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Jun 29
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.
MasterBrand
MasterBrand
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.
- Outlook does not reflect any potential tariff impacts on Company costs or end market demand.
- Outlook does not reflect any anticipated financial benefits from the proposed merger with American Woodmark.
- Outlook does not include expected transaction-related costs for the merger.