- Jeld-Wen Holding Inc JELD reported second-quarter revenue growth of 25.5% year-over-year to $1.25 billion, beating the consensus of $1.16 billion.
- Core revenue increased by 19% and grew in all three reporting segments, driven by an acceleration in volume and price realization.
- Sales by segments: North America $740.1 million (+21.7% Y/Y), Europe $349.7 million (33.7% Y/Y) and Australasia $155.9 million (+27.1% Y/Y).
- Adjusted EBITDA increased by 17.9% Y/Y to $148.2 million, and margin contracted by 80 bps to 11.9%.
- Gross profit increased 33.5% to $291.9 million and the gross margin expanded by 140 bps to 23.4%.
- Operating income more than doubled to $102.1 million for the quarter, and the margin expanded by 315 bps to 8.2%.
- Adjusted EPS improved to $0.59 from $0.47 in 2Q20, missing the consensus of $0.61.
- Jeld-Wen generated cash from operating activities year-to-date of $40.7 million, increasing by $2.4 million from $38.3 million a year ago, with free cash flow use of $4 million.
- On July 27, 2021, the company authorized an increase to its existing share repurchase program to purchase up to a total of $400 million of its common stock. During the quarter, the company repurchased 1.17 million shares for $33.7 million.
- Additionally, Jeld-Wen has also commenced a process for the divestiture of its Towanda, PA operations. It has decided not to appeal the decision by the U.S. Court of Appeals for the Fourth Circuit, which upheld the district court’s divestiture ruling in the litigation between the company and Steves and Sons, Inc.
- The company’s total liquidity, including cash and cash equivalents and undrawn committed credit facilities, stood at $1.02 billion as of June 26, 2021.
- FY21 Outlook: Jeld-Wen Holding expects net revenue growth of 12%-14%, compared to the prior view of 8.0%-11.0%.
- It tightened its Adjusted EBITDA outlook to $510 million - $535 million, compared to the prior $505 million - $535 million.
- Price Action: JELD shares are down 0.30% at $26.40 during the premarket session on the last check Monday.
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