MasterBrand Q2 sales boosted by American Woodmark deal, profit hit by costs - MBC News | RalliesMasterBrand Q2 sales boosted by American Woodmark deal, profit hit by costs
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MBC• Outlook
- MasterBrand sees second-half 2026 net sales of $2.05 bln to $2.11 bln
- Company expects second-half 2026 adj EBITDA of $129 mln to $149 mln
- MasterBrand reiterates full-year 2026 addressable market expected to be down mid-single digits
Overview
- US cabinet maker's Q2 net sales rose yr/yr, driven by American Woodmark merger
- Adjusted EPS for Q2 fell to $0.05 from $0.40 a year earlier
- Company completed all-stock merger with American Woodmark and raised synergy target to over $100 mln
Result Drivers
- Market softness - Co said legacy sales fell 5.6% due to mid- to high-single-digit market decline
- Cost pressures - Lower volume, unfavorable fixed cost leverage, product mix, and material, labor, and freight inflation weighed on margins
- Merger-related costs - Higher SG&A expenses and tax expense primarily due to merger-related costs impacted net income
Key details and analyst coverage
| Q2 Sales | Beat | $815.20 mln | $743.05 mln (2 Analysts) |
| Q2 Adjusted EPS | Miss | $0.05 | $0.10 (2 Analysts) |
| Q2 Net Loss | | $57.60 mln | |
| Q2 Gross Margin | | 25.20% | |
| Q2 Operating Income | | -$27.80 mln | |
| Q2 Pretax Loss | | $48.50 mln | |
- The one available analyst rating on the shares is "hold"
- The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
- Wall Street's median 12-month price target for MasterBrand Inc is $9.15, about 2.6% above its August 3 closing price of $8.92
- The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters recommended reads:
- Aug. 4 - Trex Company Q2 sales beat estimates, driven by volume growth
- Aug. 4 - Wayfair Q2 revenue slightly beats estimates on order growth
- Aug. 4 - Haverty Furniture Q2 sales rise, profit doubles
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