MasterBrand second quarter earnings miss estimates as margins decline

NEW YORK - On Wednesday, MasterBrand , Inc. (NYSE:MBC) reported second quarter 2025 adjusted earnings that fell short of analyst expectations, despite revenue growth driven by its Supreme acquisition.

The company’s stock edged down 0.18% in pre-market trading following the results.

The largest residential cabinet manufacturer in North America posted adjusted earnings per share of $0.40, missing the analyst estimate of $0.46. Revenue increased 8% year-over-year to $730.9 million, primarily fueled by a 10% contribution from the Supreme acquisition and 3% growth from net average selling price improvements. However, this was partially offset by a 5% volume decline in the company’s base business.

Adjusted EBITDA remained flat at $105.4 million compared to the same period last year, while adjusted EBITDA margin decreased 110 basis points to 14.4%, reflecting lower volume and unfavorable fixed cost leverage. Net income fell 18% to $37.3 million.

"MasterBrand delivered a strong quarter, with year-over-year net sales growth driven by the acquisition of Supreme and incremental share gains, particularly in new construction," said Dave Banyard, President and CEO. "Our associates’ continued, disciplined use of The MasterBrand Way, further progress on our Supreme integration, and previous price and cost actions, allowed us to effectively navigate through the challenging external environment."

The company maintained its full-year 2025 outlook, projecting a low single-digit percentage decrease in net sales and adjusted earnings per share between $1.03 and $1.32, compared to the analyst consensus of $1.10.

In a separate announcement, MasterBrand revealed a definitive merger agreement with American Woodmark (NASDAQ:AMWD) in an all-stock transaction expected to close in early 2026. The company anticipates approximately $90 million in run-rate cost synergies by the third year following the transaction’s completion.

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