BEACHWOOD, Ohio — MasterBrand, Inc., the largest residential cabinet manufacturer in North America, has announced first quarter 2026 financial results.

“Our first quarter results reflect our disciplined focus on our near-term priorities. We delivered performance in line with our outlook while managing cost pressures and navigating an uncertain macroeconomic environment that continued to weigh on demand,” said Dave Banyard, president and CEO. "We anticipate our pending combination with American Woodmark to close in the second calendar quarter of 2026, and we remain confident that we are building the right strategic and financial foundation to position MasterBrand for future growth as demand recovers."

Q1 overview

Net sales were $618.0 million, a decrease of 6.4% compared to the first quarter of 2025, following a mid-single-digit market decline and a slower pace of housing completions.

Gross profit was $156.6 million, compared to $202.2 million in the prior year. Gross profit margin decreased 530 basis points to 25.3% on lower volume and the related unfavorable fixed cost leverage and unfavorable product mix. Material, personnel and utility inflation, combined with the impact of tariffs, contributed to overall margin pressure. These headwinds were partially offset by continuous improvement initiatives and targeted tariff mitigation actions.

Gross tariff costs were approximately $25 million in the first quarter, and mitigation plans continue to progress.

Net (loss) income was $(15.4) million, compared to $13.3 million in the first quarter of 2025, and net (loss) income margin was (2.5)%, compared to net income margin of 2.0% in the prior year, as a result of lower gross profit and higher deal-related SG&A expenses, partially offset by the initial benefits of cost actions taken in the quarter.

Adjusted EBITDA was $28.0 million, compared to $67.1 million in the first quarter of 2025. Adjusted EBITDA margin decreased 570 basis points to 4.5%, compared to 10.2% in the prior year, driven by lower volume and the related unfavorable fixed cost leverage, unfavorable mix, inflation and tariffs, partially offset by continuous improvement efforts net of inflation, cost actions implemented in the quarter and tariff mitigation efforts.

Q2 2026 Financial Outlook

For the second quarter of 2026, the company expects the following:

• Net sales year-over-year decrease of mid-single-digit to high-single-digit percentage.
• Adjusted EBITDA in the range of $51 to $61 million, with related adjusted EBITDA margin in the range of 7.8% to 8.8%.

• Adjusted diluted earnings per share 1,2 in the range of $0.03 to $0.13.

  Adjusted diluted earnings per share guidance for the quarter reflects a higher-than-normal degree of uncertainty due to potential variability in the effective tax rate. This is driven by low pre-tax income, which amplifies the impact of non-deductible deal-related expenses relating to the pending merger with American Woodmark, as well as other potential discrete tax items.

  As a result, the actual effective tax rate and adjusted diluted earnings per share may differ materially from the guidance provided.

"While first quarter results reflect the challenging demand and cost environment we are navigating, our operational actions are progressing as planned," said Andi Simon, EVP and CFO. "Continuous improvement efforts contributed meaningfully to the quarter, our tariff mitigation actions are taking hold, and we took decisive action to implement our $30 million cost reduction initiative. We expect the financial benefit of these cost actions to build through the remainder of the year, with the majority weighted to the second half."