American Woodmark (AMWD) Q4 2025 earnings summary

Executive summary

• Q4 FY25 net sales declined 11.7% year-over-year to $400.4 million, with all channels reporting low double-digit declines due to weaker demand in new construction and remodel markets, impacted by tariff uncertainty and declining consumer confidence.

• Full-year 2025 net sales decreased 7.5% to $1.71 billion; net income fell 14.4% to $99.5 million.

• Adjusted EBITDA for Q4 was $47.1 million (11.8% margin); full-year adjusted EBITDA was $208.6 million (12.2% margin), both down year-over-year.

• Operational improvements, product innovation, and digital transformation initiatives, including facility expansions and automation investments, partially offset cost pressures.

• Net income for Q4 was $25.6 million, down 4.6% year-over-year.

Financial highlights

• Q4 gross profit margin decreased 160 bps to 17% due to fixed cost de-leverage and higher input costs, partially offset by operational improvements.

• Q4 GAAP EPS was $1.71; Adjusted EPS $1.61; Adjusted net income for Q4 was $24 million, down from $28.2 million last year.

• Free cash flow for FY25 was $65.7 million, down from $138.5 million last year, mainly due to lower net income and higher inventory; cash from operations was $108.4 million.

• Repurchased 1.17 million shares for $96.7 million in FY25; $117.8 million remains authorized for buybacks.

• Net leverage at Q4 end was 1.56x adjusted EBITDA, up from 1.14x last year; net debt at year-end was $325.3 million.

Outlook and guidance

• FY26 net sales expected to range from low single-digit declines to low single-digit increases, with sales growth anticipated in the second half.

• Adjusted EBITDA guidance for FY26 is $175–$200 million, factoring in $20 million in tariff costs and modeled recovery scenarios.

• Guidance assumes continued macroeconomic headwinds, commodity inflation, and labor and transportation cost increases, partially offset by productivity and automation.

• Net sales declines anticipated in the first half of FY26 due to tariff-related uncertainty.