NYSE:JELD
JELD-WEN Holding, Inc.
A North American leader in fenestration manufacturing facing significant headwinds from declining sales volume and substantial operational losses.
Key Metrics
Investment Thesis
Bull Case
The stock may offer value for contrarian investors betting on a cyclical housing recovery that would eventually restore margins to this established manufacturer. JELD-WEN maintains a dominant market share with an extensive distribution network that could yield significant gains once demand normalizes. The company's asset-light manufacturing approach relative to its scale provides potential for rapid margin expansion if sales volumes rebound even modestly.
Bear Case
Current financials show unsustainable losses totaling over $600M which threatens the company's ability to fund operations without external capital infusion. The steep decline in revenue suggests a structural shift in consumer behavior or an extended housing downturn rather than a temporary blip. With cash reserves of only $136.1M and heavy debt repayments, the balance sheet is fragile enough to withstand prolonged periods of weak demand.
About JELD-WEN Holding, Inc.
JELD-WEN Holding Inc. is a leading North American manufacturer of windows, doors, and building enclosure products serving residential and commercial markets. The company operates through manufacturing facilities that produce insulated glass units, framing systems, and complete fenestration solutions for builders and contractors. With a diversified product portfolio including interior/exterior doors and custom windows, JELD-WEN addresses the ongoing demand for energy-efficient home renovations and new construction.
Analysis
Management Discussion
Recent financial performance reveals a deteriorating trajectory with net income plummeting from $62.4M in 2023 to a significant loss of -$621.2M in the latest period. Revenue contracted sharply from $5.13B in 2022 to just $3.21B, indicating a deep sell-off in the underlying housing market. Operating cash flow turned negative at -$4.9M while non-cash adjustments remain high, suggesting earnings quality issues and potential inventory write-downs or restructuring charges.
Industry Overview
The fenestration industry is cyclical and tightly correlated with residential construction starts and existing home sales volumes in North America. Manufacturers face intense competition on price while simultaneously battling rising costs for aluminum, glass, and energy-efficient materials. Industry consolidation has favored large players like JELD-WEN, but profitability remains highly sensitive to housing inventory levels and interest rate environments.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.13B | $4.30B | $3.78B | $3.21B |
| Cost of Revenue | $4.18B | $3.47B | $3.09B | $2.70B |
| Gross Profit | $945.4M | $832.6M | $689.0M | $514.2M |
| Operating Expenses | $839.2M | $691.0M | $815.4M | $930.2M |
| Operating Income | $106.2M | $141.6M | $-126.4M | $-416.0M |
| G&A | $766.1M | $655.3M | $652.5M | $551.1M |
| Stock-Based Comp | $16.2M | $18.4M | $15.5M | $15.0M |
| D&A | $131.8M | $140.2M | $125.8M | $112.4M |
| Depreciation | $97.6M | $94.6M | $86.6M | $84.1M |
| Amortization | $32.7M | $36.5M | $33.4M | $22.7M |
| Other OpEx | $73.1M | $35.7M | $162.9M | $379.1M |
| Non-Operating Income | $-27.2M | $-53.0M | $-44.4M | $-58.3M |
| Interest Expense | — | $72.3M | — | — |
| Pre-Tax Income | $79.0M | $88.6M | $-170.8M | $-474.3M |
| Income Tax | $33.3M | $63.3M | $16.8M | $147.9M |
| Continuing Ops | $45.7M | $25.2M | $-187.6M | $-622.2M |
| Discontinued Ops | $0 | $21.5M | $0 | $0 |
| Net Income | $45.7M | $62.4M | $-189.0M | $-621.2M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $45.7M | $62.4M | $-189.0M | $-621.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.70B | $1.49B | $1.20B | $1.02B |
| Cash & Equivalents | $219.4M | $288.3M | $150.3M | $136.1M |
| Accounts Receivable | $603.7M | $516.7M | $388.4M | $361.2M |
| Inventory | $666.5M | $481.5M | $460.1M | $444.1M |
| Other Current Assets | $206.0M | $207.9M | $201.0M | $75.3M |
| Long-Term Assets | $1.81B | $1.49B | $1.42B | $1.09B |
| PP&E (Net) | $762.5M | $644.2M | $681.4M | $728.4M |
| Intangibles | $192.1M | $123.9M | $102.0M | $96.3M |
| Goodwill | $460.5M | $390.2M | $315.2M | $0 |
| Operating Leases | $167.9M | $146.9M | $126.3M | $179.4M |
| Other LT Assets | $222.8M | $180.5M | $195.4M | $81.9M |
| Total Assets | $3.50B | $2.98B | $2.62B | $2.10B |
| Current Liabilities | $786.6M | $678.9M | $625.0M | $577.9M |
| Accounts Payable | $320.7M | $269.3M | $264.9M | $237.3M |
| Current Leases | $42.5M | $32.5M | $32.7M | $33.8M |
| Deferred Revenue | $24.8M | $7.2M | $5.4M | $4.9M |
| Taxes Payable | $12.8M | $9.3M | $7.4M | $1.6M |
| Other Current Liab | $94.0M | $126.9M | $90.3M | $77.2M |
| Long-Term Liabilities | $1.99B | $1.45B | $1.38B | $1.43B |
| LT Operating Leases | $135.8M | $122.0M | $105.5M | $158.6M |
| Other LT Liab | $1.86B | $1.33B | $1.27B | $1.27B |
| Total Liabilities | $2.78B | $2.13B | $2.00B | $2.01B |
| Shareholders' Equity | $723.5M | $850.6M | $620.1M | $92.2M |
| Paid-In Capital | $734.9M | $752.2M | $769.1M | $783.3M |
| Retained Earnings | $130.5M | $192.9M | $-20.4M | $-641.6M |
| AOCI | $-142.6M | $-95.3M | $-129.5M | $-50.4M |
| Total L&E | $3.50B | $2.98B | $2.62B | $2.10B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $45.7M | $62.4M | $-189.0M | $-621.2M |
| Non-Cash Adjustments | $-105.9M | $419.0M | $404.7M | $721.1M |
| Working Capital Changes | $90.5M | $-136.3M | $-109.5M | $-104.7M |
| Cash from Operations | $30.3M | $345.2M | $106.2M | $-4.9M |
| Capital Expenditures | $83.2M | $98.3M | $161.9M | $119.8M |
| Cash from Investing | $-67.0M | $279.2M | $-153.3M | $16.3M |
| Debt Issuances | $0 | $0 | $350.0M | $0 |
| Debt Repayments | $767.2M | $684.8M | $400.6M | $32.4M |
| Share Buybacks | $132.0M | $0 | $24.3M | $0 |
| Cash from Financing | $-120.0M | $-563.2M | $-80.6M | $-33.0M |
| FX Effect | $-19.3M | $7.1M | $-10.3M | $8.8M |
| Net Change in Cash | $-176.0M | $68.3M | $-138.1M | $-12.8M |
| Beginning Cash | $396.9M | $220.9M | $289.1M | $151.0M |
| Ending Cash | $220.9M | $289.1M | $151.0M | $138.2M |
Frequently Asked Questions
How does JELD-WEN Holding, Inc. make money?
The company's revenue streams are primarily driven by its Custom Windows & Doors segment, which sells finished products to retailers and distributors. A second major stream comes from the Insulated Glass Unit (IGU) segment, supplying raw glass units to other manufacturers. Additionally, the company generates revenue through its Contract Manufacturing segment, providing production capacity to third-party brands under contract.
What are the main risks for JELD?
The primary risk is severe demand contraction in the housing market, evidenced by a 37% revenue decline over the last two years which has directly impacted profitability. Significant exposure to input cost inflation persists despite recent volume declines, creating margin pressure on already shrinking sales. The company carries substantial accumulated losses and a large retained earnings deficit, raising concerns about capital adequacy and solvency. High levels of fixed costs relative to declining revenue create a dangerous leverage situation if market recovery stalls.
What is JELD's competitive advantage?
JELD-WEN leverages a highly automated manufacturing footprint across North America, allowing for lower unit costs and consistent quality control compared to smaller competitors. The company benefits from strong brand recognition in the residential remodeling sector, where consumers actively seek its energy-efficient products. Its vertically integrated supply chain for glass and framing materials provides operational flexibility during commodity price fluctuations.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.