MasterBrand (NYSE:MBC) Issues Earnings Results, Misses Expectations By $0.16 EPS

MasterBrand (NYSE:MBC) released its quarterly earnings data on Tuesday. The company reported ($0.02) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.16), FiscalAI reports. MasterBrand had a net margin of 0.98% and a return on equity of 8.53%. The company had revenue of $644.60 million during the quarter, compared to analysts’ expectations of $607.60 million. During the same period last year, the firm earned $0.22 earnings per share. MasterBrand’s quarterly revenue was down 3.5% on a year-over-year basis. MasterBrand updated its FY 2026 guidance to -0.060-0.000 EPS.

Here are the key takeaways from MasterBrand’s conference call:

• Q4 results missed prior-year profitability with net sales $645M (-3.5%), Adjusted EBITDA $35M (5.4% margin) and a $42M Q4 net loss; management guides Q1 sales down mid‑to‑high single digits and Adjusted EBITDA of $23–$33M (adjusted diluted loss per share $0.06 to $0.00).
• Trade and tariffs remain a major headwind — existing 25% Section 232 tariffs stay in place for 2026 (50% possible in 2027) and tariffs reduced Q4 gross margin by roughly 300 bps5–6% of 2026 sales.
• Management is executing mitigation and efficiency actions including a planned $30M of cost reductions in 2026, ongoing continuous‑improvement gains, continued capture of Supreme synergies and expected $90M run‑rate synergies from the pending American Woodmark combination (targeted by year three post‑close).
• Liquidity and leverage — year‑end cash was $183.3M with $441.9M revolver availability, net debt of $791.2M (2.7x net debt/Adjusted EBITDA); management now expects leverage at close of the merger will not be sub‑2x but aims to de‑lever as synergies and mitigation take effect.
• Market outlook remains soft — MasterBrand expects 2026 end markets to decline roughly mid‑single digits with continued trade‑down behavior and subdued R&R, and only a modest recovery anticipated in 2027 (with a lag before that improvement fully flows to results).

MasterBrand Stock Performance

Shares of MasterBrand stock traded up $0.04 during trading on Thursday, hitting $12.10. 684,681 shares of the company’s stock were exchanged, compared to its average volume of 1,723,732. MasterBrand has a 52-week low of $9.33 and a 52-week high of $16.95. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.13 and a current ratio of 1.87. The stock has a market capitalization of $1.53 billion, a price-to-earnings ratio of 60.58 and a beta of 1.46. The business has a 50-day simple moving average of $11.97 and a 200-day simple moving average of $12.17.

Institutional Trading of MasterBrand

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Qube Research & Technologies Ltd acquired a new position in MasterBrand during the second quarter worth about $330,000. Creative Planning increased its holdings in MasterBrand by 20.7% in the second quarter. Creative Planning now owns 35,936 shares of the company’s stock valued at $393,000 after buying an additional 6,152 shares during the last quarter. Royal Bank of Canada grew its position in shares of MasterBrand by 12.8% in the 1st quarter. Royal Bank of Canada now owns 55,615 shares of the company’s stock valued at $726,000 after buying an additional 6,298 shares during the last quarter. Mackenzie Financial Corp purchased a new stake in shares of MasterBrand in the 3rd quarter valued at about $236,000. Finally, Amundi purchased a new stake in shares of MasterBrand in the second quarter valued at about $231,000. 87.32% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have commented on MBC. Weiss Ratings restated a “hold (c)” rating on shares of MasterBrand in a report on Thursday, January 22nd. Wall Street Zen cut shares of MasterBrand from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $15.00.

MasterBrand Company Profile

MasterBrand Inc is one of the largest manufacturers of cabinetry and home storage solutions in North America. The company specializes in designing, producing and distributing kitchen and bath cabinetry for both new construction and the remodeling markets. Its offerings span a broad spectrum of styles and price points, serving homebuilders, home improvement retailers and independent dealers.

MasterBrand’s product portfolio includes framed and frameless cabinet lines, bath vanities, closet systems and other organizational accessories.