MasterBrand (MBC) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales declined 3.5% year-over-year to $644.6 million, with a net loss of $42 million versus $14 million net income in Q4 2024; full year net sales rose 1.3% to $2.73 billion, but net income dropped to $26.7 million from $125.9 million.

• Adjusted EBITDA for FY 2025 was $298.2 million, down 18% year-over-year, with margin contracting to 10.9%; Q4 adjusted EBITDA was $35.1 million, margin 5.4%.

• Supreme acquisition contributed 5% to annual sales and delivered targeted cost synergies; integration planning for the American Woodmark merger is underway, with $90 million in run-rate synergies targeted by year three post-close.

• The company outperformed the broader new construction market due to portfolio breadth and service reliability, despite a sharper-than-expected late-quarter slowdown.

• Announced $30 million in cost rationalization actions for 2026 and introduced Q1 2026 financial outlook.

Financial highlights

• Q4 gross profit was $167.5 million (margin 26.0%), down from $203.3 million (margin 30.4%) year-over-year; full year gross profit was $827.6 million (margin 30.3%), down from $877.0 million (margin 32.5%).

• Q4 adjusted EBITDA was $35.1 million, down from $74.6 million; full year adjusted EBITDA was $298.2 million, down from $363.6 million.

• Q4 diluted loss per share was $(0.33); adjusted diluted loss per share was $(0.02). Full year diluted EPS was $0.21; adjusted diluted EPS was $0.91, down from $1.40.

• Free cash flow for FY 2025 was $117.5 million, down from $211.1 million in 2024.

• Net cash provided by operating activities was $195.7 million for the year, down from $292.0 million.

Outlook and guidance

• Q1 2026 net sales expected to decline mid- to high-single digits year-over-year; adjusted EBITDA guidance: $23–$33 million (margin 3.9%–5.3%); adjusted diluted EPS between $(0.06) and $0.00.

• 2026 addressable market expected to be down mid-single digits year-over-year, with continued variability across end markets; gross tariff costs projected at 5–6% of net sales.

• $30 million in cost reductions planned for 2026, with full realization by year-end.

• Free cash flow for 2026 expected to exceed net income; effective tax rate to improve due to absence of one-time costs.

• Guidance excludes potential impacts from new tariffs and the pending American Woodmark merger.