MasterBrand Q4 2024 Earnings Report
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.
MasterBrand Revenue
MasterBrand EPS
MasterBrand Revenue by Segment
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.
- Uncertainty in tariff policies could impact costs.
- Market headwinds may limit near-term margin expansion.