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MasterBrand Reports First Quarter 2026 Financial Results

MBC
  • MasterBrand reported first quarter 2026 net sales of $618.0 million, a 6.4% decrease from the prior year period.
  • The company recorded a net loss of $15.4 million, resulting in a net loss margin of 2.5%, compared to a net income of $13.3 million in the prior year.
  • Adjusted EBITDA was $28.0 million, representing a 570 basis point year-over-year decline in margin to 4.5%.
  • Diluted loss per share was $0.12, while adjusted diluted earnings per share were $0.06, down from $0.18 in the prior year.
  • Gross profit margin decreased 530 basis points to 25.3% due to lower volume, unfavorable cost leverage, inflation, tariffs, and product mix.
  • Gross tariff costs for the quarter were approximately $25 million, with mitigation plans currently in progress.
  • As of March 29, 2026, the company held $138.4 million in cash, $1,084.9 million in total debt, & a net debt to adjusted EBITDA ratio of 3.7x.
  • Net cash used in operating activities was $133.0 million, driven by lower net income & unfavorable working capital movements.
  • No share repurchases were made during the quarter due to restrictions under the merger agreement with American Woodmark.
  • Management anticipates the pending combination with American Woodmark will close in the second calendar quarter of 2026.
  • Second quarter 2026 net sales are forecasted to decrease mid-single-digit to high-single-digit percentage year-over-year.
  • Q2 2026 adjusted EBITDA is projected to be between $51 million & $61 million, with a margin range of 7.8% to 8.8%.
  • Q2 2026 adjusted diluted earnings per share guidance is $0.03 to $0.13, reflecting uncertainty regarding the effective tax rate.
  • Full year 2026 gross tariff costs are expected to be approximately 5-6% of net sales.
  • The company expects full year 2026 effective tax rates to be elevated relative to the prior year due to non-deductible merger-related expenses.
  • A $30 million cost reduction initiative was implemented, with financial benefits expected to accumulate primarily in the second half of the year.
  • A conference call to discuss results will be held on May 5, 2026, at 4:30 p.m. ET.