Publicly traded door and window companies released their first-quarter financial results this week showing decreases in net sales among door and window manufacturers. Meanwhile, Fortune Brands Innovations added a bright spot for hardware, showing a 9% increase year over year in its security products sector. Builders FirstSource squeaked out a win with a 0.2% year-over-year increase in net sales on the dealer/distributor side of the industry, though the news wasn’t as good for fenestration. The company’s sales for doors, windows and millwork decreased by 0.8% year-over-year, going from $1.038 to $1.030 billion. The segment represents the largest share by product category.

Masonite

For the three months ending March 31, Masonite Corp. reported an 8% decrease in net sales, with a 59% increase in net income attributable to Masonite. The company’s adjusted EBITDA was 9% lower on a year-over-year basis.

“Although end-market conditions remain choppy, we saw a sequential improvement in performance as we moved through the quarter,” said Howard Heckes, president and CEO.

“Disciplined price-cost management continues to benefit margins in our North American residential segment and the integration of the Fleetwood acquisition is progressing according to plan,” Heckes said.

Subsequent to the quarter end, the company announced the pending sale of its architectural business segment. That move “further sharpens our focus on capturing opportunities in our residential end markets,” he suggested.

Total company gross profit was $165 million in the first quarter of 2024, down 3%, as positive contributions from price-cost management initiatives and the Fleetwood acquisition were offset by impacts of lower volumes. Gross profit as a percentage of net sales increased 130 basis points, to 24.8%.

On February 8, 2024, Masonite entered into an agreement to be acquired by Owens Corning, under which Owens Corning will acquire all of the outstanding shares of Masonite for $133.00 per share. On April 25, 2024, Masonite shareholders voted to approve the transaction, which officials said is expected to close in May 2024.

Builders FirstSource

On the dealer/distributor side of the industry, Builders FirstSource registered a 0.2% year-over-year increase in net sales, coming in at $3.9 billion. However, the increase wasn’t derived from doors, windows and millwork, which decreased by 0.8% year-over-year.

The company’s gross profit margin percentage decreased 190 basis points to 33.4%, a change officials primarily attributed to “a timing shift in product mix toward lower-margin, early stage homebuilding products, as well as margin normalization, particularly in multi-family.”

The company’s net income decreased 22.5% to $258.8 million.

Builders FirstSource repurchased 100,000 shares of common stock in the first quarter, at an average price of $202.67.

“As we expected, a weakening multi-family market and higher mortgage rates driving affordability challenges were headwinds to start the year,” said Dave Rush, the company’s CEO. Despite those challenges, the company is driving growth through a “value-added products portfolio” and an “industry-leading digital platform,” Rush said.

Jeld-Wen

Jeld-Wen reported net revenues in the first quarter from continuing operations of $959.1 million, a decrease of 11.2%. Officials attribute the decrease to a decline in core revenue of 12%, resulting from a 12% drop in volume/mix, due to “weak macro-economic conditions.” The company’s net loss from continuing operations was $27.7 million, compared to $8.5 million the same quarter a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $68.7 million, a decrease of $10.6 million year over year.

CEO William Christensen reported that, despite a “challenging demand environment,” the company made progress on streamlining operations and improving customer experience. “I am proud of how our associates remained focused on meeting our customers’ expectations while working diligently to implement the necessary changes to fix our foundation,” Christensen said.

Net revenues from continuing operations for the three months ended March 30 was $959.1 million, a decrease of $121.4 million, or 11.2%, compared to the same period last year.

Net revenue from North America was $680.0 million, marking a decline of $88.0 million.

In Europe, net revenue was $279.1 million, a decline of $33.4 million.

Fortune Brands Innovations

Fortune Brands offered a bright spot in quarterly results, with sales that increased by 7% over first quarter 2023 to $1.1 billion, though organic sales dropped by 3% to $1 billion. First-quarter earnings per share were $0.76, an increase of 13% versus a year prior. Fortune Brands CEO Nicholas Fink attributed his company’s results partly to “accelerating in connected products.”

Net sales for security products (including locks) rose by 9%, year over year, to $169 million, while organic sales of the same products fell by 8% to $143 million.

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