Jeld-Wen Holding, Inc. announced results for the three and nine months ended September 30, 2023.
Net revenue for the Q3 2023 decreased $63.0 million, or 5.5%, to $1,077.0 million, compared to $1,140.0 million for the same period last year. The decrease in net revenue was driven by a 7% Core Revenue decline composed of lower volume/mix 10% partially offset by higher price realization of 3%.
Net income from continuing operations was $16.9 million in the Q3 2023, compared to a $45.1 million net loss in the same period last year, an increase of $62.0 million. The increase was driven by a non-recurring goodwill impairment in the prior year period and higher operating income. Adjusted net income from continuing operations for the Q3 2023 increased $13.8 million, to $45.6 million, compared to $31.8 million in the same period last year.
Adjusted EBITDA from continuing operations increased $11.2 million, to $105.7 million, compared to the same quarter last year. Adjusted EBITDA margin from continuing operations increased 150 basis points to 9.8%, as positive price/cost and productivity improvements were partially offset by lower volume/mix.
"In the Q3, our team continued to take actions to strengthen the foundation of our business which generated year-over-year increased profitability and strong cash flows, despite challenging macroeconomic conditions," said CEO William J. Christensen. "We are taking the next steps to continue improving and sustaining our performance to unlock significant value for Jeld-Wen shareholders."
Christensen continued, "In the Q4 2023, we anticipate that the current uncertain operating environment will continue but expect to mitigate the impact from weaker demand with benefits from our ongoing cost reductions. As our Q3 results were above our expectations, we are raising the midpoint of our 2023 Adjusted EBITDA guidance."
Jeld-Wen is raising its guidance to reflect the solid Q3 performance. The Company now expects 2023 net revenue of $4.25 to $4.35 billion which reflects a low double digit decline in volume/mix across its portfolio of products and geographies in North America and Europe. Core Revenues are forecasted to be down 4% to 6% as price realization partially offsets lower market demand.
Further, the Company now expects 2023 Adjusted EBITDA from continuing operations to be within the range of $365 to $375 million driven by solid price/cost results and ongoing cost reductions partially offset by lower year-over-year volumes and a reduction in other income.
Although the Company believes the assumptions reflected in the range of guidance are reasonable, actual results could vary substantially given the uncertainty regarding the future performance of the global economy, ongoing global conflicts, new COVID-19 lockdowns or restrictions, disruptions in global supply chains, and changes in raw material prices and other costs as well as other risks and uncertainties, including those described below. In addition, the guidance ranges provided for 2023 do not include the impact of potential acquisitions or divestitures, except the divestiture of the Australasia business.
Jeld-Wen is a leading global designer, manufacturer and distributor of high-performance interior and exterior doors, windows, and related building products serving the new construction and repair and remodeling sectors.
