MasterBrand (NYSE:MBC) Shares Gap Down Following Weak Earnings

MasterBrand, Inc. (NYSE:MBC) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $13.82, but opened at $10.99. MasterBrand shares last traded at $12.0470, with a volume of 1,666,988 shares changing hands.

The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.16). MasterBrand had a net margin of 0.98% and a return on equity of 8.53%. The firm had revenue of $644.60 million during the quarter, compared to the consensus estimate of $607.60 million. During the same period in the prior year, the company earned $0.22 EPS. The firm’s revenue was down 3.5% compared to the same quarter last year. MasterBrand has set its FY 2026 guidance at -0.060-0.000 EPS.

Key Stories Impacting MasterBrand

Here are the key news stories impacting MasterBrand this week:

• Positive Sentiment: Revenue beat estimates: Q4 revenue came in at $644.6M versus consensus ~$607.6M, showing stronger top-line sales than expected. MasterBrand Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Management announced $30M of planned 2026 cost reductions to offset weak demand and tariff pressure, which should support margins if executed. MasterBrand signals $30M 2026 cost reductions
• Positive Sentiment: Technical note — some coverage points to rising relative strength indicators, suggesting investor interest on any stabilization. Stocks with rising relative strength: MasterBrand
• Neutral Sentiment: Earnings call transcript and slide deck are available for detail on demand trends, tariff impact and margin assumptions — important for modeling FY‑2026 recovery timing. MasterBrand Q4 2025 earnings call transcript Q4 results – earnings call presentation
• Negative Sentiment: EPS miss and weak quarterly profitability: Q4 EPS was ($0.02) vs. consensus $0.14, a meaningful miss that signals near‑term margin pressure. MasterBrand Q4 earnings snapshot
• Negative Sentiment: Sharp FY‑2026 guidance cut: management now guides EPS -$0.06 to $0.00 versus consensus near $0.96 — this large gap drove the sell‑off as it implies a delayed profit recovery. MasterBrand shares tumble as Q4 earnings miss, guidance disappoints
• Negative Sentiment: Demand softness and tariff headwinds remain an ongoing risk — revenue was down ~3.5% YoY and management flagged a more complex trade environment, weighing on near‑term growth visibility. Q4 earnings call highlights
• Negative Sentiment: Market reaction & coverage: Multiple summaries and the AAII analysis tie the share decline directly to the EPS miss and guidance cut, reinforcing short‑term selling pressure. Why MasterBrand’s (MBC) Stock Is Down 13.28%

Analyst Ratings Changes

MBC has been the topic of a number of research analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of MasterBrand in a report on Thursday, January 22nd. Wall Street Zen cut MasterBrand from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $15.00.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. ProShare Advisors LLC lifted its holdings in shares of MasterBrand by 3.2% during the fourth quarter. ProShare Advisors LLC now owns 24,702 shares of the company’s stock worth $273,000 after purchasing an additional 767 shares during the period. Parkside Financial Bank & Trust boosted its holdings in shares of MasterBrand by 18.8% in the 3rd quarter. Parkside Financial Bank & Trust now owns 5,178 shares of the company’s stock valued at $68,000 after acquiring an additional 821 shares during the last quarter. GAMMA Investing LLC increased its stake in shares of MasterBrand by 52.4% in the third quarter. GAMMA Investing LLC now owns 3,268 shares of the company’s stock worth $43,000 after acquiring an additional 1,123 shares during the period. Jones Financial Companies Lllp increased its stake in shares of MasterBrand by 26.7% in the third quarter. Jones Financial Companies Lllp now owns 5,579 shares of the company’s stock worth $76,000 after acquiring an additional 1,177 shares during the period. Finally, Gamco Investors INC. ET AL raised its holdings in shares of MasterBrand by 1.4% during the second quarter. Gamco Investors INC. ET AL now owns 88,754 shares of the company’s stock worth $970,000 after purchasing an additional 1,230 shares during the last quarter. 87.32% of the stock is owned by institutional investors and hedge funds.

MasterBrand Stock Performance

The company has a debt-to-equity ratio of 0.69, a current ratio of 1.87 and a quick ratio of 1.13. The company has a market capitalization of $1.53 billion, a PE ratio of 60.38 and a beta of 1.46. The firm’s fifty day simple moving average is $11.97 and its 200 day simple moving average is $12.17.

About MasterBrand

MasterBrand Inc is one of the largest manufacturers of cabinetry and home storage solutions in North America. The company specializes in designing, producing and distributing kitchen and bath cabinetry for both new construction and the remodeling markets. Its offerings span a broad spectrum of styles and price points, serving homebuilders, home improvement retailers and independent dealers.

MasterBrand’s product portfolio includes framed and frameless cabinet lines, bath vanities, closet systems and other organizational accessories.