MasterBrand(MBC) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $660.3 million, a 3$13.3 million, resulting in a net income margin of 2.0%, down from 5.9% in the prior year[5] - Adjusted EBITDA was $67.1 million, a decrease from$79.4 million in Q1 2024, with an adjusted EBITDA margin of 10.2%, down 220 basis points year-over-year[6] - The company reported a diluted earnings per share of $0.10, compared to$0.29 in the prior year, and adjusted diluted earnings per share of $0.18, down from$0.31[6] - Operating income fell to $37.1 million, a decline of 41.0$62.8 million in the previous year[26] - Net income for the period was $13.3 million, a significant decrease of 64.5$37.5 million in the same quarter last year[26] - Adjusted EBITDA was $67.1 million, down from$79.4 million, reflecting a margin of 10.2% compared to 12.4% in the prior year[29] - Basic and diluted earnings per share were both $0.10, down from$0.30 and $0.29 respectively in the previous year[29] Debt and Cash Flow - As of March 30, 2025, total debt was$1,058.2 million, with a net debt to adjusted EBITDA ratio of 2.7x[8] - Free cash flow was negative $41.2 million for the thirteen weeks ended March 30, 2025, compared to positive$11.7 million for the same period in 2024[8] - The company reported a net debt of $944.7 million, an increase from$554.3 million year-over-year, with a net debt to adjusted EBITDA ratio of 2.7x[38] - Free cash flow for the quarter was negative at $(41.2) million, compared to positive free cash flow of$11.7 million in the same quarter last year[40] - Cash and cash equivalents decreased to $113.5 million from$153.7 million year-over-year[38] Future Outlook - The company expects organic net sales performance to outperform the underlying market in 2025, driven by new products and pricing actions[9] - Adjusted EBITDA for 2025 is projected to be in the range of $315 to$365 million, with an adjusted EBITDA margin of approximately 12.0% to 13.5%[12] - The company plans to focus on preserving margins through cost actions and facility rightsizing amid economic uncertainty[11] Shareholder Actions - MasterBrand repurchased approximately 839 thousand shares of common stock for about $11.4 million during the first quarter[8] Profitability Metrics - Gross profit decreased to$202.2 million, resulting in a gross profit margin of 30.6%, down from 32.1% in the prior year[26] - The company incurred restructuring charges of $4.7 million, significantly higher than$0.4 million in the prior year[29]