MasterBrand (NYSE:MBC) Announces Quarterly Earnings Results

Key Points

• MasterBrand reported EPS of $0.10, beating the $0.03 consensus estimate, while quarterly revenue of $1.04 billion missed the $1.06 billion forecast. Revenue rose 48.3% year over year.
• Adjusted EBITDA margin declined to 8.3% from 13.0% a year earlier, and management lowered its 2026 market outlook to a high-single-digit decline. It expects fourth-quarter sales of $958 million–$988 million and full-year free cash flow near break-even.
• Merger integration is ahead of schedule, with $11 million in synergies realized year to date and a target of over $100 million in annualized savings by the end of year three. The company delayed its goal of reducing net leverage below 2x to the end of 2029.

MasterBrand (NYSE:MBC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.07, FiscalAI reports. The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.06 billion. MasterBrand had a negative net margin of 3.49% and a positive return on equity of 3.65%. MasterBrand's revenue for the quarter was up 48.3% on a year-over-year basis. During the same quarter last year, the company earned $0.33 earnings per share.

Here are the key takeaways from MasterBrand's conference call:

• MasterBrand reported $1.04 billion in third-quarter sales and $86 million in adjusted EBITDA, but adjusted EBITDA margin fell to 8.3% from 13.0% a year earlier, pressured by lower volume, unfavorable mix, and inflation outpacing pricing.
• Management lowered its 2026 market outlook to a high-single-digit decline and expects fourth-quarter sales of $958 million–$988 million and adjusted EBITDA of $38 million–$48 million. Soft demand, plant downtime, higher costs, and fewer tariff refunds are expected to weigh on results; full-year free cash flow is forecast near break-even.
• Merger integration is ahead of schedule: the company realized about $9 million of synergies in the quarter and $11 million year to date, with actions expected to generate more than $50 million in annualized run-rate savings exiting year one and a target of over $100 million by the end of year three.
• Net leverage was 4.3x at quarter end, and MasterBrand pushed its target of reducing net leverage below 2x from the end of 2028 to the end of 2029, citing a weaker market and the anticipated 2027 cabinet tariff increase.
• Legacy MasterBrand sales declined 2.5%, outperforming the estimated mid-to-high-single-digit market decline, while both legacy businesses outperformed in repair and remodel. Management also cited early progress cross-selling products to American Woodmark dealers, though it said those opportunities are still developing.

MasterBrand Stock Down 6.1%

MBC traded down $0.46 on Thursday, reaching $7.05. The company's stock had a trading volume of 2,932,023 shares, compared to its average volume of 2,589,747. The stock has a market cap of $1.44 billion, a price-to-earnings ratio of -10.22 and a beta of 1.45. MasterBrand has a 1 year low of $6.17 and a 1 year high of $13.95. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.76 and a quick ratio of 1.04. The business's 50 day moving average is $7.20 and its 200 day moving average is $8.79.

Insiders Place Their Bets

In other MasterBrand news, EVP Kurt Wanninger sold 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $9.22, for a total transaction of $461,000.00. Following the completion of the sale, the executive vice president owned 201,199 shares in the company, valued at $1,855,054.78. This trade represents a 19.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.80% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on MBC shares. Weiss Ratings reissued a "sell (d)" rating on shares of MasterBrand in a research report on Friday, October 9th. DA Davidson reaffirmed a "neutral" rating and set a $10.00 price target on shares of MasterBrand in a report on Tuesday, October 27th. Finally, Zacks Research assumed coverage on shares of MasterBrand in a research note on Tuesday. They set a "hold" rating on the stock. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $10.00.

MasterBrand Company Profile

MasterBrand, Inc NYSE: MBC is a manufacturer of residential cabinetry and related products. The company designs and produces cabinets for kitchens, bathrooms, home offices, living areas and other spaces, serving both new construction and remodeling markets.

MasterBrand offers a range of cabinet styles, materials, finishes and price points through a portfolio of brands that includes Aristokraft, Cabinetry by Karman, Decora, Diamond, Homecrest, Kemper, Mantra, Omega and Schrock. Its products are sold through home improvement and specialty retailers, independent dealers, builders and other trade customers.

The company is based in Jasper, Indiana, and serves customers primarily in the United States and Canada.

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