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In a stark reflection of market challenges, Jeld Wen Holding Inc (NYSE:JELD)’s stock has tumbled to a 52-week low, with shares dropping to $3.72. According to InvestingPro data, the company faces significant headwinds with a concerning debt-to-equity ratio of 2.9x and negative free cash flow of -$134 million in the last twelve months. The significant downturn in the company’s stock price marks a concerning period for investors, as the 1-year change data reveals a precipitous decline of -75.26%. This substantial drop underscores the hurdles faced by the company in a competitive and ever-shifting market landscape, prompting close scrutiny from stakeholders and market analysts alike. With eight analysts recently revising earnings estimates downward and the company currently trading below its Fair Value, investors seeking deeper insights can access comprehensive analysis and 18 additional key tips through InvestingPro’s detailed research report.
In other recent news, JELD-WEN Holding Inc. reported its Q1 2025 earnings, showing a mixed financial performance. The company achieved a slight earnings per share (EPS) beat, posting -0.17 compared to the expected -0.19, and reported revenue of $776 million, slightly surpassing the forecasted $769.25 million. However, revenue declined 19% year-over-year, and the company withdrew its full-year guidance due to market uncertainty. Jefferies analyst Philip Ng lowered the price target for JELD-WEN to $3.75 from $5.50, citing concerns about the company’s financial health and increased leverage, which is anticipated to reach eight times by the end of the fiscal year.
JELD-WEN’s North American segment saw a 22% drop in revenue, while the European segment experienced a 12% decline. The company’s adjusted EBITDA decreased by $47 million from the previous year, with a margin of 2.8%, and it reported a negative free cash flow of $125 million. The net debt leverage ratio rose to 4.6x, exceeding the target range of 2.0-2.5x. The company is actively working on operational restructuring and cost-saving initiatives to navigate the challenging macroeconomic environment. Despite these efforts, the analyst from Jefferies highlighted the uncertainty surrounding JELD-WEN’s future, reflecting a cautious outlook on the company’s operational and financial trajectory.
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