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MasterBrand Inc (MBC)
NYSE:MBC
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MasterBrand Inc
(NYSE:MBC)
Select Model
Select Model
Rating:53Neutral
Price Target:
$13.50
▲(21.18% Upside)
Action:ReiteratedDate:02/12/26
The score is held back primarily by weaker financial performance (sharp margin and earnings decline, lower cash flow, and leverage sensitivity) and an expensive valuation (high P/E with no dividend yield provided). Technicals are a relative positive with the stock trading above major moving averages and a positive MACD, but momentum appears stretched. The latest earnings call adds caution due to weak near-term guidance and ongoing tariff/market headwinds, despite announced cost actions and longer-term synergy potential.
Positive Factors
Diversified channels & flexible operations
MasterBrand’s broad brand portfolio and manufacturing/distribution footprint support service continuity and allow the company to flex production to demand. That structural flexibility reduces revenue volatility across cycles, helps preserve customer relationships, and underpins longer-term resilience versus single-channel peers.
Positive cash generation and liquidity
Despite profitability pressure, MasterBrand continues to generate positive operating and free cash flow and maintains meaningful revolver liquidity. This durable cash generation supports capex, integration spending, tariff mitigation, and debt service, providing a multi‑quarter buffer to execute strategic initiatives.
Material synergy potential from deals
Targeted cost and procurement synergies from Supreme and the proposed American Woodmark combination represent multi‑year structural margin and cash‑flow upside. If realized, these scale efficiencies can sustainably lower unit costs, improve decrementals and accelerate deleveraging versus organic improvement alone.
Negative Factors
Sharp margin compression
A pronounced profitability reset reflects weaker volumes, unfavorable mix and tariff/inflation pressures, eroding operating leverage. Sustainably low margins limit the firm’s ability to self‑fund investments or absorb shocks, making multi‑quarter margin recovery necessary to restore returns and free cash generation.
Leverage and coverage sensitivity
Meaningful leverage combined with falling EBITDA raises refinancing and coverage risk if earnings remain depressed. Higher debt burdens constrain capital allocation flexibility and increase sensitivity to cyclical demand, making deleveraging through realized synergies or sustained cash flow critical over coming quarters.
Tariff and trade uncertainty
Material and uncertain tariff exposure is a structural cost overhang that raises input costs and compresses margins until fully mitigated. The risk of escalation (larger tariff rates) complicates multi‑year sourcing and pricing strategies, making margin visibility and long‑run competitiveness harder to secure.
MasterBrand Inc (MBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.53B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)58.1
Beta (1Y)1.24
Revenue Growth1.77%
EPS Growth-44.11%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.02
Shares Outstanding127,537,370
10 Day Avg. Volume1,478,456
30 Day Avg. Volume1,743,670
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.06
Price to Sales (P/S)0.52
P/FCF Ratio12.07
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda12.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
MasterBrand Inc Business Overview & Revenue Model
Company DescriptionMasterBrand Inc. (MBC) is a leading manufacturer and distributor of high-quality cabinetry and related products, serving the residential and commercial markets. With a diverse portfolio that includes kitchen cabinets, bathroom vanities, and storage solutions, MBC operates in the home improvement and construction sectors. The company is committed to innovation and sustainability, offering a wide range of customizable products designed to meet the needs and preferences of consumers and professionals alike.
How the Company Makes MoneyMasterBrand Inc. generates revenue primarily through the sale of cabinetry and related products to various distribution channels, including home improvement retailers, kitchen and bath showrooms, and directly to builders and contractors. The company operates on a wholesale business model, supplying products to retailers who then sell them to end consumers. Key revenue streams include the sale of standard and custom cabinetry, accessories, and installation services. Additionally, MBC benefits from strategic partnerships with home improvement chains and builders, which enhance market reach and visibility. The growing trend of home renovations and new construction projects further supports the company's earnings potential.
MasterBrand Inc Key Performance Indicators (KPIs)
MasterBrand Inc Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Negative
The call highlights meaningful strategic progress — including integration of Supreme, continuous improvement gains, active tariff mitigation, a healthy liquidity position, and the potential transformational American Woodmark combination with sizable targeted synergies. However, these positives were overshadowed by substantial near-term financial deterioration: Q4 adjusted EBITDA and gross profit declined sharply, Q4 net loss and EPS weakness, falling free cash flow and operating cash, rising SG&A driven by one-time charges, and persistent trade and market headwinds (tariffs, three years of market contraction, and expectation of mid-single-digit market declines in 2026). Management is taking cost reduction and mitigation actions ($30 million planned reductions, pricing and sourcing initiatives) and expects mitigation benefits to materialize through 2026, but visibility is limited in the near term and leverage metrics were pressured. Overall, near-term operational and macro pressures outweigh the strategic and financial progress noted on the call.Q4-2025 Updates
Positive Updates
Full-Year Net Sales Growth (Including Acquisition)
2025 net sales of $2.7 billion, up 1% year-over-year, driven by Supreme contribution (~5% of full-year sales) and net average selling price improvements that helped offset an underlying mid-single-digit market decline.
Supreme Integration Progress and Synergies
First full year operating as an integrated organization with strong progress capturing procurement, network, logistics, and overhead synergies; remains on track to realize $28 million in annual run-rate cost synergies by year three post-close.
Pending American Woodmark Transaction and Expected Synergies
Advancing integration planning for the proposed American Woodmark combination expected to close early 2026 (subject to approvals) and targeting approximately $90 million in run-rate cost synergies by the end of year three post-close.
Continuous Improvement Outperformance
Continuous improvement programs outperformed plan, broadening across production and back-office functions, contributing to productivity gains and partially offsetting volume pressure and tariff-related cost impacts.
Positive Cash Generation and Liquidity Position
Ended year with $183.3 million cash on hand and $441.9 million revolver liquidity; full-year net cash provided by operating activities of $195.7 million and full-year free cash flow of $117.5 million, demonstrating ongoing cash generation despite pressure.
Tariff Mitigation Progress
Management offset approximately one-third of the 300-basis-point Q4 tariff impact and over half of the full-year tariff hit (~115 basis points) through mitigation actions; expects to fully offset tariff dollar costs on a run-rate basis by 2026.
Reduced Interest Expense
Interest expense declined to $17.6 million in Q4 from $19.3 million year-over-year, reflecting progress in debt paydown.
Capital Discipline
CapEx of $78.2 million in 2025 (versus $80.9M prior year), in line with plan and focused on operational execution and integration; company reiterates focus on preserving liquidity and disciplined capital allocation.
Operational Resilience and Service Continuity
Maintained service levels and operational continuity through integration and supply challenges; new construction sales outperformed the broader market due to exposure to production builders and portfolio breadth.
Negative Updates
Q4 Revenue Decline and Market Weakness
Fourth-quarter net sales of $644.6 million, down 3.5% year-over-year, reflecting a mid-single-digit addressable market decline and a sharper-than-expected late-quarter slowdown in new construction.
Sharp Drop in Q4 Adjusted EBITDA and Margin
Q4 adjusted EBITDA fell to $35.1 million from $74.6 million prior year (down ~53%) and adjusted EBITDA margin declined to 5.4%, a 580-basis-point year-over-year decrease, driven by lower volumes, mix, tariff impact net of mitigation, and inflation.
Q4 Gross Profit and Margin Compression
Q4 gross profit declined 17.6% to $167.5 million and gross margin contracted 440 basis points to 26% year-over-year due to lower volumes, unfavorable fixed cost leverage, tariffs, and restructuring-related expenses.
Q4 Net Loss and EPS Deterioration
Reported net loss of $42 million in Q4 versus net income of $14 million prior year; diluted loss per share of $0.33 in Q4 2025 compared to EPS of $0.11 in 2024; adjusted loss per share of $0.02 vs prior-year adjusted EPS of $0.22.
Full-Year Profitability Decline
Full-year adjusted EBITDA decreased 18% to $298.2 million (margin 10.9% vs 13.5% prior); net income fell to $26.7 million from $125.9 million prior year; diluted EPS declined to $0.21 from $0.96.
Free Cash Flow and Operating Cash Declines
Full-year free cash flow decreased to $117.5 million from $211.1 million in prior year, and net cash provided by operating activities fell to $195.7 million from $292.0 million, reflecting lower profitability, restructuring cash outflows, and deal costs.
Rising SG&A and One-Time Charges
Q4 SG&A rose to $186.9 million from $152.3 million, driven by a $17 million one-time bad debt provision, higher personnel and inflationary costs, acquisition and restructuring expenses, and continued strategic investments.
Leverage and Trailing EBITDA Impact
Net debt was $791.2 million with net debt to adjusted EBITDA leverage of 2.7x; although net debt decreased sequentially, leverage increased due to lower trailing twelve-month adjusted EBITDA and management no longer expects post-close leverage to be sub-2x.
Significant Tariff and Trade Uncertainty
Existing 25% Section 232 tariffs remain in 2026, a potential 50% tariff is scheduled for 2027 absent changes; management estimates unmitigated gross tariff exposure of ~5-6% of 2026 net sales and expects >85% of the full-year net negative tariff impact to be reflected in 2026, increasing cost pressure and demand risk.
Weak 2026 Near-Term Outlook and Elevated Decrementals
Company expects 2026 addressable market down mid-single digits, Q1 net sales down mid-high single digits, first-quarter adjusted EBITDA of $23M–$33M (margin 3.9%–5.3%), and adjusted diluted loss per share of $0.06 to $0.00. Management expects elevated decremental margins and more limited ability to pass through pricing while mitigation phases in.
Company Guidance
MasterBrand moved to quarterly guidance and laid out a cautious 2026 outlook: for Q1 2026 it expects end markets and net sales down mid‑ to high‑single digits Y/Y, adjusted EBITDA of $23–$33 million (3.9%–5.3% margin), adjusted diluted loss per share of $0.06 to $0.00, and the start of $30 million of planned cost reductions (savings begin in Q1, fully realized by year‑end). For full‑year 2026 management expects the addressable market down mid‑single digits, elevated decremental margins that should improve in H2, interest expense flat to down, an improved effective tax rate, and free cash flow to exceed net income; it estimates unmitigated gross tariff exposure of ~5%–6% of 2026 net sales with >85% of the net negative tariff impact reflected in 2026 and expects to offset 100% of tariff dollar costs on a run‑rate basis by 2026. The outlook excludes any American Woodmark transaction benefits (and other potential future trade changes), and net debt/adjusted EBITDA at close of the pending deal is no longer expected to be <2.0x but is projected to trend down as mitigation and synergies are realized.MasterBrand Inc Financial Statement Overview
Summary
Overall fundamentals have weakened in the TTM period: net margin fell to ~1.0% and EBIT margin to ~5.3% (sharp compression versus prior years). Free cash flow is still positive ($117.5M) but down materially from 2023–2024, and leverage is meaningful (debt-to-equity ~0.87) with ROE down to ~2.0%, increasing sensitivity to further profit pressure.Income Statement
TTM (Trailing-Twelve-Months) performance shows a sharp profitability reset: revenue is roughly flat versus the last few annual periods, but net income fell to $26.7M with a ~1.0% net margin (down from ~4.7% in 2024 and ~6.7% in 2023). Operating profitability also compressed, with EBIT margin down to ~5.3% (from ~9.0% in 2024). Strengths include still-solid gross margin (~29.6%) and positive EBITDA, but the magnitude of the earnings decline and margin compression are key concerns.42
Neutral
Balance Sheet
Leverage is meaningful but not extreme: total debt is $1.17B against $1.34B of equity (debt-to-equity ~0.87), broadly in line with 2024 (~0.84) but higher than 2023 (~0.65). The equity base is sizable and supports the balance sheet, yet returns have weakened materially, with return on equity down to ~2.0% in TTM (from ~9.7% in 2024 and ~15% in 2022–2023). Overall, the balance sheet looks serviceable, but higher leverage alongside falling profitability increases risk.58
Neutral
Cash Flow
Cash generation remains positive, with TTM operating cash flow of $195.7M and free cash flow of $117.5M, but both are down versus 2024 ($292.0M OCF; $211.1M FCF) and 2023 ($405.6M OCF; $348.3M FCF). Cash conversion has weakened: operating cash flow covers less than half of earnings-related obligations (coverage ~0.47 vs ~0.74 in 2024 and ~1.16 in 2023), and free cash flow relative to net income is ~0.60 in TTM (below prior years). Strength is continued positive free cash flow, while the key weakness is the downshift in cash flow level and coverage.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.73B | 2.70B | 2.73B | 3.28B | 2.86B |
| Gross Profit | 799.90M | 859.70M | 875.90M | 918.80M | 763.20M |
| EBITDA | 225.60M | 319.60M | 368.20M | 277.90M | 300.50M |
| Net Income | 26.70M | 125.90M | 182.00M | 155.40M | 182.60M |
Balance Sheet | |||||
| Total Assets | 3.10B | 2.93B | 2.38B | 2.53B | 3.00B |
| Cash, Cash Equivalents and Short-Term Investments | 183.30M | 120.60M | 148.70M | 101.10M | 141.40M |
| Total Debt | 1.35B | 1.08B | 770.20M | 1.03B | 113.20M |
| Total Liabilities | 1.76B | 1.64B | 1.19B | 1.52B | 551.10M |
| Stockholders Equity | 1.34B | 1.29B | 1.19B | 1.01B | 2.45B |
Cash Flow | |||||
| Free Cash Flow | 117.50M | 211.10M | 348.30M | 179.70M | 96.60M |
| Operating Cash Flow | 195.70M | 292.00M | 405.60M | 235.60M | 148.20M |
| Investing Cash Flow | -74.40M | -580.80M | -56.90M | -55.90M | -51.50M |
| Financing Cash Flow | -65.70M | 269.60M | -299.90M | -215.30M | -109.70M |
MasterBrand Inc Technical Analysis
Negative
11.14
Price Trends
12.00
Negative
11.92
Negative
11.78
Negative
Market Momentum
-0.19
Positive
37.69
Neutral
14.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBC, the sentiment is Negative. The current price of 11.14 is below the 20-day moving average (MA) of 12.30, below the 50-day MA of 12.00, and below the 200-day MA of 11.78, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 14.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MBC.
MasterBrand Inc Risk Analysis
MasterBrand Inc disclosed 40 risk factors in its most recent earnings report. MasterBrand Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MasterBrand Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.96B | 17.49 | 20.20% | 0.21% | 5.11% | 34.02% | |
67 Neutral | $872.84M | 13.67 | 6.82% | ― | -10.71% | -37.03% | |
65 Neutral | $1.45B | 17.64 | 8.11% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.50B | ― | -1.95% | 4.16% | 4.34% | -141.36% | |
57 Neutral | $1.59B | 6.96 | 27.48% | 1.84% | -6.03% | ― | |
53 Neutral | $1.53B | 58.08 | 6.19% | ― | 1.77% | -44.11% |
* Consumer Cyclical Sector Average
MBC
MasterBrand Inc
10.83
-3.53
-24.58%
AMWD
American Woodmark
53.46
-18.28
-25.48%
MLKN
MillerKnoll
21.19
-0.36
-1.67%
TILE
Interface
31.88
13.06
69.37%
LZB
La-Z-Boy Incorporated
35.28
-9.69
-21.54%
LEG
Leggett & Platt
11.55
2.12
22.49%
MasterBrand Inc Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
MasterBrand Announces Cost Actions Amid Weaker Quarterly Results
Negative
Feb 10, 2026
On February 10, 2026, MasterBrand reported fourth-quarter 2025 net sales of $644.6 million, down 3.5% year over year, with a net loss margin of 6.5% and adjusted EBITDA margin falling to 5.4% amid lower volumes, tariffs, and inflationary pressures. For full-year 2025, net sales rose 1.3% to $2.7 billion, but net income dropped sharply to $26.7 million and adjusted EBITDA margin declined to 10.9%, reflecting softer markets and higher costs despite pricing actions and Supreme-related synergies.
The company ended 2025 with $183.3 million in cash, $974.5 million in total debt, and net debt to adjusted EBITDA of 2.7x, while free cash flow fell to $117.5 million, pressured by lower earnings even as MasterBrand repurchased $18.1 million of stock earlier in the year. Management announced $30 million of cost rationalization measures expected to be realized in 2026, shifted to quarterly guidance amid macro and tariff uncertainty, and highlighted integration planning for its pending merger with American Woodmark as it forecasts a mid-single-digit market decline and weaker first-quarter 2026 sales and profitability.
The most recent analyst rating on (MBC) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on MasterBrand Inc stock, see the MBC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.