MasterBrand (NYSE:MBC) Releases Earnings Results, Beats Expectations By $0.07 EPS

MasterBrand (NYSE:MBC) posted its quarterly earnings data on Thursday. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.07, FiscalAI reports. MasterBrand had a positive return on equity of 3.65% and a negative net margin of 3.49%. The business had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.06 billion. During the same quarter in the previous year, the firm earned $0.33 EPS. The firm’s revenue was up 48.3% compared to the same quarter last year.

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

• MasterBrand reported $1.04 billion in third-quarter sales and $86 million in adjusted EBITDA, but adjusted EBITDA margin fell to 8.3% from 13.0% a year earlier, pressured by lower volume, unfavorable mix, and inflation outpacing pricing.
• Management lowered its 2026 market outlook to a high-single-digit decline and expects fourth-quarter sales of $958 million–$988 million and adjusted EBITDA of $38 million–$48 million. Soft demand, plant downtime, higher costs, and fewer tariff refunds are expected to weigh on results; full-year free cash flow is forecast near break-even.
• Merger integration is ahead of schedule: the company realized about $9 million of synergies in the quarter and $11 million year to date, with actions expected to generate more than $50 million in annualized run-rate savings exiting year one and a target of over $100 million by the end of year three.
• Net leverage was 4.3x at quarter end, and MasterBrand pushed its target of reducing net leverage below 2x from the end of 2028 to the end of 2029, citing a weaker market and the anticipated 2027 cabinet tariff increase.
• Legacy MasterBrand sales declined 2.5%, outperforming the estimated mid-to-high-single-digit market decline, while both legacy businesses outperformed in repair and remodel. Management also cited early progress cross-selling products to American Woodmark dealers, though it said those opportunities are still developing.

MasterBrand Stock Down 4.1%

NYSE:MBC traded down $0.29 during trading hours on Friday, reaching $6.79. 3,283,697 shares of the stock were exchanged, compared to its average volume of 2,484,488. The firm has a 50 day moving average of $7.16 and a 200 day moving average of $8.76. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.76 and a quick ratio of 1.04. The stock has a market cap of $1.38 billion, a PE ratio of -7.71 and a beta of 1.45. MasterBrand has a twelve month low of $6.17 and a twelve month high of $13.95.

Insider Activity

In other news, EVP Kurt Wanninger sold 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $9.22, for a total transaction of $461,000.00. Following the sale, the executive vice president owned 201,199 shares in the company, valued at $1,855,054.78. This represents a 19.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 2.80% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on MBC shares. Zacks Research started coverage on shares of MasterBrand in a research note on Tuesday. They issued a “hold” rating on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of MasterBrand in a report on Friday, October 9th. Finally, DA Davidson decreased their price objective on MasterBrand from $10.00 to $8.00 and set a “neutral” rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $8.00.

About MasterBrand

MasterBrand, Inc (NYSE:MBC) is a manufacturer of residential cabinetry and related products. The company designs and produces cabinets for kitchens, bathrooms, home offices, living areas and other spaces, serving both new construction and remodeling markets.

MasterBrand offers a range of cabinet styles, materials, finishes and price points through a portfolio of brands that includes Aristokraft, Cabinetry by Karman, Decora, Diamond, Homecrest, Kemper, Mantra, Omega and Schrock. Its products are sold through home improvement and specialty retailers, independent dealers, builders and other trade customers.

The company is based in Jasper, Indiana, and serves customers primarily in the United States and Canada.