American Woodmark Corporation ( AMWD ) shares are trading lower on Tuesday. The company reported second-quarter net sales of $452.5 million, which missed the consensus of $458.29 million.

Adjusted EBITDA decreased 16.8% year over year to $60.2 million, with a margin of 13.3% vs. 15.3% a year ago quarter. Adjusted EPS of $2.08 missed the street view of $2.37.

As of October 31, 2024, the company held $56.7 million in cash and had $313.2 million available under its revolving credit facility.

In the six months of fiscal 2025, the company generated $52.7 million in cash from operating activities and achieved free cash flow of $30.1 million.

In the second quarter, the company purchased $17.7 million in transferable renewable energy tax credits to offset corporate income tax liabilities, with utilization planned for the fourth fiscal quarter of 2025.

In the quarter, the company repurchased 348,877 shares for $32.5 million. As of October 31, $33.0 million remained under the existing stock repurchase authorization.

On November 20, 2024, the Board approved an additional $125 million stock repurchase program, supplementing the previous authorization from November 29, 2023.

Outlook: American Woodmark ( AMWD ) expects FY25 net sales to decline in the low single digits and revised adjusted EBITDA forecast to $225 million – $235 million from the prior view of $225 million – $245 million. The company said it expects the demand trends to remain challenging.

“Despite macro-economic housing headwinds, our teams remain dedicated and focused on controlling our discretionary spend and focusing on operational improvements. When the macro-housing conditions improve, we’ll be strongly positioned in the marketplace,” said Paul Joachimczyk, Senior Vice President and Chief Financial Officer.

Price Action: AMWD shares are down 7.30% at $93.50 at the last check Tuesday.

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