MasterBrand (MBC) Q2 2026 earnings summary

Executive summary

• Completed merger with American Woodmark on May 28, 2026, creating the largest cabinet brand portfolio in North America and initiating integration and synergy realization.

• Integration is progressing ahead of schedule, with teams collaborating effectively and $30 million in annual synergy actions completed by July end.

• Raised annual run-rate cost synergy target to over $100 million by year three post-close, exceeding original expectations.

• Market conditions remain challenging, with persistent affordability issues, consumer caution, and mid- to high-single-digit market declines impacting demand.

• Legacy business results were in line with outlook despite continued softness in demand, with favorable average selling prices due to tariff pricing.

Financial highlights

• Net sales for Q2 2026 were $815.2 million, including $125.5 million from American Woodmark; legacy net sales declined 5.6% year-over-year to $689.7 million.

• Gross profit was $205.5 million (margin 25.2%), down from 32.8% in Q2 2025; legacy gross margin was 27.4%, down 540 bps year-over-year.

• Net loss for Q2 2026 was $57.6 million (margin -7.1%), including $28.9 million from American Woodmark; compared to net income of $37.3 million in Q2 2025.

• Adjusted EBITDA was $62.5 million (margin 7.7%), down from $105.4 million (margin 14.4%) year-over-year; legacy adjusted EBITDA was $58.2 million.

• Adjusted diluted EPS was $0.05, down from $0.40 in the prior year; diluted loss per share was $(0.38).

Outlook and guidance

• Second half 2026 net sales expected at $2.05–$2.11 billion, with American Woodmark contributing about $730 million.

• Second half adjusted EBITDA projected at $129–$149 million (6.3%–7.1% margin); adjusted diluted EPS between -$0.05 and $0.03.

• $15 million in synergy capture and $11 million of IEEPA duty refunds expected in 2H 2026.

• Free cash flow for 2026 expected to exceed net income.

• Full-year guidance to resume in 2027, with long-term targets to be detailed at Investor Day in Q1 2027.