $16.9 million, a significant improvement from a net loss of $45.1 million during the same quarter a year ago. This increase was driven by a non-recurring goodwill impairment in the prior year period and higher operating income.
Adjusted EBITDA from continuing operations was $105.7 million, an increase of $11.2 million compared to Q3 2022. The Adjusted EBITDA Margin from continuing operations also increased by 150 basis points year-over-year to 9.8%.
Segment Performance
In the North America segment, net revenue decreased by 5.4% to $790.3 million, driven by a 5% decline in Core Revenue. In the Europe segment, net revenue decreased by 6.0% to $286.7 million, due to an 11% decline in Core Revenue.
Updated Full Year 2023 Guidance
Based on the solid performance in Q3, JELD-WEN is raising its full-year guidance for 2023. The company now expects net revenue to be between $4.25 billion and $4.35 billion. Adjusted EBITDA from continuing operations is expected to be within the range of $365 million to $375 million.
Financial Tables
The company's net revenue for the three months ended September 30, 2023, decreased by $63.0 million, or 5.5%, to $1,077.0 million, compared to $1,140.0 million for the same period last year. Net income from continuing operations was $16.9 million in the third quarter, compared to a $45.1 million net loss in the same period last year, an increase of $62.0 million.
On a segment basis for the third quarter of 2023, compared to the same period last year, net revenue in North America decreased by 5.4% to $790.3 million, while in Europe, net revenue decreased by 6.0% to $286.7 million.
Conclusion
Despite challenging macroeconomic conditions, JELD-WEN has demonstrated resilience in its Q3 2023 results. The company's increase in net income from continuing operations and the upward revision of its full-year guidance reflect its ongoing efforts to improve and sustain performance.
Explore the complete 8-K earnings release (here) from JELD-WEN Holding Inc for further details.
