MasterBrand Reports Second Quarter 2025 Financial Results

MasterBrand, Inc. (the “Company,” or “MasterBrand”), the largest residential cabinet manufacturer in North America, announced second quarter 2025 financial results.

• Net sales increased 8% year-over-year to $730.9 million
• Net income decreased 18% year-over-year to $37.3 million, representing a net income margin of 5.1%, down 160 basis points year-over-year
• Adjusted EBITDA¹ was flat year-over-year at $105.4 million, representing an Adjusted EBITDA margin¹ of 14.4%, down 110 basis points year-over-year
• Diluted earnings per share was $0.29 compared to $0.35 in the prior year period; adjusted diluted earnings per share¹ was $0.40, compared to $0.45 in the prior year period
• Operating cash flow for the twenty-six weeks ended June 29, 2025 was $53.4 million with free cash flow¹ of $25.5 million
• Company maintains 2025 financial outlook
• Company separately announces definitive merger agreement with American Woodmark, strengthening the combined company’s financial profile to amplify returns, advance innovation, and accelerate value delivery

“MasterBrand delivered a strong quarter, with year-over-year net sales growth driven by the acquisition of Supreme and incremental share gains, particularly in new construction,” said Dave Banyard, President and Chief Executive Officer. “Our associates’ continued, disciplined use of The MasterBrand Way, further progress on our Supreme integration, and previous price and cost actions, allowed us to effectively navigate through the challenging external environment to deliver second quarter adjusted EBITDA above our expectations. We’re encouraged by our momentum and confident in our ability to deliver attractive full-year adjusted EBITDA margins while continuing to invest in the business and execute on our long-term growth strategy.”

“Today, we are also pleased to announce our merger agreement with American Woodmark, which will be a transformative step that will create the industry’s most comprehensive portfolio of trusted cabinet brands and products,” Banyard continued. “By combining two highly complementary businesses, the proposed merger is expected to result in a combined company with stronger channel partnerships, expanded geographic reach, enhanced operational agility, and the ability to deliver meaningful value. With a strengthened financial profile, the combined company is expected to be better positioned to generate strong free cash flow, navigate market cycles with greater resilience, and further invest in growth, automation, and technology. Leveraging the successful progress in our Supreme integration efforts, we believe we are well-positioned to realize approximately $90 million in run-rate cost synergies by the third year following transaction close.”

Second Quarter 2025

Net sales were $730.9 million, an increase of 8% compared to the second quarter of 2024, driven by a positive contribution of 10% growth from our Supreme acquisition and 3% growth from the flow through of our anticipated net average selling price (ASP) improvements, partially offset by volume declines of 5% in our base business, specifically with our customers servicing the repair and remodel market. Gross profit was $239.7 million, compared to $231.0 million in the prior year. Gross profit margin decreased 130 basis points to 32.8% on lower volume and unfavorable fixed cost leverage, partially offset by the positive contribution from Supreme, continuous improvement efforts net of inflation, and higher net ASP.

Net income was $37.3 million, compared to $45.3 million in the second quarter of 2024, due to higher SG&A expenses, primarily driven by the addition of Supreme, along with personnel inflation in our legacy business, and increased investment spending. These higher costs were partially offset by lower interest expense, which declined year-over-year due to the absence of one-time charges associated with the Senior Notes issued in June 2024 to fund the acquisition of Supreme. Net income margin was 5.1% compared to 6.7% in the prior year.

Adjusted EBITDA¹ was $105.4 million, compared to $105.1 million in the second quarter of 2024. Adjusted EBITDA margin¹ decreased 110 basis points to 14.4%, on lower volume and unfavorable fixed cost leverage, which more than offset savings from our continuous improvement efforts net of inflation, contributions from Supreme, and the benefit of anticipated net ASP improvements.

Diluted earnings per share were $0.29 compared to $0.35 in the second quarter of 2024. Adjusted diluted earnings per share¹ were $0.40 compared to $0.45 in the second quarter of 2024.

Balance Sheet, Cash Flow and Capital Allocation

As of June 29, 2025, the Company had $120.1 million in cash and $418.6 million of availability under its revolving credit facility. Total debt was $998.7 million and our ratio of total debt to net income from the most recent trailing twelve months was 10.7x as of June 29, 2025. For the same period, net debt¹ was $878.6 million and our ratio of net debt to adjusted EBITDA¹ was 2.5x.

Net cash provided by operating activities was $53.4 million for the twenty-six weeks ended June 29, 2025, compared to net cash provided by operating activities of $96.1 million for the twenty-six weeks ended June 30, 2024. This decline was due to lower net income coupled with interest payments related to the Senior Notes issued in June 2024 to fund the acquisition of Supreme. Free cash flow¹ was $25.5 million for the twenty-six weeks ended June 29, 2025, compared to $77.8 million for the twenty-six weeks ended June 30, 2024.

During the twenty-six weeks ended June 29, 2025, the Company repurchased approximately 1.4 million shares of common stock for approximately $18.1 million.

2025 Financial Outlook

For full year 2025, the Company expects the following:

• Net sales year-over-year decrease of low single-digit percentage
  • Organic net sales decrease of mid-single-digit percentage
  • Acquisition-related net sales increase of mid-single-digit percentage
• Adjusted EBITDA ^1,2 in the range of $315 to $365 million, with related adjusted EBITDA margin ^1,2 of roughly 12.0% to 13.5%
• Adjusted diluted earnings per share ^1,2 in the range of $1.03 to $1.32

The Company continues to expect organic net sales performance to outperform the underlying market, as new products and channel specific offerings, and previously implemented price actions gain traction. In addition, the Company remains committed to its full-year objective of generating free cash flow in excess of net income.

This 2025 Financial Outlook only reflects the impact of tariffs in effect as of the date of this release. 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. We undertake no obligation to update this outlook as circumstances evolve. Additionally, this outlook does not reflect any anticipated financial benefits from the proposed merger with American Woodmark Corporation (“American Woodmark”), nor does it include expected transaction-related costs.

“We saw meaningful improvements in performance throughout the second quarter, particularly in May and June, with stronger sales and adjusted EBITDA contributing to a solid result in the quarter,” said Andi Simon, Executive Vice President and Chief Financial Officer. “Our solid second quarter financial performance, along with our ability to navigate this challenging environment and an unchanged market outlook, gives us the confidence to maintain our previously stated guidance for the year. Further, our merger with American Woodmark is expected to strengthen our financial profile by unlocking meaningful cost synergies, enhancing free cash flow generation, and positioning the combined company to further invest in growth opportunities following the close of the transaction, which is expected in early 2026.”

1	–	See “Non-GAAP Financial Measures” and the corresponding financial tables at the end of this press release for definitions and reconciliations of non-GAAP measures.
2	–	We have not provided a reconciliation of our fiscal 2025 adjusted EBITDA, adjusted EBITDA margin and adjusted diluted EPS guidance because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and which may be excluded from adjusted EBITDA, adjusted EBITDA margin and adjusted diluted EPS. Additionally, estimating such GAAP measures and providing a meaningful reconciliation for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions used for historical non-GAAP measures.

Transaction Details

MasterBrand and American Woodmark announced that they have entered into a definitive agreement whereby MasterBrand will combine with American Woodmark via an all-stock transaction to accelerate value delivery. Under the terms of the agreement, at closing, American Woodmark shareholders will receive 5.150 shares of MasterBrand common stock for each share of American Woodmark common stock. The consideration implies a pro forma equity value of $2.4 billion and an enterprise value of $3.6 billion based on the exchange ratio and closing share price as of August 5, 2025. MasterBrand anticipates run-rate cost synergies of approximately $90 million by the end of year three and accretion to MasterBrand’s adjusted diluted EPS in year two, following close.

The transaction consideration is comprised solely of MasterBrand stock; however, MasterBrand plans to arrange a revolver expansion with its current banking group in order to pay off American Woodmark debt at close of the transaction, which is expected to occur in early 2026, subject to approval of the transaction by MasterBrand and American Woodmark shareholders, the receipt of regulatory approvals, and the satisfaction of other customary closing conditions.

About MasterBrand

MasterBrand, Inc. (NYSE: MBC) is the largest manufacturer of residential cabinets in North America and offers a comprehensive portfolio of leading residential cabinetry products for the kitchen, bathroom and other parts of the home. MasterBrand products are available in a wide variety of designs, finishes and styles and span the most attractive categories of the cabinets market: stock, semi-custom and premium cabinetry. These products are delivered through an industry-leading distribution network of over 7,700 dealers, major retailers and builders. MasterBrand employs over 13,000 associates across more than 20 manufacturing facilities and offices. Additional information can be found at www.masterbrand.com.

Source: MasterBrand, Inc.