Cabinet maker MasterBrand's Q2 sales beat estimate, announces merger with American Woodmark
Overview
MasterBrand Q2 net sales up 8%, beating analyst expectations
Adjusted EPS for Q2 beats estimates, despite net income decline
Co announces merger with American Woodmark, aiming for cost synergies
Outlook
Company expects full-year adjusted EBITDA between $315 mln and $365 mln
MasterBrand anticipates adjusted EPS of $1.03 to $1.32 for 2025
Company forecasts low single-digit decrease in 2025 net sales
MasterBrand sees mid-single-digit organic net sales decline in 2025
Result Drivers
SUPREME ACQUISITION - Net sales growth driven by Supreme acquisition, contributing 10% to overall increase
PRICE ACTIONS - 3% growth from anticipated net average selling price improvements
VOLUME DECLINE - 5% volume decline in base business, particularly in repair and remodel market
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $730.90 mln | $683.30 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $0.4 | $0.34 (1 Analyst) |
Q2 Net Income |
| $37.30 mln |
|
Q2 Gross Margin |
| 32.8% |
|
Q2 Operating Income |
| $67.30 mln |
|
Q2 Pretax Profit |
| $49 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Masterbrand Inc is $15.00, about 24.5% above its August 5 closing price of $11.33
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nBwcv095a
