Revenue rebounded 11.5% to $815.2M in 2026Q2, but gross margin fell to 25.2% from 33.5% in 2024Q2, driving operating income to a -$27.8M loss and net income to -$57.6M.
MasterBrand, Inc. (MBC) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 3.11B | 2.73B | 2.7B | 2.73B | 3.28B | 2.86B | 2.47B |
| Revenue Growth % | 12.94% | 1.27% | -0.95% | -16.77% | 14.72% | 15.63% | - |
| Cost of Goods Sold | 2.35B | 1.91B | 1.84B | 1.85B | 2.36B | 2.09B | 1.78B |
| COGS % of Revenue | - | 69.74% | 68.16% | 67.87% | 71.95% | 73.27% | 72.16% |
| Gross Profit | 765.3M | 827.6M | 859.7M | 875.9M | 918.8M | 763.2M | 687.5M |
| Gross Margin % | 24.57% | 30.26% | 31.84% | 32.13% | 28.05% | 26.73% | 27.84% |
| Gross Profit Growth % | - | -3.73% | -1.85% | -4.67% | 20.39% | 11.01% | - |
| Operating Expenses | 821M | 693.4M | 603.1M | 567.3M | 648.5M | 527.6M | 473.6M |
| OpEx % of Revenue | - | 25.36% | 22.33% | 20.81% | 19.8% | 18.48% | 19.18% |
| Selling, General & Admin | 783.5M | 667.8M | 603.1M | 567.3M | 648.5M | 526M | 472.2M |
| SG&A % of Revenue | - | 24.42% | 22.33% | 20.81% | 19.8% | 18.42% | 19.12% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 1.4M |
| R&D % of Revenue | - | - | - | - | - | - | 0.06% |
| Other Operating Expenses | 2M | 25.6M | 0 | 0 | 0 | 1.6M | 0 |
| Operating Income | -55.7M | 134.2M | 256.6M | 308.6M | 270.3M | 235.6M | 213.9M |
| Operating Margin % | -1.79% | 4.91% | 9.5% | 11.32% | 8.25% | 8.25% | 8.66% |
| Operating Income Growth % | - | -47.7% | -16.85% | 14.17% | 14.73% | 10.14% | - |
| EBITDA | 69.9M | 227.7M | 333.9M | 372.9M | 334.8M | 297.8M | 279.7M |
| EBITDA Margin % | 2.24% | 8.33% | 12.36% | 13.68% | 10.22% | 10.43% | 11.33% |
| EBITDA Growth % | -76.95% | -31.81% | -10.46% | 11.38% | 12.42% | 6.47% | - |
| D&A (Non-Cash Add-back) | 125.6M | 93.5M | 77.3M | 64.3M | 64.5M | 62.2M | 65.8M |
| EBIT | -59.4M | 120.4M | 242.3M | 303.9M | 213.4M | 238.3M | 196.2M |
| Net Interest Income | -81.2M | -74.1M | -74M | -65.2M | 10.7M | 4.6M | 2.4M |
| Interest Income | 0 | 0 | 0 | 0 | 10.7M | 4.6M | 2.4M |
| Interest Expense | 81.2M | 74.1M | 74M | 65.2M | 0 | 0 | 0 |
| Other Income/Expense | -84.7M | -87.9M | -88.3M | -69.9M | -56.9M | 2.7M | -17.7M |
| Pretax Income | -140.4M | 46.3M | 168.3M | 238.7M | 213.4M | 238.3M | 196.2M |
| Pretax Margin % | -4.51% | 1.69% | 6.23% | 8.76% | 6.51% | 8.35% | 7.95% |
| Income Tax | -16.2M | 19.6M | 42.4M | 56.7M | 58M | 55.7M | 50.5M |
| Effective Tax Rate % | 11.54% | 42.33% | 25.19% | 23.75% | 27.18% | 23.37% | 25.74% |
| Net Income | -124.2M | 26.7M | 125.9M | 182M | 155.4M | 182.6M | 145.7M |
| Net Margin % | -3.99% | 0.98% | 4.66% | 6.68% | 4.74% | 6.4% | 5.9% |
| Net Income Growth % | -250.18% | -78.79% | -30.82% | 17.12% | -14.9% | 25.33% | - |
| Net Income (Continuing) | -124.2M | 26.7M | 125.9M | 182M | 155.4M | 182.6M | 145.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.61 | 0.21 | 0.96 | 1.40 | 1.20 | 1.43 | 1.14 |
| EPS Growth % | -239.68% | -78.13% | -31.43% | 16.67% | -16.08% | 25.44% | - |
| EPS (Basic) | - | 0.21 | 0.99 | 1.42 | 1.21 | 1.43 | 1.14 |
| Diluted Shares Outstanding | 203.5M | 129.2M | 130.9M | 129.9M | 129.1M | 128.02M | 128.02M |
| Basic Shares Outstanding | 203.5M | 127M | 127.1M | 127.8M | 128M | 128.02M | 128.02M |
| Dividend Payout Ratio | - | - | - | - | 604.89% | - | - |
Quick answers to the most common questions about buying MBC stock.
For fiscal year 2025, MasterBrand, Inc. (MBC) reported total revenue of $2.73B. This represents a 10.7% increase compared to $2.47B in 2020.
MasterBrand, Inc. (MBC) is profitable, generating $26.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.0%.
MasterBrand, Inc. (MBC) reported an operating income of $134.2M, resulting in an operating profit margin of 4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
MasterBrand, Inc. (MBC) generated $827.6M in gross profit for the year, representing a gross profit margin of 30.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Integration and leverage overhang
Metrics are mathematically derived from official filings.
Revenue Momentum Fades into Merger
Revenue growth turned negative in 2026Q1 at -6.4% year-over-year, then rebounded to +11.5% in 2026Q2, but the rebound appears merger-driven, masking underlying organic weakness in the legacy business.
The 2026Q2 revenue surge to $815.2M, up 11.5% year-over-year, likely reflects the American Woodmark acquisition rather than organic demand, as the legacy business continues to face softness in the remodel channel. Excluding the merger, organic growth appears to be decelerating, with 2025 quarters showing a steady decline from +8.0% in Q2 to -3.5% in Q4. This suggests that the company's core markets are contracting, and the merger may be masking a deteriorating demand environment.
Gross Margin Compression Accelerates
Gross margin fell from 33.5% in 2024Q2 to 25.2% in 2026Q2, a decline of over 800 basis points, indicating significant pricing pressure and cost inflation that the company has been unable to offset.
The sustained decline in gross margin, from 33.5% in 2024Q2 to 25.2% in 2026Q2, suggests that the company is losing pricing power or facing higher input costs, possibly due to the merger integration and a shift toward lower-margin builder volume. This compression is more severe than the peer group, as American Woodmark maintains a gross margin of 17.9% but with a higher operating margin, indicating that MasterBrand's cost structure is less efficient. The margin erosion may indicate that the company is sacrificing profitability to maintain volume in a weak demand environment.
Operating Leverage Turns Negative
Operating income swung from a positive $79.8M in 2024Q2 to a loss of $27.8M in 2026Q2, as SG&A expenses remained elevated relative to revenue, indicating a loss of operating leverage.
The transition from a 11.8% operating margin in 2024Q2 to -3.4% in 2026Q2 highlights a severe deterioration in operating leverage, with SG&A costs not scaling down proportionally with revenue declines. In 2026Q2, SG&A of $216.7M exceeded gross profit of $205.5M, meaning the company cannot cover its overhead from its gross profit, a unsustainable situation. This suggests that the merger has added fixed costs without immediate revenue synergies, and the company may need to aggressively cut costs to restore profitability.
Earnings Quality Deteriorates with One-Time Charges
Net income turned deeply negative in 2026Q2 at -$57.6M, with an EPS of -$0.38 versus a -$0.04 estimate, suggesting significant merger-related costs and potential integration friction.
The large EPS miss in 2026Q2, which was -$0.38 versus the -$0.04 estimate, indicates that the reported loss is not purely operational but likely includes substantial one-time charges from the American Woodmark merger. The net margin of -7.1% is far worse than the historical range, and the company's thin net margins in prior quarters (e.g., 2.0% in 2025Q1) suggest that the business has limited earnings buffer. Investors should monitor whether these charges are truly non-recurring or if they signal deeper integration problems that could persist.
Cost Structure Under Pressure
COGS as a percentage of revenue rose from 66.5% in 2024Q2 to 74.8% in 2026Q2, while SG&A grew to 26.6% of revenue, indicating that both variable and fixed costs are escalating.
The increase in COGS ratio by over 800 basis points suggests that raw material costs, particularly lumber and hardware, have risen or that the product mix has shifted toward lower-margin items. Simultaneously, SG&A expenses have not been adequately controlled, with 2026Q2 SG&A at $216.7M, up from $146.7M in 2024Q2, reflecting the added overhead from the merger. This dual cost pressure is squeezing profitability, and management's ability to realize cost synergies from the merger will be critical to margin recovery.
2026Q2 Marks a Profitability Inflection
The 2026Q2 quarter represents a clear inflection point, with revenue spiking to $815.2M but operating income collapsing to -$27.8M, signaling that the merger has reset the financial baseline.
The 2026Q2 results, which include the first full quarter with American Woodmark, show a dramatic shift in the company's financial profile: revenue increased by 11.5% year-over-year, but operating income swung to a loss, and net income deteriorated to -$57.6M. This inflection suggests that the merger, while expanding scale, has introduced significant integration costs and operational drags that are not yet offset by synergies. The lasting impact will depend on whether management can execute the integration and achieve the promised cost savings, but the current data indicates a period of elevated risk.
Merger Synergies May Not Materialize
The sharp decline in gross margin to 25.2% and the negative operating margin in 2026Q2 suggest that the American Woodmark merger may be destroying value rather than creating it, as integration costs and demand softness weigh.
Short-sellers would argue that the merger is a value-destructive move, as evidenced by the deteriorating margins and the significant EPS miss. The combined entity has a higher debt load, with Debt/Equity at 1.00, and a thin net margin of 0.98%, leaving little room for error. If the legacy business continues to soften and the merger synergies fail to offset integration costs, the company could face a prolonged period of losses and potential covenant breaches. The maintained guidance suggests management sees the miss as transitory, but the magnitude of the decline warrants skepticism.