American Woodmark Corporation reported third‑quarter 2026 results that included net sales of $324.3 million, a 18.4% decline year‑over‑year, and a net loss of $28.7 million, or $1.97 per diluted share. Adjusted earnings per share were $0.45, a beat of $0.34 against the consensus estimate of $0.11, while the company recorded a $30.1 million goodwill impairment and increased digital‑transformation spending related to its ERP deployment.
Revenue fell 18.4% because lower volumes and a shift toward a value‑based product mix compressed margins. Tariff and input‑cost pressures, merger‑related expenses, and restructuring charges further weighed on profitability, contributing to the loss and the sharp decline in net sales.
Adjusted EBITDA margin contracted to 6.7% from 9.7% in the prior year, reflecting the combined impact of lower volumes, an unfavorable mix, and higher costs. The company’s adjusted EBITDA of $21.6 million represents a 43.9% drop from the same quarter a year earlier.
Comparing to the immediately preceding quarter, Q2 2026 net sales were $394.6 million and adjusted EPS was $0.76, indicating a QoQ decline of roughly 18% in revenue and a 40% drop in adjusted earnings per share.
"Demand trends were once again challenging in both the new construction and remodel markets with new construction softening throughout the quarter. We delivered Adjusted EBITDA margins of 6.7% for the third fiscal quarter, as lower volumes impacted fixed cost absorption," said President and CEO Scott Culbreth. "Mitigating tariffs and reducing the impact of lower demand on the business remain our top priorities. The Company is also focused on closing the previously announced merger transaction with MasterBrand, Inc., which will enable us to provide a broader product portfolio across expanded channels, advance our innovation capabilities, and create exciting opportunities for team members."
The company will not provide updated financial guidance for the remainder of the year because the pending merger with MasterBrand, announced on August 6, 2025, remains in progress. Management remains focused on closing the transaction while continuing to invest in digital transformation initiatives that are expected to improve long‑term operational efficiency.
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