RestructuringMay 12, 2026, 04:24 PM
American Woodmark to Close Monterrey Plant, Expects $7.5M Annual Savings
AI Summary
American Woodmark Corporation's Board of Directors authorized the wind-down and closure of its Monterrey, Mexico plant, effective May 4, 2026. This move, driven by low market demands and rising costs, involves consolidating operations into its Pacifico plant in Tijuana and shifting some manufacturing to the United States. The company anticipates approximately $7.5 million in annual cost savings starting in fiscal year 2027. However, it expects to incur total one-time charges of $36.0 million to $40.0 million related to this Mexico Plant Consolidation, with the majority occurring in fiscal year 2027.
Key Highlights
- American Woodmark's Board authorized the wind-down and closure of its Monterrey, Mexico plant by June 30, 2026.
- Operations will consolidate into the Pacifico plant in Tijuana, Mexico, and shift some manufacturing to the US.
- The company expects approximately $7.5 million in annual cost savings starting in fiscal year 2027.
- Total one-time charges related to the consolidation are estimated to be $36.0 million to $40.0 million.
- Approximately $32.5 million to $36.5 million of these charges are expected in fiscal year 2027.
- Fiscal 2027 cash costs include $1.2 million for employees and up to $3.4 million for equipment moves and plant closure.
- Fiscal 2027 non-cash charges include $12.5 million to $14.7 million for lease right-of-use asset impairment.