MasterBrand Q2 net sales up 8% YoY, net income down 18% to $37.3mln.

• MasterBrand Q2 2025 net sales up 8% YoY to $730.9mln • Net income down 18% YoY to $37.3mln • Adjusted EBITDA flat YoY at $105.4mln • Operating cash flow at $53.4mln, free cash flow at $25.5mln • Maintains 2025 financial outlook • Announces definitive merger agreement with American Woodmark

MasterBrand, Inc. (NYSE: MBC), the largest residential cabinet manufacturer in North America, reported its second-quarter 2025 financial results, showcasing a mix of growth and challenges. Net sales increased 8% year-over-year (YoY) to $730.9 million, driven by the acquisition of Supreme and incremental share gains, particularly in new construction. However, net income decreased 18% YoY to $37.3 million, and adjusted EBITDA remained flat at $105.4 million. The company's operating cash flow stood at $53.4 million, with free cash flow at $25.5 million [2].

The company's gross profit was $239.7 million, a decrease of 130 basis points to 32.8% due to lower volume and unfavorable fixed cost leverage, partially offset by the positive contribution from Supreme and continuous improvement efforts. Net income margin decreased to 5.1% compared to 6.7% in the prior year. Adjusted EBITDA margin decreased 110 basis points to 14.4% on lower volume [2].

MasterBrand's President and Chief Executive Officer, Dave Banyard, stated, "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 to deliver second quarter adjusted EBITDA above our expectations."

The company also announced a definitive merger agreement with American Woodmark Corporation (AMWD), which is expected to result in a combined company with stronger channel partnerships, expanded geographic reach, enhanced operational agility, and the ability to deliver meaningful value. The merger is expected to generate approximately $90 million in run-rate cost synergies by the third year following the transaction close [2].

MasterBrand maintains its 2025 financial outlook and is confident in its ability to deliver attractive full-year adjusted EBITDA margins while continuing to invest in the business and execute on its long-term growth strategy.

References:
[1] https://www.ainvest.com/news/masterbrand-q2-2025-earnings-blueprint-resilience-cyclical-market-2508/
[2] https://www.stocktitan.net/news/MBC/master-brand-reports-second-quarter-2025-financial-93n5mh786gks.html