MasterBrand, Inc. (MBC)

Price$8.51Cached quoteAs of 2026-09-05 02:32 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced because weak earnings and heavy debt offset recovery potential.

At the observed price, 203.4 million shares imply an equity value near $1.51 billion. Adding $1.149 billion of net debt gives an enterprise value around $2.66 billion, about nine times $294.5 million of pro forma trailing adjusted operating earnings before interest, taxes, depreciation, amortization, and selected charges. That measure is more flattering than reported profit or cash flow. Full synergy delivery could lower the multiple below seven times, but second-half adjusted earnings per share guidance remains roughly break-even.

Big pictureDemand is weak, and recent profits and cash generation have fallen sharply.

Revenue fell from $3.276 billion in 2022 to $2.735 billion in 2025, despite Supreme adding about 5% to 2025 sales. Legacy MasterBrand sales dropped 5.6% in the second quarter of 2026, while gross margin fell 5.4 percentage points because factories spread costs over fewer units and inflation persisted. Free cash flow—cash left after running and investing in the business—declined from $348.3 million in 2023 to $211.1 million in 2024 and $117.5 million in 2025, then turned negative by $17.6 million in the first half of 2026.

Business strengthScale and merger savings offer upside, but the balance sheet limits room for mistakes.

The combined company has broad cabinet brands and greater purchasing scale. However, June balances included $1.390 billion of interest-bearing debt against $241.6 million of cash, and net debt equaled 3.9 times adjusted operating earnings. Current assets of $1.062 billion exceeded current liabilities of $603.7 million, supporting near-term liquidity. The merger issued about 77 million shares, lifting outstanding shares from 127.2 million to 203.4 million. After only $18.1 million of 2025 buybacks and none in the latest quarter, management is appropriately prioritizing integration and debt reduction.

What could change the storySuccessful cost savings and a housing rebound matter more than headline sales growth.

The bull case requires capturing more than $100 million of annual merger savings by year three; actions representing $30 million were completed by July. A housing recovery would also spread factory costs across more cabinets. The bear case is continued weak demand while tariffs, freight, labor, and interest consume cash: second-half guidance calls for only $129 million to $149 million of adjusted operating earnings and about $50 million of interest. The valuation assumes margins recover and net debt falls below twice adjusted operating earnings by 2028; failure on either would weaken equity value.

AI: News

Weak quarter, higher savingsQuarterly results exposed severe margin pressure, while larger merger savings offered a possible recovery path.

On August 4, MasterBrand reported second-quarter sales of $815.2 million, including $125.5 million from one month of American Woodmark ownership. Legacy sales fell 5.6%, and legacy gross margin dropped from 32.8% to 27.4%. The company lost $57.6 million; adjusted earnings per share, which exclude selected unusual costs, fell to $0.05 from $0.40. Shares closed 6.3% higher that day, although timing alone cannot prove the announcement caused the move. Management raised its annual merger-savings target above $100 million.

American Woodmark merger closesThe all-stock merger broadened the business while sharply increasing both shares and financial obligations.

The merger closed on May 28. MasterBrand issued approximately 77.0 million shares, leaving pre-merger MasterBrand holders with about 63% of the combined company. It also drew a $375 million term loan to repay roughly $367.5 million of American Woodmark debt. The transaction expands geographic reach, channels, and cabinet brands, but substantially dilutes each former share and raises interest costs. Its value therefore depends on integration: management later reported $30 million of completed annual savings actions and lifted its third-year target above $100 million.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$2.73B	$2.70B	$2.73B	$3.28B	$2.86B
Gross profit	$827.6M	$877.0M	$901.4M	$940.5M	$783.9M
Gross margin	30.26%	32.48%	33.06%	28.71%	27.45%
Operating expenses	$708.6M	$641.3M	$595.1M	$737.2M	$549.6M
Operating income	$119.0M	$235.7M	$306.3M	$203.3M	$234.3M
Operating margin	4.35%	8.73%	11.24%	6.21%	8.21%
EBITDA	$212.5M	$313.0M	$370.6M	$267.8M	$296.5M
EBITDA margin	7.77%	11.59%	13.59%	8.18%	10.38%
Net income	$26.7M	$125.9M	$182.0M	$155.4M	$182.6M
Net profit margin	0.98%	4.66%	6.68%	4.74%	6.40%
Basic EPSper basic share	$0.21	$0.99	$1.42	$1.21	$1.43
Diluted EPSper diluted share	$0.21	$0.96	$1.40	$1.20	$1.43

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈15.51%of listed shares

BlackRock, Inc.31.55M shares · Jun 30, 2026

View holders

Top 20 reported holders of MBC
Holder	% owned
BlackRock, Inc.	≈15.51%31.55M shares
PZENA INVESTMENT MANAGEMENT LLC	≈7.54%15.33M shares
Coliseum Capital Management, LLC	≈6.49%13.2M shares
Gates Capital Management, Inc.	≈6.48%13.19M shares
FMR LLC	≈5.10%10.37M shares
REDWOOD CAPITAL MANAGEMENT, LLC	≈4.83%9.82M shares
DIMENSIONAL FUND ADVISORS LP	≈4.52%9.2M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.34%8.83M shares
STATE STREET CORP	≈4.03%8.2M shares
Pertento Partners LLP	≈2.93%5.97M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.52%5.13M shares
Sixth Street Partners Management Company, L.P.	≈2.41%4.91M shares
Diameter Capital Partners LP	≈2.35%4.78M shares
Atlas FRM LLC	≈2.27%4.62M shares
PARADIGM CAPITAL MANAGEMENT INC/NY	≈2.27%4.62M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈2.04%4.14M shares
Monarch Alternative Capital LP	≈1.82%3.7M shares
ACK Asset Management LLC	≈1.82%3.7M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	≈1.54%3.13M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.52%3.1M shares

Percentages use 203.4M shares of this listed class outstanding on Jun 28, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$1.38M disclosed value

Sells (SEC code S)5$703.5K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4	Fracassa Philip D.Director	BuyCommon Stock, par value $0.01 per share	5.0K	$9.11	$45.5K	45.0K
Jun 10, 2026Form 4	Kendrick Bruce AlanEVP & Chief HR Officer	SellCommon Stock, par value $0.01 per share	26.2K	$9.02	$236.7K	241.7K
Jun 8, 2026Form 4	PETRATIS DAVID DDirector	BuyCommon Stock, par value $0.01 per share	11.6K	$8.82	$102.2K	69.9K
Jun 4, 2026Form 4	Simon Andrea HelenEVP & CFO	BuyCommon Stock, par value $0.01 per share	5.0K	$8.56	$42.8K	497.3K
Jun 1, 2026Form 4	Young Mark A.VP, Chief Accounting Officer	SellCommon Stock, par value $0.01 per share	11.8K	$8.60	$101.2K	61.4K