Wed, May 7, 3:07 PM (8 days ago)
**MasterBrand, Inc. (MBC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $660.3 million, up 3.5% YoY, driven by the Supreme acquisition ($60.8 million) and lower sales unit volume offset by favorable price and mix. - **Gross Profit:** $202.2 million, down 1.2% YoY due to higher manufacturing costs. - **Operating Income:** $37.1 million, down 40.9% YoY due to increased SG&A expenses and restructuring charges. - **Net Income:** $13.3 million, down 64.5% YoY due to higher interest expense and other expenses. - **EPS:** $0.10 basic and diluted, down from $0.30 and $0.29 respectively. - **Cash Flow:** Net cash used in operating activities was $31.4 million, compared to $18.7 million provided in Q1 2024. **Profit Margins:** - **Gross Margin:** 30.6%, down from 32.1% in Q1 2024. - **Operating Margin:** 5.6%, down from 9.8% in Q1 2024. - **Net Margin:** 2.0%, down from 5.9% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** Negative $31.4 million, due to increased accounts receivable and inventory. - **Investing Cash Flow:** Negative $9.8 million, due to increased capital expenditures. - **Financing Cash Flow:** Positive $33.5 million, due to borrowings and stock repurchases. **Earnings Changes:** - **Net Income:** Down 64.5% YoY. - **EPS:** Down from $0.30 to $0.10. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by the Supreme acquisition and favorable price and mix. - **Margin Compression:** Due to higher manufacturing costs and increased SG&A expenses. - **Cash Flow:** Negative operating cash flow due to increased working capital requirements. **Trends and Uncertainties:** - **Acquisition Impact:** Supreme acquisition contributed to revenue growth but also increased expenses. - **Market Conditions:** Weakness in repair and remodel and single-family new construction markets. - **Foreign Currency:** Unfavorable impact on revenue and cash flow. **Future Operations Impact:** - **Debt Obligations:** Increased debt from the Supreme acquisition may impact future financial flexibility. - **Cost Management:** Need to manage costs effectively to mitigate margin compression. - **Market Conditions:** Continued weakness in end markets may impact future performance.