A global manufacturer of interior and exterior doors, windows, and related building products, JELD-WEN makes brands like AuraLast, LaCantina, and Swedoor for homes and buildings across North America and Europe. It was founded in 1960 when Dick Wendt and four partners bought a struggling millwork plant in Klamath Falls, Oregon, at auction. The name comes from a family farm-naming contest: an acronym built from the first letters of relatives' names, including Dick's father Lester, mother Evelyn, and sister Jewel.
Jeld-Wen's Q2 revenue decline slowed to 0.7% as Europe returned to core growth, but gross margin fell to 16.8% and the company is evaluating strategies for $400M in notes due 2027.
The decline nearly halted. Revenue fell 0.7% to $817.8 million as Europe's core business returned to growth, offsetting a continued but moderating decline in North America. The company is now evaluating strategies to address $400 million in Senior Notes due in 2027, with down to $308.7 million.
Key takeaways
The rate of decline slowed sharply to 0.7%, from a 6.9% drop in Q1 2026, as a 5% increase in Europe's Core Revenues offset a 5% decline in North America's Core Revenues.
contracted 0.6 points to 16.8%, as negative price/cost and unfavorable volume and mix more than offset productivity gains, though it improved 3.9 points sequentially from Q1's 12.8%.
The operating loss narrowed to $5.1 million from a $55.2 million loss in Q1 2026, helped by a 6.8% reduction in expenses driven by headcount reductions and lower professional fees.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net revenues fell 0.7% to $817.8M; North America volume declined while Europe grew, and operating loss narrowed.
⌄
Consolidated Q2 net revenues decreased 0.7% to $817.8M, driven by a 2% decline in from lower volume/mix, partially offset by favorable FX.
contracted 60 to 16.8% due to negative price/cost and volume/mix, partially offset by productivity gains.
Europe rose 7.9% on 5% Core Revenue growth and favorable foreign exchange, a reversal from the prior quarter when Adjusted fell despite a revenue increase.
Total fell to $308.7 million from $484.7 million at year-end 2025, and the company disclosed it is evaluating strategies to address $400 million in Senior Notes due in 2027.
was negative $24.8 million for the quarter, an improvement from the negative $116.3 million in Q1 2026, but cumulative first-half free cash flow remained deeply negative at negative $141.1 million.
What changed
The 10% core volume decline flagged in Q1 2026 did not re-accelerate; the consolidated Core decline improved to 2% in Q2, driven by a return to growth in Europe.
rebounded from the 12.8% Q1 2026 low to 16.8%, though it remains below the 17.4% posted in Q2 2025, indicating productivity gains are only partially offsetting negative price/cost.
The pace of cash consumption slowed from Q1's $116.3 million free cash outflow to $24.8 million in Q2, but total continued to decline, reaching $308.7 million.
A new risk has surfaced: the company is now explicitly evaluating strategies to address the $400 million Senior Notes due in 2027, a disclosure that was absent from the Q1 2026 filing.
What to watch
Whether the return to Core growth in Europe is sustained in Q3, or if it was a one-quarter benefit from easier comparisons or temporary demand.
The trajectory of from the 16.8% Q2 level, and whether it can continue to rebuild toward the 19-20% range as productivity actions accumulate.
The specific strategy the company announces to address the $400 million Senior Notes due in 2027, and whether it involves refinancing, asset sales, or other actions that could dilute or constrain equity holders.
Whether total , now at $308.7 million, stabilizes or continues to decline as the company funds operations and addresses the upcoming debt maturity.
SG&A fell 6.8% to $138.3M, primarily from headcount reductions and lower professional fees, partly offset by intangible asset charges.
North America dropped 4.9% on a 5% Core volume decline from weak demand, while Europe segment revenue rose 7.9% on 5% Core growth and favorable FX.
Total liquidity decreased to $308.7M from $484.7M at year-end 2025, driven by lower cash and $80M in ABL borrowings; the company is evaluating strategies to address $400M Senior Notes due 2027.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to various types of market risks, including the effects of adverse fluctuations in foreign currency exchange rates, changes in interest rates, and movements in commodity prices for products we use in our manufacturing. To reduce our exposure to these risks, we mai…
⌄
We are exposed to various types of market risks, including the effects of adverse fluctuations in foreign currency exchange rates, changes in interest rates, and movements in commodity prices for products we use in our manufacturing. To reduce our exposure to these risks, we maintain risk management controls and policies to monitor these risks and take appropriate actions to attempt to mitigate such forms of market risk. Our market risks have not changed significantly from those disclosed in the Form 10-K.
Refer to Note 20 - Commitments and Contingencies to our unaudited condensed consolidated financial statements included in this Form 10-Q for information relating to this item.
⌄
Refer to Note 20 - Commitments and Contingencies to our unaudited condensed consolidated financial statements included in this Form 10-Q for information relating to this item.
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K included in Part I Item 1A - Risk Factors for the year ended December 31, 2025.
⌄
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K included in Part I Item 1A - Risk Factors for the year ended December 31, 2025.