American Woodmark (AMWD) investor relations material

Executive summary

• Net sales for Q2 FY2026 were $394.6M, down 12.8% year-over-year; six-month sales were $797.7M, down 12.5% year-over-year.

• Net income for Q2 FY2026 was $6.1M (1.5% margin), compared to $27.7M (6.1% margin) in the prior year; six-month net income was $20.7M (2.6% margin), down from $57.3M (6.3% margin).

• Adjusted EBITDA for Q2 FY2026 was $39.6M (10.0% margin), down from $60.2M (13.3% margin) year-over-year; six-month adjusted EBITDA was $81.9M (10.3% margin), down 33.5%.

• A merger with MasterBrand was announced in August 2025, with completion expected in early 2026, pending regulatory approval.

• Demand remains challenged in both new construction and remodel markets; cost reduction and mitigation actions are underway.

Financial highlights

• Gross profit margin for Q2 FY2026 was 15.2%, down 370 bps year-over-year; six-month margin was 16.0%, down 360 bps.

• Builder sales declined 19.7% in Q2 and 19.2% for the six months; remodeling sales fell 7.0% in Q2 and 6.9% for the six months.

• General and administrative expenses rose 20.4% in Q2, mainly due to $6.5M in merger-related costs.

• Restructuring charges were $1.5M in Q2 and $2.3M for the six months, related to workforce reductions and facility closures.

• Adjusted EPS for Q2 FY2026 was $0.76, down from $1.77 year-over-year.

Outlook and guidance

• The company expects continued softness in both repair/remodel and new construction markets, with macroeconomic headwinds including weak consumer sentiment, tariffs, inflation, and limited interest rate relief.

• No updated financial guidance is being provided due to the pending merger.

• Actions to mitigate tariffs and lower demand include cost reductions, supplier negotiations, alternative sourcing, and price increases.