JELD - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the JELD-WEN Holding, Inc. Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Jim Armstrong, Vice President, Investor Relations.

You may begin.

James Armstrong

Thank you, and good morning. which quarter posted year the a portion our fourth last earnings Investor our at of and found night slide website, issued and XXXX full release Relations investors.jeldwen.com. We be can presentation to

We will call. be presentation our this referencing during

by Chief Executive joined Chief Samantha Officer; Christensen, Officer. Bill I'm and Stoddard, Today, Financial

Act Private that These that turn we of the will are in call, it I to Litigation risks provided constitute Before meaning and subject this statements and Securities to I the would like certain release forth statements SEC. during XX-K in earnings of set XX-Q statements XXXX. Bill, over the a filed to our forward-looking Forms uncertainties, variety including within remind our with everyone Reform make and of those

not respect expectations to guidance to statements, update JELD-WEN any certain duty with forward-looking we providing does including undertake are results. for future the

non-GAAP useful presentation we additional isolation call, during which be GAAP. and considered results with a believe of will earnings or The accordance can financial performance. presentation. measures, found non-GAAP our GAAP in as be discuss substitute can of should evaluating not for Additionally, we information today's this of earnings calculated reconciliation most appendix directly in prepared comparable measures to measures our in be in under these the release their A our in

call Bill. to over would the I turn that, now With to like

William Christensen

work the very and James, commitment a hard recognizing you, good our Thank and by team like morning, I'd what start of everyone. year. challenging was throughout to

ourselves meaningful current to for making success. our ability navigate We strengthening while progress transformation, on have positioning our long-term conditions continued

Samantha our return the through I'll providing outlook will of extend stronger, Today, quarterly discuss partnership full remain year today. which partner the performance. more to my committed business. by to both market after an our to and then ahead. financial to appreciation also listening our a our and begin years and walk We reliable in being I'll our the quarter, value I overview customers for want

anticipated Looking range. materialized results at as X, and Slide we expected last quarter highlights guidance demand environment within EBITDA quarter our largely our adjusted fourth on came in the softer our

promised, of costs while to current transformation and actions million well the continue to XXXX with are we take approximately our growth. all ensuring future necessary market we As benefits align positioned we delivered $XXX in conditions for

In the mix America pressure and and weaker across fourth we quarter, faced continued both North volume Europe. from

which navigate our by provided company remain these they while some While transformation initiatives future These we performance. in are are helping initiatives us counteract initiatives, of control. not offset, That the enough encouraged fully strengthening said, were our progress various for our to our environment, headwinds. the

our progress pleased we're of challenging. transformation, with Although conditions remain the market

larger-scale continue mix. delaying see consumers projects, volume which We trading to remodeling our both and and impacted has down

sharp home stable, starts have Additionally, multifamily has and affected our VPI and construction the remained higher-end while housing significantly in decline LaCantina businesses.

efficiency note, remained we market reduction soft overall share. positive business our dynamics. improve our the and as response continued is soft, a are while On market up picked adapt initiatives to relatively market door stable In the to ongoing conditions, cost we implementing further to interior has

announced customer Midwest For Windows stocking Iowa our business. of the example, in we following a the January, in idling loss major plant Grinnell, of

through our With in it to over that, to I'll Samantha detail. turn walk more financial results

Samantha Stoddard

Bill. Thanks,

driven higher America million, to as cost shift expected Europe and to from across North revenue market-driven This in savings. by the down core declines XX% was customers $XXX as a volume Turning X reflecting affordable Fourth Slide options price as was North more revenues, year-over-year. continued prioritize lower quarter well decline mix America

use volume primarily the adjusted from Free EBITDA the of of million a resulting in million, was including year prior flow $XX the for investments. lower in by million, X.X%. margin cash EBITDA a $XX capital an Adjusted $XX mix, decline driven quarter $XX in was fourth million quarter

the ratio our to our leverage net impact investment debt to continued transformation our X.Xx. initiatives, above EBITDA lower target X.Xx and range increased in of Given of X

As top will for to leverage capital return EBITDA to to my X and allocation. improvement priorities look and targeted our of beyond, be ahead we appropriate range XXXX

on quarter higher decline options. America shift to trends a market I'll in additional Slide the selling shown shortly. more insight affordable by products approximately average into and and North XX% primarily Europe was As driven X, decrease decline fourth attributed our volume of with mix, to price a revenue provide half from

volume As declined shown million EBITDA year-over-year, due sharp mix. Slide by $XX on and in X, largely the drop adjusted to

in other commodities. headwind cost remained labor to in expected, factors negative contributing by and primarily a dynamics. material As inflation pressures Key the quarter, driven and cost glass price

limiting Additionally, lower led productivity to ability operational our inefficiencies, gains. meaningful to generate volumes

our results on to Slide Moving X. segment

Our consumers in as was million more towards reduction XX% weighted shift North toward XX% in revenue decline heavily the mix. affordable a due more quarter, was revenues, America mix for core driven segment continue fourth $XXX This and year-over-year. to products. lower decline volume The by a to generated primarily

headwinds earlier the Additionally, $XX as reflecting the EBITDA margins. price/cost exited of lower impact as the million prior from America's to volumes. and with year, products lower adjusted negative North $XX mix higher-priced from volume dilutive we year, and in stemming well declined dynamics certain million significantly productivity in

declined with the decrease Core in X% revenues a adjusted quarter X% to EBITDA and driven was almost for million, revenue by Europe, of volume. In attributable entirely $XX year-over-year volume million. fourth $XXX mix,

by and X.X%. $X volumes However, The strong a improvements. of cost in than impact resulting improved was margin lower million, by negative of price more offset slightly EBITDA adjusted productivity

year-over-year impact year. year Full Turning mix volumes the throughout ongoing to the reflecting Slide XX% lower of and XX. declined revenue

major sales the customers affected late Midwest retail business. the stock were by our window loss year, addition, of In in a

of from partially the offset with as pressured pruning were strategic and only sales margins lower As productivity business. transformation Adjusted well unprofitable these initiatives. gains our by impacts EBITDA by

declines. from approximately and and negative the decline stemming volume an faced headwinds million productivity For with cost volume million price $XX $XXX year, we challenges along lower in from sharp from mix, additional

results, these to half our us nearly of meaningful offset efforts in allowing However, pressures XXXX. delivered transformation

As declined year-over-year basis by XX% adjusted a result, margins EBITDA contracting with XXX points.

talk to over the it hand XXXX. into about outlook Bill now to I'll

William Christensen

Thanks.

I covered, to focus and results market would our financial the like expectations to environment now shift the for broad XXXX. With

XX. our provided to a consensus in last decline. we we the initial When outside anticipating outlook market market Turning year, were Slide

While North we how unfold. downturn directionally will correct, uncertainty were the potential was around year, we with than This continued the steeper in see significant conditions we expected. volatility had for America

Potential this renewed tariffs, high all interest contribute to and of uncertainty. the persistently possibility inflation, rates

Additionally, and interest both costs rates elevated. issue affordability remains as an unit remain

subdued, is discretionary big-ticket spending on discretionary level Finally, high at decade reports on items. home that indicate and a inventory improvements new remain home especially

is believe risk further meaningful of declines market North America. we a there Therefore, in

digits. Specifically, we remodel by windows and demand construction doors new both expect and decline to and mid-single to low repair for

double-digit year lower to We will North also albeit and Canadian year's a decline both declines markets, America. we with anticipate multifamily at last continue consistent trends. this In continued rate in the market believe Europe, than

projects backdrop, to this slightly we Given residential construction down. while European are expect moderately likely activity decline be commercial to

market as we to strengthen part challenging ongoing are transformation, and outlook the of our taking our Given network. further actions

the [indiscernible] levels optimize on and is the comprehensive and Slide have on the network, support program the to to we ensuring ensuring our aligned right XX, regional locations. America capacity right long As right product North deliver at manufacture we both in capability term launching our it are product a the with to both shown

further and time, additional consolidation. same to are we the accelerating automation investments efficiency enable facility drive At

improve levels. to the we Finally, and all customer projects and levels, minimize this customer of in disruptions enhancing are service support execution planning to service strong area maintain

do not underway, of we this already program work the from impact expect is optimization much XXXX. While financial significant a in

anticipate it we benefits efforts million implemented. generate the or However, of could additional fully $XX ongoing transformation progresses, as on more top consolidation in an our once

implementing actions with of to current the reduce are we conditions. also to our shorter-term market align costs In network, addition midterm optimization and

As shown near-term XX, Slide initiatives. identified have a several on we

In factories we our include while regions, has continue rightsizing First, shifts. declined multiple further workforce. run our we are to demand several adjusting that salaried

As market long-term to costs and back near-term making optimization, align support expected progress scaling current are with better by and we realities. staff shifts our with network short-term reducing adjustments we

higher proactively evolving Additionally, for preparing tariff a environment, with particularly landscape, are North in the tariff America. we

and have impact are are short-term modeling supply optimize options regional reduce meaningful chain These to on production XXXX earnings. to possible. initiatives costs, sourcing in-market prioritize We expected a our to wherever

combined as we structure productivity they to projected savings. approximately XXXX annual in cost are help that our million When $XX our likely These efforts, with challenges. near-term recognize bring generate stabilize broader volume will adjustments will additional

guidance to Let's now our for the turn year.

of strategic continued by share loss Turning in to the last year. Slide business our impact the XX. We guidance and America, on North anticipate softness pruning compounded

half of to reduction to revenues, and $X.X As between X% reflecting X% decline loss is core in business, result, that half of last billion, of related range happened Midwest expect the of X% X% we about the a market retail net anticipated $X.X excludes which large ], including impact year, Towanda a in [ projected result core the the revenues, up forward to is revenues roll to the to the other billion weakness. changes a additional while

to approximate now to $XXX an Based Lower rate, we EBITDA by million. volumes at partially initiatives. are million transformation to factors, on XX% of decremental through $XXX EBITDA offset expected flow adjusted range ongoing forecast these an

in operating of adjusting anticipate capital expectations, in projected use a levels to considering year-end. flow EBITDA response the of $XXX cash cash are levels to This flow XXXX. expected leverage million, $XX flow, In our $XXX our cash Given of results we approximately of by million. expenditures we approximately million operating free our elevated approximately low

well CapEx guidance of sales. representing outlined, than approximately is remains previously above lower it X.X% While levels, this historical

[indiscernible] the our we support to we our will remain transformation guidance in be approximately as year, cash suggest. from We efforts. funding position free of committed required impact for success. to use the which might transformation $XXX to million divestiture cash long-term flow cash business This our will severe not received The as

exceeding still with Xx lower steps target above taking we to to this. with range, address the we However, be EBITDA, our will leverage expect year end and

remainder challenging of currently modeling, our cost year's of To loss between by the million. the improvement we million QX approximately quarter the adjusted we normal said, divestiture. we seasonality as shaping driven of is begin particularly throughout That impact remains this million, full year, the and the efforts. $XXX support of and be sales range up management an and the of experience and market weak, benefits first expect $XX $XXX and with transparency year and transformation QX required ongoing in last to share and EBITDA maintain anticipate The to your

expect we As not these do to exceptionally persist. levels a low result,

a driving detailed On provide XX, midpoint modeling. guidance to your the we key factors Slide breakdown a of EBITDA support our

impact is through achieving are volume Tijuana targeted declines initiatives. [ offset transformation ] and the benefits our As reversal partially improvements actions the of near-term the combined only broader we of significant by shown, divestiture onetime with the and

on focused remain As the we we third can we of things meaningful on control. enter progress year based driving transformation, our the

As million XX, another expect we adjusted this year. deliver shown Slide EBITDA on to improvements $XXX in annualized

While far in and environment. business, to our a of there results foundation that tangible challenging our work strengthen efforts is demonstrate ahead still opportunity the impact are the so making market significant a

to Turning Slide XX.

our of share from impact expected driven anticipate XXXX. stabilization are while to In early majority have business come year-over-year the a by losses lower divestiture, strategic Europe. America, North to the weaker Towanda required American pruning in expect market, greatest volumes segment, of We and variance signs we North from the some the

the While to offset fully volumes. is be impact productivity cost Price the they expected region, to flat the in we unlikely in declining anticipate gains of strong year. are

be headwind, present through more we improvements Conversely, sales these expect while to than a transformation offset productivity pressures generated initiatives. by European our may the volumes

anticipate significant compared XXXX in both a in absolute year-over-year margins levels do we EBITDA, improve expect to not increase do to and we XXXX. modestly Although EBITDA

cost will roughly in be price As XXXX. in we North neutral America, anticipate

are and company. be corporate onetime Finally, not as expenses we expected reinstate incentives year do across this repeat certain variable higher to benefits the

currently land While expect to between XXXX levels. XXXX to exact impact remains and the we predict, expenses difficult corporate

look next for continued of our success to that long-term a we year JELD-WEN As JELD-WEN. strategy, near-term be positions the despite pivotal phase headwinds, for one will XXXX

offset has successfully reduced yet annual rate more Over improvements. million, have than by the $XXX persistent years, market X cost these we weakness run past

are shifting our next a now of transformation. As to we result, phase the

XX. to Slide Turning

centers in XXXX focus key strong reestablishing priorities: our customers. Our partnerships on X First, with

and steps time these product, to to on Our levels taking aim to have service on safety, what are both compensation quality not variable in right met delivery expect, and right service our the metrics and quality our we the the expectations, organization linking across consistently customers' By customers metrics, deliver and full. improve focusing company. and at we quality

continue lost we we on As improvements, years. regain execute that to fully to market these expect recent has in share been

network. our optimizing Second,

levels. still operating below we many earlier, discussed have we facilities optimal As too

disciplined and a minimizing service taking approach levels. ensuring are maintain we right the to enhancing realign disruptions We while our footprint long-term customer capacity

has investment the and in invest past with efficiency manual Finally, left many and continuing to over a decade network us gains. fragmented cost processes. Under

and we automation as costs our efficiency manufacturing improve opportunities operations network. We significant across will reduce and accelerate select still have to

to We expect remain with continued challenging market-related XXXX headwinds.

However, we actions of to positioning long-term while that on am control to near-term incredibly long-term we hard necessary success. pressures value. items work are our team's taking the JELD-WEN proud I navigate for deliver

the the to long-term people processes We your invest deliver right continue systems, you continued in value. and Thank interest. to for

with that, turn the for And to it I'll over now James Q&A.

James Armstrong

to begin Q&A. the Thanks, Bill. Operator, now we're ready

Operator

[Operator Philip from Ng first comes Instructions] question Jefferies. Your of

Philip Ng

million XQ was dynamics. there. $XX around half, XQ some half versus great really you're the $XX the how in all And earnings pickup even first goes first your from Appreciate implicitly question I of these tackling to from in certainly, color my terms step-up noticeable back million. pretty of to But guess progression

So progression some I helpful number give of reverse whether normal the layered really in that through demand savings that environment us it progresses, do how well? would headwind Help short mitigation, get be kind million a $XX little then And in of as be I the one, $XXX it's or us in? on does helpful. of the million term these kind guess more think color more to would think, how a transformation

Samantha Stoddard

Phil. Samantha. Thanks, This is

the So progression. just think about

take actions well going transformation. in talked begin near-term those QX. to taking $XX the we some year this million actions, both As about effect we're will of about, be to Many as as

So to staff beginning the most market beginning that by support adapt factories, ongoing the QX. have optimizing and our effect of our dynamics SG&A we to and our takes in of

Philip Ng

in demand back in first any Are the pretty steady state half -- versus of you ramp-up year? terms assuming throughout or

Samantha Stoddard

seasonality QX. expect to beginning there's the normal in be that So going we

you kind So see. combined with that's the actions taking, that of we're the lift-up

more beginning expect a QX normal of do we and QX. seasonality So in

Philip Ng

price Okay. calling cost a for you're And neutral pretty then year. from standpoint, a price cost this

then things Canadian China guess, first, your pretty feel taken have I metal Canada. your front, the what's and and particularly are around year given how tariffs this baked then Tariffs. lumber The potentially There's thinking part, firm. and on there's the and well? out those talk imports. of just China all the [indiscernible] country you unknown into And guide certainly, the amount And pricing full I'm reacting? price How So actions interested is on any there tariffs. you of about as competitors

William Christensen

It's Bill, Phil.

picture is global So run yes, a it a to complicated currently, if you're chain. trying supply

through based asked. these try work me the you time Let one at questions on and a

So yes, we are taking price.

We given in $XX side. the million around cost visibility currently to supply on our chain the expect headwind

tariffs now, to an which modeling to see But is in currently set we're through the there very right our but Secondly, U.S., and well impact. from baked fairly at say, have metals Canada, look addition network, be if And current lumber. front have some China, exposure. if I lumber, up, We in production Canada of coming scenarios we feel Yes, global you. anything exposure and little and are could waiting is U.S. there's scenarios given would we're would different running haven't running into that that both guidance potentially you domestic, it in fully we some cross-border implications.

Philip Ng

Okay.

Canada not -- headwind whether million cost this for the account at China you called any out it's does correct? not does $XX So the tariffs, any Bill $XX million account point, for or

William Christensen

market. price obviously and over cost taken That why in no. have that's be above. headwinds, No, there But will and we are the selectively factor

Operator

The of next UBS. comes John Lovallo question from

Unknown Analyst

this line sight the the how one, Spencer for million the really savings This questions. little just just are you the transformation is actually about a of John in just can million of confident bit you in for $XXX into talk your $XX the achieving Kaufman first on Maybe and mitigation year. savings

anyway million you'll how given just is challenging you And environment. Just be a would on is here? market the transformation way market that is doing about I approach of $XX right like think the view it more that, to the your top guess

William Christensen

ongoing this last future is our the to spot your strengthen statement clear foundation and On really for on. our and think I transformation, JELD-WEN. business Yes, the fairly is improve

flight, we have, say, $XXX the that of have XX% active in million, projects XX%, we I'd running. they're So are already already

pretty think suggest another conviction environment. deliver will think demand-challenged The have say to we would is able And million track what we're our able being on good do I regard. So record what we to we that. this historical additional $XX to reacting be in that

cost be our and of customers But would turn. that signals adapt right to any any see suggest our have market research we to ready. to or now, we'd market accordingly make so up. from Yes, the we sure love structure turning And competitors, don't we're

getting doing So ready sure making for and what effectively. a and that we're we can challenging year doing we're control

Unknown Analyst

slides, Okay. your we you sort In XXXX and in it we a think expected to expected all mentioned build? at context to is that year-over-year price are That remain sense. point. Is your continue should be headwind? be that makes mix the lapping should entry-level somewhat mix the revenue now of to about of neutralized? that Or How

William Christensen

Yes, that's in it's I forward. run a rate think probably kind it's and of rolling baked

still volume new business, baked the probably building dynamic -- you to but is continue but mid-single a both to a as expect our we've and digits, now sell low large feel mix we soft the to in If which market, has of that's there, and detrimental out. about fairly said, near builders, term. on lower it's R&R think that are retail for situation, Inventories end to the down obviously, are continue that market, going just we with

Operator

Goldman with Maklari Sachs. question next from Susan The comes

Susan Maklari

seeing talk regain in? we especially be should looking this any about My that share, efforts -- you're we year? the as is, or given environment move through projects for question we're to progress first that that bit there a organic can you

William Christensen

Yes.

So environment, always a there doors growth opportunities of demand on are we're Susan. there's and is a couple but doing both side. growth us, this things the on that challenging in Clearly, windows. for

there's we're being on Number more buckets side. So X that on. focused effective the sales is X

around that pretty very think up conversion to pipeline, strenuous to building organizations, detail that, a the we're us end We're our not to but set where windows pipeline stand-ups. we I'm So predict allow in processes progression. review we project models going pipeline have and creating weekly we're ready both the with doors better and We're pleased disclose year. will

and the driving service would areas So that pockets improvements. year market is second this are have about really in and in partners be would last demand there still as from demand in delivery of strong, to improve Clearly, we I'm piece, and service our some really pushed Unfortunately, doors organic are key Southeast talking quality many interior was market. certain some from because there that where hurricanes going such be the level. are there the region. a that's

So fulfill we we can that need make to effectively. sure

delivery quality confident offshore. on working gain the share based and the elected retailer pool, pipeline to just organic back are that weakness that to on. growth or organization of sales pretty going Midwest So from and that feel some step away we're year be able the to in X go we're that to the levers last we elected profit

Susan Maklari

on and Sumit, maybe do back versus to should thoughts, this of be -- or momentum? that margin Okay. just through come how year And for as the the half. second rate about That's Julian, helpful the how Any we initiatives half start exit year the EBITDA full color. gain thinking thinking to guidance, these some about turning first then

Samantha Stoddard

Yes.

from our you have say practice they're But would end when tailwind of drop going year around you the rate to the I X%, Towards are as to the the to at it's end about gaining about of a seasonality good think exit the margin think the X% a of impact. X% off kind QX in year. momentum,

Operator

line Your with Barclays. next of from the Bouley question comes Matthew

Unknown Analyst

for [indiscernible] today. Matt

you to? that Or allocated full I'm the guide Any would $XXX productivity more give within more the wondering what be if maintenance? year, the million can is it's off, on being First it this is helpful. side? growth? your Is CapEx detail Or on for details on it

Samantha Stoddard

Sure.

balanced would optimization growth. facilities and I -- say automation and network between it's So portion being also our towards in it's our improving with now right some

lot think making in about around right if previous project you order earnings we announced a place special that sure our there's order process systems stores. special our that on the So the better in of retail the work call, partner displays, into to have we updating going that facilitate of

million, $XXX $XXX a When our you for think than to little base you think maintaining overall about the is network. to the less million asset overall tied got

it, CapEx transformational let's $XX to growth incremental and initiatives. is some network the call of, really around that So optimization, million automation the then

Unknown Analyst

and of then, cadence guys know expect under this in the I we Or any strength then Awesome. I on guess, the guided Europe, mix And in any volume secondly, as That's you pressure. And has volume can on commercial, super helpful. remains recovery to slightly. XXXX? do trend there? we region, pockets specifically Have assume how you seen through move

William Christensen

welcome. you're Yes,

So definitely but challenged. Europe better is still looking

in different in the build to X pockets unit of recovery. you, X product before a there's Again, to European probably for U.S. to is cycle our in goes months XX just remind X the versus definitely So countries

we X So take starts up, later. pick major to XX a months expect as until the won't

this before, in down, are not help. financial some communicated 'XX, before. which we've recovery in and we're now, also And expectation seeing that will coming markets in is specific expect we rates our competitors So definitely are Interest distress.

a that's size and been pipeline up, some pretty your on on pick based So volumes project. starting on and the to scope years see project for do additional question the couple then of but up to answer gestation has back the been a side, story to also we obviously, we're that period, long the And a commercial probably able now. of has this on going pick projects,

out. months like that's So XX

'XX in So control what are we and story, controlling can it's a we 'XX.

Operator

Dahl next from Mike of Your Markets. comes Instructions] [Operator RBC question Capital

Michael Dahl

$XX million inclusive First amount, one, just is tariffs, not go Canada. not on significant questions back of if Phil's that's to a

that's to if it us incremental What of bringing that spend in? understand is help terms specifically the just the in related you're you can So cost?

William Christensen

not on stack. million $XX is That's sourcing just related. So inflation the that's tariff our cost

mean, there's big labor So there's there's that the buckets material million. -- Those freight, are inflation. the I inflation, $XX fill there's

separate we're it's XXXX. our that on that going be number. And not is potential headwinds, to currently the to in distinct tariff expectation price for So neutral market and are baked which into that cost

Michael Dahl

Okay. clarification. That's helpful had, if million very call second water -- I helpful and always give $XX of mean, of headwinds XXXX, million. the bridges, is look in is to you This a my kind of you you question EBITDA or $XX at how $XX draw that, falls the we related, it's it, $XXX take, million million offset

is which kind price assuming I need and to these but issues, then In do that's this you're $XXX like of bridge, you [indiscernible] cost assuming you still another kind exclusive you're [indiscernible] exclusive you [indiscernible] stuff of of of all that offset , that of get effectively still you inclusive appreciate XXX of it neutral, have million, and have there. to

a to going question of I a to So EBITDA to level kind flattish get lot guess is of like It just the offset back conviction. seems number. to

also and as of help with So wide that corporate side corporate very a costs. part walk range a little us that, on maybe that's the

happening little a detail on there? maybe more what's So

William Christensen

Okay.

unclear. some Let give and and are high maybe at a buckets some then color it try additional if Samantha me hit level, can

million did we $XXX in and cost expected kind has you've [ framed that divest order again, us the based so think I court, So Towanda it on that of an revenue just was ] order. from correctly. And EBITDA. divestment, it's The and million $XX of court clear,

X So that clearly headwind. is bucket of

bucket couple of is the as shown the is and market on of waterfall areas. second The into market headwind, a we've bucketed

rolling loss, and that from mix things a a loss, our Midwest number. last pruning done pool the profit we've we like standpoint headwind what the of And number two, kind big in some volume of pretty one, that Number year. that's retail and share are didn't pruning portfolio, forward

to not more. of where that that we see we've our to, is counteract to So we $XXX the transformation and based going driving we're million to to headwinds committed we be do in on this, the feel year, so this expectation need enough

tough So we're we're our cost structural a going actions cleaned we've comes some that back, up to for we the story, this and to rebound sure volume great is our the feel ready the take make and manufacturing and structure when cost still footprint. on

So on this the year. at there's some can to we're that's still looking and Samantha additional understand balancing better what how this. Maybe buckets give help we're that working details you

Samantha Stoddard

[indiscernible] conditions. XXXX there $XX of a of to thanks simply headwind XXXX. comp about to because year-over-year, into to will continue reinstated going market will That in is million million issue be be that $XX variable

$XX about $XX So than factor you it modeling puts in, the think this all net takes. being when year and higher million, million XXXX, all of

Operator

comes Hughes Keith of The next question from Truist.

Keith Hughes

this can down so costs where you are on raise your You're going just million of There's pressure flat mixed get think would whatever talking mix like about traditional get prices what price? It headwind. price -- that? $XX you inflation seems much get just with in industry -- you to areas you do

William Christensen

the year, that's run that mix we I Keith. mix. Well, of before, down said we're we do kind at on a predictable Yes. was that, last believe the rate as occurring feel

So don't of amount to going be a changes. there's we significant think

look construction kind On the on around expectations builder when our at volume of and the on for we the mix, the side, R&R stack retail then side. and new on

need what just we but extremely is pass partners still our it working we're through. to can doing inflation there inflation, there to make we sure in hard to the So is system, is our and control then this that if with us costs,

Samantha Stoddard

there this think thing year. like is the is about other already of This the market. last has from some price already -- Keith, And to has the in been in

already but in of is XXXX, that So carryover is some this feeling this market. impact in you're the

Keith Hughes

is. you that customer that? Okay. of loss can And us in you And months revenue over of give loss the XX any the idea anniversary when kind what will big Midwest,

William Christensen

Yes.

of to So end around kind be September QX. September it's going QX-ish of

Keith Hughes

that And final there million on this was something back? question, X corporate compensation Is to previous the cost normal coming headwind. just [indiscernible] comment expense million Or the of $XX $XX

Samantha Stoddard

of out normal coming essentially variable of It's that. It's compensation nothing out other back than Yes. essential XXXX. the ordinary in

Operator

I'll for This closing concludes call remarks. turn question-and-answer the the Armstrong James to session.

James Armstrong

joining our today. you Thank for call

will any our have reach great This them. have day. questions, follow-up you If ends I out. answer a call, please and happy please to

Operator

call. for joining. conference Thank today's concludes This you

may You now disconnect.

JELD-WEN Holding (JELD) 18 Feb 252024 Q4 Earnings call transcript