American Woodmark Corporation (NASDAQ: AMWD) has reported a decrease in net sales and net income in its first fiscal quarter ended July 31, 2025. The company's net sales decreased by 12.2% year-over-year to $403.0 million, while net income decreased by 50.7% year-over-year to $14.6 million, representing 3.6% of net sales.
The adjusted EPS per diluted share was reported at $1.01 for the first quarter of fiscal 2026, compared with $2.141 in the last fiscal year. This indicates a significant decline in earnings per share. Additionally, adjusted EBITDA for the first quarter of fiscal 2026 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 last fiscal year.
The company also reported a decrease in cash provided by operating activities to $33.1 million and free cash flow totaling $24.9 million for the first quarter of fiscal 2025. Furthermore, American Woodmark repurchased 209,757 shares, or approximately 1.4% of shares outstanding, for $12.4 million during the first quarter of fiscal 2026.
On the balance sheet and cash flow front, as of July 31, 2025, the company had $54.9 million in cash and access to $315.2 million of additional availability under its revolving credit facility. It also had $196.3 million in term loan debt and $173.4 million drawn on its revolving credit facility, with net leverage reported at 1.69.
The company attributed these declines in financial metrics to lower net sales, 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, net.
American Woodmark Corporation did not hold a conference call to discuss its first quarter of fiscal 2026 results, citing its proposed merger with MasterBrand, Inc., announced on August 6, 2025. The company also stated that it would not be providing or updating previously issued financial guidance.
The press release did not provide a comparison with the previous period's financial metrics. However, it is evident that the company faced multiple challenges that impacted its financial performance. The market has reacted to these announcements by moving the company's shares 0.72% to a price of $67.50. For the full picture, make sure to review AMERICAN WOODMARK CORP's 8-K report.
