American Woodmark (AMWD) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 were $403.0M, down 12.2% year-over-year, with net income of $14.6M, a 50.7% decrease from the prior year period, representing 3.6% of net sales.

• Adjusted EBITDA was $42.2M (10.5% of net sales), down 32.8% year-over-year.

• Gross profit margin declined to 16.7% from 20.2% year-over-year, impacted by lower sales volume and unfavorable product mix.

• Market conditions in new construction and remodel segments remained weaker than expected.

• A definitive merger agreement was signed with MasterBrand, Inc., with the merger expected to close in early 2026.

Financial highlights

• Net sales: $403.0M (down 12.2% year-over-year).

• Net income: $14.6M (down from $29.6M year-over-year).

• Adjusted EBITDA: $42.2M (10.5% of net sales), down from $62.9M (13.7%) year-over-year.

• Adjusted EPS per diluted share: $1.01, down from $2.14 year-over-year.

• Free cash flow for the quarter was $24.9M, with $33.1M in cash provided by operating activities.

Outlook and guidance

• No financial guidance provided due to the pending merger.

• Management expects continued softness in repair/remodel and new construction markets, with macroeconomic concerns including weak consumer sentiment and persistent inflation risk.

• Continued investment in digital transformation and automation planned.