MasterBrand Q2 sales boosted by American Woodmark deal, profit hit by costs

MasterBrand

04/08/2026 21:30

Overview
US cabinet maker's Q2 net sales rose yr/yr, driven by American Woodmark merger
Adjusted EPS for Q2 fell to $0.05 from $0.40 a year earlier
Company completed all-stock merger with American Woodmark and raised synergy target to over $100 mln

Outlook
MasterBrand sees second-half 2026 net sales of $2.05 bln to $2.11 bln
Company expects second-half 2026 adj EBITDA of $129 mln to $149 mln
MasterBrand reiterates full-year 2026 addressable market expected to be down mid-single digits

Result Drivers
MARKET SOFTNESS - Co said legacy sales fell 5.6% due to mid- to high-single-digit market decline
COST PRESSURES - Lower volume, unfavorable fixed cost leverage, product mix, and material, labor, and freight inflation weighed on margins
MERGER-RELATED COSTS - Higher SG&A expenses and tax expense primarily due to merger-related costs impacted net income

Company press release: ID:nBw1nSGnXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$815.20 mln
$743.05 mln (2 Analysts)
Q2 Adjusted EPS
Miss
$0.05
$0.10 (2 Analysts)
Q2 Net Loss
 
$57.60 mln
 
Q2 Gross Margin
 
25.20%
 
Q2 Operating Income
 
-$27.80 mln
 
Q2 Pretax Loss
 
$48.50 mln
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Masterbrand Inc is $9.15, about 2.6% above its August 3 closing price of $8.92
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 16 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)