While second quarter net sales were down at American Woodmark, the decrease was partially offset by operational improvements in its manufacturing facilities, a stabilizing supply chain, and reduced overhead spending. 

The Winchester, Virginia-based cabinet maker, an FDMC 300 listed company with 2023 sales of $1.86 billion, said in fiscal 2024 the company expects low double digit net sales will decline year-over-year, and its adjusted EBITDA will be in the range of $235 million to $250 million. 

“Our teams delivered strong financial performance in the second quarter of fiscal year 2024 despite the slowing demand environment,” said Scott Culbreth, president and CEO. “Consistent with the first quarter of fiscal year 2024 performance, net sales and Adjusted EBITDA exceeded our expectations as improved operational performance continues. The Company’s net sales outlook for the remainder of the fiscal year remains unchanged from the prior outlook but we now expect stronger Adjusted EBITDA performance for the remainder of the fiscal year consistent with the improvements needed to meet our long-term goals.”
 
Second quarter results
Net sales for the second quarter of fiscal 2024 decreased $87.6 million, or 15.6%, to $473.9 million compared with the same quarter of the prior fiscal year. Net income was $30.3 million ($1.85 per diluted share) compared with $28.8 million ($1.73 per diluted share) in the same quarter of the prior fiscal year. Net income for the second quarter of fiscal 2024 increased by $1.6 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain, and reduced overhead spending, partially offset by a decrease in net sales.  Adjusted EBITDA for the second quarter of fiscal 2024 increased $4.7 million, or 7.0%, to $72.3 million, or 15.3% of net sales, compared to $67.6 million, or 12.0% of net sales, for the same quarter of the prior fiscal year.
 
Fiscal year-to-date results
Net sales for the first six months of fiscal 2024 decreased $132.3 million, or 12.0%, to $972.1 million compared with the same period of the prior fiscal year. Net income was $68.2 million ($4.13 per diluted share) compared with $48.9 million ($2.94 per diluted share) in the same period of the prior fiscal year. Net income for the first six months of fiscal 2024 increased $19.3 million due to operational improvements in our manufacturing facilities, a stabilizing supply chain, and reduced overhead spending, partially offset by a decrease in net sales and a $4.9 million pre-tax charge related to Antidumping and Countervailing Duty Orders on Vietnamese plywood imports recognized in the first quarter of fiscal 2024, which we have previously disclosed. Adjusted EBITDA for the first six months of fiscal 2024 increased $23.4 million, or 18.8%, to $147.5 million, or 15.2% of net sales, compared to $124.1 million, or 11.2% of net sales, for the same period of the prior fiscal year.