MasterBrand (MBC) Bank of America Securities 2024 Leveraged Finance Conference summary

Company background and market position

• Formed through decades of acquisitions, now the largest American conventional cabinet manufacturer with a broad product portfolio across all price points and styles.

• Serves over 6,000 customers, including retailers and builders, with 20,000 employees and 20 manufacturing facilities in North America and Mexico.

• Focused on profitable growth after a spin-off, emphasizing operational efficiency and product alignment.

Business mix and channel breakdown

• Revenue is about one-third from new construction and two-thirds from repair and remodel (R&R).

• Builder channel accounts for 20% (10% direct, 10% via dealers), dealer/distribution is about 55%, and retail/home centers make up the remainder.

• Home centers represent 30%+ of business, with a focus on rational, index-based pricing and targeted share gains.

Market environment and demand trends

• New construction grew mid-single digits in 2024, while R&R declined low single digits, resulting in flat overall volume.

• Pent-up demand for R&R exists due to aging housing stock and consumer dissatisfaction with current kitchens, but big-ticket spending is held back by economic uncertainty and high interest rates.

• Recovery in R&R is expected when interest rates stabilize and consumer confidence returns.