Masco Reports Q3 2026 Results, Raises Full-Year Adjusted EPS Guidance

Executive Summary

On October 28, 2026, Masco Corporation filed Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing financial results for the third quarter ended September 30, 2026. The company posted solid growth across key metrics, highlighted by expanding operating margins, double-digit earnings growth, and an upward revision of full-year 2026 earnings guidance.

Key Financial Highlights

• Net Sales: $1,966 million, up 3% compared to $1,917 million in Q3 2025 (up 4% in local currency and excluding the divestiture of Bristan).
  • Plumbing Products: Net sales increased 4% (up 5% excluding divestiture and currency).
  • Decorative Architectural Products: Net sales were flat year-over-year.
  • Geographic Breakdown: North American sales grew 5% in local currency; International sales decreased 5% (down 1% excluding the divestiture).
• Gross Margin: 36.6%, up 240 basis points from 34.2% in Q3 2025 (Adjusted gross margin of 37.1%, up 250 bps).
• Operating Profit: $338 million (+12% YoY) with an operating margin of 17.2% (+140 bps YoY). On an adjusted basis, operating profit was $351 million (+13% YoY) with a margin of 17.9% (+160 bps YoY).
• Net Income & EPS: Net income attributable to Masco was $230 million, or $1.17 per diluted share (up 30% YoY from $0.90). Adjusted EPS grew 23% to $1.19 compared to $0.97 in the prior-year period.

Guidance Update

Reflecting strong operational execution year-to-date, management increased its full-year 2026 outlook:

• Reported Diluted EPS: Expected in the range of $4.51 to $4.61 per share.
• Adjusted Diluted EPS: Raised to a range of $4.65 to $4.75 per share, up from the prior guidance range of $4.40 to $4.60 per share.

Capital Allocation & Liquidity

• Shareholder Returns: Returned $322 million in Q3 2026 via share repurchases and dividends.
• Dividend Declaration: The Board of Directors declared a quarterly dividend of $0.32 per share, payable on November 23, 2026 to shareholders of record as of November 6, 2026.
• Liquidity: Stood at $1,610 million at quarter-end, including availability under the revolving credit facility.