American Woodmark (AMWD) Q3 2025 earnings summary

Executive summary

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

• Net income for Q3 FY2025 was $16.6 million (4.2% margin), down from $21.2 million (5.0%) last year; nine-month net income was $73.9 million (5.6%), down from $89.4 million (6.4%).

• Adjusted EBITDA for Q3 FY2025 was $38.4 million (9.7% margin), down from $50.6 million (12.0%) last year; nine-month Adjusted EBITDA was $161.5 million (12.3%), down from $198.1 million (14.2%).

• Margin pressures stemmed from lower sales volumes and higher material and labor costs.

• Board approved closure of the Orange, VA manufacturing plant, with $6.0–$8.5 million in expected pre-tax restructuring costs, mostly recognized in FY2025.

Financial highlights

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

• Adjusted EPS for Q3 FY2025 was $1.05, compared to $1.56 last year; GAAP EPS was $1.09.

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

• Cash and cash equivalents at January 31, 2025 were $43.5 million, with $314.2 million available under the revolving credit facility.

• Total long-term debt was $375.3 million at January 31, 2025; net leverage ratio was 1.53x trailing 12-month adjusted EBITDA.

Outlook and guidance

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

• Demand trends remain challenging, with macroeconomic risks including weak consumer sentiment, inflation, and persistent high interest rates.

• No tariff impacts beyond current China tariffs are included in the outlook; potential new tariffs, especially related to Mexico, could prompt pricing actions.