JELD-WEN Holding, Inc.
For the period ended Jun 27, 2026. Filed Aug 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Aug 4, 2026
JELD$1.02+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-05-05.
0001674335-26-000069
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-08-04.
0001674335-26-000123
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 100 current paragraphs.
41 unchanged; 35 reworded; 22 added; 8 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 6 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
SG&A– SG&A decreased $10.2 million, or 6.8%, to $138.3 million in the three months ended June 27, 2026, from $148.5 million in the three months ended June 28, 2025. SG&A as a percentage of net revenues decreased to 16.9% in the three months ended June 27, 2026, from 18.0% in the three months ended June 28, 2025. The decrease in SG&A was primarily due to lower salaries and benefits driven by a reduction in headcount, decreased professional fees, including non-recurring transformation journey expenses and lower legal costs, partially offset by intangible asset impairment charges during the period. Refer to Note 7 -Intangible Assets, Netto our unaudited condensed consolidated financial statements included in this Form 10-Q for more information regarding these impairment charges.
Current report
Income Tax Expense (Benefit)– Income tax expense was $4.6 million in the three months ended June 27, 2026, compared to income tax benefit of $3.5 million in the three months ended June 28, 2025. The effective tax rate in the three months ended June 27, 2026, was (17.2)% and was driven by foreign earnings taxed at higher rates, losses for jurisdictions for which there is a full valuation allowance in the quarter and discrete tax expense of $0.5 million due to changes in UTPs from ongoing audits and return-to-provision adjustments. The effective tax rate for the three months ended June 28, 2025, was 13.6% and was driven primarily by losses for jurisdictions for which there is a full valuation allowance in the quarter and $0.6 million of discrete tax expense attributable to share-based compensation. Refer to Note 11 - Income Taxes to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current report
Gain on Sale of Discontinued Operations, Net of Tax– The $0.8 million gain on sale of discontinued operations, net of tax in the three months ended June 28, 2025, is related to the July 2, 2023, sale of JW Australia resulting from the release of the reserve associated with purchases under a supply agreement.
Current report
Comparison of the Six Months Ended June 27, 2026 to the Six Months Ended June 28, 2025
Current report
Consolidated Results
Current report
Net Revenues– Net revenues decreased $59.8 million, or 3.7%, to $1,540.0 million in the six months ended June 27, 2026, from $1,599.7 million in the six months ended June 28, 2025. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 6%. This was partially offset by a favorable foreign exchange impact of 2%. The decline in Core Revenues was driven by a 6% decrease in volume/mix.
Current report
Gross Margin– Gross margin decreased $25.5 million, or 10.0%, to $230.0 million in the six months ended June 27, 2026, from $255.5 million in the six months ended June 28, 2025. Gross margin as a percentage of net revenues was 14.9% in the six months ended June 27, 2026, compared to 16.0% in the six months ended June 28, 2025. The decrease in gross margin percentage was primarily due to negative price/cost and volume/mix, partially offset by favorable productivity.
Current report
Interest Expense, Net– Interest expense, net, increased $4.2 million, or 13.3% to $35.6 million in the six months ended June 27, 2026, from $31.4 million in the six months ended June 28, 2025. The increase was primarily due to lower interest income resulting from lower invested cash balances and borrowings on the ABL revolving facility, partially offset by lower interest on the Term Loan Facility due to a lower interest rate in the current period.
Current report
Other Expense (Income), Net– Other expense was $4.5 million in the six months ended June 27, 2026, compared to other income of $15.2 million in the six months ended June 28, 2025. Refer to Note 17 - Other Expense (Income), Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current report
Gain on Sale of Discontinued Operations, Net of Tax– The $0.8 million gain on sale of discontinued operations, net of tax in the six months ended June 28, 2025, is related to the July 2, 2023, sale of JW Australia resulting from the release of the reserve associated with purchases under a supply agreement.
Current report
Non-GAAP Reconciliations and Segment Results
Current report
(2)North America other special items include impairment charges of $2.7 million related to windows manufacturing technology, and $1.8 million related to logistics technology, each of which was determined to have no future use, and $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture.
Current report
(9)Other special items not core to ongoing business activity include: (i) for the three and six months ended June 27, 2026, a $2.7 million impairment charge in our North America reporting unit related to windows manufacturing technology and a $1.8 million impairment charge related to logistics technology, each of which was determined to have no future use, and $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture; and (ii) for the six months ended June 27, 2026, a $3.1 million impairment charge recognized in connection with the Company’s North America equipment capacity optimization review, $2.0 million related to post-production expenses for closed facilities in North America and $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture.
Current report
Net revenues in North America decreased $27.2 million, or 4.9%, to $528.5 million in the three months ended June 27, 2026, from $555.7 million in the three months ended June 28, 2025. The decrease was primarily due to a decrease in Core Revenues of 5%. The decrease in Core revenues was driven by a 5% decline in volume/mix due to weakened market demand.
Current report
Adjusted EBITDA from continuing operations in North America increased $5.9 million, or 17.1%, to $40.7 million in the three months ended June 27, 2026, from $34.7 million in the three months ended June 28, 2025. The increase was primarily due to improved productivity and lower SG&A, partially offset by unfavorable price/cost. The decrease in SG&A was primarily due to decreased salaries and benefits driven by a reduction in headcount, lower legal costs, lower advertising and promotion expenses, and a reduction in R&D expenses.
Current report
Adjusted EBITDA from continuing operations in Europe decreased $3.8 million, or 22.6%, to $13.2 million in the three months ended June 27, 2026, from $17.0 million in the three months ended June 28, 2025. The decrease was primarily due to higher salaries and benefits and unfavorable price/cost, partially offset by improved productivity.
Current report
Corporate and unallocated costs decreased by $1.2 million, or 9.2%, to $11.6 million in the three months ended June 27, 2026, from $12.8 million in the three months ended June 28, 2025. The decrease in cost was primarily due to decreased salaries and benefits driven by a reduction in headcount, partially offset by higher insurance expense.
Current report
Comparison of the Six Months Ended June 27, 2026 to the Six Months Ended June 28, 2025
Current report
Europe
Current report
Net revenues in Europe increased $45.2 million, or 8.8%, to $558.7 million in the six months ended June 27, 2026, from $513.5 million in the six months ended June 28, 2025. The increase was primarily due to a favorable foreign exchange impact of 7% and an increase in Core Revenues of 2%. The increase in Core Revenues was primarily driven by a 2% benefit from price realization.
Current report
Adjusted EBITDA from continuing operations in Europe decreased $7.4 million, or 26.8%, to $20.3 million in the six months ended June 27, 2026, from $27.7 million in the six months ended June 28, 2025. The decrease was primarily due to higher salaries and benefits, unfavorable volume/mix, and negative price/cost, partially offset by favorable productivity.
Current report
Corporate and unallocated costs
Removed paragraphs (8)
Previous report
Recent Developments
Previous report
Tariff Refunds
Previous report
Following recent legal and administrative developments invalidating certain tariffs imposed under the International Emergency Economic Powers Act, U.S. Customs and Border Protection has communicated an implementation process for potential tariff refunds. The Company may be entitled to a refund for tariffs previously paid. However, the timing and ultimate amount of any refund remains subject to legal proceedings, administrative action and other uncertainties, including evolving interpretations and the implementation of new processes. Furthermore, any potential refunds or recoveries may be offset by refunds due to customers for payments made in connection with these tariffs. Accordingly, no amounts related to tariff refunds have been recognized in the accompanying unaudited condensed consolidated financial statements. If received, refunds are expected to be made over multiple payments and could affect the Company’s results of operations and cash flows in future periods.
Previous report
(1)Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed below.
Previous report
(1)Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed below.
Previous report
(9)Other special items not core to ongoing business activity include in the three months ended March 28, 2026, an impairment charge of $3.1 million in our North America reporting unit as a result of reviews performed in connection with our North America equipment capacity optimization. Refer to Note 5 -Property and Equipment, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous report
North America
Previous report
Adjusted EBITDA in Europe decreased $3.6 million, or 33.6%, to $7.1 million in the three months ended March 28, 2026, from $10.7 million in the three months ended March 29, 2025. The decrease was primarily due to unfavorable volume/mix, partially offset by favorable productivity.
Reworded paragraphs (35)
Previous wording
This MD&A is a supplement to our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q and is provided to enhance your understanding of our results of operations and financial condition. Our discussion of the results of operations is presented in millions throughout MD&A and due to rounding may not sum or calculate precisely to the totals and percentages provided in the tables. Our MD&A is organized as follows:
Current wording
This MD&A is a supplement to our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q and is provided to enhance your understanding of our results of operations and financial condition. Amounts discussed in MD&A are presented in millions and, due to rounding, may not sum or calculate precisely to the totals and percentages provided in the tables. Our MD&A is organized as follows:
Previous wording
•Results of Operations. This section provides our analysis and outlook for the significant line items on our unaudited condensed consolidated statements of operations, as well as highlights key events or changes since the reporting period that may affect our financial condition, results, or future outlook.
Current wording
•Results of Operations. This section provides our analysis of the significant line items on our unaudited condensed consolidated statements of operations, as well as key events or changes since the prior reporting period that may affect our financial condition, results of operations, or future outlook.
Previous wording
•Segment Results and Non-GAAP Reconciliations. This section provides other information that we deem meaningful to an understanding of our results on both a consolidated basis and a reportable segment basis. It also includes non-GAAP financial measures used by management to assess performance and make decisions regarding the allocation of resources, along with reconciliations to the most directly comparable GAAP measures.
Current wording
•Segment Results and Non-GAAP Reconciliations. This section provides information that we deem meaningful to an understanding of our results on both a consolidated basis and a reportable segment basis. It also includes non-GAAP financial measures used by management to assess performance and make decisions regarding the allocation of resources, along with reconciliations to the most directly comparable GAAP measures.
Previous wording
•Critical Accounting Policies and Estimates. This section discusses the accounting policies that we consider important to the evaluation and reporting of our financial condition and results of operations, and whose application requires significant judgments or a complex estimation process.
Current wording
•Critical Accounting Policies and Estimates. This section discusses the accounting policies that we consider important to the evaluation and reporting of our financial condition and results of operations, and whose application requires significant judgments or complex estimates.
Previous wording
Net Revenues– Net revenues decreased $53.9 million, or 6.9%, to $722.1 million in the three months ended March 28, 2026, from $776.0 million in the three months ended March 29, 2025. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 10% and a decrease in net revenues from the court-ordered divestiture of Towanda of 1%. These were partially offset by a favorable foreign exchange impact of 4%. The decline in Core Revenues was driven by a 10% decrease in volume/mix.
Current wording
Net Revenues– Net revenues decreased $5.9 million, or 0.7%, to $817.8 million in the three months ended June 27, 2026, from $823.7 million in the three months ended June 28, 2025. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 2%. This was partially offset by a favorable foreign exchange impact of 1%. The decline in Core Revenues was driven by a 3% decrease in volume/mix, partially offset by a 1% benefit from price realization.
Previous wording
Gross Margin– Gross margin decreased $19.4 million, or 17.3%, to $92.7 million in the three months ended March 28, 2026, from $112.1 million in the three months ended March 29, 2025. Gross margin as a percentage of net revenues was 12.8% in the three months ended March 28, 2026, compared to 14.4% in the three months ended March 29, 2025. The decrease in gross margin percentage was primarily due to negative price/cost and the decremental impact of volume/mix, partially offset by favorable productivity.
Current wording
Gross Margin– Gross margin decreased $6.1 million, or 4.3%, to $137.3 million in the three months ended June 27, 2026, from $143.4 million in the three months ended June 28, 2025. Gross margin as a percentage of net revenues was 16.8% in the three months ended June 27, 2026, compared to 17.4% in the three months ended June 28, 2025. The decrease in gross margin percentage was primarily due to negative price/cost and volume/mix, partially offset by favorable productivity.
Previous wording
Restructuring and Asset-Related Charges, Net– Restructuring and asset-related charges, net decreased $12.6 million, or 86.4% to $2.0 million in the three months ended March 28, 2026, from $14.5 million in the three months ended March 29, 2025. The decrease in restructuring and asset-related charges, net was primarily due to a decrease in charges incurred to close certain manufacturing facilities in our North America and Europe segments and to transform the operating structure of our Europe segment. Refer to Note 16 - Restructuring and Asset-Related Charges, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
Restructuring and Asset-Related Charges, Net– Restructuring and asset-related charges, net decreased $4.8 million, or 53.9% to $4.1 million in the three months ended June 27, 2026, from $8.8 million in the three months ended June 28, 2025. The decrease in restructuring and asset-related charges, net was primarily due to a decrease in charges incurred to close certain manufacturing facilities in our North America and Europe segments and to transform the operating structure of our Europe segment. Refer to Note 16 - Restructuring and Asset-Related Charges, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
Interest Expense, Net– Interest expense, net, increased $2.3 million, or 15.3% to $17.2 million in the three months ended March 28, 2026, from $14.9 million in the three months ended March 29, 2025. The increase was primarily due to lower interest income resulting from lower invested cash balances.
Current wording
Interest Expense, Net– Interest expense, net, increased $1.9 million, or 11.4%, to $18.4 million in the three months ended June 27, 2026, from $16.5 million in the three months ended June 28, 2025. The increase in interest expense, net was primarily due to lower interest income resulting from lower invested cash balances and borrowings on the ABL revolving facility.
Previous wording
Other Expense (Income)– Other expense was $1.0 million in the three months ended March 28, 2026, compared to other income of $10.6 million in the three months ended March 29, 2025. Refer to Note 17 - Other Expense (Income) to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
Other Expense (Income), Net– Other expense was $3.4 million in the three months ended June 27, 2026, compared to other income of $4.6 million in the three months ended June 28, 2025. Refer to Note 17 - Other Expense (Income), Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
SG&A– SG&A increased $1.2 million, or 0.8%, to $146.0 million in the three months ended March 28, 2026, from $144.8 million in the three months ended March 29, 2025. SG&A as a percentage of net revenues was 20.2% in the three months ended March 28, 2026, compared to 18.7% in three months ended March 29, 2025. The increase in SG&A was primarily due to a legal settlement, as discussed in Note 20 -Commitments and Contingencies, partially offset by lower salaries and benefits driven by a reduction in headcount.
Current wording
SG&A– SG&A decreased $9.0 million, or 3.1%, to $284.3 million in the six months ended June 27, 2026, from $293.2 million in the six months ended June 28, 2025. SG&A as a percentage of net revenues was 18.5% in the six months ended June 27, 2026, compared to 18.3% in the six months ended June 28, 2025. The decrease in SG&A was primarily due to lower salaries and benefits driven by a reduction in headcount, decreased professional fees, including non-recurring transformation journey expenses, and lower insurance expense, partially offset by intangible asset impairment charges and a legal settlement. Refer to Note 7 -Intangible Assets, Net, and Note 20 -Commitments and Contingencies to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information regarding the intangible asset impairment charges and legal settlement, respectively.
Previous wording
Goodwill Impairment– Goodwill impairment charges of $137.7 million in the three months ended March 29, 2025, related to goodwill impairment charges in our North America reporting unit. Refer to Note 6 –Goodwill to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
Goodwill Impairment– Goodwill impairment charges of $137.7 million in the six months ended June 28, 2025, were related to goodwill impairment charges in our North America reporting unit. Refer to Note 6 –Goodwill to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
Loss on Extinguishment and Refinancing of Debt– Loss on extinguishment and refinancing of debt was $0.2 million in the three months ended March 29, 2025. Refer to Note 10 -Long-Term Debt to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
Loss on Extinguishment and Refinancing of Debt– Loss on extinguishment and refinancing of debt was $0.2 million in the six months ended June 28, 2025. Refer to Note 10 -Long-Term Debt to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
Income Tax Expense– Income tax expense was $3.4 million for the three months ended March 28, 2026, compared to $0.6 million for the three months ended March 29, 2025. The effective tax rate for the three months ended March 28, 2026, was (4.6)%. The effective tax rate for the three months ended March 28, 2026, was driven primarily by foreign earnings being taxed at higher rates and discrete tax expense of $0.5 million due to changes in UTPs from ongoing audits. The effective tax rate for the three months ended March 29, 2025, was (0.3)%. The effective tax rate for the three months ended March 29, 2025, was driven primarily by discrete items consisting of a $14.2 million increase to valuation allowances on foreign and state NOL and credit carryforwards, $9.8 million of tax benefit attributable to goodwill impairment, and $8.5 million of tax expense attributable to the court-ordered divestiture of Towanda.
Current wording
Income Tax Expense (Benefit)– Income tax expense was $8.0 million in the six months ended June 27, 2026, compared to income tax benefit of $2.9 million in the six months ended June 28, 2025. The effective tax rate in the six months ended June 27, 2026, was (8.0)%. The effective tax rate for the six months ended June 27, 2026, was driven by foreign earnings being taxed at higher rates, losses for jurisdictions for which there is a full valuation allowance in the period and discrete tax expense of $1.0 million due to changes in UTPs from ongoing audits and return-to-provision adjustments. The effective tax rate for the six months ended June 28, 2025, was 1.3%. The effective tax rate for the six months ended June 28, 2025, was driven primarily by the $14.2 million increase to valuation allowances on U.S. tax attributes, $8.5 million of tax expense attributable to the court-ordered divestiture of Towanda, losses for jurisdictions for which there is a full valuation allowance, offset by $9.8 million of tax benefit attributable to goodwill impairment. Refer to Note 11 - Income Taxes to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
We report our segment information in the same way management internally organizes the business in assessing performance and making decisions regarding the allocation of resources in accordance with ASC 280-10 -Segment Reporting. We define Adjusted EBITDA as income (loss), net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense (income), net; and certain special items consisting of non-recurring net legal and professional expenses and settlements; goodwill impairment; restructuring and asset-related charges, net; M&A related costs, net; net gain on sale of business, property and equipment; loss on extinguishment and refinancing of debt; share-based compensation expense; and other special items. We use Adjusted EBITDA because we believe this measure assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. This non-GAAP financial measure should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
Current wording
We report our segment information in the same way management internally organizes the business in assessing performance and making decisions regarding the allocation of resources in accordance with ASC 280-10 -Segment Reporting. We define Adjusted EBITDA from continuing operations as income (loss) from continuing operations, net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense (income), net; and certain special items consisting of non-recurring net legal and professional expenses and settlements; goodwill impairment; restructuring and asset-related charges, net; M&A related costs, net; net gain on sale of business, property and equipment; loss on extinguishment and refinancing of debt; share-based compensation expense; and other special items. We use Adjusted EBITDA from continuing operations because we believe this measure assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. This non-GAAP financial measure should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
Previous wording
Reconciliations of loss, net of tax to Adjusted EBITDA by segment are as follows:
Current wording
Reconciliations of income (loss) from continuing operations, net of tax to Adjusted EBITDA from continuing operations by segment are as follows:
Previous wording
(2)North America other special items include an impairment charge of $3.1 million as a result of reviews performed in connection with our North America equipment capacity optimization.
Current wording
(2)North America other special items include impairment charges of $3.1 million recognized in connection with the Company’s North America equipment capacity optimization review, $2.7 million related to windows manufacturing technology, and $1.8 million related to logistics technology, each of which was determined to have no future use, as well as $2.0 million related to post-production expenses for closed facilities in North America and $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture.
Previous wording
Reconciliations of loss, net of tax to Adjusted EBITDA on a consolidated basis are as follows:
Current wording
Reconciliations of loss from continuing operations, net of tax to Adjusted EBITDA from continuing operations on a consolidated basis are as follows:
Previous wording
(1)Net legal and professional expenses and settlements include non-recurring transformation journey expenses of $2.6 million, and $11.2 million in the three months ended March 28, 2026 and March 29, 2025, respectively. These expenses primarily relate to project-based consulting fees that directly support the transformation journey that are not expected to recur in the foreseeable future. These projects include the centralization of human resources processes, North America supply chain network optimization strategy, and other projects related to our transformation journey. For the three months ended March 29, 2025, these expenses also include $2.1 million related to the engagement of a transformation consultant for a period spanning from the third quarter of 2023 through April 2025. Additionally, net legal and professional expenses and settlements include $9.4 million and $0.6 million in the three months ended March 28, 2026 and March 29, 2025, respectively, relating to litigation of historic legal matters.
Current wording
(1)Net legal and professional expenses and settlements include non-recurring transformation journey expenses of $1.5 million, and $4.1 million in the three and six months ended June 27, 2026, respectively, and $8.1 million and $19.3 million in the three and six months ended June 28, 2025, respectively. These expenses primarily relate to discrete project-based consulting fees that directly support the Company’s transformation journey and are not expected to represent normal, recurring operating expenses. These projects include the centralization of human resources processes, North America supply chain network optimization strategy, and other projects related to our transformation journey. These expenses also include $0.4 million and $2.5 million for the three and six months ended June 28, 2025, respectively, related to the engagement of a transformation consultant for a period spanning from the third quarter of 2023 through April 2025. Additionally, net legal and professional expenses and settlements include $0.3 million and $9.6 million in the three and six months ended June 27, 2026, respectively, and $(0.6) million and a nominal amount in the three and six months ended June 28, 2025, respectively, relating to litigation of historical legal matters.
Previous wording
(2)Goodwill impairment consists of prior year goodwill impairment charges associated with our North America reporting unit. Refer to Note 6 -Goodwill to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
(2)Goodwill impairment consists of a prior year goodwill impairment charge associated with our North America reporting unit. Refer to Note 6 -Goodwill to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
(4)Product and inventory-related charges related to announced facility closures were detrimental to Adjusted EBITDA. Refer to Note 16 - Restructuring and Asset-Related Charges, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
(4)Product and inventory-related charges represent charges associated with announced facility closures, including product-related cash charges recorded as a reduction of net revenues and inventory and other product-related non-cash charges recorded in cost of sales. These amounts are excluded from Adjusted EBITDA from continuing operations. Refer to Note 16 - Restructuring and Asset-Related Charges, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
(6)Net gain on sale of business, property, and equipment in the three months ended March 29, 2025, relates to the court-ordered divestiture of Towanda.
Current wording
(6)Net gain on sale of business, property, and equipment in the three months ended June 28, 2025, primarily relates to the sale of property and equipment in Marion, North Carolina. Net gain on sale of business, property and equipment in the six months ended June 28, 2025, primarily relates to the court-ordered divestiture of Towanda and the sale of property and equipment in Marion, North Carolina.
Previous wording
(7)Loss on extinguishment and refinancing of debt consists of $0.2 million in the three months ended March 29, 2025, associated with an amendment of our ABL Facility. Refer to Note 10 -Long-Term Debt to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current wording
(7)Loss on extinguishment and refinancing of debt consists of $0.2 million in the six months ended June 28, 2025, associated with an amendment of our ABL Facility. Refer to Note 10 -Long-Term Debt to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Previous wording
(1)Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. Refer to the calculation of Adjusted EBITDA for a discussion of the Special items listed above.
Current wording
(1)Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. Refer to the calculation of Adjusted EBITDA from continuing operations for a discussion of the Special items listed above.
Previous wording
Net revenues in Europe increased $24.0 million, or 9.8%, to $269.4 million in the three months ended March 28, 2026, from $245.4 million in the three months ended March 29, 2025. The increase was primarily due to a favorable foreign exchange impact of 12%, partially offset by a decrease in Core Revenues of 2%. The decrease in Core Revenues was primarily driven by unfavorable volume/mix of 4%, partially offset by a 2% benefit from price realization.
Current wording
Net revenues in Europe increased $21.3 million, or 7.9%, to $289.3 million in the three months ended June 27, 2026, from $268.1 million in the three months ended June 28, 2025. The increase was primarily due to an increase in Core Revenues of 5% and a favorable foreign exchange impact of 3%. The increase in Core Revenues was primarily driven by favorable volume/mix of 3% and a 2% benefit from price realization.
Previous wording
Net revenues in North America decreased $77.8 million, or 14.7%, to $452.7 million in the three months ended March 28, 2026, from $530.6 million in the three months ended March 29, 2025. The decrease was primarily due to a decrease in Core Revenues of 14% and a decrease in net revenues from the court-ordered divestiture of Towanda of 1%. The decrease in Core Revenues was driven by a 13% decline in volume/mix and by a 1% decline in pricing due to weaker market demand.
Current wording
Net revenues in North America decreased $105.0 million, or 9.7%, to $981.2 million in the six months ended June 27, 2026, from $1,086.2 million in the six months ended June 28, 2025. The decrease was primarily due to a decrease in Core Revenues of 9% and a decrease in net revenues from the court-ordered divestiture of Towanda of 1%. The decrease in Core Revenues was driven by a 9% decline in volume/mix due to weakened market demand.
Previous wording
Adjusted EBITDA in North America decreased $11.9 million, or 76.7%, to $3.6 million in the three months ended March 28, 2026, from $15.5 million in the three months ended March 29, 2025. The decrease was primarily due to negative price/cost and unfavorable volume/mix, partially offset by higher productivity and lower SG&A. The decrease in SG&A was primarily driven by decreased salaries and benefits driven by a reduction in headcount, lower advertising and promotion expenses and reduction in R&D expenses.
Current wording
Adjusted EBITDA from continuing operations in North America decreased $6.0 million, or 11.9%, to $44.3 million in the six months ended June 27, 2026, from $50.3 million in the six months ended June 28, 2025. The decrease was primarily due to negative price/cost and unfavorable volume/mix, partially offset by higher productivity and lower SG&A. The decrease in SG&A was primarily driven by decreased salaries and benefits driven by a reduction in headcount, lower advertising and promotion expenses, a reduction in R&D expenses, and lower legal costs.
Previous wording
Corporate and unallocated costs increased by $0.2 million, or 5.6%, to $4.6 million in the three months ended March 28, 2026, from $4.3 million in the three months ended March 29, 2025. The increase in costs was primarily due to a decrease in cash received on a real estate investment, partially offset by lower insurance expense due to favorable claims experience and lower salaries and benefits driven by a reduction in headcount.
Current wording
Corporate and unallocated costs decreased by $0.9 million, or 5.5%, to $16.1 million in the six months ended June 27, 2026, from $17.1 million in the six months ended June 28, 2025. The decrease in costs was primarily due to lower salaries and benefits driven by a reduction in headcount, lower insurance expense and reduction in non-strategic professional fees, partially offset by a decrease in cash received on a real estate investment.
Previous wording
As of March 28, 2026, we had total liquidity (a non-GAAP measure) of $309.9 million, consisting of $50.4 million in unrestricted cash and $259.5 million available for borrowing under the ABL Facility, compared to total liquidity of $484.7 million as of December 31, 2025. The decrease in total liquidity was primarily due to a lower cash balance, net borrowings of $40.0 million, and a seasonally lower ABL borrowing base availability at March 28, 2026, when compared to December 31, 2025.
Current wording
As of June 27, 2026, we had total liquidity (a non-GAAP measure) of $308.7 million, consisting of $57.2 million in unrestricted cash and $251.5 million available for borrowing under the ABL Facility, compared to total liquidity of $484.7 million as of December 31, 2025. The decrease in total liquidity was primarily due to a lower cash balance, net borrowings of $80.0 million, and a lower ABL borrowing base availability at June 27, 2026, when compared to December 31, 2025.
Previous wording
As of March 28, 2026, our cash balances, including $2.0 million of restricted cash, consisted of $13.7 million in cash located in the U.S. and $38.7 million in cash located outside of the U.S. held by our non-U.S. subsidiaries.
Current wording
As of June 27, 2026, our cash balances, including $1.6 million of restricted cash, consisted of $4.6 million in cash located in the U.S. and $54.2 million in cash located outside of the U.S. held by our non-U.S. subsidiaries.
Previous wording
Our total indebtedness as of March 28, 2026, was $1.22 billion of which $19.5 million in short-term debt obligations is due and payable within the next 12 months. We have $400 million of Senior Notes due in December 2027 for which it is unlikely that our cash flows from operations will be sufficient to fully repay. To service our indebtedness, we may be required to undertake various actions including, but not limited to, refinancing all or a portion of our existing long-term debt, pursuing strategic reviews of our assets and businesses, entering into sale-leaseback transactions for selected properties, adjusting our planned level of capital and other expenditures, or other strategies. In addition, in accordance with our credit agreements, dispositions of assets or businesses may require us to use all or a portion of the proceeds of such sales to pay down certain portions of our debt.
Current wording
Our total indebtedness as of June 27, 2026, was $1.25 billion, of which $18.7 million in short-term debt obligations is due and payable within the next 12 months. We have $400 million in Senior Notes due in December 2027 for which it is unlikely that our cash flows from operations will be sufficient to fully repay. To service our indebtedness and address our upcoming maturities, we have engaged advisors and are currently evaluating certain strategies, which may include, but are not limited to, refinancing all or a portion of our existing long-term debt, pursuing strategic reviews of our assets and businesses, entering into sale-leaseback transactions for selected properties, adjusting our planned level of capital and other expenditures, or evaluating other strategies. In addition, in accordance with our credit agreements, dispositions of assets or businesses may require us to use all or a portion of the proceeds of such sales to pay down certain portions of our debt. If the Company is not successful in executing such strategies, this could have a material adverse impact on our access to liquidity, results of operations, and financial condition.
Previous wording
We may, from time to time, refinance, reprice, extend, retire, or otherwise modify our outstanding debt to lower our interest payments, reduce our debt, or otherwise improve our financial position. These actions may include repricing amendments, extensions, and/or opportunistic refinancing of debt. The amount of debt that may be refinanced, repriced, extended, retired, or otherwise modified, if any, will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants, and other considerations.
Current wording
We may, from time to time, refinance, reprice, extend, retire, or otherwise modify our outstanding debt to manage our financial position. These actions may include repricing amendments, extensions, and/or opportunistic refinancing of debt. The amount of debt that may be refinanced, repriced, extended, retired, or otherwise modified, if any, will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants, and other considerations.
Previous wording
In March 2025, we amended the ABL Facility to extend the maturity date from July 2026 to March 2028, replace the CDOR as the applicable rate with respect to loans denominated in Canadian Dollars with the CORRA, and make certain other technical amendments and related conforming changes. All other material terms and conditions of the ABL Facility credit agreement were unchanged including the aggregate commitment, which remained at $500.0 million. As a result of this amendment, the Company recognized a pre-tax loss of $0.2 million in the first quarter of 2025, consisting of unamortized issuance costs. As of March 28, 2026, we had $40.0 million outstanding net borrowings under the ABL Facility.
Current wording
In March 2025, we amended the ABL Facility to extend the maturity date from July 2026 to March 2028, replace the CDOR as the applicable rate with respect to loans denominated in Canadian Dollars with the CORRA, and make certain other technical amendments and related conforming changes. All other material terms and conditions of the ABL Facility credit agreement were unchanged including the aggregate commitment, which remained at $500.0 million. As a result of this amendment, the Company recognized a pre-tax loss of $0.2 million in the first quarter of 2025, consisting of unamortized issuance costs. As of June 27, 2026, we had $80.0 million outstanding net borrowings under the ABL Facility.
Previous wording
Net cash used in operating activities was $91.2 million in the three months ended March 28, 2026, compared to $83.5 million in the three months ended March 29, 2025, an increase of $7.7 million. The change in cash flows from operating activities was primarily due to the increase in earnings of $113.3 million, inclusive of $137.7 million in non-cash goodwill impairment charges related to our North America reporting unit in the prior year and a $12.8 million increase in net cash used in our working capital accounts. The impact of accounts receivable, net, was unfavorable by $13.0 million for the three months ended March 28, 2026, compared to the same period in 2025, primarily driven by higher sales at the end of the current quarter. Accounts payable had a favorable impact of $26.2 million, mainly due to higher inventory purchases. Inventories had an unfavorable impact of $26.0 million, primarily reflecting increased material purchases.
Current wording
Net cash used in operating activities was $100.2 million in the six months ended June 27, 2026, compared to $48.9 million in the six months ended June 28, 2025, an increase in cash used of $51.3 million. The change in cash flows from operating activities was primarily due to lower earnings after excluding the impact of the $137.7 million non-cash goodwill impairment charge related to our North America reporting unit in the prior year and a $59.3 million increase in net cash used in our working capital accounts. Accounts receivable, net was unfavorable by $44.9 million compared to the same period in 2025, primarily driven by higher sales in the current quarter compared to the fourth quarter of 2025. Inventories had an unfavorable impact of $12.0 million, primarily reflecting increased material purchases, and accounts payable had an unfavorable impact of $2.4 million, mainly due to higher inventory purchases and timing of vendor payments.
Previous wording
Net cash used in investing activities was $26.2 million in the three months ended March 28, 2026, compared to cash provided by investing activities of $70.0 million in the three months ended March 29, 2025. The change in cash flows from investing activities was primarily driven by $112.1 million proceeds related to the court-ordered divestiture of Towanda during the three months ended March 29, 2025, and a decrease in capital expenditures of $15.9 million.
Current wording
Net cash used in investing activities was $44.7 million in the six months ended June 27, 2026, compared to cash provided by investing activities of $36.8 million in the six months ended June 28, 2025. The change in cash flows from investing activities was primarily driven by $110.7 million proceeds related to the court-ordered divestiture of Towanda during the six months ended June 28, 2025, and a decrease in capital expenditures of $31.5 million.
Previous wording
Net cash provided by financing activities was $32.1 million in the three months ended March 28, 2026, compared to cash used in financing activities of $6.6 million in the three months ended March 29, 2025. The change in cash flows from financing activities was primarily due to net borrowings under our Revolving Credit Facility of $40.0 million in the three months ended March 28, 2026.
Current wording
Net cash provided by financing activities was $66.8 million in the six months ended June 27, 2026, compared to cash used in financing activities of $12.8 million in the six months ended June 28, 2025. The change in cash flows from financing activities was primarily due to net borrowings under our Revolving Credit Facility of $80.0 million in the six months ended June 27, 2026.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Restructuring and Asset-Related Charges, Net– Restructuring and asset-related charges, net decreased $17.3 million, or 74.1% to $6.1 million in the six months ended June 27, 2026, from $23.4 million in the six months ended June 28, 2025. The decrease in restructuring and asset-related charges, net was primarily due to a decrease in charges incurred to close certain manufacturing facilities in our North America and Europe segments and to transform the operating structure of our Europe segment. Refer to Note 16 - Restructuring and Asset-Related Charges, Net to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.
Current report — wording carried from elsewhere
(1)Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. Refer to the calculation of Adjusted EBITDA from continuing operations for a discussion of the Special items listed above.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Segment Results and Non-GAAP Reconciliations