American Woodmark's Profit Cut In Half As MasterBrand Merger Nears

American Woodmark Corp. AMWD shares plunged after it reported fiscal first-quarter 2026 net sales of $403.0 million, down 12.2% from the prior year and below analyst estimates of $413.28 million.

Net income fell 50.7% to $14.6 million, or $1.00 per diluted share, compared with $29.6 million, or $1.89 per diluted share, a year earlier. Adjusted EPS was $1.01, missing the $1.24 consensus estimate and down from $2.14 in the prior year.

Adjusted EBITDA decreased 32.8% to $42.2 million, representing 10.5% of net sales versus 13.7% last year.

Also Read: A Look at American Woodmark’s Upcoming Earnings Report

The company said results reflected lower sales volumes, an unfavorable mix shift toward value-based offerings, increased product input costs, including tariffs, $2.0 million in ERP support costs, $2.8 million in merger-related expenses, $1.8 million in higher interest expense, and $0.8 million in restructuring charges.

These were partially offset by an $8.9 million favorable mark-to-market adjustment on foreign exchange forward contracts and controlled discretionary spending.

Cash provided by operating activities was $33.1 million, and free cash flow totaled $24.9 million. During the quarter, the company repurchased 209,757 shares for $12.4 million.

As of July 31, 2025, American Woodmark had $54.9 million in cash, $315.2 million in additional availability under its revolving credit facility, $196.3 million in term loan debt, and $173.4 million drawn on its revolving facility, resulting in a net leverage ratio of 1.69.

“Our teams are executing well despite the lower volumes and delivered Adjusted EBITDA margins of 10.5% for the first fiscal quarter,” said Scott Culbreth, president and CEO. “Demand trends are expected to remain challenging in both markets, but I am confident in our team’s ability to navigate the current macroeconomic environment.”

In light of its proposed merger with MasterBrand, Inc., announced Aug. 6, 2025, the company said it will not hold a conference call to discuss results and will not provide or update financial guidance.

Price Action: AMWD shares were trading lower by 1.55% at $65.99 premarket.

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