JELD-WEN Holding Stock

JELD-WEN Holding, Inc. operates as a leading global designer, manufacturer, and distributor of high-performance interior and exterior doors, windows, and related building products, serving the new construction and Repair and Remodel (R&R) sectors.

The JELD-WEN family of brands includes JELD-WEN worldwide; LaCantina and VPI in North America; and Swedoor, DANA, and Kellpex in Europe. The company’s customers include wholesale distributors and retailers, as well as individual contractors and consumers.

As a leading global manufacturer of interior and exterior building products, the company has invested significant capital to build a business platform. The company operates 84 manufacturing and distribution facilities in 15 countries located primarily in North America and Europe.

Business Strategy

The company’s strategy includes streamlining and simplifying the business, optimizing product mix, rationalizing its global footprint and strategically sourcing its raw materials to improve returns on its investments; enhancing performance and productivity initiatives, such as upgrading go-to-market processes, optimizing its sales force through training, right-sizing and consolidating its manufacturing network, investing in automation and leveraging its scale to streamline sourcing; and investing in its brands and marketing, and commercial excellence programs, such as customer segmentation, and price optimization.

Products

The company provides a broad portfolio of interior and exterior doors, windows, and related building products manufactured from a variety of wood, metal, and composite materials offered across a full spectrum of price points. In the year ended December 31, 2023, the company’s door sales accounted for 63% of net revenues, its window sales accounted for 21% of net revenues, and its other ancillary products and services accounted for 16% of net revenues.

Doors

The company is a leading global manufacturer of residential doors. The company offers a full line of residential interior and exterior door products, including patio doors and folding or sliding wall systems. The company’s non-residential door product offering is concentrated in Europe, where it is a leading non-residential door provider by net revenues in Germany, Austria, Switzerland, and Scandinavia. The company also offers non-residential doors across North America in certain markets. To meet the design, durability, and energy efficiency requirements of its customers, the company’s product portfolio encompasses many types of materials, including wood veneer, composite wood, steel, glass, and fiberglass that satisfy a range of price points from entry-level to high-end. The company’s highest volume products include molded interior doors, which are made from two composite molded door skins joined by a wooden frame and filled with a hollow honey-cell core or other solid core materials. These value doors are the most popular choice for interior residential applications in North America, France and the U.K. In the U.S., the company manufactures exterior doors primarily made from fiberglass and steel. The company’s fiberglass product line has grown in popularity due to its attractive thermal properties, aesthetics, and durability. The company has dedicated additional resources to its exterior fiberglass door business, which includes door slabs and door systems. The company also manufacturers stile and rail doors in is the U.S. manufacturing facilities. In Europe, the company also sells high performance residential and non-residential doors, with features, such as soundproofing, fire resistance, radiation resistance, security, and in Scandinavia the company designs and manufactures doors which can withstand extreme environmental conditions in coastal and arctic environments. Additionally, the company offers profitable value-added distribution services for residential and non-residential products in all of its markets, including customizable configuration services, specialized component options, and multiple finishing options. These services are valued by labor constrained customers and allow the company to capture more profit from the sale of its door products. In the U.S., the company’s acquisitions of ABS and MMI Door are examples of its increased focus on value-added services.

Windows

The company is a leading manufacturer of residential windows in North America. The company manufactures a full line of residential wood, vinyl, and wood composite windows in North America. The company’s window product lines comprise a full range of styles, features, and energy-saving options in order to meet the varied needs of its customers in each of its regional end markets. For example, the company’s high-performance wood and vinyl windows with multi-pane glazing and superior energy efficiency properties are in greater demand in Canada and the northern U.S. In addition, the company’s value windows are popular with production builders and the remodel and replacement markets. In select coastal regions, the company offers impact windows that can withstand the impact of hurricane force winds and satisfy local building codes. The company’s wood windows remain prevalent as a high-end option because they possess both insulating qualities and the beauty of natural wood. In North America, the company’s wood windows and patio doors include its proprietary AuraLast treatment, which is a unique water-based wood protection process that provides protection against wood rot and decay. AuraLast is unique in its ability to penetrate and protect the wood through to the core, as opposed to being a shallow or surface-only treatment. With the acquisition of LaCantina Doors, the company added LaCantina’s innovative folding, multi-slide, and swing patio doors and wall systems to its already robust windows product offering. The company also offers a non-residential line of vinyl windows for a broad assortment of commercial applications. With the acquisition of VPI, the company added vinyl windows for mid-rise, multi-family, institutional, hospitality, and commercial properties to its product lineup.

Other Ancillary Products and Services

In certain regions, the company sells a variety of other products that are ancillary to its door and window offerings. These products include trim board, glass, hardware and locks, and window screens. The company also sells molded door skins to certain customers pursuant to long-term contracts, and these customers in turn use the molded door skins to manufacture interior doors and compete directly against it in the marketplace. Miscellaneous installation and other services are also included in this category.

Segments

The company operates within the global market for residential and non-residential doors and windows with sales spanning approximately 71 countries. While the company operates globally, the markets for doors and windows are regionally distinct with suppliers manufacturing finished goods in proximity to their customers. Finished doors and windows are generally bulky, expensive to ship, and, in the case of windows, fragile. Designs and specifications of doors and windows also vary from country to country due to differing construction methods, building codes, certification requirements, and consumer preferences. Customers also demand short delivery times and can require special order customizations.

The company’s operations are managed and reported in two segments, organized and managed principally by geographic region. The company’s segments are North America and Europe.

North America

The company is the only manufacturer that offers a full line of interior and exterior door and window products, allowing it to offer a more complete solution to customer base. The company’s total market opportunity in North America will continue to include non-residential applications and other related building products.

Europe

The European market for doors is highly fragmented, and the company has the only platform in the industry capable of serving nearly all European countries.

Seasonality

In a typical year, the company’s operating results are impacted by seasonality. Historically, peak season for home construction and remodeling in the company’s North America and Europe segments, generally corresponds with the second and third calendar quarters, and therefore its sales volume is usually higher during those quarters (year ended December 31, 2023).

Sales and Marketing

The company actively markets and sells its products directly to its customers around the world through its global sales force and indirectly through its marketing and branding initiatives, which includes its enhanced social media presence. The company’s global sales force, which is organized and managed regionally, focuses on building and maintaining relationships with key customers, as well as managing customer supply needs and arranging in-store promotional initiatives. In North America and Europe, the company also has dedicated teams that focus on its retail customers.

The company has made investments in North America to streamline and automate order management and continue to expand post sales care through its virtual OnSite Applications and service scheduling. In Europe, the company has started investments in new door configuration software to improve its customer’s ordering experience with it which will enhance its digital service offering and improve its Net Promoter Score.

Customers

The company sells its products worldwide and have well-established relationships with numerous customers throughout the door and window distribution chain in each of its end markets, including retail home centers, wholesale distributors, and building product dealers that supply homebuilders, contractors, and consumers. The company’s wholesale customers include such industry leaders as ProBuild/Builders First Source, Saint-Gobain, and the Holzring group. The company’s home center customers include, among others, The Home Depot, Lowe’s Companies, and Menards in North America; and B&Q, Howdens, and Bauhaus in Europe. The Home Depot, a customer of the company’s North America segment, represents 15% of its consolidated net revenues during the year ended December 31, 2023. Lowe’s Companies, another customer of the company’s North America segment, represents 11% of its consolidated net revenues during the year ended December 31, 2023.

Dispositions

On July 2, 2023, the company completed the sale of its Australasia business (JW Australia).

Competition

For North American interior doors, the company’s major competitors include Masonite, Steves & Sons, Inc. and several smaller independent door manufacturers. For North American exterior doors, competitors include Masonite, Therma-Tru (a division of Fortune Brands), Plastpro and Steves & Sons, Inc. The North American window market is highly fragmented, with sizable competitors including Andersen, Pella, Marvin, Ply-Gem (a division of Cornerstone Building Brands, formerly NCI Building Systems), and Milgard (a division of MI Windows and Doors). The door manufacturers that the company primarily competes with in its European markets include Huga, Prüm/Garant (a division of Arbonia Group), Viljandi, Masonite, Keyor, Herholz, and Hormann.

Intellectual Property

The company’s U.S. window and door trademarks include JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, and EVELIN. The company’s trademarks are either registered or have been used as common law trademarks by it. The trademarks the company uses outside the U.S. include the Swedoor, Dooria, DANA, Mattiovi, Zargag , Alupan, Domoferm, Kellpax, and HSE marks in Europe.

Environmental Regulatory Actions

The company has been subject to claims, including having been named as a potentially responsible party, in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar state and foreign laws, regulations, and statutes, and may be named a potentially responsible party in other similar proceedings in the future. The company has also been the subject of certain environmental regulatory actions by the EPA and state regulatory agencies in the U.S. and foreign governmental authorities in jurisdictions in which it operates and is obligated to make certain expenditures in settlement of those actions.

History

JELD-WEN Holding, Inc. was founded in 1960. The company was incorporated in 2016.