MasterBrand, Inc. (MBC) FY2025 10-K Annual Report

Filed: Feb 13, 2026
Consumer Discretionary
Wood Household Furniture, (No Upholstered)SEC EDGAR

MasterBrand, Inc. (MBC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 13, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

MasterBrand, Inc. FY2025 10-K Analysis

Business Overview

  • Core business: Largest North American manufacturer of residential cabinets serving remodeling/new construction markets via dealers, retailers, builders
  • New acquisition: Supreme Cabinetry (July 2024) adding premium product lines and complementary dealer network
  • Strategic shift: Pending 2026 all-stock merger with American Woodmark to expand scale and geographic reach
  • Employees: Workforce increased to 12,633 with 81% hourly production/distribution; 32% unionized; TRIR 0.83 vs 0.64 prior year
  • Noteworthy: Tax-free spin-off from Fortune Brands completed in December 2022 making MasterBrand independent public company

Management Discussion & Analysis

  • Revenue $2,734.7M, up $34.3M (1.3%) YoY, driven by Supreme acquisition adding $131.5M sales, offset by $97.2M volume decline
  • Gross profit $827.6M, down $49.4M (5.6%) with margin 30.3% vs 32.5%; Operating income $119.0M, down $116.7M (49.5%)
  • Best segment: sales to dealers up $79.1M (5.6%) from full Supreme year; Worst segment: retail sales down $49.2M (5.3%)
  • SG&A increased $64.7M (10.7%) to $667.8M (24.4% of sales) driven by Supreme acquisition, associate costs, and bad debt charge of $17.4M
  • Cash flow focus: higher debt post-2024 refinancing sustaining $74.1M interest expense; no specific buybacks/dividends disclosed; pending American Woodmark merger noted
  • Forward outlook highlights risks in weaker demand end markets, higher effective tax rate 42.3% vs 25.2% in prior year, and potential acquisition impacts on liquidity

Risk Factors

  • Debt refinancing risk from $700M Senior Notes at 7.00% due 2032 issued June 27, 2024, with covenants limiting indebtedness and asset dispositions
  • Macroeconomic exposure via increased allowance for credit losses to $17.4M in 2025 due to specific customer default risk amid weak economy
  • Operational supply vulnerability from integration and full-year inclusion of Supreme acquisition in 2025 increasing depreciation to $67.9M vs $57.1M in 2024
  • Competitive risk from dependence on U.S. new home starts and home R&R markets facing volatility impacting goodwill valuations and cash flow forecasts
  • Financial leverage constrained by 2024 Credit Agreement net leverage ratio limit 3.25:1 post-March 2025, with $974.5M outstanding borrowings as of December 28, 2025

MasterBrand, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$2.7B

+1.3% YoY

Net Income

$27M

-78.8% YoY

Gross Margin

30.3%

-221bp YoY

Operating Margin

4.4%

-438bp YoY

Net Margin

1.0%

-369bp YoY

ROE

2.0%

-774bp YoY

Total Assets

$3.1B

+5.8% YoY

EPS (Diluted)

$0.21

-78.1% YoY

Operating Cash Flow

$196M

-33.0% YoY

Source: XBRL data from MasterBrand, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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