MasterBrand Reports Q2 Earnings: $0.40 Non-GAAP EPS Beats by $0.06, Revenue of $730.9M Beats by $47.6M

MasterBrand reported Q2 Non-GAAP EPS of $0.40, beating estimates by $0.06. Revenue reached $730.9M, up 8.0% YoY and beating estimates by $47.6M. The company forecasts a full-year 2025 net sales decline of a low single-digit percentage.

MasterBrand Inc. (MBC) reported its second-quarter 2025 earnings, with non-GAAP earnings per share (EPS) of $0.40, exceeding analyst estimates by $0.06. Revenue reached $730.9 million, up 8.0% year-over-year (YoY) and surpassing estimates by $47.6 million. The company also announced a merger with American Woodmark, aiming to create a comprehensive cabinet brand portfolio.

Despite a slight miss in EPS, the stock surged 9.75% in pre-market trading, reflecting investor optimism around strategic initiatives and merger plans. MasterBrand’s revenue of $730.9 million was not forecasted, indicating a positive sales trend. The company maintained profitability over the last twelve months, with a P/E ratio of 15.33 and a beta of 1.43, indicating moderate market sensitivity.

Key drivers of the quarter's results included the Supreme acquisition, which contributed 10% to overall net sales growth, and anticipated net average selling price improvements of 3%. However, a 5% volume decline in the base business, particularly in the repair and remodel market, offset some of the gains.

MasterBrand expects full-year 2025 adjusted EBITDA between $315 million and $365 million and anticipates adjusted EPS of $1.03 to $1.32 for 2025. The company forecasts a low single-digit decrease in 2025 net sales and a mid-single-digit organic net sales decline.

The merger with American Woodmark is expected to close in early 2026 and is projected to be EPS accretive by the second year. Executives highlighted the strategic benefits of the transaction, emphasizing complementary strengths and financial fortification.

The company faces challenges such as declining new construction and remodeling markets, potential integration challenges with the American Woodmark merger, and economic pressures affecting consumer sentiment and housing costs.

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXDF6816:0-cabinet-maker-masterbrand-s-q2-sales-beat-estimate-announces-merger-with-american-woodmark/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-masterbrand-q2-2025-stock-surges-despite-eps-miss-93CH-4174190