MasterBrand recently released its latest 10-Q report. The company manufactures and sells residential cabinets in the United States, Canada and Mexico, with products spanning stock, semi-custom and premium lines for kitchens, bathrooms and other parts of the home. It sells through dealers, retailers and builders into remodeling and new-construction markets, and is headquartered in Beachwood, Ohio.
In Item 2, Management’s Discussion and Analysis, MasterBrand said it began the first quarter of 2026 with plans for $30 million in cost reductions, concentrated mainly in selling, general and administrative expenses, and said those cuts were expected to be fully realized by the end of fiscal 2026. During the 13 weeks ended March 29, 2026, the company recorded $8.1 million of one-time termination benefit costs tied to voluntary and involuntary separations, primarily in corporate functions.
MasterBrand also said it completed its acquisition of American Woodmark on May 28, 2026. Under the merger agreement, each American Woodmark share was exchanged for 5.1500 shares of MasterBrand common stock, plus cash in lieu of fractional shares.
Trade policy remained a major focus. The company said Section 232 tariffs on timber, lumber and derivative wood products, including kitchen cabinets and vanities, became effective Oct. 14, 2025. It said a 10% tariff applies to softwood lumber and timber imports, while a 25% tariff applies to kitchen cabinets and vanities, with that rate potentially rising after Jan. 1, 2027.
MasterBrand said it paid about $14.9 million in IEEPA tariffs before the Supreme Court’s Feb. 20, 2026 decision in Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc. The company said it received $1.2 million of refunds, excluding $0.1 million of interest, during the 13 weeks ended June 28, 2026, and recognized that amount as a reduction in cost of products sold. It also said it received another $9.2 million of refunds, excluding $0.4 million of interest, after June 28, 2026, and will recognize those as a reduction in cost of products sold in the third quarter of 2026.
On taxes, MasterBrand said the One Big Beautiful Bill Act, enacted July 4, 2025, did not materially affect its 2025 or 2026 annual effective tax rates, though it reduced 2025 cash taxes paid. It also said Pillar Two rules enacted in some jurisdictions where it operates unfavorably affected its annual effective tax rate.
For the second quarter, MasterBrand reported net sales of $815.2 million, up 11.5% from $730.9 million a year earlier. The company said American Woodmark contributed $125.5 million of incremental sales in the quarter; excluding that acquisition, net sales fell $41.2 million year over year.
Cost of products sold rose to $609.7 million from $491.2 million, while gross profit fell to $205.5 million from $239.7 million. Selling, general and administrative expenses increased to $216.7 million from $159.4 million, and restructuring charges rose to $9.2 million from $6.6 million.
That left MasterBrand with an operating loss of $27.8 million, compared with operating income of $67.3 million in the prior-year quarter. Interest expense increased to $20.8 million from $18.9 million, and the company posted a pre-tax loss of $48.5 million versus pre-tax income of $49.0 million a year earlier. Net loss was $57.6 million, compared with net income of $37.3 million in the prior-year period. Today the company's shares have moved -2.95% to a price of $9.20. For the full picture, make sure to review MasterBrand's 10-Q report.
