- \n
- \nClosed transformative all-stock merger with American Woodmark during the quarter and raised long-term annual run-rate cost synergy target to over $100 million<\/p>\n<\/li>\n
- \nNet sales were $815.2 million, including a $125.5 million contribution from American Woodmark<\/p>\n<\/li>\n
- \nNet loss was $(57.6) million and net loss margin was (7.1)%<\/p>\n<\/li>\n
- \nAdjusted EBITDA1<\/sup> was $62.5 million, representing an adjusted EBITDA margin1<\/sup> of 7.7%<\/p>\n<\/li>\n
- \nDiluted (loss) earnings per share were $(0.38), compared to $0.29 in the prior year period, adjusted diluted earnings per share1<\/sup> were $0.05, compared to $0.40 in the prior year period<\/p>\n<\/li>\n
- \nCompany introduces second-half 2026 financial outlook, which includes $15 million of synergy realization from the $30 million in annualized synergies executed to date<\/p>\n<\/li>\n<\/ul>\n
BEACHWOOD, Ohio–(BUSINESS WIRE<\/a>)–
\nMasterBrand, Inc. (NYSE: MBC, the \u201cCompany,\u201d or \u201cMasterBrand\u201d), the largest residential cabinet manufacturer in North America, today announced second quarter 2026 financial results.<\/p>\n\n\u201cThe second quarter marked an important milestone for MasterBrand. We completed our merger with American Woodmark, establishing the most comprehensive portfolio of trusted cabinetry brands in North America, while our legacy business delivered results largely in line with our outlook despite continued softness in demand,\u201d said Dave Banyard, President and Chief Executive Officer. \u201cWith integration ahead of schedule, we remain confident that this combination positions MasterBrand to streamline our cost structure, unlock greater earnings power, and drive growth as our markets recover.\u201d<\/p>\n
Second Quarter 2026<\/span><\/b><\/p>\n
\nResults for the second quarter include American Woodmark from the May 28, 2026, close date. Prior year comparisons reflect legacy MasterBrand only.<\/p>\n
\nNet sales were $815.2 million, including a $125.5 million contribution from American Woodmark. Legacy MasterBrand net sales were $689.7 million, a decrease of 5.6% compared to the second quarter of 2025, reflecting a mid- to high-single-digit market decline, as expected, slightly offset by favorable net average selling price (\u201cASP\u201d) due to the flow through of tariff pricing.<\/p>\n
\nGross profit was $205.5 million, with a contribution of $16.7 million from American Woodmark. Gross profit margin was 25.2%. Legacy MasterBrand gross profit was $188.8 million, compared to $239.7 million in the prior year period. Legacy gross profit margin decreased 540 basis points to 27.4%, compared to 32.8% in the second quarter of 2025, driven by lower volume and the related unfavorable fixed cost leverage, unfavorable product mix, and material, labor, and freight inflation, partially offset by our continuous improvement efforts and favorable ASP from tariff pricing flow-through.<\/p>\n
\nNet (loss) income was $(57.6) million, with a contribution of $(28.9) million from American Woodmark and net (loss) income margin was (7.1)%. Legacy net (loss) income was $(28.7) million compared to $37.3 million in the second quarter of 2025 and net (loss) income margin was (4.2)%, compared to net income margin of 5.1% in the prior year, driven by lower gross profit and higher SG&A expenses, primarily due to merger-related costs, and a higher tax expense due to non-deductible expenses and jurisdictional differences, partially offset by the initial benefits of cost actions taken in the quarter.<\/p>\n
\nAdjusted EBITDA1<\/sup> was $62.5 million, including a $4.3 million contribution from American Woodmark. Adjusted EBITDA margin1<\/sup> was 7.7%. Legacy MasterBrand adjusted EBITDA1<\/sup> was $58.2 million compared to $105.4 million in the prior year period, and adjusted EBITDA margin1<\/sup> was 8.4%, down 600 basis points due to market driven volume declines and the related unfavorable fixed cost leverage, unfavorable product mix, and material, labor, and freight inflation, partially offset by the flow through of tariff mitigation, our continuous improvement efforts and previously announced cost actions.<\/p>\n
\nDiluted (loss) earnings per share were $(0.38) based on 153.6 million weighted average shares outstanding compared to $0.29 in the second quarter of 2025 based on 129.1 million weighted average shares outstanding. Adjusted diluted earnings per share1<\/sup> was $0.05 based on 153.6 million weighted average shares outstanding compared to $0.40 in the second quarter of 2025 based on 129.1 million weighted average shares outstanding.<\/p>\n
American Woodmark Integration and Synergies<\/span><\/b><\/p>\n
\nOn May 28, 2026, MasterBrand completed its merger with American Woodmark, creating the most comprehensive portfolio of trusted cabinetry brands in North America. Integration of American Woodmark is underway, with approximately $30 million of annual synergy actions completed as of the end of July. The Company now expects over $100 million in annual run-rate cost synergies by the end of year three post-close, exceeding its original synergy target. This target excludes the previously announced $30 million legacy MasterBrand cost reduction initiative and American Woodmark’s closure of its Monterrey, Mexico, facility, both of which are incremental.<\/p>\n
Balance Sheet, Cash Flow and Capital Allocation<\/span><\/b><\/p>\n
\nAs of June 28, 2026, the Company had $241.6 million in cash and $393.9 million of availability under its revolving credit facility. Additionally, total debt was $1,390.3 million, net debt1<\/sup> was $1,148.7 million and the ratio of net debt to adjusted EBITDA1<\/sup> from the most recent trailing twelve months, inclusive of American Woodmark\u2019s most recent trailing twelve-months adjusted EBITDA1<\/sup>, was 3.9x. The Company’s credit agreement permits the inclusion of trailing twelve-month adjusted EBITDA for American Woodmark and stock-based compensation, among other permitted adjustments, for covenant compliance purposes. The Company remained in full compliance with all applicable financial covenants related to its outstanding debt as of the end of the second quarter.<\/p>\n
\nNet cash provided by operating activities was $5.8 million for the twenty-six weeks ended June 28, 2026, compared to $53.4 million for the twenty-six weeks ended June 29, 2025. Free cash flow1<\/sup> was $(17.6) million for the twenty-six weeks ended June 28, 2026, compared to $25.5 million in the prior-year period. The decrease in net cash provided by operating activities and free cash flow were driven by a decrease in net income in the twenty-six weeks ended June 28, 2026, compared to the twenty-six weeks ended June 29, 2025.<\/p>\n
\nNo share repurchases were made during the second quarter of 2026. The Company intends to prioritize integration investments and debt reduction and is currently targeting net leverage below 2.0x by the end of 2028.<\/p>\n
Second-Half 2026 Financial Outlook<\/span><\/b><\/p>\n
\nFor the second half of 2026, the Company expects the following:<\/p>\n
- \n
- \nNet sales of $2.05 to $2.11 billion<\/p>\n<\/li>\n
- \nAdjusted EBITDA1,2<\/sup> in the range of $129 to $149 million, with related adjusted EBITDA margin1,2<\/sup> in the range of 6.3% to 7.1%<\/p>\n<\/li>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $(0.05) to $0.03<\/p>\n
- \n
- \nReflects interest expense of approximately $50 million, reflecting the newly arranged $375 million delayed-draw Term Loan A used to retire American Woodmark’s debt at close<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\nThis outlook reflects the combined company, with American Woodmark included for the full second half, and includes approximately $15 million of synergy capture and approximately $11 million of IEEPA duty refunds received and expected to be received over the period.<\/p>\n
\nFor full year 2026, MasterBrand is reiterating its expectation that its addressable market will be down mid-single digits. The Company now expects the following:<\/p>\n
- \n
- \nGross tariff costs of approximately 5-6% of full-year 2026 net sales; expected to be fully offset on a dollar-for-dollar run-rate basis by end of year<\/p>\n<\/li>\n
- \nThe Company continues to expect free cash flow1<\/sup> for full-year 2026 to be in excess of net income<\/p>\n<\/li>\n<\/ul>\n
\nThis financial outlook only reflects the impact of those tariffs in effect as of the date of this release and does not reflect any other potential tariffs or tariff-related impacts on company costs or end market demand. The Company believes the dynamic nature of tariffs, specifically the uncertainty of implementation, potential timing and duration, limits the usefulness of estimating this information. MasterBrand undertakes no obligation to update this outlook as circumstances evolve. This outlook reflects the combined company including American Woodmark.<\/p>\n
\n“Our teams continued to execute cost actions and tariff mitigation efforts while accomplishing early synergy realization from the combination,” said Andi Simon, Executive Vice President and Chief Financial Officer. “With the merger complete and integration planning continuing and converting to execution, we are introducing second-half 2026 outlook for the combined company. Our priorities from here are clear: disciplined execution on costs and synergies, and steady progress on the balance sheet.”<\/p>\n
- \nAdjusted diluted earnings per share1,2<\/sup> in the range of $(0.05) to $0.03<\/p>\n
- \nDiluted (loss) earnings per share were $(0.38), compared to $0.29 in the prior year period, adjusted diluted earnings per share1<\/sup> were $0.05, compared to $0.40 in the prior year period<\/p>\n<\/li>\n
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