8/6/2025

speaker
Operator
Operator

Thank you. I would now like to turn the call over to James, VP of Investor Relations. Please go ahead.

speaker
James Armstrong
VP of Investor Relations

Thank you, and good morning. We issued our second quarter 2025 earnings release last night and posted a slide presentation to the Investor Relations portion of our website, which can be found at investors.jeldwin.com. We will be referencing this presentation during our call. Today, I'm joined by Bill Christensen, Chief Executive Officer, and Samantha Stoddard, Chief Financial Officer. Before I turn it over to Bill, I would like to remind everyone that during this call, we will make certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and certainties, including those set forth in our earnings release and provided in our forms 10-K and 10-Q filed with the SEC. GELDWIN does not undertake any duty to update forward-looking statements, including the guidance we are providing with respect to certain expectations for future results. Additionally, during today's call, we will discuss non-GAAP measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to their most directly comparable financial measures calculated under GAAP can be found in our earnings release and in the appendix to our earnings presentation. With that, I would like to now turn the call over to Bill.

speaker
Bill Christensen
Chief Executive Officer

Thank you, James, and good morning, everyone. Before we begin, I want to start by thanking our entire team for their continued commitment and focus. We know the environment remains difficult, However, the dedication across the organization continues to impress me. I'm especially proud to report that our safety performance continues to improve in both regions, and that is something every employee played a key role in driving. The second quarter was about disciplined execution and staying focused on what we can control. We delivered results at the high end of our internal expectations. That reflects cost discipline, and the ability of our teams to effectively adapt to a complex and shifting landscape. While volumes remained soft, they came in largely as expected, and we acted with urgency to better balance our cost base. Operationally, we made important progress on several fronts. We continue to see tangible benefits from our transformation and cost actions, particularly in fixed cost reductions. At the same time, we continue to make foundational progress across our North America operating network. We have replaced a number of key roles combined with clear actions, problem solving, and accountability at the site level. Our key priority remains improving service levels across our network. We are also reinstating full year guidance. This is not because the environment has become more predictable, but due to the fact that we are now far enough into the year to have a higher degree of visibility. Our guidance reflects expectations based on what we know today, including the continued transformation progress, the August 1st tariff reality, and our sustained cost focus. While we do not know when the macro environment will get better, we do know that it will. Housing remains a fundamental need and homeowners continue to invest in improving the spaces where they live. We continue taking the right actions to position the company for long-term success and creating significant opportunity when the market recovers. Turning now to slide four and our second quarter highlights. Demand remains soft in the quarter. However, we began to bank the benefits of actions we have taken. Volume pressures persisted across all of our product categories and end markets, and we are also beginning to see selective price pressures. However, adjusted EBITDA was in line with the high end of our internal expectations as we took required cost actions in the continuing soft demand environment. During the quarter, we took further footprint actions to improve our operations. We transitioned our facility in Coppell, Texas into a raw materials warehouse which reduced overall costs and enables us to streamline our internal supply chain. We completed the closure and prep for repurposing of our windows facility in Grinnell, Iowa, including equipment transfers, building clean out, and inventory sell down. In addition, we announced the planned closure of our facility in Chiloquin, Oregon. We still remain cautious for the remainder of the year as interest rates remain elevated and affordability challenges continue, but are reinstating full-year guidance, which I will discuss later in the call. However, as Samantha will detail shortly, even with recent short-term actions, we have faced ongoing productivity headwinds from significantly lower demand levels. While we continue to take action to align our operations with current order rates, while actively pursuing additional opportunities to strengthen our partnerships with key customers in support of focused growth initiatives. With that, I will hand it over to Samantha to review our financial results in greater detail.

Disclaimer

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Investor presentation