Earnings release
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NEWS RELEASE Masco Corporation Reports Second Quarter 2026 Results 2026-07-29 Highlights Net sales decreased 3 percent to $1,992 million Operating pro t margin was 23.6 percent; adjusted operating pro t margin was 24.2 percent Earnings per share were $1.60; adjusted earnings per share grew 26 percent to $1.64 per share Returned $454 million to shareholders through dividends and share repurchases Expect 2026 earnings per share in the range of $4.21 - $4.41 per share, and on an adjusted basis, $4.40 - $4.60 per share LIVONIA, Mich.--(BUSINESS WIRE)-- Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter 2026 results. 2026 Second Quarter Results On a reported basis, compared to the second quarter 2025: Net sales decreased 3 percent to $1,992 million; currency had a minimal impact Plumbing Products’ net sales decreased 3 percent Decorative Architectural Products’ net sales decreased 4 percent In local currency, North American sales decreased 5 percent and International sales increased 4 percent Gross margin increased 600 basis points to 43.6 percent from 37.6 percent Operating pro t increased 14 percent to $470 million from $412 million Operating margin increased 350 basis points to 23.6 percent from 20.1 percent Net income per common share increased 25 percent to $1.60, compared to $1.28 Compared to the second quarter 2025, results for key nancial measures, as adjusted for certain items (see Exhibit A) and applying a normalized tax rate of 24.5 percent, were as follows: Gross margin increased 610 basis points to 43.8 percent from 37.7 percent Operating pro t increased 17 percent to $482 million from $413 million Operating margin increased 410 basis points to 24.2 percent from 20.1 percent Net income per common share increased 26 percent to $1.64, compared to $1.30 1
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Liquidity at the end of the second quarter was $1,548 million (including availability under our revolving credit facility) “We have executed well in the rst half of the year,” said Masco’s President and CEO, Jon Nudi. “While the macroeconomic and geopolitical environments remain volatile, our teams remained focused on leveraging our industry leading brands, expanding our commercial capabilities and enhancing operational excellence to deliver strong year to date results. Second quarter sales results re ect a challenging comparison to the prior year as well as targeted strategic investments to support growth. In the quarter we also recognized a net bene t of approximately $95 million from IEEPA tari refunds, which helped to drive adjusted operating pro t growth of 17% and adjusted earnings per share growth of 26%. We also returned $454 million to shareholders through dividends and share repurchases, re ecting our continued commitment to a disciplined capital allocation strategy.” “While our underlying performance remains largely in line with our prior outlook, the anticipated full year net bene t from IEEPA tari refunds of approximately $85 million has led us to increase our 2026 adjusted earnings per share guidance. We now expect adjusted earnings per share to be in the range of $4.40 to $4.60, compared to our previous guidance range of $4.10 to $4.30 per share,” continued Nudi. “Looking ahead, I am con dent in our ability to navigate this dynamic market environment and execute our strategy to deliver above-market growth and continue creating long-term shareholder value.” About Masco Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower xtures; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com. The 2026 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com. Conference Call Details A conference call regarding items contained in this release is scheduled for Wednesday, July 29, 2026 at 8:00 a.m. ET. Participants in the call are asked to register ve to ten minutes prior to the scheduled start time by dialing 800-715-9871 or 646-307-1963. Please use the conference identi cation number 3880732. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website. A replay of the call will be available on Masco’s website or by phone by dialing 800-770-2030 or 609- 800-9909. Please use the playback passcode 3880732#. The telephone replay will be available approximately two hours after the end of the call and remain available until August 28, 2026. Safe Harbor Statement This press release contains statements that re ect our views about our future performance and 2
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constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identi ed by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are di cult to predict and, accordingly, our actual results may di er materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be a ected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tari s, our ability to achieve the anticipated bene ts of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other lings we make with the Securities and Exchange Commission. Any forward- looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to di er may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward- looking statements as a result of new information, future events or otherwise. Non-GAAP Financial Measures This release contains both U.S. generally accepted accounted principles (“GAAP”) and certain non-GAAP nancial measures. Reconciliations of these non ‑ GAAP measures to the most directly comparable GAAP measures are included in the accompanying nancial tables. We believe that certain non-GAAP nancial measures used in managing the business may provide users of this nancial information with additional meaningful comparisons between current results and results in prior periods. These non-GAAP nancial measures should be considered in addition to, and not as an alternative for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. MASCO CORPORATIONCondensed Consolidated Statements of Operations - UnauditedFor the Three and Six Months Ended June 30, 2026 and 2025(in millions, except per common share data)Three Months Ended June30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 1,992$ 2,051$ 3,910$ 3,852Cost of sales 1,1241,2782,3562,435 Gross pro t 868 772 1,5531,416Selling, general and administrativeexpenses 397 361 766 719 Operating pro t 470 412 787 698Ohi 3
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Other income (expense), net:Interest expense (28) (26) (54) (52)Other, net (2) (7) (2) (14) (30) (33) (55) (66) Income before income taxes440 378 731 632Income tax expense107 95 170 150 Net income 333 283 561 482Less: Net income attributable tononcontrolling interest15 13 30 25 Net income attributable to MascoCorporation $ 318$ 270$ 531$ 456 Income per common share attributable toMasco Corporation (diluted):Net income $ 1.60$ 1.28$ 2.64$ 2.15 Average diluted common sharesoutstanding 199 211 201 212 Historical information is available on our website.Amounts may not add due to rounding. MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (dollars in millions)Three Months Ended June30, Six Months Ended June 30, 2026 2025 2026 2025 Gross Pro t, Selling, General andAdministrative Expenses, andOperating Pro t ReconciliationsNet sales $ 1,992$ 2,051$ 3,910$ 3,852 Gross pro t, as reported$ 868$ 772$ 1,553$ 1,416Rationalization charges5 1 9 3 Gross pro t, as adjusted$ 872$ 774$ 1,563$ 1,419 Gross margin, as reported43.6% 37.6% 39.7% 36.8%Gross margin, as adjusted43.8% 37.7% 40.0% 36.8%Selling, general and administrativeexpenses, as reported$ 397$ 361$ 766$ 719Rationalization charges7 1 11 1 Selling, general and administrativeexpenses, as adjusted$ 390$ 360$ 756$ 718 Selling, general and administrativeexpenses as a percent of net sales, asreported 19.9% 17.6% 19.6% 18.7%Selling, general and administrativeexpenses as a percent of net sales, asadjusted 19.6% 17.6% 19.3% 18.6%Operating pro t, as reported$ 470$ 412$ 787$ 698Rationalization charges12 2 20 4 Operating pro t, as adjusted$ 482$ 413$ 807$ 701 Operating margin, as reported23.6% 20.1% 20.1% 18.1%O i i dj d 22% 20% 206% 82% 4
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Operating margin, as adjusted24.2% 20.1% 20.6% 18.2%Historical information is available on our website.Amounts may not add due to rounding MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (in millions, except per common share data)Three Months Ended June30, Six Months Ended June 30, 2026 2025 2026 2025 Income Per Common ShareReconciliationsIncome before income taxes, asreported $ 440$ 378$ 731$ 632Rationalization charges12 2 20 4Realized losses from private equity funds,net — — — 5 Income before income taxes, asadjusted 452 380 751 640Tax at 24.5% rate (111) (93) (184) (157)Less: Net income attributable tononcontrolling interest15 13 30 25 Net income, as adjusted$ 326$ 274$ 537$ 458 Net income per common share, asadjusted $ 1.64$ 1.30$ 2.67$ 2.16 Average diluted common sharesoutstanding 199 211 201 212 Outlook for the Year Ended December 31, 2026Year Ended December 31,2026 Low EndHigh EndIncome Per Common Share ReconciliationNet income per common share$ 4.21$ 4.41Rationalization charges 0.19 0.19 Net income per common share, as adjusted$ 4.40$ 4.60 Historical information is available on our website.Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited June 30, 2026 and December 31, 2025 (dollars in millions) June 30, 2026December 31,202 5
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2025Balance SheetAssetsCurrent assets:Cash and cash investments$ 548$ 647Receivables 1,342 1,028Inventories 1,060 1,046Prepaid expenses and other 119 119 Total current assets 3,069 2,840Property and equipment, net1,191 1,195Goodwill 618 623Other intangible assets, net 194 205Operating lease right-of-use assets253 233Other assets 77 105 Total assets $ 5,401$ 5,201 LiabilitiesCurrent liabilities:Accounts payable $ 890$ 810Notes payable 2 2Accrued liabilities 754 761 Total current liabilities 1,646 1,573Long-term debt 3,245 2,945Noncurrent operating lease liabilities246 221Other liabilities 383 387 Total liabilities 5,519 5,125Equity (118) 76 Total liabilities and equity$ 5,401$ 5,201 As of June 30, 2026 2025 Other Financial DataWorking capital daysReceivable days 56 55Inventory days 85 87Payable days 69 68Working capital $ 1,512$ 1,544Working capital as a % of sales (LTM) 19.8% 20.1%Historical information is available on our website.Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited For the Six Months Ended June 30, 2026 and 2025 (dollars in millions) Six Months Ended June 30, 2026 2025 Cash Flows From (For) Operating Activities:Cash provided by operating activities$ 705$ 606Working capital changes (288) (459) 6
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Net cash from operating activities417 148 Cash Flows From (For) Financing Activities:Purchase of common stock (592) (231)Excise tax paid on the purchase of common stock(5) (6)Cash dividends paid (129) (132)Dividends paid to noncontrolling interest(13) (15)Proceeds from revolving credit borrowings, net— 46Proceeds from term loan 300 —Proceeds from the exercise of stock options23 2Employee withholding taxes paid on stock-based compensation(14) (8)Payment of debt (1) (1)Debt nancing costs (3) — Net cash for nancing activities(433) (344) Cash Flows From (For) Investing Activities:Capital expenditures (77) (68)Other, net (1) (1) Net cash for investing activities(78) (70) E ect of exchange rate changes on cash and cash investments(6) 22Cash and Cash Investments:Decrease for the period (100) (243)At January 1 647 634 At June 30 $ 548$ 390 As of June 30, 2026 2025 LiquidityCash and cash investments$ 548$ 390Revolver availability 1,000 954 Total Liquidity $ 1,548$ 1,344 Historical information is available on our website.Amounts may not add due to rounding. MASCO CORPORATION Segment Data - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (dollars in millions)Three Months EndedJune 30, Six Months Ended June30, 20262025Change20262025Change Plumbing ProductsNet sales $ 1,337$ 1,372(3)%$ 2,700$ 2,6183%Operating pro t, asreported $ 352$ 285 $ 595$ 509Operating margin, asreported 26.3% 20.8% 22.0% 19.4%Rationalization charges9 2 16 4 Operating pro t, asadjusted 361 286 611 513O i i 7
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Operating margin, asadjusted 27.0% 20.8% 22.6% 19.6%Depreciation andamortization30 27 59 54 EBITDA, as adjusted$ 391$ 314 $ 670$ 566 Decorative ArchitecturalProductsNet sales $ 655$ 679 (4)%$ 1,209$ 1,234(2)%Operating pro t, asreported $ 147$ 147 $ 251$ 236Operating margin, asreported 22.4% 21.6% 20.8% 19.1%Rationalization charges1 — 2 —Accelerated depreciationrelated to rationalizationactivity — — 1 — Operating pro t, asadjusted 148 147 254 236Operating margin, asadjusted 22.6% 21.6% 21.0% 19.1%Depreciation andamortization 7 7 13 13 EBITDA, as adjusted$ 155$ 154 $ 267$ 249 TotalNet sales $ 1,992$ 2,051(3)%$ 3,910$ 3,8522%Operating pro t, asreported - segment$ 499$ 432 $ 847$ 745General corporateexpense, net(29) (20) (60) (47) Operating pro t, asreported 470 412 787 698Operating margin, asreported 23.6% 20.1% 20.1% 18.1%Rationalization charges -segment 10 2 17 4Rationalization charges -other 2 — 2 —Accelerated depreciationrelated to rationalizationactivity - segment— — 1 — Operating pro t, asadjusted 482 413 807 701Operating margin, asadjusted 24.2% 20.1% 20.6% 18.2%Depreciation andamortization - segment37 34 72 67Depreciation andamortization - other1 2 2 4 EBITDA, as adjusted$ 520$ 449 $ 881$ 772 Historical information is available on our website.Amounts may not add due to rounding. Investor Contact Renee Benedict Vice President, Investor Relations and Corporate FP&A 313.792.5500 MascoInvestorRelations@mascohq.com 8
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Source: Masco Corporation 9