JELD-WEN Holding Inc (JELD) Reports Mixed Fourth Quarter and Full Year 2023 Results
Net Revenues: $1,021.1 million in Q4 2023, a decrease of 13.4% year-over-year.
Net Loss: $(22.6) million in Q4 2023, compared to a net income of $25.9 million in Q4 2022.
Adjusted EPS: Increased to $0.37 in Q4 2023 from $0.34 in Q4 2022.
Adjusted EBITDA: Rose to $86.5 million in Q4 2023, up from $78.0 million in Q4 2022.
Full Year Net Income: $25.2 million in 2023, an increase from $12.2 million in 2022.
2024 Guidance: Net revenues expected to be between $4.0 to $4.3 billion with Adjusted EBITDA of $370 to $420 million.
On February 19, 2024, JELD-WEN Holding Inc (NYSE:JELD), a leading manufacturer and distributor of building products, released its 8-K filing, detailing the financial results for the fourth quarter and full year ended December 31, 2023. The company, which primarily operates in North America and Europe, faced a challenging macroeconomic environment leading to a decrease in net revenues and a net loss in the fourth quarter. However, JELD-WEN's adjusted earnings per share (EPS) and adjusted EBITDA showed resilience, indicating effective cost management and operational efficiency.
Financial Performance and Challenges
JELD-WEN's net revenues from continuing operations in the fourth quarter of 2023 decreased by 13.4% to $1,021.1 million, primarily due to a 15% decline in Core Revenue, which was mostly attributed to a 16% lower volume/mix. The net loss from continuing operations was $(22.6) million, a significant downturn from the net income of $25.9 million reported in the same quarter of the previous year. The loss was largely driven by discrete tax charges, including a valuation allowance against foreign net operating loss carryforwards.
Despite these challenges, JELD-WEN's adjusted EPS from continuing operations increased to $0.37 from $0.34 year-over-year, excluding after-tax charges. Adjusted EBITDA from continuing operations also rose by $8.5 million to $86.5 million, with the adjusted EBITDA margin improving by 190 basis points to 8.5%. These financial achievements are crucial for the construction industry, as they reflect the company's ability to navigate cost pressures and maintain profitability in a competitive market.
Segment Performance and Full Year Results
For the full year 2023, JELD-WEN reported a 5.3% decrease in net revenues from continuing operations to $4,304.3 million. However, the company's net income from continuing operations improved to $25.2 million, up from $12.2 million in the previous year. The operating income margin increased to 3.3% from 1.3% year-over-year, and adjusted EBITDA from continuing operations grew by $31.6 million to $380.4 million, with the margin increasing by 110 basis points to 8.8%.
Looking at segment results, North America experienced a 13.3% decrease in net revenue to $747.6 million in the fourth quarter, while Europe saw a 13.5% decrease to $273.4 million. For the full year, North America's net revenue decreased by 4.2% to $3,123.1 million, and Europe's net revenue decreased by 8.0% to $1,181.3 million.
2024 Outlook and Management Commentary
For 2024, JELD-WEN anticipates net revenues between $4.0 to $4.3 billion and adjusted EBITDA of $370 to $420 million. CEO William J. Christensen commented on the results, stating, "In the fourth quarter of 2023, our team continued to execute actions to strengthen the foundation of our business. We increased profitability and generated strong cash flows, despite challenging macroeconomic conditions." He also highlighted the company's disciplined approach to improving financial results and investing in the future to unlock value for shareholders.
For more detailed information on JELD-WEN's financial performance, including the full financial statements and non-GAAP reconciliations, please visit the 8-K filing.
To learn more about JELD-WEN and its financials, visit the company's investor relations website at https://investors.jeld-wen.com.
Explore the complete 8-K earnings release (here) from JELD-WEN Holding Inc for further details.
This article first appeared on GuruFocus.
