American Woodmark Corp (AMWD)

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American Woodmark Corporation Announces Third Quarter ResultsFebruary 26, 2026 6:30 AM
Business Wire
Fiscal Third Quarter 2026 Financial Highlights:



Net sales of $324.3 million



Net loss of $(28.7) million; (8.9)% of net sales, including a non-cash goodwill impairment charge of $30.1 million



GAAP EPS of $(1.97); adjusted EPS of $0.45



Adjusted EBITDA of $21.6 million; 6.7% of net sales



Fiscal 2026 Year to Date Financial Highlights:



Net sales of $1,122.0 million



Net loss of $(8.0) million; (0.7)% of net sales, including a non-cash goodwill impairment charge of $30.1 million



GAAP EPS of $(0.55); adjusted EPS of $2.21



Adjusted EBITDA of $103.5 million; 9.2% of net sales



Cash provided by operating activities of $31.1 million; free cash flow of $2.1 million



American Woodmark Corporation (NASDAQ: AMWD) (“American Woodmark,” “the Company,” “we,” “our,” or “us”) today announced results for its third fiscal quarter ended January 31, 2026.


“Demand trends were once again challenging in both the new construction and remodel markets with new construction softening throughout the quarter. We delivered Adjusted EBITDA margins of 6.7% for the third fiscal quarter, as lower volumes impacted fixed cost absorption,” said Scott Culbreth, President and CEO. “Mitigating tariffs and reducing the impact of lower demand on the business remain our top priorities. Actions include structural cost reductions, supplier negotiations, alternative sourcing, and price increases. The estimated unmitigated tariff impact, in effect as of the end of the third quarter of fiscal 2026, represents approximately 3.5-4.0% of the Company’s annualized net sales with the impact varying by product category. This impact does not include the potential increase on Section 232 tariffs to 50% on January 1, 2027, or any changes due to the Supreme Court decision on February 20, 2026. The Company is also focused on closing the previously announced merger transaction with MasterBrand, Inc., which will enable us to provide a broader product portfolio across expanded channels, advance our innovation capabilities, and create exciting opportunities for team members.”


Third Quarter Results


Net sales for the third quarter of fiscal 2026 decreased $73.3 million, or 18.4%, to $324.3 million compared with the same quarter last fiscal year. Net loss was $(28.7) million ($(1.97) per diluted share and (8.9)% of net sales) compared with net income of $16.6 million ($1.09 per diluted share and 4.2% of net sales) for the same quarter last fiscal year. This decrease of $45.3 million included a non-cash goodwill impairment charge of $30.1 million. This decrease was also due to the following: lower net sales, volume deleverage in our manufacturing locations, higher tariff and input costs, merger-related expenses, and restructuring charges, net. This decrease was partially offset by lower volume-based costs at our operating locations, lower incentive compensation, and controlled discretionary spending across all locations and functions. Adjusted EPS per diluted share was $0.45 for the third quarter of fiscal 2026 compared with $1.05 for the same quarter last fiscal year. Adjusted EBITDA for the third quarter of fiscal 2026 decreased $16.9 million, or 43.9%, to $21.6 million, or 6.7% of net sales, compared with $38.4 million, or 9.7% of net sales, for the same quarter last fiscal year.


Fiscal Year to Date Results


Net sales for the first nine months of fiscal 2026 decreased $187.2 million, or 14.3%, to $1,122.0 million compared with the same period last fiscal year. Net loss was $(8.0) million ($(0.55) per diluted share and (0.7)% of net sales) compared with net income of $73.9 million ($4.79 per diluted share and 5.6% of net sales) for the same period last fiscal year. This decrease of $81.9 million included a non-cash goodwill impairment charge of $30.1 million. This decrease was also due to the following: lower net sales combined with an unfavorable mix shift towards value-based offerings, volume deleverage in our manufacturing locations, higher tariff and product input costs, increased Digital Transformation spending related to our ERP deployment strategy, merger-related expenses, non-cash goodwill impairment, higher interest expense, and restructuring charges, net. This decrease was partially offset by lower volume-based costs at our operating locations, lower incentive compensation, favorable mark-to-market adjustments on our foreign exchange forward contracts, and controlled discretionary spending across all locations and functions. Adjusted EPS per diluted share was $2.21 for the first nine months of fiscal 2026 compared with $5.28 for the same period last fiscal year. Adjusted EBITDA for the first nine months of fiscal 2026 decreased $58.1 million, or 35.9%, to $103.5 million, or 9.2% of net sales, compared with $161.5 million, or 12.3% of net sales, for the same period last fiscal year.


In light of our pending merger with MasterBrand, Inc., previously announced on August 6, 2025, we will not be holding a conference call to discuss our third quarter of fiscal 2026 results and we will not be providing or updating previously issued financial guidance.


Balance Sheet & Cash Flow


As of January 31, 2026, the Company had $28.3 million in cash plus access to $315.7 million of additional availability under its revolving credit facility. Also, as of January 31, 2026, the Company had total debt of $369.1 million, including $193.8 million in term loan debt and $173.4 million drawn on its revolving credit facility and net leverage was 2.26.


Cash provided by operating activities for the first nine months of fiscal 2026 was $31.1 million and free cash flow totaled $2.1 million. The Company repurchased 209,757 shares, or approximately 1.4% of shares outstanding, for $12.4 million during the first nine months of fiscal 2026. No shares were repurchased by the Company in the third quarter of fiscal 2026.


About American Woodmark


American Woodmark celebrates the creativity in all of us. With over 7,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own.


Use of Non-GAAP Financial Measures


We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures."


Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, actual outcomes and results may differ materially from those expressed or implied in any such forward looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.




AMERICAN WOODMARK CORPORATION








Unaudited Financial Highlights








(in thousands, except share data)








Operating Results








 






 






 






 






 






 






 






 






 








 






 






Three Months Ended






 






Nine Months Ended








 






 






January 31,






 






January 31,








 






 






 






2026






 






 






 






2025






 






 






 






2026






 






 






2025








 






 






 






 






 






 






 






 






 








Net sales






 






$






324,300






 






 






$






397,580






 






 






$






1,121,983






 






 






$






1,309,190








Cost of sales & distribution






 






 






286,548






 






 






 






337,816






 






 






 






956,838






 






 






 






1,070,849








Gross profit






 






 






37,752






 






 






 






59,764






 






 






 






165,145






 






 






 






238,341








Sales & marketing expense






 






 






19,241






 






 






 






19,537






 






 






 






64,532






 






 






 






65,612








General & administrative expense






 






 






19,075






 






 






 






18,632






 






 






 






66,356






 






 






 






60,371








Restructuring charges, net






 






 






3,168






 






 






 






520






 






 






 






5,448






 






 






 






1,653








Goodwill impairment






 






 






30,129






 






 






 






—






 






 






 






30,129






 






 






 






—








Operating (loss) income






 






 






(33,861






)






 






 






21,075






 






 






 






(1,320






)






 






 






110,705








Interest expense, net






 






 






3,677






 






 






 






2,816






 






 






 






12,344






 






 






 






7,554








Other (income) expense, net






 






 






(1,029






)






 






 






(1,457






)






 






 






(5,727






)






 






 






8,485








Income tax (benefit) expense






 






 






(7,794






)






 






 






3,145






 






 






 






86






 






 






 






20,776








Net (loss) income






 






$






(28,715






)






 






$






16,571






 






 






$






(8,023






)






 






$






73,890








 






 






 






 






 






 






 






 






 








Earnings Per Share:






 






 






 






 






 






 






 






 








Weighted average shares outstanding - diluted






 






 






14,569,239






 






 






 






15,159,442






 






 






 






14,548,800






 






 






 






15,430,164








 






 






 






 






 






 






 






 






 








Net (loss) income per diluted share






 






$






(1.97






)






 






$






1.09






 






 






$






(0.55






)






 






$






4.79









Condensed Consolidated Balance Sheet








(Unaudited)








 






 






January 31,






 






April 30,








 






 






2026






 






2025








 






 






 






 






 








Cash & cash equivalents






 






$






28,261






 






$






48,195








Customer receivables, net






 






 






92,084






 






 






111,171








Inventories






 






 






188,715






 






 






178,111








Income taxes receivable






 






 






14,013






 






 






2,567








Prepaid expenses and other






 






 






38,795






 






 






24,409








Total current assets






 






 






361,868






 






 






364,453








Property, plant and equipment, net






 






 






230,491






 






 






244,989








Operating lease right-of-use assets






 






 






107,777






 






 






128,907








Goodwill, net






 






 






737,483






 






 






767,612








Other long-term assets, net






 






 






67,471






 






 






64,608








Total assets






 






$






1,505,090






 






$






1,570,569








 






 






 






 






 








Current maturities of long-term debt






 






$






8,635






 






$






7,659








Short-term lease liability - operating






 






 






32,108






 






 






33,598








Accounts payable & accrued expenses






 






 






111,904






 






 






141,685








Total current liabilities






 






 






152,647






 






 






182,942








Long-term debt, less current maturities






 






 






360,512






 






 






365,825








Deferred income taxes






 






 






5,029






 






 






—








Long-term lease liability - operating






 






 






82,480






 






 






102,846








Other long-term liabilities






 






 






2,522






 






 






2,958








Total liabilities






 






 






603,190






 






 






654,571








Stockholders' equity






 






 






901,900






 






 






915,998








Total liabilities & stockholders' equity






 






$






1,505,090






 






$






1,570,569









Condensed Consolidated Statements of Cash Flows








(Unaudited)








 






 






Nine Months Ended








 






 






January 31,








 






 






 






2026






 






 






 






2025






 








 






 






 






 






 








Net cash provided by operating activities






 






$






31,123






 






 






$






63,687






 








Net cash used by investing activities






 






 






(28,969






)






 






 






(32,192






)








Net cash used by financing activities






 






 






(22,088






)






 






 






(75,409






)








Net decrease in cash and cash equivalents






 






 






(19,934






)






 






 






(43,914






)








Cash and cash equivalents, beginning of period






 






 






48,195






 






 






 






87,398






 








 






 






 






 






 








Cash and cash equivalents, end of period






 






$






28,261






 






 






$






43,484






 







Non-GAAP Financial Measures


We have reported our financial results in accordance with GAAP, and have discussed our financial results using the non-GAAP measures described below.


Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.


EBITDA, Adjusted EBITDA and Adjusted EBITDA margin


We use EBITDA, Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. Additionally, Adjusted EBITDA is a key measurement used in our Term Loans to determine interest rates and financial covenant compliance.


We define EBITDA as net (loss) income adjusted to exclude (1) income tax expense, (2) interest expense, net, and (3) depreciation and amortization expense. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the pending merger with MasterBrand, Inc., (2) restructuring charges, net, (3) goodwill impairment, (4) net gain/loss on debt modification, (5) stock-based compensation expense, (6) gain/loss on asset disposals, and (7) change in fair value of foreign exchange forward contracts. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.


We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.


Adjusted EPS per diluted share


We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the currently proposed Merger with MasterBrand, (2) restructuring charges, net, (3) goodwill impairment, (4) net gain/loss on debt modification, (5) change in fair value of foreign exchange forward contracts, and (6) the associated tax benefits.


Free cash flow


We use free cash flow to better understand cash flow trends in our business. We believe this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. We define free cash flow as net cash provided by operating activities less capital expenditures consisting of (1) cash payments to acquire property, plant and equipment and (2) cash investments in promotional displays.


Net leverage


Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.


We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing-twelve months Adjusted EBITDA.


A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:




Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin








 






 






 






 






 








 






 






Three Months Ended






 






Nine Months Ended








 






 






January 31,






 






January 31,








(in thousands)






 






 






2026






 






 






 






2025






 






 






 






2026






 






 






 






2025






 








 






 






 






 






 






 






 






 






 








Net (loss) income (GAAP)






 






$






(28,715






)






 






$






16,571






 






 






$






(8,023






)






 






$






73,890






 








Add back:






 






 






 






 






 






 






 






 








Income tax (benefit) expense






 






 






(7,794






)






 






 






3,145






 






 






 






86






 






 






 






20,776






 








Interest expense, net






 






 






3,677






 






 






 






2,816






 






 






 






12,344






 






 






 






7,554






 








Depreciation and amortization expense






 






 






16,055






 






 






 






14,583






 






 






 






48,247






 






 






 






40,851






 








EBITDA (Non-GAAP)






 






$






(16,777






)






 






$






37,115






 






 






$






52,654






 






 






$






143,071






 








Add back:






 






 






 






 






 






 






 






 








Merger related expenses (1)






 






 






4,156






 






 






 






—






 






 






 






13,441






 






 






 






—






 








Restructuring charges, net (2)






 






 






3,168






 






 






 






520






 






 






 






5,448






 






 






 






1,653






 








Goodwill impairment






 






 






30,129






 






 






 






—






 






 






 






30,129






 






 






 






—






 








Net loss on debt modification






 






 






—






 






 






 






—






 






 






 






—






 






 






 






364






 








Change in fair value of foreign exchange forward contracts (3)






 






 






(1,010






)






 






 






(1,418






)






 






 






(5,624






)






 






 






8,266






 








Stock-based compensation expense






 






 






1,713






 






 






 






2,141






 






 






 






6,600






 






 






 






7,946






 








Net loss on disposal of property, plant and equipment






 






 






207






 






 






 






87






 






 






 






816






 






 






 






229






 








Adjusted EBITDA (Non-GAAP)






 






$






21,586






 






 






$






38,445






 






 






$






103,464






 






 






$






161,529






 








 






 






 






 






 






 






 






 






 








Net Sales






 






$






324,300






 






 






$






397,580






 






 






$






1,121,983






 






 






$






1,309,190






 








Net income margin (GAAP)






 






 






(8.9






)%






 






 






4.2






%






 






 






(0.7






)%






 






 






5.6






%








Adjusted EBITDA margin (Non-GAAP)






 






 






6.7






%






 






 






9.7






%






 






 






9.2






%






 






 






12.3






%























 



(1) Merger-related expenses are comprised of expenses related to the pending Merger with MasterBrand, Inc.








(2) Restructuring charges, net are comprised of expenses incurred related to the reductions-in-force implemented in the first nine months of fiscal 2026 in the U.S. and Mexico, the closure of the distribution facility located in Dallas, Texas, which was announced in August 2025, and the closure of the manufacturing facility located in Orange, Virginia, which was announced in January 2025.








(3) In the normal course of business, the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company limits these risks by using foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the condensed consolidated statements of operations.









Reconciliation of Net (Loss) Income to Adjusted Net Income








 






 






 






 






 








 






 






Three Months Ended






 






Nine Months Ended








 






 






January 31,






 






January 31,








(in thousands, except share data)






 






 






2026






 






 






 






2025






 






 






 






2026






 






 






 






2025






 








 






 






 






 






 






 






 






 






 








Net (loss) income (GAAP)






 






$






(28,715






)






 






$






16,571






 






 






$






(8,023






)






 






$






73,890






 








Add back:






 






 






 






 






 






 






 






 








Merger related expenses






 






 






4,156






 






 






 






—






 






 






 






13,441






 






 






 






—






 








Restructuring charges, net






 






 






3,168






 






 






 






520






 






 






 






5,448






 






 






 






1,653






 








Goodwill impairment






 






 






30,129






 






 






 






—






 






 






 






30,129






 






 






 






—






 








Net loss on debt modification






 






 






—






 






 






 






—






 






 






 






—






 






 






 






364






 








Change in fair value of foreign exchange forward contracts






 






 






(1,010






)






 






 






(1,418






)






 






 






(5,624






)






 






 






8,266






 








Tax benefit of add backs






 






 






(1,183






)






 






 






221






 






 






 






(3,011






)






 






 






(2,653






)








Adjusted net income (Non-GAAP)






 






$






6,545






 






 






$






15,894






 






 






$






32,360






 






 






$






81,520






 








 






 






 






 






 






 






 






 






 








Weighted average diluted shares (GAAP)






 






 






14,569,239






 






 






 






15,159,442






 






 






 






14,548,800






 






 






 






15,430,164






 








Add back: potentially anti-dilutive shares (1)






 






 






66,031






 






 






 






—






 






 






 






67,628






 






 






 






—






 








Weighted average diluted shares (Non-GAAP)






 






 






14,635,270






 






 






 






15,159,442






 






 






 






14,616,428






 






 






 






15,430,164






 








 






 






 






 






 






 






 






 






 








EPS per diluted share (GAAP)






 






$






(1.97






)






 






$






1.09






 






 






$






(0.55






)






 






$






4.79






 








Adjusted EPS per diluted share (Non-GAAP)






 






$






0.45






 






 






$






1.05






 






 






$






2.21






 






 






$






5.28






 























 



(1) Potentially dilutive securities for the three- and nine-month periods ended January 31, 2026, respectively, have not been considered in the GAAP calculation of net loss per share as the effect would be anti-dilutive.









Free Cash Flow








 






 






 








 






 






Nine Months Ended








 






 






January 31,








 






 






2026






 






2025








 






 






 






 






 








Net cash provided by operating activities






 






$






31,123






 






$






63,687








Less: Capital expenditures (1)






 






 






28,993






 






 






32,197








Free cash flow






 






$






2,130






 






$






31,490













 



(1) Capital expenditures consist of cash payments to acquire property, plant and equipment and cash investments in promotional displays.









Net Leverage








 






 






 








 






 






Twelve Months Ended








 






 






January 31,








(in thousands)






 






 






2026






 








 






 






 








Net income (GAAP)






 






$






17,542






 








Add back:






 






 








Income tax expense






 






 






6,392






 








Interest expense, net






 






 






15,130






 








Depreciation and amortization expense






 






 






62,561






 








EBITDA (Non-GAAP)






 






$






101,625






 








Add back:






 






 








Merger related expenses






 






 






13,441






 








Restructuring charges, net






 






 






8,403






 








Goodwill impairment






 






 






30,129






 








Net gain on debt modification






 






 






(374






)








Change in fair value of foreign exchange forward contracts






 






 






(10,354






)








Stock-based compensation expense






 






 






6,644






 








Net loss on disposal of property, plant and equipment






 






 






1,049






 








Adjusted EBITDA (Non-GAAP)






 






$






150,563






 








 






 






 








 






 






As of








 






 






January 31,








 






 






 






2026






 








Current maturities of long-term debt






 






$






8,635






 








Long-term debt, less current maturities






 






 






360,512






 








Total debt






 






 






369,147






 








Less: Cash and cash equivalents






 






 






(28,261






)








Net debt






 






$






340,886






 








 






 






 








Net leverage (1)






 






 






2.26






 











 



(1) Net debt divided by Adjusted EBITDA for the twelve months ended January 31, 2026.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260226952554/en/
Bradley Kosler

VP Finance

540-665-9100


Original: American Woodmark Corporation Announces Third Quarter Results