MasterBrand Reports Q3 2025 Decline in Net Income and Sales, Plans Merger with American Woodmark

MasterBrand, Inc. reported its financial results for the third quarter and first three quarters of fiscal 2025, revealing a decline in net income and sales compared to the previous year. For the thirteen weeks ended September 28, 2025, net sales were $698.9 million, a decrease of 2.7% from $718.1 million in the same period last year. The company attributed this decline primarily to lower sales unit volume, which decreased by $38.3 million, although there was a favorable impact of $19.3 million from price and mix adjustments. Net income for the quarter was $18.1 million, down 37.8% from $29.1 million in the prior year, reflecting a significant drop in operating income, which fell to $41.7 million from $57.6 million.

In the first three quarters of fiscal 2025, MasterBrand's net sales increased to $2.090 billion, up 2.8% from $2.033 billion in the same period of fiscal 2024. This growth was largely driven by the acquisition of Supreme Cabinetry, which contributed $131.5 million in incremental sales. However, excluding this acquisition, the company experienced a decline in sales unit volume, leading to a net income of $68.7 million, a decrease of 38.6% from $111.9 million in the previous year. The increase in costs of products sold, which rose by 5.2% to $1.430 billion, was attributed to higher manufacturing costs and tariffs.

Strategically, MasterBrand has been active in expanding its market presence through acquisitions. The company completed the acquisition of Supreme Cabinetry in July 2024 for $520 million, enhancing its portfolio of premium cabinetry products. Additionally, on August 6, 2025, MasterBrand announced a definitive agreement to merge with American Woodmark Corporation in an all-stock transaction, expected to close in early 2026. This merger is anticipated to create a combined entity with a stronger market position and broader product offerings.

Operationally, MasterBrand's workforce has been adjusted to align with market demand, resulting in restructuring charges of $2.6 million for the third quarter of 2025, down from $7.8 million in the same quarter of 2024. The company reported a total employee headcount of approximately 7,000 as of September 28, 2025. The company also noted a decline in its cash and cash equivalents, which totaled $114.8 million, down from $120.6 million at the end of the previous fiscal year.

Looking ahead, MasterBrand's management expressed cautious optimism regarding future performance, emphasizing the importance of strategic initiatives and market conditions. The company is focused on integrating the Supreme acquisition and preparing for the upcoming merger with American Woodmark, which is expected to enhance operational efficiencies and market reach. However, management acknowledged potential challenges, including fluctuating market demand and the impact of tariffs on costs.