MasterBrand shares tumble on earnings miss, weak guidance

Published 06/05/2025, 22:52
MasterBrand shares tumble on earnings miss, weak guidance

Investing.com -- MasterBrand , Inc. (NYSE:MBC), North America’s largest residential cabinet manufacturer, saw its shares fall 5.1% after reporting first quarter earnings that missed analyst estimates and providing weaker-than-expected guidance for the full year 2025.

The company reported adjusted earnings per share of $0.18 for the first quarter, falling short of the $0.28 analyst consensus. Revenue came in at $660.3 million, up 3% YoY, driven by 10% growth from the Supreme acquisition and 2% from average selling price improvements. However, this was partially offset by a 9% volume decline in the base business.

MasterBrand’s net income decreased 65% YoY to $13.3 million, with net income margin contracting 390 basis points to 2.0%. Adjusted EBITDA margin declined 220 basis points to 10.2%.

CEO Dave Banyard cited weaker-than-anticipated end market demand, stating, "End market demand was weaker than anticipated, as a slow start to the Spring selling season negatively impacted our customers servicing the new construction and the repair and remodel markets."

Looking ahead, MasterBrand provided full-year 2025 guidance that fell short of analyst expectations. The company forecasts adjusted EPS of $1.03-$1.32, below the $1.35 consensus. It also expects a low single-digit percentage decrease in net sales YoY.

CFO Andi Simon commented on the outlook, saying, "Our revised guidance reflects the negative impact of general economic uncertainty on our end market demand, as well as the net impact of enacted tariffs on our profitability."

Despite the challenges, MasterBrand remains focused on preserving margins through cost-cutting measures and tariff remediation efforts. The company repurchased approximately 839,000 shares for $11.4 million during the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.