"We believe that the long-term fundamentals of the housing industry are still sound, but they are currently dampened by persistently high interest rates and lower consumer confidence. This led to the continued softness in large-ticket purchases, primarily impacting our remodel business."
— Scott Culbreth
03Detailed Report
AMWD
Company AMWD
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
Overview: American Woodmark (AMWD) delivered a modest top-line decline in QQ2 2025, with net sales of $452.5 million, down 4.5% year over year, as softer remodel demand and slower single-family new construction weighed on volumes. Despite the revenue headwind, the company maintained disciplined cost controls and continued its strategic push into higher-margin channels and brands, notably the 1951 Cabinetry conversion, while accelerating digital initiatives and platform design investments. Adjusted EBITDA declined to $60.2 million (13.3% of net sales) from $72.3 million (15.3%) a year earlier, underscoring deleveraging effects from lower volumes and higher input costs, though the company remains cash-generative with positive free cash flow of $30.1 million year-to-date and usable liquidity from a fresh debt facility and revolver capacity.
Key Performance Indicators
Revenue
Decreasing
452.48M
QoQ: -1.45% | YoY: -4.51%
Gross Profit
Decreasing
85.71M
18.94% margin
QoQ: -7.70% | YoY: -16.91%
Operating Income
Decreasing
42.60M
QoQ: -9.41% | YoY: -6.24%
Net Income
Decreasing
27.69M
QoQ: -6.57% | YoY: -8.75%
EPS
Decreasing
1.81
QoQ: -5.24% | YoY: -2.69%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and mix: Net sales of $452.5 million, -4.5% YoY and -1.45% QoQ. Gross margin: 18.9% in QQ2 2025, down 290 bps from 21.8% prior year due to weaker manufacturing leverage and higher input costs (materials, labor, freight). Operating margin: 9.41% (operating income of $42.6 million on $452.5 million revenue). EBITDA: GAAP EBITDA $51.37 million (11.35% margin); Adjusted EBITDA $60.2 million (13.3% margin). Net income: $27.69 million; EPS (GAAP) $1.81; Adjusted EPS $2.08 (note: adjusted EPS definition excludes mark-to-market FX hedges per management). Leverage and liquidity: Net leverage 1.4x as of QQ2 2025 end; cash $56.7 million; revolver capacity ~$313.2 million available; new senior secured debt facility established Oct 2024 ($500m revolver and $200m term loan). Cash flow: Operating cash flow $11.92 million; free cash flow $1.11 million for the quarter’s year-to-date; cash balance declined from $89.3 million prior year to $56.7 million, reflecting working capital needs in a softer demand environment. Capital allocation: Stock repurchases of 620,000 shares (~4.1% of shares outstanding) in the first half; management re-emphasized a capital-allocation framework prioritizing digital transformation/ERP investments, automation, and share repurchases, with debt repayments deprioritized while leverage targets are pursued.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
452.48M
-4.51%
-1.45%
Gross Profit
85.71M
-16.91%
-7.70%
Operating Income
42.60M
-6.24%
-9.41%
Net Income
27.69M
-8.75%
-6.57%
EPS
1.81
-2.69%
-5.24%
Key Financial Ratios
Gross Profit Margin
Weak
18.90%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
9.42%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
6.12%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.72%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.93
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.57
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
12.55x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.52x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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