AMWD Earnings Prediction
The chart below shows how AMWD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AMWD sees a +0.73% change in stock price 10 days leading up to the earnings, and a -0.40% change 10 days following the report. On the earnings day itself, the stock moves by -2.46%. This data can give you a slight idea of what to expect for the next quarter's release.
AMWD Key Earning Data
AMWD Earnings Analysis
Positive
Operational Excellence Amid Decline: Net sales of $397.6 million, with a focus on operational excellence despite a decline in demand.
Adjusted EBITDA Performance: Adjusted EBITDA of $38.4 million, representing 9.7% of net sales, showcasing resilience in operational performance.
Share Repurchase Success: Successful share repurchase program, with $69.1 million spent to buy back shares, representing about 5% of outstanding shares.
Strong Liquidity Position: Cash balance of $43.5 million and access to an additional $314.2 million under the revolving credit facility, indicating strong liquidity position.
Manufacturing Location Closure: Strategic closure of the Orange, Virginia manufacturing location to improve operational efficiencies and align with market trends.
Automation and Digital Transformation: Continued investment in automation and digital transformation, with a focus on long-term growth and profitability targets.
Negative
Sales Decline Analysis: Net sales declined by 5.8% year-over-year, totaling $397.6 million, which was below expectations due to softer demand in the remodel market and a significant decline in new construction activity.
Housing Market Slowdown: The new construction net sales dropped by 10.4%, indicating a slowdown in the housing market, particularly in key regions like Atlanta, Florida, and Southern California.
EBITDA Decline Analysis: Adjusted EBITDA decreased to $38.4 million, or 9.7% of net sales, down from $50.6 million or 12% of net sales the previous year, reflecting a 230 basis point decline.
Decline in Gross Profit Margin: Gross profit margin fell by 420 basis points to 15% compared to 19.2% last year, primarily due to lower sales volumes and increased costs for raw materials, labor, and freight.
Free Cash Flow Decline: Free cash flow decreased significantly to $31.5 million year-to-date, down from $131.7 million in the prior year, attributed to higher inventory and digital transformation costs.
Net Sales Decline Anticipated: The company anticipates a mid-single-digit decline in net sales for the full fiscal year, driven by ongoing challenges in both new construction and repair/remodel markets.
Increased Net Leverage Ratio: Net leverage increased to 1.53x adjusted EBITDA, up from 1.05x the previous year, indicating a rise in debt relative to earnings.
Facility Closure Impact: The company announced the closure of its Orange, Virginia manufacturing facility, which may impact operational capacity and employee morale.
Macroeconomic Challenges Ahead: Macroeconomic concerns include declining consumer sentiment, rising inflation risks, and no immediate relief in interest rates, which could further hinder demand for higher-ticket home projects.
AMWD FAQs
How does AMWD typically perform around its earnings report dates?
AMWD's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.73% change leading up to the report and a -0.41% change in the 10 days following the release.
Is American Woodmark Corp (AMWD) Q3 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
AMWD Earning Call Sentiment
American Woodmark Corporation (AMWD) Q3 2025 Earnings Call Transcript
AMWD.O
3.35%
