AMWD earnings analysis
What we found in AMWD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.97
- Gross margin
- 11.6%
- Operating margin
- -10.4%
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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