American Woodmark Corporation has released its financial results for the first fiscal quarter ended July 31, 2025. The company reported a 12.2% year-over-year decrease in net sales to $403.0 million. Net income also decreased by 50.7% to $14.6 million, representing 3.6% of net sales.
The company’s adjusted EPS stood at $1.01 for the first quarter of fiscal 2026, a significant decrease from $2.141 in the same period last fiscal year. Adjusted EBITDA decreased by 32.8% year-over-year to $42.2 million, representing 10.5% of net sales, compared with $62.9 million, or 13.7% of net sales, in the prior year.
In terms of cash flow, American Woodmark reported cash provided by operating activities of $33.1 million and free cash flow of $24.9 million. The company also repurchased 209,757 shares for $12.4 million during the first quarter of fiscal 2026.
The company's balance sheet showed $54.9 million in cash and access to $315.2 million of additional availability under its revolving credit facility as of July 31, 2025. Additionally, the company had $196.3 million in term loan debt and $173.4 million drawn on its revolving credit facility, with net leverage at 1.69.
American Woodmark Corporation attributed the decline in net sales and net income to various factors, including an unfavorable mix shift towards value-based offerings, increased product input costs, including tariffs, pre-tax post-implementation ERP support costs, pre-tax merger-related expenses, increased pre-tax interest expense, and pre-tax restructuring charges. These increased costs were partially offset by a favorable mark-to-market adjustment on foreign exchange forward contracts and controlled discretionary spending.
The company has also announced that it will not be holding a conference call to discuss its first quarter of fiscal 2026 results and will not be providing or updating previously issued financial guidance in light of its proposed merger with MasterBrand, Inc., previously announced on August 6, 2025.
American Woodmark Corporation is one of the nation’s largest cabinet manufacturers, with over 7,800 employees and more than a dozen brands. The company partners with major home centers, builders, and independent dealers and distributors to help homeowners and designers find their unique style and turn their homes into spaces for self-expression.
The market has reacted to these announcements by moving the company's shares -0.24% to a price of $67.02. Check out the company's full 8-K submission here.
