MasterBrand (NYSE:MBC – Get Free Report) posted its earnings results on Thursday. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.07, FiscalAI reports. The firm had revenue of $1.04 billion during the quarter, compared to analyst estimates 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 was up 48.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.33 EPS.
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 Price Performance
Shares of NYSE:MBC opened at $6.79 on Friday. The company has a market capitalization of $1.38 billion, a P/E ratio of -7.71 and a beta of 1.45. 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 firm’s 50 day simple moving average is $7.16 and its two-hundred day simple moving average is $8.76. MasterBrand has a 1-year low of $6.17 and a 1-year high of $13.95.
Wall Street Analyst Weigh In
A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a “sell (d)” rating on shares of MasterBrand in a research report on Friday, October 9th. Zacks Research began coverage on shares of MasterBrand in a report on Tuesday. They issued a “hold” rating for the company. Wall Street Zen raised shares of MasterBrand from a “sell” rating to a “hold” rating in a report on Saturday. Finally, DA Davidson dropped their price objective on MasterBrand from $10.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $8.00.
View Our Latest Stock Analysis on MBC
Insider Buying and Selling
In other news, EVP Kurt Wanninger sold 50,000 shares of the company’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $9.22, for a total value of $461,000.00. Following the transaction, the executive vice president owned 201,199 shares of the company’s stock, valued at $1,855,054.78. This represents a 19.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 2.80% of the company’s stock.
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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