MasterBrand (MBC) Q3 2026 earnings summary

Executive summary

• First full quarter with American Woodmark included: Q3 sales were $1,036.8M, while legacy sales declined 2.5% amid a mid- to high-single-digit market decline.

• Integration and synergy capture were ahead of plan, with ~$11M of cost synergies realized to date; second-half capture is expected to exceed the ~$15M target.

• Andi Simon transitioned from CFO on Oct. 26; Mark Young was named interim CFO while a permanent CFO search is underway.

Financial highlights

• Q3 net sales were $1,036.8M, up 48.3% YoY, including $355.7M from American Woodmark; legacy sales were $681.1M, down 2.5%.

• Gross profit was $254.9M; gross margin was 24.6%, down 660 bps YoY on lower volume, fixed-cost deleverage, inflation, unfavorable mix and acquired lower-margin sales.

• GAAP net loss was $9.2M versus net income of $18.1M; diluted loss per share was $0.05 versus earnings of $0.14.

• Adjusted EBITDA was $86.0M versus $90.6M; margin was 8.3%, down 470 bps. Adjusted net income was $19.8M and adjusted diluted EPS was $0.10 versus $0.33.

• Q3 free cash flow was $61M versus $40M in the prior-year standalone quarter; YTD free cash flow was $43.6M versus $65.0M.

Outlook and guidance

• Q4 net sales guidance is $958M–$988M; adjusted EBITDA is $38M–$48M, with a 4.0%–4.9% margin and adjusted diluted loss per share of $0.12–$0.08.

• FY2026 North American cabinets market is expected to decline high-single digits, with no demand improvement assumed through year-end; FY free cash flow is expected to be approximately break-even.

• Q4 outlook reflects soft demand, holiday shutdown days, lower IEEPA refunds, and materials and freight inflation as pricing lags cost increases.

• Additional cost actions are expected to deliver ~$10M of annualized savings, mostly benefiting 2027; second-half synergies are expected to exceed the ~$15M target.

• Outlook includes tariffs in effect as of Nov. 5, 2026, and excludes potential additional tariffs and related cost or demand impacts.