MasterBrand
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MasterBrand (MBC) investor relations material

MasterBrand Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary10 Feb, 2026

Executive summary

  • Q4 2025 net sales declined 3.5% year-over-year to $644.6 million, with a net loss of $42 million versus $14 million net income in Q4 2024; full year net sales rose 1.3% to $2.73 billion, but net income dropped to $26.7 million from $125.9 million.

  • Adjusted EBITDA for FY 2025 was $298.2 million, down 18% year-over-year, with margin contracting to 10.9%; Q4 adjusted EBITDA was $35.1 million, margin 5.4%.

  • Supreme acquisition contributed 5% to annual sales and delivered targeted cost synergies; integration planning for the American Woodmark merger is underway, with $90 million in run-rate synergies targeted by year three post-close.

  • The company outperformed the broader new construction market due to portfolio breadth and service reliability, despite a sharper-than-expected late-quarter slowdown.

  • Announced $30 million in cost rationalization actions for 2026 and introduced Q1 2026 financial outlook.

Financial highlights

  • Q4 gross profit was $167.5 million (margin 26.0%), down from $203.3 million (margin 30.4%) year-over-year; full year gross profit was $827.6 million (margin 30.3%), down from $877.0 million (margin 32.5%).

  • Q4 adjusted EBITDA was $35.1 million, down from $74.6 million; full year adjusted EBITDA was $298.2 million, down from $363.6 million.

  • Q4 diluted loss per share was $(0.33); adjusted diluted loss per share was $(0.02). Full year diluted EPS was $0.21; adjusted diluted EPS was $0.91, down from $1.40.

  • Free cash flow for FY 2025 was $117.5 million, down from $211.1 million in 2024.

  • Net cash provided by operating activities was $195.7 million for the year, down from $292.0 million.

Outlook and guidance

  • Q1 2026 net sales expected to decline mid- to high-single digits year-over-year; adjusted EBITDA guidance: $23–$33 million (margin 3.9%–5.3%); adjusted diluted EPS between $(0.06) and $0.00.

  • 2026 addressable market expected to be down mid-single digits year-over-year, with continued variability across end markets; gross tariff costs projected at 5–6% of net sales.

  • $30 million in cost reductions planned for 2026, with full realization by year-end.

  • Free cash flow for 2026 expected to exceed net income; effective tax rate to improve due to absence of one-time costs.

  • Guidance excludes potential impacts from new tariffs and the pending American Woodmark merger.

What drives H2 2026 tariff mitigation acceleration?
Detail factors impacting Woodmark deal leverage.
Impact of elevated discounting on 2026 margins.
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Frequently asked questions

MasterBrand Inc. specializes in the manufacture and sale of residential cabinetry in North America. The company provides a comprehensive portfolio of cabinetry products designed for various areas of the home, including kitchens and bathrooms. These products are available in numerous designs, finishes, and styles ranging from stock to premium cabinetry. MasterBrand markets its products through a broad distribution network, including dealers, retailers, and direct partnerships with builders. This extensive range caters to both remodeling projects and new construction markets across the United States and Canada. Founded in 1954, originally as United Cabinet Incorporated, the company is now headquartered in Jasper, Indiana, and its shares are listed on the New York Stock Exchange.

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