JASPER, Ind. — MasterBrand, Inc., the largest residential cabinet manufacturer in North America, reported that third-quarter net sales decreased 21.1% year-over-year while net income increased 14.4% year-over-year.

Net sales were $677.3 million, compared to $858.4 million in the third quarter of 2022, primarily due to lower volumes, driven by softer end market demand. Gross profit was $237.5 million, compared to $264.9 million in the comparable period of the prior year. Gross profit margin increased 421 basis points to 35.1%, as the impact of volume declines were more than offset by lower material and freight costs, productivity, restructuring and restructuring-related savings, and discrete items in the quarter.

Net income was $59.7 million, compared to $52.2 million in the third quarter of 2022, primarily due to higher operating income, and lower income taxes, which were partially offset by higher interest expense of $15.3 million in the third quarter of 2023, related to bank debt issued in December 2022 at the time of our separation from Fortune Brands Home and Security. Diluted earnings per common share was $0.46, compared to pro forma diluted earnings per common share1 of $0.41 in the comparable period of the prior year.

Adjusted EBITDA was $109.8 million, compared to $126.0 million in the third quarter of 2022. Adjusted EBITDA margin increased 153 basis points to 16.2%, compared to 14.7% in the comparable period of the prior year.

“We are pleased to report another solid quarter of financial performance. Demand was once again in line with our expectations, and our strategic initiatives continued to deliver adjusted EBITDA performance in advance of our estimates,” said Dave Banyard, President and Chief Executive Officer. “Our associates’ disciplined use of The MasterBrand Way, the cornerstone of our culture, has produced outsized margin performance this year, and is positioning us for growth in the future. We believe our culture and investments in strategic initiatives will allow us to outperform the market in the long term.”

MasterBrand is the #3 ranked company on the FDMC300 list of top North American wood products companies.