Q4 2025 net sales: $644.6M, down 3.5% YoY; market declined mid-single digits, partially offset by prior pricing actions (CEO)
Q4 adjusted EBITDA: $35.1M vs $74.6M YoY; margin 5.4%, down 580bps YoY due to lower volume, tariffs, and fixed cost under-absorption (CFO)
Full-year 2025 net sales: $2.7B, up 1% YoY; Supreme contributed ~5% to sales (CFO)
Full-year adjusted EBITDA: $298.2M, down 18% YoY; margin 10.9% vs 13.5% prior year (CFO)
Q4 gross margin: 26.0%, down 440bps YoY; tariffs had ~300bps negative impact, offset ~1/3 by mitigation (CFO)
Full-year gross margin: 30.3% vs 32.5% prior year; tariffs had ~115bps negative impact, offset >50% by mitigation (CFO)
Q4 free cash flow: $53M vs $69M YoY (CEO)
Full-year free cash flow: $117.5M vs $211.1M YoY (CFO)
Full-year CapEx: $78.2M vs $80.9M YoY (CFO)
Net debt / adj. EBITDA leverage: 2.7x at year-end; net debt $791.2M; cash $183.3M (CFO)
Synergies: Supreme on track for $28M run-rate cost synergies by year three; American Woodmark expected $90M run-rate cost synergies by year three post-close (CEO)
Tariff exposure: Unmitigated gross tariff exposure ~5%-6% of 2026 net sales; expect >85% of net negative impact reflected in 2026; expect to fully offset 100% on a run-rate basis by 2026 (CFO)
Official guidance (Q1 2026):
Net sales: down mid-to-high single digits YoY
Adjusted EBITDA: $23M–$33M; margin 3.9%–5.3%
Adjusted diluted loss per share: ($0.06)–$0.00
Full-year 2026 end market: down mid-single digits; free cash flow expected to exceed net income
Mgmt quotes:
"Despite these pressures, our teams remain focused on supporting customers, advancing our integration efforts, and maintaining financial flexibility" (CEO)
"The variance in our results versus our implied fourth quarter outlook was primarily driven by a sharper than expected late quarter slowdown in new construction" (CEO)
"Given the dynamic nature of the recent trade … MasterBrand is taking a measured approach to its outlook and transitioning to providing quarterly guidance" (CFO)
"We expect to fully offset 100% of tariff dollar costs on a run-rate basis by 2026 through our mitigation initiatives" (CFO)
"Looking into 2026, we expect the year to be transitional for the industry … we continue to expect a more meaningful recovery to take shape in 2027" (CEO)