Despite a revenue beat vs consensus, the magnitude of YoY EBITDA decline and tariff uncertainty in housing-exposed end markets warrant caution. Monitor the pending American Woodmark merger close and Q2 results for signs of margin stabilization. The elevated leverage and negative free cash flow (-$146M YTD) limit financial flexibility.
Price Chart
Executive Summary
MasterBrand reported Q1 2026 net sales of $618.0M, down 6.4% YoY, missing GAAP EPS consensus by $0.08 (reported -$0.12 vs consensus -$0.04). Adjusted EBITDA fell 58% to $28.0M, meeting the company's guided range. Guidance for Q2 calls for continued mid-to-high single-digit revenue decline and adjusted EBITDA of $51-$61M. The combination of tariff headwinds, weak demand, and elevated leverage (3.7x net debt/EBITDA) overshadows the in-line execution.
Key Financial Metrics
Key Facts
- Q1 2026 net sales $618.0M, down 6.4% YoY; GAAP net loss $15.4M vs net income $13.3M a year ago
- Adjusted EBITDA $28.0M (margin 4.5%), down from $67.1M (10.2%) in Q1 2025
- GAAP diluted EPS -$0.12 vs consensus -$0.04; adjusted diluted EPS $0.06 vs $0.18 YoY
- Gross tariff costs ~$25M in Q1; full-year tariff costs expected at 5-6% of net sales
- Net debt $946.5M with leverage of 3.7x trailing adjusted EBITDA; credit agreement amended for flexibility
- Q2 2026 guidance: net sales down mid-to-high single digits; adjusted EBITDA $51-$61M; adjusted EPS $0.03-$0.13
- Company no longer expects full-year effective tax rate improvement; pending American Woodmark merger expected to close in Q2 2026
Financial Impact
Net sales decline of $42.3M YoY; adjusted EBITDA down $39.1M; GAAP net loss swing of $28.7M vs prior-year profit
Risk Factors
- Further demand deterioration in housing/renovation end markets
- Escalation of tariff costs beyond current 5-6% of sales estimate
- Failure to realize cost savings or timely close of American Woodmark merger
- Debt covenant compliance if EBITDA continues to weaken
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001941365-26-000054 |
| Document: q12026investorpresentati.htm | 0001941365-26-000054 |
| Document: mbc-20260505.htm | 0001941365-26-000054 |
| Document: 0001941365-26-000054-index-headers.html | 0001941365-26-000054 |
| Document: 0001941365-26-000054-index.html | 0001941365-26-000054 |
| Document: 0001941365-26-000054.txt | 0001941365-26-000054 |
| 8-K Data (Synthetic) | 0001941365-26-000054 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 3 | $6.68 | awaiting T+20 | — | $6.81 (+1.95%) |
Oct 26, 2026 1d ago | 8-K | $7.08 | awaiting T+20 | — | $6.81 (−3.81%) |
Sep 24, 2026 4w ago | 8-K | $7.11 $7.35 | ▲ +3.38% | ▲ +3.80% | $6.81 (−4.22%) |
Aug 9, 2026 11w ago | Institutional Cluster | $9.06 $8.16 | ▼ −9.93% | ▼ −9.02% | $6.81 (−24.83%) |
Jun 12, 2026 19w ago | Insider Cluster | $9.17 $8.81 | ▼ −3.93% | ▼ −3.18% | $6.81 (−25.74%) |
Jun 11, 2026 19w ago | Insider Cluster | $8.88 $9.08 | ▲ +2.25% | ▲ +0.47% | $6.81 (−23.31%) |
Jun 3, 2026 20w ago | Insider Cluster | $8.58 $9.44 | ▲ +10.02% | ▲ +8.39% | $6.81 (−20.63%) |
Jun 3, 2026 20w ago | Insider Cluster | $8.32 $9.88 | ▲ +18.75% | ▲ +20.12% | $6.81 (−18.15%) |
Jun 1, 2026 21w ago | 144 | $8.48 $9.98 | ▲ +17.69% | ▲ +19.25% | $6.81 (−19.69%) |
Jun 1, 2026 21w ago | 3 | $8.48 $9.98 | ▲ +17.69% | ▲ +19.25% | $6.81 (−19.69%) |
US Market Status
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