NYSE$MBC

MasterBrand INC · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

MasterBrand experienced a decrease in net sales but improved adjusted EBITDA margin and maintained strong free cash flow.

MasterBrand reported a slight decrease in net sales but achieved an increase in adjusted EBITDA margin and generated strong free cash flow. The company's performance was driven by strategic initiatives and the acquisition of Supreme Cabinetry Brands, contributing to confidence in outperforming the market and achieving long-term financial targets.

  • Net sales decreased 2.7% year-over-year to $676.5 million.
  • Net income was $45.3 million, with a net income margin of 6.7%.
  • Adjusted EBITDA margin increased 20 basis points year-over-year to 15.5%.
  • Diluted earnings per share was $0.35, and adjusted diluted earnings per share was $0.45.

Headline financials

Total Revenue

$677M

Previous: $695M-2.7%
EPS

$0.35

Previous: $0.42-16.7%
Net Income Margin

6.7%

No prior period
Gross Profit Margin

34.1%

Previous: 34.0%+0.3%
Adjusted EBITDA Margin

15.5%

Previous: 15.3%+1.3%
Adjusted Net Income Margin

8.6%

No prior period
Net Debt / Adj. EBITDA

1.3

No prior period
Capital Expenditures

-$18.3M

Previous: -$11.4M-60.5%
Free Cash Flow

$27M

Previous: $39.8M-32.2%
Net Income

$45.3M

Previous: $51.2M-11.5%
Operating Income

$77.8M

Previous: $87.4M-11.0%
Gross Profit

$231M

Previous: $236M-2.2%
Cash & Equivalents

$189M

Previous: $110M+71.9%
Total Assets

$2.43B

Previous: $2.42B+0.1%
Stock-Based Comp

$6.8M

Previous: $4M+70.0%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$677M

Q2 2024-2.7%vs Q2 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

For the full year 2024, the Company has increased its outlook following the closing of the Supreme Cabinetry Brands acquisition. On a consolidated basis the Company expects net sales year-over-year increase of low single-digit percentage with adjusted EBITDA in the range of $385 million to $405 million, with related adjusted EBITDA margin of roughly 14.0% to 14.5% and Adjusted Diluted EPS in the range of $1.50 to $1.62.

Tailwinds

  • Net sales year-over-year increase of low single-digit percentage
  • Organic decline of low single-digit percentage
  • Acquisition-related increase of mid single-digit percentage
  • Adjusted EBITDA in the range of $385 million to $405 million
  • Adjusted EBITDA margin of roughly 14.0% to 14.5%

Headwinds

  • End market demand will trend towards the lower end of our original range for the legacy MasterBrand business
  • Inherent difficulty of forecasting the timing or amount of various items that have not yet occurred
  • Estimating GAAP measures and providing a meaningful reconciliation for future periods requires a level of precision that is unavailable for these future periods
  • 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

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 2024

Historical avgQ2 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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