MasterBrand Posts $1.04 Billion in Q3 Sales, Swings to Loss

MasterBrand posted $1.0368 billion in net sales and a $9.2 million net loss for the 13 weeks ended Sept. 27, as its third-quarter results included a full quarter of American Woodmark following their May merger. Adjusted diluted earnings per share fell to $0.10 from $0.33 a year earlier.

Sales increased 48.3% from $698.9 million in the year-earlier quarter. American Woodmark contributed $355.7 million. MasterBrand completed its merger with the cabinet maker on May 28, making the reported sales comparison reflect a larger combined business than the prior-year period.

Excluding American Woodmark, legacy MasterBrand sales were $681.1 million, down 2.5% year over year. The company cited weaker demand, an unfavorable product mix and trade-downs as pressures, partly offset by market share gains and pricing. President and CEO Dave Banyard said, “legacy MasterBrand gained share across our end markets despite ongoing demand headwinds.”

The company’s GAAP net loss was $0.05 per diluted share, compared with net income of $18.1 million, or $0.14 per diluted share, a year earlier. MasterBrand had realized about $11 million in cost synergies as of Sept. 27. Actions taken or initiated were expected to generate more than $50 million in run-rate synergies exiting the first year after the merger, with a target of more than $100 million in annual run-rate synergies by the end of year three.

For the fourth quarter, MasterBrand forecast net sales of $958 million to $988 million and an adjusted diluted loss per share of $0.08 to $0.12. It expects its addressable market to contract by a high-single-digit percentage in 2026 and assumes demand will not improve through year-end.