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olivLaw · US equity research

MasterBrand, Inc. MBC

Wood Household Furniture, (No Upholstered) · SIC 2511 · Vertical: Furniture and fixtures (SIC 251x)

7.08USD−5.73% · 1 dayClose 05 Nov 2026

MasterBrand is North America's largest residential cabinet maker, selling through dealers, retailers and builders in the US and Canada. It completed its American Woodmark merger in 2026, and sales reached 2734.7 million USD in fiscal 2025 and 815.2 million USD in the second quarter of 2026, making it relevant to the remodeling market.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 05 Nov 2026, MasterBrand, Inc. (MBC) stock was 7.08 USD (−5.73% on the day), with market capitalisation 1.4 bn USD, beta 1.17, 52-week range 6.43–13.82 USD. Latest reported quarter (Q2 2026): revenue of 815.2 m USD (+11.5% YoY), net income of -57.6 m USD (−254.4% YoY), diluted EPS -0.38 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.4 bn USD
shares as of 03 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.69 · TTM to 28 Jun 2026
E/P (TTM)
-9.73%
TTM to 28 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.17
Volatility (1y) 56%
52-week range
6.4313.82

Price history

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Technical reading

RSI (14)
50.0
neutral
Bollinger (20, 2)
6.25 – 7.55
in the upper half of the band · %B 0.64 · band width 18.8%
SMA 50 / 200
7.19 / 8.75
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
0.02 / -0.05
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−0.3%−5.9%+5.7 pp—
3 months−21.3%−4.6%−16.7 pp—
6 months−9.5%+0.2%−9.7 pp—
Year to date−35.9%+7.4%−43.3 pp—
1 year−34.5%+8.2%−42.7 pp−9.6%
3 years−39.3%+68.4%−107.8 pp−7.3%
5 yearsunavailable+56.5%unavailable—
Max drawdown (1y)
−53.5%
10 Feb 2026 → 12 Oct 2026
Max drawdown (5y)
−66.5%
18 Oct 2024 → 12 Oct 2026
Compound annual growth (5y)
unavailable
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 28 Jun 2026

Revenue
815.2 m USD
+11.5% YoY
Net income
-57.6 m USD
−254.4% YoY
Diluted EPS
-0.38
−231.0% YoY
net / operating
-7.1% / -3.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue718.1 m667.7 m660.3 m730.9 m698.9 m644.6 m618.0 m815.2 m
Cost of revenue480.1 m464.4 m458.1 m491.2 m480.7 m477.1 m461.4 m609.7 m
Gross profit238.0 m203.3 m202.2 m239.7 m218.2 m167.5 m156.6 m205.5 m
SG&A166.3 m152.3 m154.0 m159.4 m167.5 m186.9 m155.9 m216.7 m
Operating income57.6 m37.5 m37.1 m67.3 m41.7 m-27.1 m-18.5 m-27.8 m
Interest expense20.0 m19.3 m19.4 m18.9 m18.2 m17.6 m18.4 m20.8 m
Pre-tax income39.4 m19.8 m17.3 m49.0 m23.4 m-43.4 m-36.1 m-48.5 m
Income tax10.3 m5.8 m4.0 m11.7 m5.3 m-1.4 m-20.7 m9.1 m
Net income29.1 m14.0 m13.3 m37.3 m18.1 m-42.0 m-15.4 m-57.6 m
Diluted EPS0.220.11 ≈0.100.290.14-0.33 ≈-0.12-0.38
Operating cash flow80.8 m ≈115.1 m-31.4 m84.8 m ≈55.4 m ≈86.9 m-133.0 m138.8 m ≈
Capex16.3 m ≈46.3 m9.8 m18.1 m ≈15.9 m ≈34.4 m13.2 m10.2 m ≈
Share repurchases0 ≈011.4 m6.7 m ≈0 ≈000 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20212022202320242025
Revenue2.9 bn3.3 bn2.7 bn2.7 bn2.7 bn
Revenue YoYunavailable+14.7%−16.8%−0.9%+1.3%
Net income182.6 m155.4 m182.0 m125.9 m26.7 m
Net income YoYunavailable−14.9%+17.1%−30.8%−78.8%
Diluted EPS1.431.201.400.960.21
Diluted EPS YoYunavailable−16.1%+16.7%−31.4%−78.1%
net %6.4%4.7%6.7%4.7%1.0%
Free cash flow96.6 m179.7 m348.3 m211.1 m117.5 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 28 Dec 2025

Cash
183.3 m USD
Financial debt
974.5 m USD
Net debt
791.2 m USD
Equity
1.3 bn USD
Total assets
3.1 bn USD
Debt / equity
0.72x
Current ratio
1.67x
ROE
2.0%
ROA
0.9%
FCF margin
4.3%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
2.7 bn
2024
2.7 bn
2025
2.7 bn

SEC (XBRL)· 13 Feb 2026verified

Cost of revenue
2023
1.8 bn
2024
1.8 bn
2025
1.9 bn

SEC (XBRL)· 13 Feb 2026verified

Gross profit
2023
901.4 m
2024
877.0 m
2025
827.6 m

SEC (XBRL)· 13 Feb 2026verified

SG&A
2023
569.7 m
2024
603.1 m
2025
667.8 m

SEC (XBRL)· 13 Feb 2026verified

Operating income
2023
306.3 m
2024
235.7 m
2025
119.0 m

SEC (XBRL)· 13 Feb 2026verified

Interest expense
2023
65.2 m
2024
74.0 m
2025
74.1 m

SEC (XBRL)· 13 Feb 2026verified

Pre-tax income
2023
238.7 m
2024
168.3 m
2025
46.3 m

SEC (XBRL)· 13 Feb 2026verified

Income tax
2023
56.7 m
2024
42.4 m
2025
19.6 m

SEC (XBRL)· 13 Feb 2026verified

Net income
2023
182.0 m
2024
125.9 m
2025
26.7 m

SEC (XBRL)· 13 Feb 2026verified

Diluted EPS
2023
1.40
2024
0.96
2025
0.21

SEC (XBRL)· 13 Feb 2026verified

Weighted average diluted shares
2023
129.9 m
2024
130.9 m
2025
129.2 m

SEC (XBRL)· 13 Feb 2026verified

Balance sheet · USD

Cash
2023
148.7 m
2024
120.6 m
2025
183.3 m

SEC (XBRL)· 13 Feb 2026verified

Receivables
2023
203.0 m
2024
191.0 m
2025
150.4 m

SEC (XBRL)· 13 Feb 2026verified

Inventories
2023
249.8 m
2024
276.4 m
2025
269.1 m

SEC (XBRL)· 13 Feb 2026verified

Current assets
2023
677.2 m
2024
650.7 m
2025
695.9 m

SEC (XBRL)· 13 Feb 2026verified

Property, plant & equipment, net
2023
356.6 m
2024
481.5 m
2025
503.1 m

SEC (XBRL)· 13 Feb 2026verified

Goodwill
2023
925.1 m
2024
1.1 bn
2025
1.1 bn

SEC (XBRL)· 13 Feb 2026verified

Intangibles (excl. goodwill)
2023
335.5 m
2024
571.3 m
2025
547.7 m

SEC (XBRL)· 13 Feb 2026verified

Total assets
2023
2.4 bn
2024
2.9 bn
2025
3.1 bn

SEC (XBRL)· 13 Feb 2026verified

Accounts payable
2023
151.4 m
2024
180.7 m
2025
203.7 m

SEC (XBRL)· 13 Feb 2026verified

Short-term debt
2023
17.6 m
2024
0
2025
0

SEC (XBRL)· 05 Aug 2026verified

Long-term debt
2023
690.2 m
2024
1.0 bn
2025
974.5 m

SEC (XBRL)· 13 Feb 2026verified

Current liabilities
2023
349.4 m
2024
395.4 m
2025
415.7 m

SEC (XBRL)· 13 Feb 2026verified

Total liabilities
2023
1.2 bn
2024
1.6 bn
2025
1.8 bn

SEC (XBRL)· 13 Feb 2026verified

Equity
2023
1.2 bn †
2024
1.3 bn †
2025
1.3 bn †

SEC (XBRL)· 13 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
405.6 m
2024
292.0 m
2025
195.7 m

SEC (XBRL)· 13 Feb 2026verified

Capex
2023
57.3 m
2024
80.9 m
2025
78.2 m

SEC (XBRL)· 13 Feb 2026verified

Free cash flow
2023
348.3 m ≈
2024
211.1 m ≈
2025
117.5 m ≈

SEC (XBRL)· 13 Feb 2026derived

Investing cash flow
2023
-56.9 m
2024
-580.8 m
2025
-74.4 m

SEC (XBRL)· 13 Feb 2026verified

Financing cash flow
2023
-299.9 m
2024
269.6 m
2025
-65.7 m

SEC (XBRL)· 13 Feb 2026verified

Share repurchases
2023
22.0 m
2024
6.5 m
2025
18.1 m

SEC (XBRL)· 13 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
1.3%
computed by olivLawFY 2025
Revenue CAGR 3Y
-5.8%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
-49.5%
computed by olivLawFY 2025
Net income growth (YoY)
-78.8%
computed by olivLawFY 2025
Net income CAGR 3Y
-44.4%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
-78.1%
computed by olivLawFY 2025
EPS CAGR 3Y
-44.1%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
-44.3%
computed by olivLawFY 2025

Profitability

Gross margin
26.9%
computed by olivLawTTM to 28 Jun 2026
EBITDA margin
unavailable
input data missing
EBIT margin
-1.1%
computed by olivLawTTM to 28 Jun 2026
Net margin
-3.5%
computed by olivLawTTM to 28 Jun 2026
FCF margin
2.7%
computed by olivLawTTM to 28 Jun 2026

Returns

ROE
-5.8%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
ROA
-2.6%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
ROIC
-1.0%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
ROCE
-0.8%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
1.1 bn USD
computed by olivLawbalance sheet at 28 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.7x
computed by olivLawbalance sheet at 28 Jun 2026
Interest coverage
-0.4x
computed by olivLawTTM to 28 Jun 2026

Liquidity

Current ratio
1.8x
computed by olivLawbalance sheet at 28 Jun 2026
Quick ratio
1.0x
computed by olivLawbalance sheet at 28 Jun 2026
Cash ratio
0.4x
computed by olivLawbalance sheet at 28 Jun 2026

Cash

Operating cash flow
148.1 m USD
computed by olivLawTTM to 28 Jun 2026
Capital expenditure
73.7 m USD
computed by olivLawTTM to 28 Jun 2026
Free cash flow
74.4 m USD
computed by olivLawTTM to 28 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
31 days
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Days inventory outstanding
64 days
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Days payables outstanding
38 days
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Cash conversion cycle
56 days
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026

Market and valuation

Market capitalisation
1.4 bn USD
computed by olivLawbalance sheet at 28 Jun 2026
Enterprise value
2.6 bn USD
computed by olivLawbalance sheet at 28 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-9.7%
computed by olivLawTTM to 28 Jun 2026
P/B
0.7x
computed by olivLawbalance sheet at 28 Jun 2026
P/S
0.5x
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
insufficient data
EV/Sales
0.9x
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
P/FCF
19.4x
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
FCF yield
5.2%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.0%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

7.08 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 1.4 bn USD

Key indicators

Market capitalisation
1.4 bn USD
computed by olivLawbalance sheet at 28 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
0.7x
computed by olivLawbalance sheet at 28 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
-5.8%
computed by olivLawTTM to 28 Jun 2026 · balance sheet at 28 Jun 2026
Net margin
-3.5%
computed by olivLawTTM to 28 Jun 2026
Revenue growth (YoY)
1.3%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 28 Jun 2026
Latest balance sheet date: 28 Jun 2026
Share count (cover of the latest filing), as of: 03 Aug 2026
Source: SEC (XBRL)published 05 Aug 2026
verified 691derived 56

Score by group

58% · Insufficient data

Estimated value range

Low
3.85
USD per share
Mid
6.64
USD per share
High
12.01
USD per share
Price: 7.08 USD
The price is within the range
Potential to the central value: -6.3% (value / price − 1)
Margin of safety: -6.7% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.85 – 12.01 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)3.85 – 12.01 (Mid 6.64)
    WACC 7.2% · starting FCFF 137.4 m USD · terminal value share of EV 79%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -3.6%
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Furniture and fixtures (SIC 251x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Quality-1.0%0 (on a fixed band)18%
Net margin · Quality-3.5%33 (vs peers)11%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-5.8%0 (on a fixed band)14%
EPS CAGR 3Y · Growth-44.1%0 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-0.4x0 (on a fixed band)11%
Current ratio · Balance sheet1.8x80 (on a fixed band)7%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation5.2%65 (on a fixed band)14%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)11%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet32/100 · 2/3 factors with a value
  • Growth0/100 · 2/2 factors with a value
  • Quality13/100 · 2/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation· partial65/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

MasterBrand, Inc. (MBC). Latest full fiscal year: 2025; data up to 2026-06-28.

Figures computed from the financial statements: revenue 2.7 bn USD in 2025; YoY growth 1.3%; net margin -3.5%; ROE -5.8%.

The estimated value range is 3.85–12.01 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 6.64 USD, the price of 7.08 USD leaves a potential of -6.3% (value / price − 1) and a margin of safety of -6.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 1.8x

What contradicts it

  • ROIC: -1.0%
  • Revenue CAGR 3Y: -5.8%
  • EPS CAGR 3Y: -44.1%
  • Interest coverage: -0.4x
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): FCF conversion, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Furniture and fixtures (SIC 251x) · same industry group (3-digit SIC) · compared with 9 companies

Multiples and returns vs the median

P/E
—
vertical median 14.9x
EV/EBITDA
—
vertical median —
P/S
0.5x
vertical median 0.7x
below median (−21.4%)
P/B
0.7x
vertical median 1.6x
below median (−53.0%)
ROE
-5.8%
vertical median 8.2%
below median (−171.0%)
Net margin
-3.5%
vertical median 3.9%
below median (−190.4%)
EBIT margin
-1.1%
vertical median 3.5%
below median (−133.0%)
Revenue YoY
1.3%
vertical median 1.6%
below median (−21.8%)
Net debt/EBITDA
—
vertical median —
Dividend yield
—
vertical median 2.4%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SGISomnigroup International Inc.14.3 bn27.117.6%7.0%+51.6%−26% / +68%
MBCMasterBrand, Inc.1.4 bn—-5.8%-3.5%+1.3%−35% / −39%
LZBLa-Z-Boy Incorporated1.3 bn16.58.0%3.9%+0.8%−16% / −7%
CODICompass Diversified Holdings863.0 m—-17.7%-5.3%+4.8%+56% / −43%
ETDEthan Allen Interiors Inc.521.7 m13.38.4%6.9%−5.7%−12% / −23%
XMAXXmax Inc.322.6 m11.652.9%185.9%+72.6%−10% / +144%
FLXSFlexsteel Industries, Inc.305.6 m12.020.5%6.7%+4.1%+86% / +334%
BSETBassett Furniture Industries Inc191.5 m28.24.1%2.0%+1.6%+42% / +34%
HOFTHooker Furnishings Corporation156.2 m—-9.9%-8.7%−12.4%+36% / −18%
PRPLPurple Innovation, Inc.40.6 m——-8.9%−3.9%−87% / −84%

1- and 3-year price returns: for MBC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results).

    In brief

    MasterBrand is North America's largest residential cabinet maker, selling through dealers, retailers and builders in the US and Canada. It completed its American Woodmark merger in 2026, and sales reached 2734.7 million USD in fiscal 2025 and 815.2 million USD in the second quarter of 2026, making it relevant to the remodeling market.

    SWOT

    Strengths

    • Volume leadership, the most extensive dealer network and operating scale are assets that are hard to replicate 1.
    • A brand and product portfolio running from stock to premium covers several price segments 1.
    • The continuous improvement system called The MasterBrand Way supports operating efficiency 1.

    Weaknesses

    • Sales in the legacy business fell in the second quarter and gross margin declined sharply 3.
    • High leverage limits flexibility during the integration period 3.
    • Large customers account for a significant share of sales, increasing dependence on a few partners 1.

    Opportunities

    • Delivering American Woodmark synergies could materially improve earnings if integration stays on track 3.
    • If remodeling demand recovers, the premium portfolio and online channel could support growth 1.
    • Cost reductions and customs duty refunds could partly offset margin pressure 3.

    Threats

    • Import tariffs and possible retaliatory trade measures can raise costs and reduce demand 2.
    • A slowdown in new construction and remodeling could keep volumes below earlier levels 1.
    • Integration difficulties could affect relationships with customers and employees 2.

    Risks

    • Housing market demandhigh

      Repair, remodel and construction activity depends on interest rates, income and consumer confidence; a deterioration could reduce orders 1.

    • Tariffs and raw material costshigh

      Section 232 tariffs could raise costs and may increase after 2027, while wood prices are volatile 12.

    • Leverage after the mergermedium

      High total debt and a 3.9x ratio limit financial room if results decline 3.

    • Loss of large customersmedium

      Lowe's and Home Depot make up a large share of sales, so any cut in orders would have significant effects 1.

    • Integration riskmedium

      Difficulties combining systems and operations could delay synergies or create unexpected costs 2.

    Investment thesis

    What would need to be true (bull case)

    • If synergies are delivered and the market stabilizes, greater scale and the dealer network could support a margin recovery.
    • Volume leadership and a wide brand portfolio could help hold market share even in a weak market.
    • Cost reductions and customs duty refunds could improve cash flow in the second half of the year.

    What would break the thesis

    • If the market keeps declining, falling sales in the legacy segment could continue and margin pressure could persist.
    • The debt load could limit investment, and the deleveraging target could take longer to reach.
    • Tariffs and possible retaliation could raise costs faster than pricing can offset them.

    What to watch

    • Delivery of American Woodmark synergies against the target of over 100 million USD2027
    • Second-half 2026 adjusted EBITDA outlookQ4 2026
    • Legacy segment gross margin trend and tariff effectsQ3 2026
    • Progress on debt reduction and the net debt to adjusted EBITDA ratio2028

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results).

    The business

    MasterBrand, Inc. was founded in 1954 as United Cabinet Incorporated and describes itself as the largest residential cabinet manufacturer in North America, based on 2024 net sales 1. Its products are sold in the US and Canada to remodeling and new construction markets through three channels: dealers, retailers and builders 1. It became independent in December 2022 through a spin-off from Fortune Brands and acquired Supreme in July 2024 1.

    In May 2026 the company closed an all-stock merger with American Woodmark, and its quarterly report shows that this added 125.5 million USD of sales in the second quarter 23. Management says integration is running ahead of schedule 3.

    The range covers stock, semi-custom and premium kitchen, bath and other cabinets, and its main raw materials are hardwoods, plywood and particleboard 1. Seasonality is limited, though the first quarter is usually the weakest 1.

    Segments

    Sales channels

    The main channels are dealers, retailers and builders, and the dealer network exceeds 7,900 partners in the US and Canada 1. Large retailers account for a significant share: Lowe's was about 20% of net sales in fiscal 2025, and Home Depot about 13% 1.

    Products

    Stock cabinets target entry-level prices, semi-custom offers more styles at a mid price, and premium offers custom solutions built to the customer's specifications 1. The Supreme acquisition added premium lines in particular 1.

    Online channel

    The company says it wants to lead online sales of cabinets and vanities through large e-commerce platforms, retailer websites and direct-to-consumer sales 1.

    Market context

    The North American cabinet market depends on repair, remodeling and new construction, which are sensitive to interest rates, home prices and inflation 1. Management expects its addressable market to fall by a mid- to high-single-digit rate in 2026 3.

    Barriers to entry are low and price competition intensifies in economic slowdowns 1. If demand stays weak, margin pressure could continue, as the legacy segment's gross margin decline in the second quarter suggests 3.

    Trends

    • Section 232 tariffs on cabinetsheadwind

      A 25% tariff applies to imported kitchen cabinets and vanities, with a possible increase after January 1, 2027 2. The company says it is offsetting the cost through pricing, productivity and supply chain repositioning 2.

    • Renovation demand and housingmixed

      The company expects demographic trends to support repair and remodel over the long term, but disposable income and interest rates shape the timing of purchases 1.

    • Integration and cost savingstailwind

      The 30 million USD cost reduction program and American Woodmark synergies, estimated above 100 million USD a year, could support margins if delivered 13.

    • Debt and financing costsheadwind

      Total debt reached 1390.3 million USD, with a net debt to adjusted EBITDA ratio of 3.9x 3. High interest costs could limit financial flexibility 3.

    Competitive position

    Competition is intense, and producers in areas with lower labor costs can offer lower prices, sometimes with government support 1. The company says it differentiates on quality, dealer network and service 1.

    Meanwhile, online sales bring new competitors and price transparency that can affect margins 1. Consolidation among large customers can increase their bargaining power 1.

    • American Woodmark

      The former competitor was absorbed by MasterBrand in May 2026 through a share exchange, so it is no longer an independent rival 23.

    • Producers in low-cost regions

      Competitors in countries with lower labor and compliance costs can produce at lower cost 1.

    • Large retailers and private labels

      Retailers can replace a supplier's products with competitors' products, and some chains are expanding their own ranges 1.

    • Large e-commerce platforms

      Large e-commerce platforms are entering the category and can bring price competition 1.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    • Current report05 Nov 2026
      Results of operations · Regulation FD disclosure · Financial statements and exhibits
    • Current report26 Oct 2026
      Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
    • Current report24 Sept 2026
      Departure or appointment of officers
    • Quarterly report05 Aug 2026
    • Current report04 Aug 2026
      Results of operations · Regulation FD disclosure · Financial statements and exhibits
    • Financial statements and exhibits
    • Current report04 Jun 2026
      Shareholder vote
    • Current report28 May 2026
      Acquisition or disposition of assets · Creation of a direct financial obligation · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
    • Current report26 May 2026
      Other events
    • Quarterly report06 May 2026

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / MasterBrand, Inc. · 13 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-06-28 · SEC / MasterBrand, Inc. · 05 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / MasterBrand, Inc. · 04 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.