American Woodmark Corporation (NASDAQ: AMWD) Q4 2025 Earnings Call | 5/29/2025

American Woodmark Corporation’s Q4 FY2025 earnings call reported net sales of $400.4 million, down 11.7% year-over-year, due to weaker demand in new construction and remodel markets amid tariff uncertainty and declining consumer confidence. All channels saw low double-digit declines, though stock kitchen products in home centers performed better with low single-digit negative comps, and the pro business had positive comps. New construction sales fell 13.4%, with growth in Northeast and Southeast offset by declines in Florida, Texas, and Southwest. Adjusted EBITDA was $47.1 million (11.8% margin), down from $54.7 million (12.1% margin). Gross margin dropped to 17% from 18.6%, driven by fixed cost deleverage, higher depreciation, and input costs, partially offset by operational improvements. Operating expenses fell to 8.9% of sales from 10.1%, due to lower incentives and spending. Adjusted EPS was $1.61, down from $1.78. For FY2025, net sales were $1.7 billion, down 7.5%, with adjusted EBITDA at $208.6 million (12.2% margin) vs. $252.8 million (13.7% margin). Free cash flow was $65.7 million, down from $138.5 million, and net leverage rose to 1.56x from 1.14x. The company repurchased 1.17 million shares for $96.7 million. FY2026 outlook projects net sales from low single-digit declines to low single-digit increases, with adjusted EBITDA of $175–$200 million, assuming $20 million in tariff costs. The first half is expected to be weaker, with recovery in the second half. Strategic pillars include growth (new products, facility expansions), digital transformation (ERP cloud, cybersecurity), and platform design (facility optimization, automation). Key achievements included 30% of made-to-order sales from recent products, closure of the Orange, Virginia facility, and automation investments yielding $5–$6 million in annual savings. Challenges include commodity inflation, labor, transportation costs, and a lag in pricing recovery, but the company remains focused on operational efficiency and cost control.