JELD-WEN Holding, Inc.

Previous wording

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 wording

Net Revenues– Net revenues decreased $11.0 million, or 1.4%, to $798.5 million in the three months ended September 26, 2026, from $809.5 million in the three months ended September 27, 2025. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 1%. The decline in Core Revenues was driven by a 2% decrease in volume/mix, partially offset by a 1% benefit from price realization.

Previous 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.

Current wording

Gross Margin– Gross margin decreased $3.3 million, or 2.3%, to $137.6 million in the three months ended September 26, 2026, from $140.9 million in the three months ended September 27, 2025. Gross margin as a percentage of net revenues was 17.2% in the three months ended September 26, 2026, compared to 17.4% in the three months ended September 27, 2025. The decrease in gross margin percentage was primarily due to negative price/cost and volume/mix, partially offset by tariff refunds recognized as a reduction of cost of sales and favorable productivity. Refer to Note 1 -Description of Company and Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information on the tariff refunds.

Previous wording

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 wording

SG&A– SG&A decreased $21.5 million, or 15.6%, to $116.2 million in the three months ended September 26, 2026, from $137.7 million in the three months ended September 27, 2025. SG&A as a percentage of net revenues decreased to 14.5% in the three months ended September 26, 2026, from 17.0% in the three months ended September 27, 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 fixed asset impairment charges during the period. Refer to Note 5 -Property and Equipment, Netto our unaudited condensed consolidated financial statements included in this Form 10-Q for more information regarding these impairment charges.

Previous 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.

Current wording

Goodwill Impairment– Goodwill impairment charges of $196.9 million in the three months ended September 27, 2025, were related to goodwill impairment charges in our North America and Europe reporting units. Refer to Note 6 –Goodwill 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 $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.

Current wording

Interest Expense, Net– Interest expense, net, increased approximately $2.0 million, or 11.7%, to $19.5 million in the three months ended September 26, 2026, from $17.4 million in the three months ended September 27, 2025. The increase in interest expense, net was primarily due to net borrowings under the ABL revolving facility in the current year.

Previous 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.

Current wording

Other Expense (Income), Net– Other expense, net was $3.7 million in the three months ended September 26, 2026, compared to other income, net of $1.1 million in the three months ended September 27, 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

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 wording

Income Tax Expense– Income tax expense was $2.9 million in the three months ended September 26, 2026, compared to income tax expense of $148.7 million in the three months ended September 27, 2025. The effective tax rate in the three months ended September 26, 2026, was (19.9)% 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 $0.1 million due to changes in UTPs from ongoing audits, changes in jurisdictions which have a full valuation allowance, share-based compensation and return-to-provision adjustments. The effective tax rate for the three months ended September 27, 2025, was (68.0)% and was driven primarily by losses for jurisdictions for which there is a full valuation allowance in the quarter, $115.0 million of discrete tax expense attributable to the valuation allowance on domestic tax attributes, and $5.1 million of discrete tax expense related to withholding tax accrued on certain foreign undistributed earnings from prior years. Refer to Note 11 - Income Taxes to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.

Previous 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.

Current wording

Net Revenues– Net revenues decreased $70.8 million, or 2.9%, to $2.34 billion in the nine months ended September 26, 2026, from $2.41 billion in the nine months ended September 27, 2025. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 4%. This was partially offset by a favorable foreign exchange impact of 1%. The decline in Core Revenues was driven by a 5% decrease in volume/mix, partially offset by a 1% benefit from price realization.

Previous wording

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 wording

Gross Margin– Gross margin decreased $28.8 million, or 7.3%, to $367.6 million in the nine months ended September 26, 2026, from $396.4 million in the nine months ended September 27, 2025. Gross margin as a percentage of net revenues was 15.7% in the nine months ended September 26, 2026, compared to 16.5% in the nine months ended September 27, 2025. The decrease in gross margin percentage was primarily due to negative price/cost and volume/mix, partially offset by favorable productivity and tariff refunds recognized as a reduction of cost of sales. Refer to Note 1 -Description of Company and Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information on the tariff refunds.

Previous 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.

Current wording

SG&A– SG&A decreased approximately $30.5 million, or 7.1%, to $400.4 million in the nine months ended September 26, 2026, from $431.0 million in the nine months ended September 27, 2025. SG&A as a percentage of net revenues was 17.1% in the nine months ended September 26, 2026, compared to 17.9% in the nine months ended September 27, 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, lower insurance expense and lower advertising and promotion expenses, partially offset by fixed and intangible asset impairment charges and a legal settlement. Refer to Note 5 -Property and Equipment, Net, 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 these impairment charges and legal settlement, respectively.

Previous 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.

Current wording

Restructuring and Asset-Related Charges, Net– Restructuring and asset-related charges, net decreased $13.5 million, or 41.9% to $18.7 million in the nine months ended September 26, 2026, from $32.2 million in the nine months ended September 27, 2025. The decrease in restructuring and asset-related charges, net was primarily due to lower charges associated with restructuring and facility closure activities in our North America segment and lower charges within Corporate and unallocated costs. 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 $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 wording

Interest Expense, Net– Interest expense, net, increased $6.2 million, or 12.7% to $55.0 million in the nine months ended September 26, 2026, from $48.8 million in the nine months ended September 27, 2025. The increase was primarily due to lower interest income resulting from lower invested cash balances, borrowings under the ABL revolving facility in the current year, and a decrease in capitalized interest, partially offset by lower interest on the Term Loan Facility due to a lower interest rate in the current year.

Previous 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.

Current wording

Loss on Extinguishment and Refinancing of Debt– Loss on extinguishment and refinancing of debt was $0.2 million in the nine months ended September 27, 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

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 wording

Other Expense (Income), Net– Other expense, net was $8.1 million in the nine months ended September 26, 2026, compared to other income, net of $16.3 million in the nine months ended September 27, 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

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.

Current wording

Income Tax Expense– Income tax expense was $10.9 million in the nine months ended September 26, 2026, compared to income tax expense of $145.9 million in the nine months ended September 27, 2025. The effective tax rate in the nine months ended September 26, 2026, was (9.5)%. The effective tax rate for the nine months ended September 26, 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 $1.1 million due to changes in UTPs from ongoing audits, changes in jurisdictions which have a full valuation allowance, share-based compensation and return-to-provision adjustments. The effective tax rate for the nine months ended September 27, 2025, was (33.6)%. The effective tax rate for the nine months ended September 27, 2025, was driven primarily by the $129.2 million increase to valuation allowances on U.S. tax attributes. Refer to Note 11 - Income Taxes to our unaudited condensed consolidated financial statements included in this Form 10-Q for more information.

Previous wording

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 wording

Gain on Sale of Discontinued Operations, Net of Tax– The $0.8 million gain on sale of discontinued operations, net of tax in the nine months ended September 27, 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.

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 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.

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) loss 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

(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.

Current wording

(2)Other special items primarily include impairment charges of $5.6 million recognized in connection with the Company’s North America equipment capacity optimization review, $3.0 million of impairment and other related charges related to windows manufacturing technology, and $1.8 million of impairment charges related to logistics technology, each of which was determined to have no future use, $2.5 million related to post-production expenses for closed facilities in North America, $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture, $2.0 million related to build-out costs for a new production site in the United Kingdom in our Europe reporting segment, and a $1.0 million charge in Corporate and unallocated costs related to the termination of the Company’s fractional aircraft arrangement.

Previous 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.

Current wording

(1)Net legal and professional expenses and settlements include non-recurring transformation journey expenses of $1.7 million and $5.8 million in the three and nine months ended September 26, 2026, respectively, and $5.3 million and $24.6 million in the three and nine months ended September 27, 2025, respectively. The amount for the nine months ended September 26, 2026, includes $1.2 million related to a structural-pricing initiative in Europe. 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 $2.5 million for the nine months ended September 27, 2025, 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 $0.4 million and $10.0 million in the three and nine months ended September 26, 2026, respectively, and $0.4 million in both the three and nine months ended September 27, 2025, relating to litigation of historical legal matters.

Previous 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.

Current wording

(2)Goodwill impairment consists of a prior year goodwill impairment charge associated with our North America and Europe reporting units. Refer to Note 6 -Goodwill 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 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.

Current wording

(6)Net gain on sale of business, property, and equipment in the three and nine months ended September 26, 2026, primarily relates to the sale of our business in Hawaii and the sale of property in Denmark. Net gain on sale of business, property, and equipment in the nine months ended September 27, 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 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.

Current wording

(7)Loss on extinguishment and refinancing of debt consists of $0.2 million in the nine months ended September 27, 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

(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 wording

(9)Other special items not core to ongoing business activity include: (i) for the three months ended September 26, 2026, impairment charges of $2.5 million recognized in connection with the Company’s North America equipment capacity optimization review and a $1.0 million charge in Corporate and unallocated costs related to the termination of the Company’s fractional aircraft arrangement.; (ii) for the nine months ended September 26, 2026, impairment charges of $5.6 million recognized in connection with the Company’s North America equipment capacity optimization review, $3.0 million of impairment and other related charges related to windows manufacturing technology, and $1.8 million of impairment charges related to logistics technology, each of which was determined to have no future use, $2.5 million related to post-production expenses for closed facilities in North America, $1.2 million related to costs incurred to fulfill production capability requirements associated with the court-ordered Towanda divestiture, $2.0 million related to build-out costs for a new production site in the United Kingdom in our Europe reporting segment, and a $1.0 million charge in Corporate and unallocated costs related to the termination of the Company’s fractional aircraft arrangement.

Previous 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.

Current 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.

Previous wording

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 wording

Net revenues in North America decreased $16.5 million, or 3.0%, to $529.7 million in the three months ended September 26, 2026, from $546.1 million in the three months ended September 27, 2025. The decrease was primarily due to a decrease in Core Revenues of 3%. The decrease in Core Revenues was driven by a 3% decline in volume/mix due to weakened market demand.

Previous wording

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 wording

Adjusted EBITDA in North America increased $10.7 million, or 28.3%, to $48.3 million in the three months ended September 26, 2026, from $37.7 million in the three months ended September 27, 2025. The increase was primarily due to tariff refunds recognized as a reduction of cost of sales, improved productivity, and lower SG&A, partially offset by unfavorable price/cost and volume/mix. The decrease in SG&A was primarily due to decreased salaries and benefits driven by a reduction in headcount, a reduction in R&D expenses, and lower insurance expense.

Previous 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.

Current wording

Net revenues in Europe increased $5.5 million, or 2.1%, to $268.9 million in the three months ended September 26, 2026, from $263.3 million in the three months ended September 27, 2025. The increase was primarily due to an increase in Core Revenues of 3%, partially offset by an unfavorable foreign exchange impact of 1%. The increase in Core Revenues was primarily driven by a 4% benefit from price realization, partially offset by unfavorable volume/mix of 1%.

Previous wording

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 wording

Corporate and unallocated costs decreased by $0.4 million, or 4.4%, to $8.9 million in the three months ended September 26, 2026, from $9.3 million in the three months ended September 27, 2025. The decrease in cost was primarily due to decreased salaries and benefits driven by a reduction in headcount.

Previous 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.

Current wording

Net revenues in North America decreased $121.5 million, or 7.4%, to $1,510.9 million in the nine months ended September 26, 2026, from $1,632.4 million in the nine months ended September 27, 2025. The decrease was primarily due to a decrease in Core Revenues of 7%. The decrease in Core Revenues was driven by a 7% decline in volume/mix due to weakened market demand.

Previous 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.

Current wording

Adjusted EBITDA from continuing operations in North America increased $4.7 million, or 5.3%, to $92.6 million in the nine months ended September 26, 2026, from $87.9 million in the nine months ended September 27, 2025. The increase was primarily due to higher productivity, lower SG&A, and tariff refunds recognized as a reduction to cost of sales, partially offset by negative price/cost and unfavorable volume/mix. The decrease in SG&A was primarily driven by decreased salaries and benefits driven by a reduction in headcount, a reduction in R&D expense, lower advertising and promotion expenses, and lower legal costs.

Previous wording

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 wording

Net revenues in Europe increased $50.7 million, or 6.5%, to $827.6 million in the nine months ended September 26, 2026, from $776.8 million in the nine months ended September 27, 2025. The increase was primarily due to a favorable foreign exchange impact of 4% and an increase in Core Revenues of 2%. The increase in Core Revenues was primarily driven by a 2% benefit from price realization.

Previous wording

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 wording

Adjusted EBITDA from continuing operations in Europe decreased $8.5 million, or 19.4%, to $35.3 million in the nine months ended September 26, 2026, from $43.7 million in the nine months ended September 27, 2025. The decrease was primarily due to higher salaries and benefits, an increase in R&D expense, unfavorable volume/mix, and negative price/cost, partially offset by favorable productivity.

Previous 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.

Current wording

Corporate and unallocated costs decreased by $1.3 million, or 5.1%, to $25.0 million in the nine months ended September 26, 2026, from $26.4 million in the nine months ended September 27, 2025. The decrease in costs was primarily due to lower salaries and benefits driven by a reduction in headcount, lower insurance expense and a reduction in non-strategic professional fees, partially offset by a decrease in cash received on a real estate investment.

Previous wording

We have historically funded our operations through a combination of cash from operations, draws on our revolving credit facilities, and the issuance of non-revolving debt such as our Term Loan Facility and our Senior Notes. We place strong emphasis on cash flow generation, which includes an operating discipline focused on working capital management. Working capital fluctuates throughout the year and is impacted by inflation, the seasonality of our sales, customer payment patterns, supply availability, and the translation of the balance sheets of our foreign operations into the U.S. dollar. Typically, working capital increases at the end of the first quarter and beginning of the second quarter in conjunction with, and in preparation for, the peak season for home construction and remodeling in our North America and Europe segments, and decreases starting in the fourth quarter as inventory levels and accounts receivable decline. Inventories fluctuate for raw materials that have long delivery lead times, as we work through prior shipments and take delivery of new orders.

Current wording

We have historically funded our operations through a combination of cash from operations, draws on our ABL Facility, and the issuance of non-revolving debt such as our Term Loan Facility and our Senior Notes. We place strong emphasis on cash flow generation, which includes an operating discipline focused on working capital management. Working capital fluctuates throughout the year and is impacted by inflation, the seasonality of our sales, customer payment patterns, supply availability, and the translation of the balance sheets of our foreign operations into the U.S. dollar. Typically, working capital increases at the end of the first quarter and beginning of the second quarter in conjunction with, and in preparation for, the peak season for home construction and remodeling in our North America and Europe segments, and decreases starting in the fourth quarter as inventory levels and accounts receivable decline. Inventories fluctuate for raw materials that have long delivery lead times, as we work through prior shipments and take delivery of new orders.

Previous 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.

Current wording

As of September 26, 2026, we had total liquidity (a non-GAAP measure) of $268.6 million, consisting of $97.0 million in unrestricted cash and $171.6 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 $115.0 million, and a lower ABL borrowing base availability at September 26, 2026, when compared to December 31, 2025.

Previous 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.

Current wording

As of September 26, 2026, our cash balances, including $4.1 million of restricted cash, consisted of $19.4 million in cash located in the U.S. and $81.7 million in cash located outside of the U.S. held by our non-U.S. subsidiaries.

Previous wording

Based on hypothetical variable rate debt that would have resulted from drawing each revolving credit facility up to the full commitment amount, a 100-basis point decrease in interest rates would have reduced our interest expense by $2.2 million in the quarter ended June 27, 2026. A 100-basis point increase in interest rates would have increased our interest expense by $2.2 million in the same period. In certain instances, the impact of a hypothetical decrease would have been partially mitigated by interest rate floors that apply to certain of our debt agreements.

Current wording

Based on hypothetical variable rate debt that would have resulted from drawing on our ABL Facility up to the full commitment amount, a 100-basis point decrease in interest rates would have reduced our interest expense by $2.2 million in the quarter ended September 26, 2026. A 100-basis point increase in interest rates would have increased our interest expense by $2.2 million in the same period. In certain instances, the impact of a hypothetical decrease would have been partially mitigated by interest rate floors that apply to certain of our debt agreements.

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 June 27, 2026, we had $80.0 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 September 26, 2026, we had $115.0 million outstanding net borrowings under the ABL Facility.

Previous 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.

Current wording

Net cash used in operating activities was $72.8 million in the nine months ended September 26, 2026, compared to $37.7 million in the nine months ended September 27, 2025, an increase in cash used of $35.1 million. The change in cash flows from operating activities was primarily attributable to lower earnings, excluding the prior year impact of the $334.6 million non-cash goodwill impairment charge related to our North America and Europe reporting units and the $129.2 million income tax expense due to an increase to valuation allowances on U.S. tax attributes. Changes in our working capital accounts resulted in a $59.6 million unfavorable year-over-year impact. Accounts receivable, net resulted in a $36.9 million unfavorable impact, primarily due to the timing of revenue recognition and customer collections. Accounts payable resulted in a $15.1 million unfavorable impact, primarily due to lower inventory purchases and timing of vendor payments. Inventory resulted in a $7.6 million unfavorable impact, primarily reflecting a decrease in inventory reserves.

Previous 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.

Current wording

Net cash used in investing activities was $55.1 million in the nine months ended September 26, 2026, compared to cash provided by investing activities of $9.6 million in the nine months ended September 27, 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 nine months ended September 27, 2025, and a decrease in capital expenditures of $46.7 million.