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Jun 29, 2025
MasterBrand Q2 2025 Earnings Report
MasterBrand reported its second quarter 2025 financial results, showing increased net sales but decreased net income and adjusted EBITDA margins, while also announcing a definitive merger agreement with American Woodmark.
Key Takeaways
MasterBrand delivered a strong second quarter with an 8% year-over-year increase in net sales, reaching $730.9 million, primarily driven by the Supreme acquisition and share gains in new construction. However, net income decreased by 18% to $37.3 million, and adjusted EBITDA remained flat at $105.4 million, with both margins declining. The company also announced a transformative merger agreement with American Woodmark.
Net sales increased by 8% year-over-year to $730.9 million, largely due to the Supreme acquisition and growth in new construction.
Net income decreased by 18% year-over-year to $37.3 million, resulting in a net income margin of 5.1%, down 160 basis points.
Adjusted EBITDA was flat year-over-year at $105.4 million, with the adjusted EBITDA margin decreasing by 110 basis points to 14.4%.
MasterBrand announced a definitive merger agreement with American Woodmark, aiming to create the industry's most comprehensive portfolio and achieve approximately $90 million in run-rate cost synergies by the third year post-transaction.
Forward Guidance
MasterBrand maintains its 2025 financial outlook, expecting a low single-digit percentage decrease in net sales, mid-single-digit organic net sales decrease, and mid-single-digit acquisition-related net sales increase. Adjusted EBITDA is projected to be between $315 million and $365 million, with adjusted diluted EPS in the range of $1.03 to $1.32. The company anticipates generating free cash flow in excess of net income.
Positive Outlook
- Company maintains its previously stated guidance for the full year 2025.
- Organic net sales performance is expected to outperform the underlying market.
- New products and channel-specific offerings are gaining traction.
- Previously implemented price actions are contributing positively.
- Commitment to generating free cash flow in excess of net income for the full year.
Challenges Ahead
- Expected year-over-year decrease in net sales of a low single-digit percentage.
- Anticipated mid-single-digit percentage decrease in organic net sales.
Historical Earnings Impact
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