•
Sep 29, 2024

MasterBrand Q3 2024 Earnings Report

MasterBrand's financial performance aligned with expectations, driven by operational excellence and the Supreme acquisition, despite market choppiness.

Key Takeaways

MasterBrand reported a 6.0% increase in net sales to $718.1 million, driven by the Supreme acquisition, but experienced a decrease in net income to $29.1 million and a decline in adjusted EBITDA margin to 14.6%. The company reiterates its 2024 financial outlook.

Net sales increased 6.0% year-over-year to $718.1 million, driven by 9% growth from the Supreme acquisition.

Net income decreased to $29.1 million, with net income margin declining to 4.1%.

Adjusted EBITDA margin decreased 160 basis points year-over-year to 14.6%.

Diluted earnings per share was $0.22, while adjusted diluted earnings per share was $0.40.

Total Revenue
$718M
Previous year: $677M
+6.0%
EPS
$0.4
Previous year: $0.46
-13.0%
Gross Profit Margin
33.1%
Previous year: 35.1%
-5.7%
Adjusted EBITDA Margin
14.6%
Previous year: 16.2%
-9.9%
Gross Profit
$238M
Previous year: $238M
+0.2%
Cash and Equivalents
$108M
Previous year: $123M
-11.5%
Free Cash Flow
$142M
Previous year: $133M
+7.4%
Total Assets
$2.96B
Previous year: $2.38B
+24.5%

MasterBrand

MasterBrand

Forward Guidance

The Company reiterates prior expectations for full year 2024, anticipating year-over-year growth in net sales and profitability.

Positive Outlook

  • Net sales year-over-year increase of low single-digit percentage
  • Organic decline of low single-digit percentage
  • Acquisition-related increase of mid single-digit percentage
  • Adjusted EBITDA in the range of $385 million to $405 million
  • Adjusted EBITDA margin of roughly 14.0% to 14.5%

Challenges Ahead

  • Demand trends across R&R and new construction end markets will remain mixed for the balance of the year.
  • Organic net sales performance is expected to be in line with the underlying market demand.
  • Reiterates 2024 financial outlook
  • Adjusted Diluted EPS in the range of $1.50 to $1.62
  • Choppiness in end markets