American Woodmark Corporation (AMWD) reported a soft QQ4 2025, with net sales of $400.4 million, down 11.7% year over year as remodeling and new-construction markets weakened amid tariff uncertainty and softer consumer confidence. The quarter showed a modest sequential gross-margin recovery from Q3, but profitability remained pressured by fixed-cost deleverage and higher input costs. Management cited ongoing tariff exposure as a meaningful headwind and outlined a multi-year transformation plan centered on growth initiatives, digital transformation, and platform design to position AMWD for a rebound when housing activity improves.
For the full year 2025, AMWD posted net sales of approximately $1.7 billion (down 7.5% YoY) with a gross margin of 17.9% and adjusted EBITDA of $208.6 million (12.2% of net sales). Free cash flow was $65.7 million, and net leverage ended at 1.56x adjusted EBITDA, supported by a meaningful share-repurchase program (7.5% of shares retired in FY2025, totalling $96.7 million). The company maintained a solid liquidity position with $48.2 million in cash and $314.2 million of available revolver capacity.
Looking ahead to fiscal 2026, AMWD guides net sales in a range from low single-digit declines to low single-digit increases, with a heavier emphasis on profitability in the second half and an EBITDA range of $175 million to $200 million. The forecast embeds roughly $20 million of tariff-related costs and contemplates a partial recovery depending on tariff outcomes and macro conditions. Management remains focused on cost-control, ongoing automation investments (notably in ERP/cloud, CRM, and manufacturing automation), and network-optimization actions to improve resilience and efficiency. Investors should monitor tariff developments, housing market momentum (existing-home sales), input-cost dynamics, and the progress of the company’s transformation agenda as key drivers of the 2026 outcome.