Masco (MAS) Q1 2026 earnings summary

Executive summary

• Net sales rose 6% year-over-year to $1.92 billion in Q1 2026, with 4% growth in local currency, driven by higher net selling prices and strong Plumbing Products performance.

• Adjusted operating profit increased 13% to $324 million, and adjusted EPS grew 20% to $1.04; net income attributable to shareholders was $213 million, up 15–21%.

• Leadership changes included retirements, a streamlined structure, and new supply chain/procurement expertise added to the executive committee.

• Restructuring and reorganization actions continued, including integration of Liberty Hardware into Delta Faucet/Plumbing Products, supporting margin expansion.

• Returned $267 million to shareholders in Q1 via dividends and share repurchases.

Financial highlights

• Q1 2026 revenue reached $1,918 million, up 6% year-over-year, with gross margin steady at 35.8% and adjusted gross margin at 36%.

• Adjusted operating profit was $324 million, up $36 million from prior year; operating margin was 16.5%, with adjusted margin at 16.9%, up 90 bps.

• Earnings per share grew 20% to $1.04; diluted EPS was $1.05, a 21% increase.

• SG&A as a percent of sales decreased 70–80 basis points to 19.1%.

• Interest expense remained flat at $26 million; effective tax rate was 21.6%.

Outlook and guidance

• 2026 adjusted EPS guidance maintained at $4.10–$4.30; total sales expected to rise low single digits for the year.

• Margins projected to expand to approximately 17% for the full year; Plumbing Products segment margin ~18%, Decorative Architectural ~19%.

• At least $800 million planned for share repurchases or acquisitions in 2026, supported by new term loan and cash flow.

• Guidance reflects higher anticipated commodity costs and tariff impacts, expected to be offset by pricing and cost savings.

• Management expects continued market demand challenges due to macroeconomic and geopolitical factors.