Executive Summary
American Woodmark (AMWD) reported QQ1 2026 results that reflect a softer housing market and ongoing demand headwinds for kitchen cabinetry. Revenue came in at $403.0 million, down 12.2% year over year, while gross profit declined 27.3% to $67.5 million, resulting in a gross margin of 16.7%. Despite meaningful margin pressure, AMWD delivered positive operating income of $20.2 million and net income of $14.6 million, with earnings per share of $1.01. The quarter showcased disciplined cost management and strong cash generation, supporting liquidity and a debt-adjusted balance sheet. Free cash flow stood at $25.3 million, and net cash provided by operating activities was $33.1 million, underscoring the company’s ability to translate activity into cash even in a challenging demand environment.
Key Performance Indicators
QoQ: -1.05% | YoY:-27.33%
QoQ: -37.85% | YoY:-57.06%
QoQ: -42.91% | YoY:-50.75%
QoQ: -39.52% | YoY:-47.12%
Key Insights
Revenue: $403.0M; YoY -12.21%, QoQ +0.66%
Gross Profit: $67.5M; YoY -27.33%, QoQ -1.05%
Operating Income: $20.2M; YoY -57.06%, QoQ -37.85%
Net Income: $14.6M; YoY -50.75%, QoQ -42.91%
EPS: $1.01 (GAAP); Diluted $1.00; YoY -47.12%, QoQ -39.52%
EBITDA: $39.62M; EBITDA Margin ~9.83%
Operating Margin: 5.01%
Free Cash Flow: $25.27M
Net Cash from Operating Activities: $33.08M
Cash at End of Period: $54.91M
Total Debt: $504.26M; Net Debt: $449.35M
Total Assets: $1.5708B; Total Liabilities: $650.50M; To...
Financial Highlights
Revenue: $403.0M; YoY -12.21%, QoQ +0.66%
Gross Profit: $67.5M; YoY -27.33%, QoQ -1.05%
Operating Income: $20.2M; YoY -57.06%, QoQ -37.85%
Net Income: $14.6M; YoY -50.75%, QoQ -42.91%
EPS: $1.01 (GAAP); Diluted $1.00; YoY -47.12%, QoQ -39.52%
EBITDA: $39.62M; EBITDA Margin ~9.83%
Operating Margin: 5.01%
Free Cash Flow: $25.27M
Net Cash from Operating Activities: $33.08M
Cash at End of Period: $54.91M
Total Debt: $504.26M; Net Debt: $449.35M
Total Assets: $1.5708B; Total Liabilities: $650.50M; Total Stockholders’ Equity: $920.30M
Goodwill: $767.61M; Cash Conversion metrics indicate solid liquidity despite a cyclically sensitive market.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
403.05M |
-12.21% |
0.66% |
| Gross Profit |
67.49M |
-27.33% |
-1.05% |
| Operating Income |
20.19M |
-57.06% |
-37.85% |
| Net Income |
14.60M |
-50.75% |
-42.91% |
| EPS |
1.01 |
-47.12% |
-39.52% |
Management Commentary
The management discussion emphasized a bifurcated demand environment tied to the housing cycle, with near-term softness affecting order rates but a durable platform of premium cabinetry brands. Commentary highlighted disciplined cost control, a focus on cash flow generation, and capital allocation discipline (including stock buybacks) as key responses to the cycle. Management also noted continued investments in brand and channel mix (Waypoint Living Spaces, Timberlake, Shenandoah) to support margin resilience as the product mix shifts toward higher-margin offerings. The tone suggested tolerance for near-term margin compression if it preserves long-term market share and cash generation.
We remain focused on cost discipline and cash flow generation as demand remains uneven.
— CEO
We are prioritizing capital allocation and working capital efficiency to navigate the current cycle.
— CFO
Forward Guidance
No explicit quarterly or full-year numeric guidance was provided in the QQ1 2026 release. Management signaled a continued emphasis on cash flow generation and cost discipline, with a watchful eye on housing-market demand and input cost dynamics. The absence of formal guidance implies a cautious stance on near-term top-line growth while underscoring confidence in the company’s ability to sustain positive free cash flow through operational improvements and capital allocation. Investors should monitor: (1) housing-market indicators and new-home construction activity, (2) material and logistics costs influencing input costs and margin, (3) the pace of repair/remodeling demand, and (4) the company’s ability to maintain working capital efficiency and debt obligations within a recovering macro backdrop.