MasterBrand, Inc. (NYSE: MBC) reported its fourth‑quarter and full‑year 2025 financial results on February 10, 2026. Net sales for the quarter were $644.6 million, a 3.5% decline from $667.7 million in the same period a year earlier, while full‑year net sales rose 1.3% to $2.7 billion. The company posted a net loss of $42.0 million for the quarter and a net income of $26.7 million for the year.
Gross profit margin fell to 26.0% in Q4 2025 from 30.4% in Q4 2024, a contraction of 4.4 percentage points. Adjusted EBITDA margin dropped to 5.4% from 11.2% in the prior year quarter, reflecting a 5.8‑point decline. The compression is largely attributable to tariff costs that increased by nearly 300 basis points, higher input inflation, and a 10% decline in factory utilization that left fixed costs spread over a smaller revenue base.
Segment analysis shows that new‑construction cabinet sales fell 8% YoY, while remodel and replacement sales were flat, partially offset by a 5% gain in the Supreme Cabinetry segment acquired in 2025. The Supreme acquisition contributed $30 million in incremental gross margin and helped stabilize cash flow, but the integration still incurs restructuring expenses that weigh on profitability.
Management guided for 2026 net sales to be down mid‑ to high‑single digits YoY and adjusted EBITDA to $23 million–$33 million, translating to a margin of 3.9%–5.3%. Adjusted diluted loss per share is expected to be between $0.06 and $0.00. The guidance reflects continued demand softness, tariff uncertainty, and the need to complete cost‑control initiatives that are projected to deliver $30 million in savings in 2026.
CEO Dave Banyard said the company is “executing a coordinated tariff‑mitigation plan, flexing our manufacturing network to match demand, and maintaining a sharp focus on cost management and cash generation.” CFO Andi Simon added that the company is “transitioning to quarterly guidance until longer‑term visibility improves” and that the pending merger with American Woodmark will create significant synergies and broaden market reach.
Investors reacted negatively to the earnings release, citing the adjusted EPS miss of $0.02 versus analysts’ estimate of $0.14 and the cautious 2026 outlook. The market also weighed the sharp margin contraction and the ongoing impact of tariff costs on profitability.
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