MasterBrand (MBC) Q2 2025 earnings summary

Executive summary

• Announced a definitive all-stock merger agreement with American Woodmark, creating the most comprehensive cabinet brand portfolio and expanding operational scale, with closing expected in early 2026 and targeting $90 million in run-rate cost synergies by year three.

• Q2 2025 net sales rose 8% year-over-year to $730.9 million, driven by the Supreme acquisition and price improvements, though organic sales declined due to weaker end market demand.

• Net income for Q2 2025 was $37.3 million, down 17.7% year-over-year, reflecting higher SG&A, amortization, and restructuring costs.

• Adjusted EBITDA was $105.4 million, flat year-over-year, with margin down 110 basis points to 14.4%.

• The combined entity will be headquartered in Beachwood, Ohio, with a significant presence in Winchester, Virginia.

Financial highlights

• Q2 2025 net sales: $730.9 million (up 8% YoY), with Supreme contributing 10% to growth.

• Gross profit was $239.7 million, with gross margin at 32.8%, down 130 bps YoY.

• Net income margin was 5.1%, down from 6.7% YoY; adjusted net income margin was 7.1%, down from 8.6%.

• Diluted EPS was $0.29 (down from $0.35 YoY); adjusted diluted EPS was $0.40 (down from $0.45 YoY).

• Free cash flow for the first half was $25.5 million, down from $77.8 million YoY, due to one-time payments and integration investments.

Outlook and guidance

• Full-year 2025 net sales expected to decline low single digits, with organic sales down mid-single digits and Supreme contributing mid-single digit growth.

• Adjusted EBITDA guidance reaffirmed at $315–$365 million, with margin range of 12%–13.5%.

• Adjusted diluted EPS forecasted at $1.03–$1.32 for 2025.

• Free cash flow is expected to exceed net income for the year and normalize in the second half.

• Guidance excludes any financial benefits or costs from the proposed merger and potential new tariffs.