Loading...
•
Dec 29, 2024
MasterBrand Q4 2024 Earnings Report
MasterBrand reported a decline in revenue and net income for Q4 2024, impacted by volume declines and lower selling prices, partially offset by contributions from the Supreme acquisition.
Key Takeaways
MasterBrand's Q4 2024 net sales decreased 1% year-over-year to $667.7 million, driven by a 6% volume decline and a 4% lower average selling price, partially offset by a 9% increase from the Supreme acquisition. Net income dropped 61% to $14.0 million, primarily due to lower gross profit margins, higher interest expenses, and acquisition-related costs. Adjusted EBITDA declined to $74.6 million, with an adjusted EBITDA margin of 11.2%. Adjusted diluted EPS stood at $0.21, down from $0.35 in Q4 2023.
Net sales declined by 1% year-over-year to $667.7 million.
Net income fell by 61% to $14.0 million due to lower gross profit margin and increased costs.
Adjusted EBITDA declined to $74.6 million, with an 11.2% margin.
Adjusted diluted EPS decreased to $0.21 from $0.35 in Q4 2023.
Forward Guidance
MasterBrand expects mid-single-digit net sales growth in FY 2025, driven by contributions from the Supreme acquisition and new product offerings. Adjusted EBITDA is projected to range between $380M and $410M, with an adjusted EBITDA margin of 13.5% to 14.3%. Adjusted diluted EPS is expected to be between $1.40 and $1.57.
Positive Outlook
- Net sales are expected to grow mid-single digits in 2025.
- Supreme acquisition will contribute to sales expansion.
- New product launches and channel-specific offerings to support growth.
- Previously implemented price increases to take effect.
- Cost reduction initiatives expected to improve margins.
Challenges Ahead
- Continued softness in the housing market could impact demand.
- Inflationary pressures on raw materials and labor remain a concern.
- Higher interest expenses may affect profitability.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...