American Woodmark (AMWD) Q3 2026 earnings summary

Executive summary

• Net sales declined 18.4% year-over-year to $324.3 million for the quarter and 14.3% to $1.12 billion for the nine months ended January 31, 2026, reflecting ongoing weakness in both new construction and remodeling markets.

• Reported a net loss of $28.7 million for the quarter and $8.0 million for the nine months, compared to net income of $16.6 million and $73.9 million in the prior-year periods, driven by lower sales, goodwill impairment, and merger-related costs.

• Goodwill impairment charge of $30.1 million recognized in the quarter due to sustained stock price decline and weaker operating performance.

• Announced a pending merger with MasterBrand, Inc., with all shareholder approvals obtained and regulatory review ongoing; expected to broaden product portfolio and expand channels.

Financial highlights

• Gross profit margin fell to 11.6% from 15.0% year-over-year for the quarter, and to 14.7% from 18.2% for the nine months, due to lower volumes, unfavorable mix, and higher input costs.

• Adjusted EBITDA was $21.6 million (6.7% margin) for the quarter and $103.5 million (9.2% margin) for the nine months, down from $38.4 million (9.7%) and $161.5 million (12.3%) in the prior-year periods.

• Adjusted EPS per diluted share was $0.45 for the quarter and $2.21 for the nine months, compared to $1.05 and $5.28 in the prior-year periods.

• Free cash flow for the first nine months was $2.1 million.

• Cash and cash equivalents totaled $28.3 million at quarter-end, with $315.7 million available under the revolving credit facility.

Outlook and guidance

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

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

• Focus remains on mitigating tariffs, structural cost reductions, supplier negotiations, alternative sourcing, and price increases.