NYSE$MBC

MasterBrand INC · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

MasterBrand's financial performance in Q2 2023 was marked by a decrease in net sales but an increase in net income and adjusted EBITDA margin.

MasterBrand reported a decrease in net sales but an increase in net income and adjusted EBITDA margin in Q2 2023. The company's performance was driven by execution on key strategic initiatives and disciplined use of The MasterBrand Way.

  • Net sales decreased 18.8% year-over-year to $695.1 million.
  • Net income increased 25.2% year-over-year to $51.2 million.
  • Adjusted EBITDA margin increased 281 basis points year-over-year to 15.3%.
  • The Company repurchased approximately 405 thousand shares of common stock for $4.4 million in the quarter.

Headline financials

Total Revenue

$695M

Previous: $856M-18.8%
EPS (adj)

$0.42

Previous: $0.32+31.2%
Gross Profit Margin

34.0%

Previous: 29.2%+16.4%
Adjusted EBITDA Margin

15.3%

Previous: 12.5%+22.4%
Capital Expenditures

-$11.4M

Previous: $11.1M-202.7%
Free Cash Flow

$39.8M

Previous: $67.9M-41.4%
Net Income

$51.2M

Previous: $41M+24.9%
Operating Income

$87.4M

Previous: $51.9M+68.4%
Gross Profit

$236M

Previous: $250M-5.4%
Cash & Equivalents

$110M

Previous: $126M-12.4%
Total Assets

$2.42B

No prior period
Stock-Based Comp

$4M

Previous: $2.7M+48.1%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$695M

Q2 2023-18.8%vs Q2 2022
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

The Company expects net sales year-over-year decline of mid teens percentage in the second half of 2023 and Adjusted EBITDA in the range of $345 million to $365 million for the full year 2023.

Tailwinds

  • Strong operational performance
  • Benefits of strategic initiatives
  • Confidence to raise adjusted EBITDA outlook for the year
  • Plan to capitalize on momentum built in the first half of 2023
  • Utilize strong cash generation to accelerate investments in the business

Headwinds

  • Net sales year-over-year decline of mid teens percentage in the second half of 2023
  • Softer end market demand expected in 2023
  • Adjusted EBITDA margins of roughly 12.5 to 13.0 percent for the full year 2023
  • Uncertainty regarding additional insurance proceeds related to the Jackson, Georgia production facility tornado
  • Full-year net sales outlook remains unchanged

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 Q2 2023

Historical avgQ2 2023

-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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