NYSE$MBC

MasterBrand INC · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

MasterBrand's Q1 2024 performance was marked by a sales decrease, alongside improved profitability and cash flow management.

MasterBrand reported a 5.7% decrease in net sales to $638.1 million, but net income increased to $37.5 million. The company saw an adjusted EBITDA margin expansion to 12.4% and generated $11.7 million in free cash flow. MasterBrand reiterated its 2024 financial outlook.

  • Net sales decreased by 5.7% year-over-year, reaching $638.1 million.
  • Net income increased to $37.5 million, compared to $35.0 million in the prior year.
  • Adjusted EBITDA margin expanded by 40 basis points to 12.4%.
  • Free cash flow was $11.7 million, driven by disciplined working capital management.

Headline financials

Total Revenue

$638M

Previous: $677M-5.7%
EPS

$0.29

Previous: $0.28+3.6%
Net Income Margin

5.9%

No prior period
Gross Profit Margin

32.1%

Previous: 30.2%+6.3%
Adjusted EBITDA Margin

12.4%

Previous: 12.0%+3.3%
Adjusted Net Income Margin

6.4%

No prior period
Capital Expenditures

-$7M

Previous: -$2.9M-141.4%
Free Cash Flow

$30.5M

Previous: $32.1M-5.0%
Net Income

$37.5M

Previous: $35M+7.1%
Operating Income

$62.8M

Previous: $65.7M-4.4%
Gross Profit

$205M

Previous: $205M+0.0%
Cash & Equivalents

$154M

Previous: $116M+32.2%
Total Assets

$2.4B

Previous: $2.51B-4.3%
Stock-Based Comp

$4.3M

Previous: $4.9M-12.2%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$638M

Q1 2024-5.7%vs Q1 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

MasterBrand reiterated its full year 2024 outlook, anticipating net sales to decline by a low single-digit percentage to flat, adjusted EBITDA in the range of $370 million to $400 million, and adjusted diluted EPS in the range of $1.40 to $1.60.

Tailwinds

  • Net sales performance is expected to align with underlying market demand.
  • Initiatives are designed to gain market share, offsetting trade downs and soft end market demand.
  • Flexible manufacturing network should allow for stable adjusted EBITDA margin.
  • Continued execution on strategic initiatives will help achieve the full year outlook.
  • Company is investing in the business for future growth.

Headwinds

  • Net sales are expected to decline by a low single-digit percentage to flat year-over-year.
  • Trade downs and continued soft end market demand are expected to persist.
  • There is some increased macroeconomic uncertainty.
  • Difficult to forecast the timing or amount of various items that may be excluded from adjusted EBITDA.
  • Estimating GAAP measures requires a level of precision that is unavailable for future periods.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

53%

9 / 17 earnings

Positive

+18.6%

Q1 2022

Best reaction

-15.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.2%-14.0%+0.2%
Q4 2025-12.7%-14.7%-41.0%
Q3 2025-14.4%-15.4%-11.8%
Q1 2025-15.9%-7.8%-13.2%
Q4 2024-5.9%-9.4%-17.7%
Q3 2024+0.2%-3.4%-5.4%
Q2 2024-4.4%-4.1%+0.8%
Q1 2024-7.6%-5.1%-10.1%
Q4 2021+8.0%+14.6%+21.3%
Q4 2023+7.7%+15.0%+22.4%
Q3 2022+1.7%+4.1%+24.7%
Q3 2023+0.3%+5.5%+23.4%
Q2 2022+5.0%+0.0%-1.8%
Q2 2023+1.3%+3.9%-0.7%
Q1 2022+18.6%+24.3%+23.8%
Q1 2023+18.5%+22.1%+29.0%
Q4 2022-2.8%-6.0%-22.2%
Q3 2021
Q2 2021
Q1 2021

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