NYSE$MBC

MasterBrand INC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

MasterBrand's financial performance remained strong, with increased profitability despite a decrease in net sales.

MasterBrand reported a decrease in net sales but an increase in net income and adjusted EBITDA margin for the third quarter of 2023. The company is raising its adjusted EBITDA and related margin outlook for the full year 2023 based on stronger than expected performance in the third quarter of 2023.

  • Net sales decreased 21.1% year-over-year to $677.3 million.
  • Net income increased 14.4% year-over-year to $59.7 million.
  • Adjusted EBITDA margin increased 153 basis points year-over-year to 16.2%.
  • The company repurchased approximately 943 thousand shares of common stock for $11.5 million.

Headline financials

Total Revenue

$677M

Previous: $858M-21.1%
EPS (adj)

$0.46

Previous: $0.40+15.0%
Gross Profit Margin

35.1%

Previous: 30.9%+13.6%
Adjusted EBITDA Margin

16.2%

Previous: 14.7%+10.2%
Capital Expenditures

-$21.4M

Previous: $10.1M-311.9%
Free Cash Flow

$38.3M

Previous: $31.7M+20.8%
Net Income

$59.7M

Previous: $52.1M+14.6%
Operating Income

$92.2M

Previous: $74.8M+23.3%
Gross Profit

$238M

Previous: $265M-10.3%
Cash & Equivalents

$123M

Previous: $134M-8.6%
Total Assets

$2.38B

No prior period
Stock-Based Comp

$4.3M

Previous: $2.7M+59.3%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$677M

Q3 2023-21.1%vs Q3 2022
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

The Company expects a net sales year-over-year decline of mid teens percentage in the fourth quarter of 2023. Adjusted EBITDA is expected to be in the range of $370 million to $380 million, with related adjusted EBITDA margins of roughly 13.5 to 14.0 percent for the full year 2023.

Tailwinds

  • Continued operational excellence
  • Strategic initiatives generating savings
  • Further investments expected to yield incremental savings
  • Raising adjusted EBITDA and related margin outlook for the full year 2023
  • Stronger than expected performance in the third quarter of 2023

Headwinds

  • Net sales year-over-year decline of mid teens percentage in the fourth quarter of 2023
  • Softer end market demand expected in 2023
  • Uncertainty in the housing market
  • Worldwide economic and geopolitical conditions
  • Potential unfavorable effects of the separation from Fortune Brands

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 Q3 2023

Historical avgQ3 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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