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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.
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