Revenue contraction and margin compression have resulted in a net loss of $15.4 million in 2026Q1, with gross margins deteriorating to 25.3% from historical peaks above 33%.
| Sales/Revenue | 2.69B | 2.73B | 2.7B | 2.73B | 3.28B | 2.86B | 2.47B |
| Revenue Growth % | -1.11% | 1.27% | -0.95% | -16.77% | 14.72% | 15.63% | - |
| Cost of Goods Sold | 1.93B | 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 | 757.8M | 827.6M | 859.7M | 875.9M | 918.8M | 763.2M | 687.5M |
| Gross Margin % | 28.15% | 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 | 669.7M | 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 | 669.7M | 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 | 0 | 25.6M | 0 | 0 | 0 | 1.6M | 0 |
| Operating Income | 68.9M | 134.2M | 256.6M | 308.6M | 270.3M | 235.6M | 213.9M |
| Operating Margin % | 2.56% | 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 | 139.6M | 227.7M | 333.9M | 372.9M | 334.8M | 297.8M | 279.7M |
| EBITDA Margin % | 5.18% | 8.33% | 12.36% | 13.68% | 10.22% | 10.43% | 11.33% |
| EBITDA Growth % | -56.97% | -31.81% | -10.46% | 11.38% | 12.42% | 6.47% | - |
| D&A (Non-Cash Add-back) | 70.7M | 93.5M | 77.3M | 64.3M | 64.5M | 62.2M | 65.8M |
| EBIT | 81.1M | 120.4M | 242.3M | 303.9M | 213.4M | 238.3M | 196.2M |
| Net Interest Income | -54.7M | -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 | 73.1M | 74.1M | 74M | 65.2M | 0 | 0 | 0 |
| Other Income/Expense | -76M | -87.9M | -88.3M | -69.9M | -56.9M | 2.7M | -17.7M |
| Pretax Income | -7.1M | 46.3M | 168.3M | 238.7M | 213.4M | 238.3M | 196.2M |
| Pretax Margin % | -0.26% | 1.69% | 6.23% | 8.76% | 6.51% | 8.35% | 7.95% |
| Income Tax | -5.1M | 19.6M | 42.4M | 56.7M | 58M | 55.7M | 50.5M |
| Effective Tax Rate % | 71.83% | 42.33% | 25.19% | 23.75% | 27.18% | 23.37% | 25.74% |
| Net Income | -2M | 26.7M | 125.9M | 182M | 155.4M | 182.6M | 145.7M |
| Net Margin % | -0.07% | 0.98% | 4.66% | 6.68% | 4.74% | 6.4% | 5.9% |
| Net Income Growth % | -101.97% | -78.79% | -30.82% | 17.12% | -14.9% | 25.33% | - |
| Net Income (Continuing) | -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) | -0.02 | 0.21 | 0.96 | 1.40 | 1.20 | 1.43 | 1.14 |
| EPS Growth % | -102.6% | -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 | 127.5M | 129.2M | 130.9M | 129.9M | 129.1M | 128.02M | 128.02M |
| Basic Shares Outstanding | 127.5M | 127M | 127.1M | 127.8M | 128M | 128.02M | 128.02M |
| Dividend Payout Ratio | - | - | - | - | 604.89% | - | - |
Cyclical housing market exposure
According to the latest quarterly financial data, MasterBrand's revenue growth has trended into negative territory, with a 6.4% year-over-year decline reported in 2026Q1, reflecting the persistent challenges in the North American residential cabinetry market and the broader slowdown in high-ticket home renovation activity.
The consistent revenue decline over recent periods suggests that the company is struggling to offset the lack of existing home turnover with new construction volume. Investors should monitor whether this trend represents a structural loss of market share or merely a cyclical trough in the broader housing sector.
As reported in recent income statements, MasterBrand's gross margin has deteriorated significantly to 25.3% in 2026Q1, down from historical peaks exceeding 33%, indicating that the company is losing its ability to pass through commodity cost inflation to its dealer and retail customer base.
This margin erosion appears to be a direct consequence of lower production volumes failing to absorb fixed manufacturing overhead. The inability to maintain pricing power in a softening demand environment suggests that the company's competitive moat may be less resilient than previously anticipated during inflationary cycles.
Based on the provided financial figures, MasterBrand's operating income has swung to a loss of $18.5 million in 2026Q1, demonstrating that the company's cost structure is currently unable to scale down effectively in response to the ongoing revenue contraction observed across its primary distribution channels.
The transition from positive operating income to a deficit highlights a lack of flexibility in the firm's expense base, particularly regarding SG&A costs which remain elevated despite declining sales. This negative operating leverage warrants further investigation into the efficacy of the company's ongoing Value Stream Management initiatives.
Analysis of the income statement reveals that MasterBrand's net income has fallen into negative territory, with a net loss of $15.4 million in 2026Q1, raising significant concerns regarding the company's ability to maintain profitability without a meaningful recovery in the broader residential housing market.
Short-sellers may focus on the rapid deterioration of bottom-line results as evidence that the company's standalone cost structure is fundamentally misaligned with current market realities. The reliance on non-operating items and the volatility in EPS suggest that the current earnings profile may be unsustainable without aggressive restructuring.
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.