American Woodmark misses Q1 expectations as construction market weakens

WINCHESTER, Va. - On Tuesday, American Woodmark Corporation (NASDAQ:AMWD) reported first quarter fiscal 2026 results that fell short of analyst expectations, as the company faced continued weakness in both new construction and remodel markets.

The cabinet manufacturer posted adjusted earnings per share of $1.01, significantly below the analyst consensus of $1.33. Revenue declined 12.2% YoY to $403 million, also missing the consensus estimate of $419.03 million.

Net income dropped 50.7% YoY to $14.6 million, representing 3.6% of net sales compared to 6.5% in the same period last year. Adjusted EBITDA decreased 32.8% to $42.2 million, with margins contracting to 10.5% from 13.7% a year ago.

"The new construction and remodel market continued to be weaker than expected for the first quarter of fiscal year 2026. Our teams are executing well despite the lower volumes," said Scott Culbreth, President and CEO. "Demand trends are expected to remain challenging in both markets, but I am confident in our team’s ability to navigate the current macroeconomic environment."

The company attributed the earnings decline to lower sales volume, an unfavorable mix shift toward value-based offerings, increased product input costs including tariffs, ERP implementation support costs, and merger-related expenses. These were partially offset by a favorable mark-to-market adjustment on foreign exchange forward contracts and controlled discretionary spending.

During the quarter, American Woodmark generated $33.1 million in operating cash flow and repurchased 209,757 shares for $12.4 million. The company had $54.9 million in cash plus access to $315.2 million of additional availability under its revolving credit facility as of July 31, 2025.

The company did not provide financial guidance due to its proposed merger with MasterBrand, Inc., which was announced on August 6, 2025.

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