NYSE$MBC

MasterBrand INC · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

MasterBrand's financial performance aligned with expectations, driven by operational excellence and the Supreme acquisition, despite market choppiness.

MasterBrand reported a 6.0% increase in net sales to $718.1 million, driven by the Supreme acquisition, but experienced a decrease in net income to $29.1 million and a decline in adjusted EBITDA margin to 14.6%. The company reiterates its 2024 financial outlook.

  • Net sales increased 6.0% year-over-year to $718.1 million, driven by 9% growth from the Supreme acquisition.
  • Net income decreased to $29.1 million, with net income margin declining to 4.1%.
  • Adjusted EBITDA margin decreased 160 basis points year-over-year to 14.6%.
  • Diluted earnings per share was $0.22, while adjusted diluted earnings per share was $0.40.

Headline financials

Total Revenue

$718M

Previous: $677M+6.0%
EPS

$0.22

Previous: $0.46-52.2%
Net Income Margin

4.1%

No prior period
Gross Profit Margin

33.1%

Previous: 35.1%-5.7%
Adjusted EBITDA Margin

14.6%

Previous: 16.2%-9.9%
Adjusted Net Income Margin

7.3%

No prior period
Capital Expenditures

-$34.6M

Previous: -$21.4M-61.7%
Free Cash Flow

-$5.5M

Previous: $38.3M-114.4%
Net Income

$29.1M

Previous: $59.7M-51.3%
Operating Income

$57.6M

Previous: $92.2M-37.5%
Gross Profit

$238M

Previous: $238M+0.2%
Cash & Equivalents

$108M

Previous: $123M-11.5%
Total Assets

$2.96B

Previous: $2.38B+24.5%
Stock-Based Comp

$5.7M

Previous: $4.3M+32.6%

Revenue & EPS history

MasterBrand · Revenue · Quarterly

$718M

Q3 2024+6%vs Q3 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

The Company reiterates prior expectations for full year 2024, anticipating year-over-year growth in net sales and profitability.

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

  • Demand trends across R&R and new construction end markets will remain mixed for the balance of the year.
  • Organic net sales performance is expected to be in line with the underlying market demand.
  • Reiterates 2024 financial outlook
  • Adjusted Diluted EPS in the range of $1.50 to $1.62
  • Choppiness in end markets

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 2024

Historical avgQ3 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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