- \n
- \nNet sales decreased 2.7% year-over-year to $698.9 million\n<\/li>\n
- \nNet income margin decreased 150 basis points year-over-year to 2.6%\n<\/li>\n
- \nAdjusted EBITDA margin1<\/sup> decreased 160 basis points year-over-year to 13.0%\n<\/li>\n
- \nDiluted earnings per share was $0.14 compared to $0.22 in the prior year period; adjusted diluted earnings per share1<\/sup> was $0.33, compared to $0.40 in the prior year period\n<\/li>\n
- \nCompany updates 2025 financial outlook\n<\/li>\n<\/ul>\n
BEACHWOOD, Ohio–(BUSINESS WIRE<\/a>)–
\nMasterBrand, Inc. (NYSE: MBC, the \u201cCompany,\u201d or \u201cMasterBrand\u201d), the largest residential cabinet manufacturer in North America, today announced third quarter 2025 financial results.\n<\/p>\n\n\u201cMasterBrand\u2019s third quarter performance reflects disciplined execution in our strategic initiatives and resilience amid a persistently soft demand environment, delivering top-line results consistent with expectations,\u201d said Dave Banyard, President and Chief Executive Officer. \u201cWe continue to take swift, decisive action in response to the dynamic trade environment, guided by thoughtful contingency planning and enabled by our agile operating structure under the MasterBrand Way. At the same time, we remain focused on closing our previously announced merger transaction with American Woodmark. We are excited about the opportunity to bring together two exceptional organizations to accelerate growth, drive innovation, and deliver long-term value for our shareholders.\u201d\n<\/p>\n
Third Quarter 2025<\/span><\/b><\/p>\n
\nNet sales were $698.9 million, a decrease of 2.7% compared to the third quarter of 2024, following mid- to high single-digit market decline, partially offset by the continued flow through of previously implemented price and share gains, particularly in the builder channel.\n<\/p>\n
\nGross profit was $218.2 million, compared to $238.0 million in the prior year. Gross profit margin decreased 190 basis points to 31.2% on lower volume, the related unfavorable fixed cost leverage and tariffs, partially offset by realized net average selling price (\u201cASP\u201d) improvements, continuous improvement efforts net of inflation and Supreme integration synergies.\n<\/p>\n
\nNet income was $18.1 million, compared to $29.1 million in the third quarter of 2024, and net income margin was 2.6%, compared to 4.1% in the prior year as a result of lower gross profit, partially offset by lower income tax expense.\n<\/p>\n
\nAdjusted EBITDA1<\/sup> was $90.6 million, compared to $104.5 million in the third quarter of 2024. Adjusted EBITDA margin1<\/sup> decreased 160 basis points to 13.0% due to lower volume and the related unfavorable fixed cost leverage, as well as tariffs, partially offset by continuous improvement efforts net of inflation, realized net ASP improvements and Supreme integration synergies.\n<\/p>\n
\nDiluted earnings per share were $0.14 compared to $0.22 in the third quarter of 2024. Adjusted diluted earnings per share1<\/sup> were $0.33 compared to $0.40 in the third quarter of 2024.\n<\/p>\n
Balance Sheet, Cash Flow and Capital Allocation<\/span><\/b><\/p>\n
\nAs of September 28, 2025, the Company had $114.8 million in cash and $461.9 million of availability under its revolving credit facility. Total debt was $954.1 million, and our ratio of total debt to net income from the most recent trailing twelve months was 11.5x as of September 28, 2025. For the same period, net debt1<\/sup> was $839.3 million and our ratio of net debt to adjusted EBITDA1<\/sup> was 2.5x.\n<\/p>\n
\nNet cash provided by operating activities was $108.8 million for the thirty-nine weeks ended September 28, 2025, compared to $176.9 million for the thirty-nine weeks ended September 29, 2024. This decline was due to lower net income, required bond interest payments, timing of collections and deal-related expenditures. Free cash flow1<\/sup> was $65.0 million for the thirty-nine weeks ended September 28, 2025, compared to $142.3 million for the thirty-nine weeks ended September 29, 2024, driven by lower net cash provided by operating activities and higher capital expenditures related to the integration of Supreme.\n<\/p>\n
\nDuring the thirty-nine weeks ended September 28, 2025, the Company repurchased approximately 1.4 million shares of common stock for approximately $18.1 million. No share repurchases were made during the third quarter of 2025. The Company is restricted from repurchasing shares via its pre-established Rule 10b5-1 program under its merger agreement with American Woodmark until the close of the merger.\n<\/p>\n
2025 Financial Outlook<\/span><\/b><\/p>\n
\nFor full year 2025, the Company expects the following:\n<\/p>\n
- \n
- \nNet sales year-over-year approximately flat<\/p>\n
- \n
- \nOrganic net sales decrease of mid single-digit percentage\n<\/li>\n
- \nAcquisition-related net sales increase of mid single-digit percentage\n<\/li>\n<\/ul>\n<\/li>\n
- \nAdjusted EBITDA1,2<\/sup> in the range of $315 to $335 million, with related adjusted EBITDA margin1,2<\/sup> of roughly 11.5% to 12.0%\n<\/li>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $1.01 to $1.13\n<\/li>\n<\/ul>\n
\nMasterBrand continues to expect organic net sales performance to outperform the underlying market, as new products, channel-specific offerings and previously implemented price actions gain traction. The Company updated its guidance to account for the expected impact of recently enacted tariffs on operating performance. MasterBrand continues to closely evaluate the impact of tariffs and is actively executing a comprehensive mitigation strategy. This includes targeted pricing adjustments, supplier renegotiations, alternative sourcing and optimizing or relocating manufacturing operations to offset tariff exposure as trade policy evolves.\n<\/p>\n
\nThis 2025 Financial Outlook only reflects the impact of those tariffs in effect as of the date of this release, which includes the recently announced Section 232 lumber tariffs, effective October 14, 2025. It does not reflect any other potential tariff impacts on Company costs or end market demand. The Company believes the dynamic nature of the tariffs, specifically the uncertainty of implementation, potential timing and duration, limits the usefulness of estimating this information. MasterBrand undertakes no obligation to update this outlook as circumstances evolve. Additionally, this outlook does not reflect any anticipated financial benefits from the pending merger with American Woodmark, nor does it include expected transaction or integration-related costs.\n<\/p>\n
\n\u201cWhile choppiness in end market demand continued in the third quarter, and the resulting reduction in volume pressured our fixed cost absorption, we executed effectively and maintained solid profitability,\u201d said Andi Simon, Executive Vice President and Chief Financial Officer. \u201cOur teams remained focused, maintaining pricing, advancing productivity initiatives, and positioning the business for stronger margins as market conditions improve. With the integration of Supreme progressing as expected and planning for our potential merger with American Woodmark underway, we are well positioned to capture synergies and drive long-term value creation.\u201d\n<\/p>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $1.01 to $1.13\n<\/li>\n<\/ul>\n
- \nDiluted earnings per share was $0.14 compared to $0.22 in the prior year period; adjusted diluted earnings per share1<\/sup> was $0.33, compared to $0.40 in the prior year period\n<\/li>\n
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