MasterBrand — Third Quarter 2026 Earnings Summary

Financial Performance

• Net sales for the third quarter were $1,036.8 million, including a $355.7 million contribution from American Woodmark; legacy MasterBrand net sales were $681.1 million, a 2.5% decrease compared to the third quarter of 2025.
• Gross profit was $254.9 million with a margin of 24.6%, compared to $218.2 million and 31.2% in the prior year period.
• Net loss was $(9.2) million with a net loss margin of (0.9)%, compared to net income of $18.1 million and a 2.6% margin in the prior year.
• Adjusted EBITDA was $86.0 million with a margin of 8.3%, compared to $90.6 million and 13.0% in the prior year.
• Diluted loss per share was $(0.05) based on 203.5 million weighted average shares, compared to diluted earnings per share of $0.14 based on 129.5 million shares in the prior year.
• Adjusted diluted earnings per share was $0.10, compared to $0.33 in the prior year.
• Total debt was $1,230.8 million as of September 27, 2026, with net debt of $1,091.1 million.
• Net debt to trailing twelve-month adjusted EBITDA was 4.3x.
• Net cash provided by operating activities for the 39 weeks ended September 27, 2026, was $80.2 million, compared to $108.8 million in the prior year.
• Free cash flow for the 39 weeks ended September 27, 2026, was $43.6 million, compared to $65.0 million in the prior year.
• Cash and cash equivalents were $139.7 million, with $554.5 million available under the revolving credit facility.

Guidance and Future Outlook

• Fourth quarter 2026 net sales are expected to be between $958 million and $988 million.
• Fourth quarter 2026 adjusted EBITDA is expected to be between $38 million and $48 million, with a margin between 4.0% and 4.9%.
• Fourth quarter 2026 adjusted diluted loss per share is expected to be between $(0.12) and $(0.08).
• Full-year 2026 addressable market is expected to be down high-single digits with no demand improvement through year-end.
• Full-year 2026 gross tariff costs are expected to be approximately 5-6% of net sales, fully offset on a dollar-for-dollar run-rate basis by year-end.
• Full-year 2026 free cash flow is expected to be approximately breakeven.
• Second-half 2026 cost synergies are now expected to exceed the previously communicated target of approximately $15 million.

Business Segments and Product Lines

• Legacy MasterBrand gained share across end markets despite a mid- to high-single-digit market decline, unfavorable mix, and trade-downs.
• Net average selling price (ASP) was favorable due to the flow-through of tariff pricing.
• Integration of American Woodmark is ahead of schedule, with approximately $11 million of cost synergies realized as of September 27, 2026.
• The Company has initiated or completed actions expected to drive more than $50 million in run-rate cost synergies exiting year one, with full benefits phasing in over time.
• The Company expects over $100 million in annual run-rate cost synergies by the end of year three post-close.
• $10.9 million of IEEPA duty refunds contributed to gross profit.

Market and Competitive Landscape

• The market experienced a mid- to high-single-digit decline in the third quarter.
• Legacy MasterBrand gained market share across end markets despite demand headwinds.
• The Company manages through ongoing market softness with operating discipline.

Risks and Challenges

• Gross profit margin decreased 660 basis points driven by lower volume, unfavorable fixed cost leverage, inflation outpacing pricing, unfavorable product mix, trade-downs, and the inclusion of American Woodmark's lower gross margin.
• Net loss was driven by factors impacting gross profit, higher interest expense, and the inclusion of American Woodmark SG&A.
• The outlook reflects the dynamic nature of tariffs, including uncertainty of implementation, timing, and duration.
• Forward-looking statements are subject to risks including integration challenges, raw material costs, housing market conditions, and debt covenant compliance.

Management Commentary and Tone

• CEO Dave Banyard stated the first full quarter as a combined company showed real momentum on integration with synergies ahead of schedule.
• Management expressed confidence in building a more efficient and competitive MasterBrand capable of improving profitability independent of market recovery.
• The Company believes it is realizing benefits of combined scale and managing through market softness with operating discipline.

Other Key Points

• The acquisition of American Woodmark closed on May 28, 2026.
• A $375 million Term Loan A was used to retire American Woodmark's debt at close, contributing to approximately $24 million in fourth quarter interest expense.
• No share repurchases were made during the third quarter as the Company prioritized integration investments and balance sheet management.
• The Company remained in full compliance with all applicable financial covenants related to its outstanding debt.
• The financial outlook includes the $1.3 million of IEEPA duty refunds received in the fourth quarter and supersedes the previously provided second-half 2026 outlook.
• A conference call and webcast were held on November 5, 2026, at 4:30 p.m. ET to discuss results.