Mattel Plans $1.5B Buyback, Bets $170M Masters of the Universe Film Boosts Toy Sales
MAT•Mattel has repurchased $1.2 billion in stock over three years and plans a $1.5 billion buyback, while net income fell 25% to $398 million despite a 7% Q4 sales increase. Its $170 million Masters of the Universe film, projected to earn $25–35 million opening weekend, aims to drive toy sales.
1. Share Repurchase and Financial Performance
Mattel has repurchased $1.2 billion of stock over the past three years and announced a $1.5 billion buyback program for the next three years. In Q4 2025 net sales rose 7% to $1.8 billion, but full-year net income declined 25% to $398 million due to weaker demand and tariff headwinds.
2. Investor Pressure and Stock Slide
Southeastern Asset Management, which holds about 4% of shares, sent a letter urging Mattel to consider a sale or go-private transaction. The stock has tumbled more than 30% since disappointing holiday sales were reported in February, closing at $14.34 and reflecting investor skepticism about growth.
3. Masters of the Universe Film Strategy
Mattel’s $170 million Masters of the Universe film opens this weekend with U.S. and Canada debut projections of $25–35 million. The company expects the movie to reinvigorate its He-Man brand and drive double-digit toy sales growth, with additional revenue from streaming and branded merchandise.
