MasterBrand 2025 Q3 Earnings Net Income Dips 37.8% Amid Tariff Challenges

MasterBrand (MBC) reported Q3 2025 earnings on Nov 5, 2025, with revenue of $698.9M, slightly above estimates, but EPS of $0.14 missed forecasts. Guidance for adjusted EBITDA and net income was revised downward due to tariffs and market headwinds.

Revenue

MasterBrand’s Q3 2025 revenue totaled $698.9 million, a 2.7% decline from $718.1 million in the same period last year. The drop stemmed from softer market demand and lower unit sales, partially offset by prior pricing actions and share gains in the builder channel.

Earnings/Net Income

The company’s net income fell to $18.1 million in Q3 2025, a 37.8% decline from $29.1 million in 2024. EPS dropped 39.1% to $0.14, reflecting margin pressures from tariffs and fixed costs. Despite sustained profitability over four years, the results highlight near-term challenges. The EPS decline indicates a negative performance.

Post-Earnings Price Action Review

MasterBrand’s stock faced sharp declines following the earnings report, with an 8.31% drop on the trading day, a 15.48% weekly plunge, and a 17.16% monthly decline. These movements reflect investor concern over the earnings miss, margin compression, and uncertainty around tariff impacts. The stock’s volatility underscores market skepticism about the company’s ability to navigate trade challenges and maintain growth.

CEO Commentary

CEO Dave Banyard emphasized disciplined execution amid demand challenges, highlighting progress on integration initiatives and supply chain improvements. Strategic priorities include the Supreme integration, preparation for the American Woodmark merger, and technology investments. Banyard expressed confidence in mitigating tariff impacts and positioning the company for long-term growth.

Guidance

MasterBrand updated 2025 full-year adjusted EBITDA guidance to $315M–$335M (11.5%–12% margin) and adjusted diluted EPS to $1.01–$1.13. The company anticipates flat revenue, $20M–$25M Q4 tariff exposure, and a net debt/EBITDA leverage of 2.5x by year-end. For 2026, it expects to offset tariff costs and realize $90M in cost synergies from the American Woodmark merger.

Additional News

MasterBrand announced its pending merger with American Woodmark, expected to close in early 2026, which could unlock $90M in synergies by Year 3. The company also filed a 10-Q report detailing Q3 2025 performance, noting $90.6M in adjusted EBITDA, down 13.3% from 2024. Additionally, MasterBrand updated its 2025 guidance to reflect evolving tariff impacts, with CFO Andrea Simon outlining mitigation strategies including pricing adjustments and manufacturing shifts.