Liquidity is under pressure as free cash flow margins plummeted to -23.7% in 2026Q1, reflecting a severe disconnect between accounting losses and cash generation.
| Cash from Operations | 94.1M | 195.7M | 292M | 405.6M | 235.6M | 148.2M | 204.6M |
| Operating CF Margin % | - | 7.16% | 10.81% | 14.88% | 7.19% | 5.19% | 8.29% |
| Operating CF Growth % | -369.94% | -32.98% | -28.01% | 72.16% | 58.97% | -27.57% | - |
| Net Income | -2M | 26.7M | 125.9M | 182M | 155.4M | 182.6M | 145.7M |
| Depreciation & Amortization | 93.4M | 93.5M | 77.3M | 64.3M | 64.5M | 62.8M | 65.8M |
| Stock-Based Compensation | 14.4M | 16.1M | 21.9M | 17.8M | 10.9M | 9.3M | 9.7M |
| Deferred Taxes | 12.8M | 12.8M | 4.6M | -5.7M | 2.3M | -7.7M | -10M |
| Other Non-Cash Items | -129.4M | 18.4M | 22.1M | -4.3M | 59.4M | 13M | 7.4M |
| Working Capital Changes | 104.9M | 28.2M | 40.2M | 151.5M | -56.9M | -111.8M | -14M |
| Change in Receivables | -13.6M | 24M | 21.7M | 88.1M | 13.5M | -72.2M | -25.6M |
| Change in Inventory | 17.4M | 8M | -10.7M | 123.6M | -70.1M | -58.5M | -42.3M |
| Change in Payables | -8.8M | 15.7M | 23.8M | -69.4M | 18.3M | 44.7M | 32.2M |
| Cash from Investing | -77.6M | -74.4M | -580.8M | -56.9M | -55.9M | -51.5M | -26.7M |
| Capital Expenditures | -81.6M | -78.2M | -80.9M | -57.3M | -55.9M | -51.6M | -27.3M |
| CapEx % of Revenue | 3.03% | 2.86% | 3% | 2.1% | 1.71% | 1.81% | 1.11% |
| Acquisitions | 3.8M | 3.8M | -514.5M | 0 | 0 | 100K | 600K |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 200K | 0 | 14.6M | 400K | 0 | 0 | 0 |
| Cash from Financing | 2.4M | -65.7M | 269.6M | -299.9M | -215.3M | -109.7M | -179.2M |
| Debt Issued (Net) | -85M | -35M | 307.5M | -272.5M | 730.1M | -152.9M | -230.9M |
| Equity Issued (Net) | -6.9M | -18.1M | -6.5M | -22M | -100K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -940M | 0 | 0 |
| Share Repurchases | -6.9M | -18.1M | -6.5M | -22M | -100K | 0 | 0 |
| Other Financing | 94.3M | -12.6M | -31.4M | -5.4M | -5.3M | 43.2M | 51.7M |
| Net Change in Cash | 24.3M | 62.3M | -27.1M | 47.6M | -40.3M | -12.9M | -500K |
| Free Cash Flow | 12.5M | 117.5M | 211.1M | 348.3M | 179.7M | 96.6M | 177.3M |
| FCF Margin % | 0.46% | 4.3% | 7.82% | 12.78% | 5.49% | 3.38% | 7.18% |
| FCF Growth % | -92.1% | -44.34% | -39.39% | 93.82% | 86.02% | -45.52% | - |
| FCF per Share | 0.10 | 0.91 | 1.61 | 2.68 | 1.39 | 0.75 | 1.38 |
| FCF Conversion (FCF/Net Income) | -6.25x | 7.33x | 2.32x | 2.23x | 1.52x | 0.81x | 1.40x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical housing market exposure
As reported in recent financial filings, MasterBrand's operating cash flow to net income ratio reached an alarming 8.64 in 2026Q1, highlighting a severe disconnect between accounting losses and the actual cash burn required to sustain operations during the current cyclical downturn in the cabinetry sector.
The extreme volatility in the OCF/NI ratio suggests that accrual-based accounting is failing to capture the immediate cash impact of the company's high fixed-cost manufacturing footprint. Investors should monitor whether this divergence indicates an inability to manage cash outflows as revenue declines, rather than merely reflecting temporary accounting adjustments.
Based on the company's quarterly cash flow statements, the free cash flow margin plummeted to -23.7% in 2026Q1, marking a sharp reversal from the positive margins observed throughout 2024 and 2025 as the firm struggles to maintain liquidity amidst a broader residential construction market contraction.
The rapid shift from positive FCF generation to significant cash burn suggests that the company's current operating model is highly sensitive to volume declines. This trajectory warrants further investigation into whether management can implement sufficient cost-cutting measures to stabilize cash flow before liquidity buffers are further depleted.
According to historical cash flow data, MasterBrand experienced a massive $76.7 million working capital outflow in 2025Q1, followed by erratic swings in subsequent quarters, which suggests that inventory and receivables management remains a primary source of instability for the company's overall cash position.
The inability to consistently manage working capital cycles implies that the company may be struggling to align production schedules with actual dealer demand. This volatility appears to exacerbate the cash flow impact of revenue fluctuations, potentially forcing the firm to rely on external financing to cover operational gaps.
As indicated by recent financial disclosures, MasterBrand's capital expenditures as a percentage of revenue reached 2.1% in 2026Q1, reflecting a continued commitment to facility maintenance despite the company's deteriorating revenue base and the ongoing pressure on its overall profitability and cash generation capabilities.
While maintaining capital intensity is necessary for long-term competitiveness, the current level of spending appears difficult to justify given the negative free cash flow profile. Analysts should monitor whether management will be forced to defer these investments to preserve cash if the housing market remains stagnant.
Quick answers to the most common questions about buying MBC stock.
MasterBrand, Inc. (MBC) generated $195.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MasterBrand, Inc. (MBC) generated $117.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MasterBrand, Inc. (MBC) spent $78.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MasterBrand, Inc. (MBC) spent $18.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.