Key Highlights

  • Consensus EPS of 1.02 compares with second-quarter GAAP diluted EPS of 1.60 and adjusted EPS of 1.64.
  • Consensus revenue of USD 1.93 billion compares with second-quarter net sales of USD 1,992 million, against USD 2,051 million.
  • Management raised 2026 EPS guidance to 4.40 to 4.60 from 4.10 to 4.30, with operating margin at approximately 18%.
  • A net IEEPA tariff refund of USD 95 million lifted second-quarter results, and adjusted operating margin was 24.2%.

Masco (NYSE:MAS) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 1.02 on revenue of USD 1.93 billion, and the company has a market capitalization of USD 14.89 billion.

Masco makes plumbing products and decorative architectural products, including paint. Second-quarter net sales were USD 1,992 million against USD 2,051 million, and net income was USD 318 million against USD 270 million.

Estimates Against Second-Quarter Results and Raised Guidance

The EPS estimate of 1.02 is below the second-quarter GAAP diluted EPS of 1.60, which compared with 1.28 a year earlier, and below adjusted EPS of 1.64. The estimates table does not state its EPS basis. The revenue estimate of USD 1.93 billion is below the USD 1,992 million reported.

Management raised 2026 EPS guidance to 4.40 to 4.60 from 4.10 to 4.30 and operating margin guidance to approximately 18% from approximately 17%. Management now plans to deploy approximately USD 1 billion toward share repurchases or acquisitions in 2026, up from a prior USD 800 million minimum.

What Management Guided and What It Left Open

Management said commodity inflation had a low single-digit effect in the first half and is anticipated to reach mid-single digits in the second half, with copper, metals and oil cited. It targets working capital of approximately 16.5% of sales by year-end, against 19.8% at quarter end.

Management left open the recovery of DIY paint, describing continued pressure in the category, and gave no third-quarter guidance. It also noted that targeted strategic investments accounted for more than half of the North American plumbing sales decline.

Tariff Refund and Segment Margins

The net IEEPA tariff refund was USD 95 million after partial offsets from growth investments and incentive compensation. Adjusted operating profit was USD 482 million, up 17%, and adjusted operating margin was 24.2% against 20.1%.

Plumbing Products sales were USD 1.337 billion, down 3%, and the segment operating margin was 27.0% against 20.8%. Decorative Architectural sales were USD 655 million, down 4%, with Pro paint up mid-single digits and DIY paint down high single digits.

Income Statement, Capital Return and Leverage

Gross profit was USD 868 million against USD 772 million, and operating income was USD 470 million against USD 412 million. Income before income taxes was USD 440 million against USD 378 million.

The company returned USD 454 million in the quarter, including USD 390 million of repurchases and USD 64 million of dividends. Total liquidity was USD 1.5 billion and gross debt to EBITDA was 2.1x. The estimates table lists a market capitalization of USD 14.89 billion.

Comparisons to Make in the Report

Reported EPS against 1.02 and net sales against USD 1.93 billion are the headline comparisons. Other markers are the tariff refund, commodity inflation and DIY paint sales.