What MasterBrand, Inc. told the SEC could break it.

Cabinet manufacturing is wood-intensive: MasterBrand's primary raw materials include hardwood/wood and particleboard, and raw materials were about $979 million in 2025 (≈36% of net sales). It notes volatility in commodity prices and transportation costs — together with changes in trade policy and tariff rates — directly impacts its cost of manufacturing. A commodity-price spike (lumber/plywood/particleboard) or freight-cost surge would pressure margins. A specific wood/board commodity dependence.

“These materials are available from a number of sources. Volatility in the prices of commodities and transportation costs in making and distributing our products, as well as changes in trade policies and corresponding tariff rates, impact the cost of manufacturing our products.”

MasterBrand relies on a limited number of suppliers for raw materials, components and finished goods, many of which are located in foreign countries. Differences in business practices, shipping/delivery requirements, economic and trade-policy changes, plus the limited supplier base, increase supply-chain logistics complexity and the potential for production-scheduling interruptions, and it may face constraints on transporting materials and finished goods from international suppliers. Loss of a critical supplier or a sharp drop in component availability could disrupt production and hurt results. Suppliers unnamed, so a sole-source/supplier-concentration risk.

“Many of the suppliers we rely upon are located in foreign countries.”

MasterBrand faces realized and pending trade-policy actions in its core product category. The U.S. imposed a 25% tariff under Section 232 on imported kitchen cabinets and vanities effective October 14, 2025, and the Department of Commerce/ITC are conducting an anti-dumping/countervailing-duty (AD/CVD) investigation into imports of hardwood and decorative plywood from Vietnam, Indonesia and China (a key cabinet input). These actions raise the cost of imported finished cabinets and plywood components; while protective for domestic manufacturing, they increase input costs and supply-chain complexity, which it may be unable to fully pass through amid weak repair/remodel and new-construction demand. A material, realized trade-policy exposure on cabinets and plywood.

“the United States imposed 25 percent tariffs under Section 232 of the Trade Expansion Act of 1962 on kitchen cabinets and vanities, effective October 14, 2025.”