American Woodmark (AMWD) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 FY2025 were $397.6M, down 5.8% year-over-year, with nine-month sales at $1.31B, down 6.1%, reflecting continued softness in remodel and new construction markets.

• Net income for Q3 FY2025 was $16.6M (4.2% of sales), compared to $21.2M (5.0%) in Q3 FY2024; nine-month net income was $73.9M (5.6% of sales), down from $89.4M (6.4%).

• Adjusted EBITDA was $38.4M (9.7% margin) for Q3 FY2025, with operational improvements and SG&A savings offset by lower sales and higher input costs.

• The company completed the conversion of its distribution business to the 1951 Cabinetry brand and announced the closure of the Orange, VA plant, consolidating production for efficiency.

Financial highlights

• New construction net sales declined 10.4%, while repair and remodel net sales fell 2.3% year-over-year in Q3.

• Gross profit margin decreased to 15.0% in Q3 FY2025 from 19.2% last year, mainly due to lower volumes and higher input costs.

• Adjusted Net Income was $15.9M ($1.05 per diluted share) in Q3, down from $25.1M ($1.56 per share) last year.

• Free cash flow for the fiscal year to date was $31.5M, down from $131.7M last year, primarily due to higher inventory, digital transformation costs, and lower accrued compensation.

• Cash and cash equivalents at January 31, 2025 were $43.5M, a $43.9M decrease from April 30, 2024, mainly due to $69.1M in stock repurchases and $30.8M in capital expenditures.

Outlook and guidance

• Full-year net sales are expected to decline mid-single digits, with Adjusted EBITDA projected at $210M–$215M.

• The outlook assumes continued challenging demand trends, with no near-term interest rate relief and persistent inflation risk.

• Any new tariffs beyond those currently in place are not included in the outlook.

• Company plans continued investment in digital transformation and automation, with share repurchases prioritized over debt repayment.