10-Q · November 25, 2025
Q2 (three months ended October 31, 2025) results show declining top-line and margin compression: net sales of $394,637,000 (-$57,845,000 YoY, -12.8%) with gross margin down to 15.2% and diluted EPS of $0.42. Liquidity…
Earnings analysis · 10-Q
AMWD earnings analysis
Filed February 26, 2026 · Our reading of the company's report
The latest report
American Woodmark reported a sharp YoY revenue decline to $324.3M in Q3 (three months ended January 31, 2026) from $397.6M a year earlier, driving gross margin compression to 11.6% and an operating loss of $33.861M. The…
Read full summary
American Woodmark reported a sharp YoY revenue decline to $324.3M in Q3 (three months ended January 31, 2026) from $397.6M a year earlier, driving gross margin compression to 11.6% and an operating loss of $33.861M. The company recognized a $30.129M goodwill impairment and recorded a net loss of $28.715M (diluted EPS $(1.97)). Operating cash flow for the nine months was positive $31.123M, with capex of $26.229M (nine months).
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.97
What stood out
-
Positive operating cash flow (9 months)
Net cash provided by operating activities was $31,123,000 for the nine months ended January 31, 2026 (versus $63,687,000 prior year).
-
Positive free cash flow (9 months)
After capex payments of $26,229,000, implied free cash flow for the nine months was approximately $4,894,000 ($31,123,000 - $26,229,000).
-
Working capital improved sequentially vs prior year
Current assets of $361,868,000 vs current liabilities of $152,647,000 imply working capital of $209,221,000, up $27,710,000 from the prior-year comparison (April 30, 2025 working capital: $181,511,000).
-
Inventories increased (build or stocking)
Inventories rose to $188,715,000 at January 31, 2026 from $178,111,000 at April 30, 2025 (increase $10,604,000).
-
Slight reduction in long-term debt
Long-term debt, less current maturities, decreased to $360,512,000 from $365,825,000 at April 30, 2025 (decline $5,313,000).
What to watch
-
Material revenue decline YoY
Net sales fell to $324,300,000 for the quarter from $397,580,000 in the prior-year quarter (decline of $73,280,000, or ~18.4%).
-
Severe margin compression and operating loss
Gross profit declined to $37,752,000 (11.6% gross margin) from $59,764,000 (15.0% gross margin) and operating income swung to an operating loss of $33,861,000 from operating income of $21,075,000.
-
Goodwill impairment recognized
The company recorded a goodwill impairment charge of $30,129,000 in the quarter, reflecting lowered fair-value conclusions tied to sustained weaker operating performance.
-
Net loss and EPS deterioration
Net loss was $(28,715,000) for the quarter and diluted EPS was $(1.97), versus net income $16,571,000 and diluted EPS $1.09 in the prior-year quarter.
-
Regulatory/merger uncertainty and transaction costs
The filing notes the Merger is “currently expected to close in early calendar year 2026” but the parties received an FTC Request for Additional Information (November 7, 2025); merger-related expenses were approximately $4.2M for the three months and $13.4M for the nine months ended January 31, 2026.
-
Operating cash flow weakened vs prior year
Net cash provided by operating activities dropped to $31,123,000 for the nine months from $63,687,000 in the prior year (decline $32,564,000).
Management's outlook
No numeric financial guidance provided in the 10-Q. Management states the Merger “is currently expected to close in early calendar year 2026” subject to HSR clearance and customary conditions; quantitative outlook for sales/profitability is not provided in the MD&A.
Earlier filings 4
10-K · June 25, 2025
American Woodmark positions itself as a top‑three U.S. cabinet manufacturer with an ~11% market share and a GDP strategy (Growth, Digital Transformation, Platform Design) to drive market expansion and margin…
10-Q · February 27, 2025
American Woodmark reported Q3 net sales of $397,580,000 and diluted EPS of $1.09, with gross profit of $59,764,000 (15.0% margin) and operating income of $21,075,000 (5.3% margin). Liquidity was supported by available…
10-Q · August 27, 2024
American Woodmark reported Q1 net sales of $459,128,000 (down from $498,255,000 a year ago) and diluted EPS of $1.89 (down from $2.28). Gross profit was $92,866,000 (20.2% margin) and operating income was $47,027,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.