Highlights

  • Net sales for the quarter ended June 30, 2026 were $1,992 million, down three percent, with operating profit of $470 million.
  • Diluted income per share was $1.60, compared with $1.28, with a net IEEPA tariff refund benefit of approximately $95 million.
  • Masco repurchased and retired approximately 7.8 million shares for approximately $596 million in six months; approximately $1.5 billion remains authorized.
  • On the August call, management raised 2026 EPS guidance to $4.40 to $4.60 per share from $4.10 to $4.30.

Masco Corporation (NYSE: MAS) shares were trading at USD 74.68 on October 27, 2026, down 1.10%, with a relative volume at time of 2.02. The company entered into a $1.0 billion revolving credit agreement in March, a $500 million delayed draw term loan in April, and filed its Form 10-Q for the quarter ended June 30, 2026 on July 29.

Masco is a Delaware corporation with principal executive offices at 17450 College Parkway in Livonia, Michigan. It reports two segments, Plumbing Products and Decorative Architectural Products. In the first quarter of 2026 it integrated its Liberty Hardware business, a distributor of cabinet and other hardware and shower doors, into its Delta Faucet business, reported in Plumbing Products. It has been implementing restructuring actions since the fourth quarter of 2025. Its fiscal year ends December 31.

Second Quarter 2026 Results

The results below are unaudited and cover the three months ended June 30, 2026. Net sales were $1,992 million, compared with $2,051 million. The company said lower North America sales volume decreased sales by five percent, partly offset by higher net selling prices, which increased sales by one percent, and higher International sales volume, which increased sales by one percent.

Gross profit was $868 million, compared with $772 million, and gross margin was 43.6 percent, compared with 37.6 percent. Selling, general and administrative expenses were $397 million, up 10 percent. Operating profit was $470 million, compared with $412 million, an operating margin of 23.6 percent. Net income attributable to Masco was $318 million, compared with $270 million, and diluted income per common share was $1.60, compared with $1.28.

Plumbing Products net sales were $1,337 million, down three percent, with operating profit of $352 million. Decorative Architectural Products net sales were $655 million, down four percent, with operating profit of $147 million.

Tariffs, Restructuring and Demand

The company said it is experiencing lower market demand for its products, elevated commodity and other input costs, employee-related cost inflation, and elevated costs from tariffs, principally in Plumbing Products. In the first quarter of 2026, the U.S. Supreme Court ruled that IEEPA tariffs were unlawful, and Masco began receiving refunds in the second quarter. It recognized a receivable for refunds not yet paid that it considers probable of collection. Operating profit included a net tariff benefit of approximately $95 million, principally in Plumbing Products.

Restructuring charges were approximately $12 million for the quarter and $20 million for six months, and the company expects approximately $50 million in charges for the full year of 2026.

Cash, Debt and Capital Returns

Cash and cash investments were approximately $548 million at June 30, 2026, compared with $647 million at December 31, 2025. The $1.0 billion 2026 Credit Agreement matures March 20, 2031 and had no borrowings outstanding. Under the $500 million delayed draw term loan, $300 million was outstanding at a weighted average interest rate of 4.499 percent, and the company reported compliance with all covenants.

Masco's Board authorized up to $2.0 billion of share repurchases effective February 10, 2026. In May 2026, the company entered into a $300 million accelerated share repurchase transaction, completed July 27, 2026. The company anticipates using approximately $1.0 billion of cash for share repurchases in 2026, outside of any potential acquisitions.

Outlook

On its August 7, 2026 call, management raised 2026 EPS guidance to $4.40 to $4.60 per share from $4.10 to $4.30, assuming a $200 million average diluted share count and a 24.5 percent effective tax rate. It continues to expect 2026 sales up low single digits, now expects an operating margin of approximately 18 percent, up from approximately 17 percent, and estimated an $85 million full year net benefit from the tariff refunds.