MAS

A month has gone by since the last earnings report for Masco (MAS). Shares have added about 0.9% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Masco due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Masco Corporation before we dive into how investors and analysts have reacted as of late. Masco reported mixed second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate and increasing year over year. However, net sales missed the consensus mark and declined from the prior-year quarter.Earnings benefited from tariff refunds, pricing actions, cost savings and share repurchases, while lower North American volumes weighed on revenues. The company also raised its 2026 adjusted earnings outlook, primarily reflecting an anticipated benefit from tariff refunds. Second-quarter 2026 earnings of $1.64 per share increased 26.2% from $1.30 a year ago. The figure topped the Zacks Consensus Estimate of $1.30 by 26.2%.Net sales declined 2.9% year over year to $1.99 billion and missed the consensus mark of $2.09 billion by 4.6%. Currency translation had a minimal impact on quarterly revenues. In local currency, North American sales fell 5%, while international sales increased 4%. On an adjusted basis, gross profit rose to $872 million from $774 million. Adjusted gross margin improved 610 basis points to 43.8%, supported by lower tariff costs, including refunds, cost-saving initiatives and higher selling prices. These benefits were partly offset by lower sales volume, increased commodity costs, unfavorable product mix and other expenses.Adjusted operating profit increased 16.7% to $482 million. Adjusted operating margin expanded 410 basis points to 24.2%. The quarter included an approximately $95 million net benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act.Selling, general and administrative expenses increased 10% to $397 million. Higher employee-related expenses and increased legal and professional fees contributed to the rise. Plumbing Products segment sales decreased 2.6% year over year to $1.337 billion (up from our model’s projection of $1.22 billion). Adjusted operating profit increased to $361 million from $286 million. The adjusted operating margin expanded 620 basis points to 27%. The improvement reflected the tariff refund benefit, pricing and cost savings, partly offset by lower volume and higher tariff, commodity and employee-related costs. Decorative Architectural Products segment sales decreased 3.5% year over year to $655 million (down from our model’s projection of $609.3 million). Professional paint sales increased in the mid-single digits, but do-it-yourself paint sales declined in the high-single digits. The DIY decline was affected by the customer transition of Masco’s primer and applicator business. Adjusted operating profit edged up to $148 million from $147 million. Adjusted operating margin increased 100 basis points to 22.6%, as cost-saving initiatives and higher prices offset lower volume and increased commodity costs. Masco returned $454 million to its shareholders through dividends and share repurchases during the quarter. In the first six months of 2026, the company spent $592 million on common-stock repurchases and paid $129 million in cash dividends.Cash and cash investments totaled $548 million at quarter-end. Total liquidity was $1.548 billion, including $1 billion of available revolving credit. Gross debt to EBITDA was 2.1X, while working capital represented 19.8% of trailing sales. Net cash from operating activities increased to $417 million in the first half from $148 million a year earlier. Capital expenditures rose to $77 million from $68 million. Masco raised its adjusted earnings forecast for 2026 to $4.40-$4.60 per share from $4.10-$4.30. The revision reflects an anticipated full-year net benefit of approximately $85 million from tariff refunds, while management indicated that underlying business performance remained largely aligned with its previous outlook.The company expects total sales to increase in the low-single digits. Plumbing Products sales are projected to rise in the low-single digits, while Decorative Architectural Products revenues are expected to remain in line with 2025. Masco forecasts adjusted operating margins of about 20% for Plumbing Products, 19% for Decorative Architectural Products and 18% companywide. It turns out, estimates revision have trended downward during the past month. Currently, Masco has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Masco belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Armstrong World Industries (AWI), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Armstrong World Industries reported revenues of $472 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $2.36 for the same period compares with $2.09 a year ago. Armstrong World Industries is expected to post earnings of $2.35 per share for the current quarter, representing a year-over-year change of +14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. Armstrong World Industries has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masco Corporation (MAS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Masco currently trades at $75.17 per share and has shown little upside over the past six months, posting a small loss of 1.7%. The stock also fell short of the S&P 500’s 11.7% gain during that period. Is there a buying opportunity in Masco, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re cautious about Masco. Here are three reasons why there are better opportunities than MAS, plus one stock we’d rather own. Investors interested in Home Construction Materials companies should track organic revenue in addition to reported revenue. This metric gives visibility into Masco’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Masco failed to grow its organic revenue. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Masco might have to lean into acquisitions to accelerate growth, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus). Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Masco’s revenue to rise by 1.6%. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector. We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality. Over the last few years, Masco’s ROIC has unfortunately decreased. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. We cheer for all companies making their customers lives easier, but in the case of Masco, we’ll be cheering from the sidelines. With its shares lagging the market recently, the stock trades at 17.6× forward P/E (or $75.17 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. There are superior stocks to buy right now. Let us point you toward one of Charlie Munger’s all-time favorite businesses. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

United Rentals, Inc. URI reported solid second-quarter 2026 results, with both adjusted earnings and revenues exceeding the Zacks Consensus Estimate by 9.3% and 4.1%, respectively. The company also delivered strong year-over-year growth across key metrics. Record rental revenues, higher fleet productivity and strong specialty demand supported the performance. Shares of United Rentals have gained 10.4% since the earnings release, reflecting positive investor sentiment toward its strong rental demand and raised 2026 guidance. Adjusted earnings per share stood at $12.76, up 21.9% from the prior-year quarter, while revenues of $4.41 billion increased 11.8%. This growth was driven by record rental revenues, higher fleet productivity and strong specialty demand. Operating margin in the quarter was supported by higher revenue growth and fleet productivity, while adjusted EBITDA increased 13.6% year over year to a quarterly record of $2.06 billion.Furthermore, United Rentals raised its 2026 revenue and adjusted EBITDA guidance, backed by strong large-project activity, customer backlogs and higher fleet utilization. (read more: United Rentals Q2 Earnings Beat on Rental Growth, '26 Guidance Raised) Image Source: Zacks Investment Research Shares of this Connecticut-based equipment rental company have surged 22.3% in the past three months, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index. Let us take a closer look at the factors shaping United Rentals stock’s prospects. United Rentals is benefiting from stronger-than-expected customer demand, particularly across large projects. In the second quarter of 2026, total revenues increased 12% year over year to $4.4 billion, while rental revenues rose nearly 13% to a record $3.8 billion. Fleet productivity increased 3.4%, contributing to 9% growth in OER. Strong project activity during the first half also led the company to raise its 2026 revenue guidance to $17.5-$17.8 billion, up $500 million from the previous range.The demand environment remains supported by large projects, which are expected to drive activity through the second half of 2026. The company is also seeing growth across construction and industrial markets, providing a broader base for rental demand. Higher project activity, combined with strong fleet utilization, should support revenue generation as the company enters the second half of the year. United Rentals is gaining traction across its Specialty business, creating additional avenues for rental revenue growth. In the second quarter of 2026, Specialty rental revenues increased 25% year over year, with growth across all lines of business and 11 cold starts. Power posted double-digit growth, while metals and minerals also delivered healthy gains during the quarter.The broad performance across Specialty strengthens United Rentals’ exposure to customers requiring more specialized equipment and services. Demand across power, infrastructure and other project-driven markets should provide opportunities to expand the business as customers undertake increasingly complex projects. United Rentals is benefiting from activity across a wide range of end markets rather than relying on a single source of demand. During the second quarter, projects began across hospitals, airports and LNG terminals, while data centers remained a source of growth. Construction activity was led by nonresidential and infrastructure projects, while power also delivered double-digit growth within the industrial business.This diversified exposure provides a broader foundation for rental demand as project activity expands across different parts of the economy. Large infrastructure and industrial projects can also support demand for both general rental equipment and specialized products, allowing United Rentals to participate across multiple stages of project development. United Rentals is increasing fleet investment to meet customer requirements as equipment utilization remains elevated. The company spent $2.9 billion on gross rental CapEx through the first half of 2026, more than $650 million above the prior-year period. Full-year gross CapEx guidance was raised $450 million to $4.85-$5.25 billion.The higher investment should expand equipment availability as United Rentals responds to stronger project demand. The company expects historically high utilization levels to support the need for additional fleet, while continued investment should help it serve customers without relying solely on existing equipment capacity. United Rentals is generating significant cash while maintaining a disciplined approach to capital allocation. Free cash flow totaled roughly $1.15 billion year to date, while net leverage remained at 1.8x and total liquidity stood at almost $3 billion at the end of June. The company also returned $998 million to its shareholders through the first half, including $750 million in share repurchases and $248 million in dividends.Financial flexibility gives United Rentals capacity to fund fleet expansion while maintaining shareholder returns. The company expects 2026 free cash flow of $2.15-$2.45 billion and plans to return roughly $2 billion to its shareholders through repurchases and dividends, supporting capital allocation while preserving flexibility for growth opportunities. URI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.55 and $55.71 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year improvements of 15.4% and 14.7%, respectively. Image Source: Zacks Investment Research URI stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 21.6, as the trend lines suggest below. Image Source: Zacks Investment Research United Rentals operates across a broad industrial and infrastructure market alongside Armstrong World Industries, Inc. AWI, Masco Corporation MAS and Argan, Inc. AGX, which have exposure to construction, building products and infrastructure spending.Armstrong World Industries provides ceiling, architectural specialty and interior solutions for commercial buildings. Its broad product portfolio, product differentiation and expansion into structural and containment solutions provide an advantage as demand grows across transportation and data center projects. However, the company faces inflationary pressure from freight, energy and raw material costs, which could affect profitability.Meanwhile, Masco operates across plumbing and decorative architectural products, with brands spanning kitchen, bath and premium water products. Masco’s strong brands, product innovation, e-commerce capabilities and customer service support its competitive position across multiple channels. However, softer international demand in markets such as China and pressure from strategic investments could weigh on near-term sales performance.Conversely, Argan provides engineering, procurement and construction services across power, industrial and Teledata markets. Argan’s experience with complex power projects, strong execution record and ability to handle large fixed-price contracts provide an advantage in an environment of rising power infrastructure demand. However, project timing can cause fluctuations in backlog and revenues, with gaps possible between the completion of projects and the award of new contracts.United Rentals’ one-stop-shop model, broad specialty offerings, technology and distributed footprint provide a competitive advantage in terms of customer service, fleet utilization and ability to serve large projects. However, competition could increase as industry utilization improves and smaller rental players use available capacity, while supply constraints may limit how quickly additional equipment can be added. United Rentals’ strong second-quarter performance, healthy rental demand and raised 2026 guidance support its growth prospects. Record rental revenues, higher fleet productivity and 25% growth in Specialty rental revenues highlight solid customer activity, while elevated utilization is driving additional fleet investment. Strong cash generation and a solid balance sheet also provide flexibility to support growth and shareholder returns.Although URI trades at a premium valuation relative to the industry, upward earnings estimate revisions and expectations for more than 10% revenue growth at the midpoint of 2026 guidance support the higher multiple. With a Zacks Rank #2 (Buy) at present, United Rentals remains an attractive choice for investors seeking exposure to equipment rental and infrastructure-related activity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Rentals, Inc. (URI) : Free Stock Analysis Report Masco Corporation (MAS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Argan, Inc. (AGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET Vice President, Investor Relations and Corporate FP&A - Renee Benedict President and Chief Executive Officer - Jonathon Nudi Vice President and Chief Financial Officer - Richard Westenberg Operator: Good morning, ladies and gentlemen. Welcome to Masco Corporation's Second Quarter 2026 Conference Call. My name is Rob, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. [Operator Instructions] I will now turn the call over to Renee Benedict, Vice President, Investor Relations and Corporate FP&A. You may begin. Renee Benedict: Thank you, operator, and good morning, everyone. Welcome to Masco Corporation's 2026 Second Quarter Conference Call. With me today are Jon Moody, President and CEO of Masco; and Rick Westenberg, Masco's Vice President and Chief Financial Officer. Our second quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we cannot take your question now, please call me directly at (313) 792-5500. Our statements today will include our views about our future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K and our Form 10-Q that we filed with the Securities and Exchange Commission. Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted, unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to Jon. Jonathon Nudi: Thank you, Renee. Good morning, everyone, and thank you for joining us. We have delivered strong results in the first half of the year while navigating a macroeconomic and geopolitical environment that remains dynamic. As I outlined at our Investor Day in May, we are committed to driving above-market growth through our consumer-driven strategy by leveraging our industry-leading brands, expanding our commercial capabilities and enhancing our operational excellence. Our teams have remained focused on execution, and I am pleased with the progress we are making. Please refer to Slide 5, where I will highlight a few recent examples that demonstrate how our teams are creating value through strong brands, innovative new products and exceptional customer service. First, Delta Faucet Company continues to execute on its new product road map, successfully launching 5 new kitchen and bath collections across is Delta, Brizo and Newport Brass brands. These launches broaden our portfolio with compelling new designs and finishes, enhancing consumer choice and supporting our focus on innovation, brand strength and long-term growth. Additionally, Delta received the JD Power customer service certification for the fifth straight year, a testament to the team's unwavering focus on customer satisfaction and is a long-standing commitment to delivering industry-leading service and support. Then lastly, we celebrated Hansgrohe's 125th anniversary. We are proud to recognize the brand's remarkable legacy of innovation, craftsmanship and design excellence, which has helped make it a global leader in premium water experiences, and a key contributor to Masco's success. With that, let's turn to our second quarter financial results. Please refer to Slide 6. Overall, our underlying second quarter and first half performance was in line with our expectations and reflects the resilience of our business and the strength of our execution. In addition, during the second quarter, we began to receive IEEPA tariff refunds and recognize the benefit. The benefit of these refunds was partially offset by targeted strategic investments to support growth as well as by employee-related incentive compensation costs associated with this favorable impact. Overall, we recorded a net tariff refund benefit of approximately $95 million during the quarter. Our net sales in the second quarter decreased 3%, which were impacted by a challenging comparison to the prior year as well as the targeted strategic investments we recognized in the quarter. If you exclude the impact from the strategic investments, net sales in the second quarter will be roughly in line with the prior year, and our sales in the first half of the year would be up low single digits consistent with our expectations. Operating profit was $482 million, an increase of 17%. Operating profit margin was 24.2% and earnings per share grew 26% during the quarter to $1.64 per share. Turning to our segments. Plumbing Products sales decreased 3% in local currency. However, excluding the impact of the targeted strategic investments, Plumbing segment sales would have been in line with the prior year. North American sales decreased 6% in local currency, driven by the strategic investments, which accounted for more than half of this year's year-over-year impact. In addition, North American sales were also impacted by a challenging comparison to Q2 2025 with sales increased mid-single digits. When you viewed over the first half of the year, excluding the impact of the strategic investments, our North American plumbing sales grew low single digits, in line with our expectations, and we remain confident in the strength of our competitive position across our channels. We continue to gain share through our e-commerce leadership, innovative products and exceptional customer service. Turning to international Plumbing. Sales increased 4% in local currency, driven by growth across many European markets, particularly in Germany, partially offset by the ongoing weak market in China. This strong performance driven by volume growth and pricing actions demonstrates the strength of the Hansgrohe brand and the team's execution across our geographic markets. Operating profit for the Plumbing Products segment grew 26% to $361 million and operating margin expanded to 27%. Turning to our Decorative Architectural segment. Sales decreased 4% and our momentum in propane continued in the second quarter, with sales growing mid-single digits as our offering continues to resonate with Pro customers. As we invest alongside our partner, the Home Depot, we are confident in our ability to drive further share gains and capitalize on the significant growth opportunities ahead. DIY paint sales decreased high single digits given the ongoing challenging industry dynamics. In addition, Performance in the quarter was impacted by the customer transition of our primary and applicator business we discussed in our fourth quarter 2025 earnings call in February. We do not expect this transition to have a meaningful impact in the second half of the year. Despite these factors, our expectation for full year DIY paint sales to be down mid-single digits remains unchanged. We believe Bayer is well positioned as the #1 DIY brand with leading positions in color, quality and value. Operating profit for this segment was in line with the prior year at $148 million, and operating margin was 22.6%. Turning to capital allocation. Our strong cash flow and previously announced accelerated share repurchase program allowed us to return $454 million to shareholders this quarter through dividends and share repurchases. Additionally, as we continue to actively manage our portfolio and focus on our core industry-leading brands, we recently divested Bristan Group, a U.K. plumbing business. We believe Bristan has a strong future with FM Matson Group, while allowing us to focus on Hansgrohe as our core international plumbing business combined with the actions we are taking to improve efficiency and strengthen execution across the business. We are encouraged by our first half performance, which reflects our team's strong execution and focus on operational excellence. We are also continuing to implement the restructuring actions we previously shared in order to better align our cost structure and enhance our flexibility to invest in future growth opportunities. As we look to the balance of the year, uncertainty in the macroeconomic and geopolitical environment remains However, our first half performance reinforces our confidence and the resilience of our business, the strength of our brands and our ability to execute in a challenging environment. With our strong first half performance and the benefit of the net tariff refund impact, which represents an estimated $85 million for the full year. We are raising our 2026 earnings per share guidance to $4.40 to $4.60 from our prior range of $4.10 to $4.30. Consistent with our prior guidance, we continue to expect that our sales will be up low single digits for 2026 and that commodities will remain elevated in the back half of the year. Rick will share additional details of our guidance in a few moments. While uncertainty remains in the near term, we continue to focus on executing the actions within our control and positioning the business to capitalize on the opportunities ahead. The long-term drivers of repair and remodel activity, including strong home equity levels an aging housing stock and pent-up demand for home improvement projects remain firmly in place. As market conditions improve, we expect these fundamentals to provide meaningful support for growth. At the same time, we're making investments in our business and taking actions to improve operational performance, ensuring we are well positioned to capitalize when market conditions return to more historical growth rates, supported by a portfolio of market-leading brands, robust cash generation, and the investments and actions we are taking to strengthen our operating performance and enhance execution across the business, we believe Masco is well positioned to deliver above-market growth and continue to create long-term shareholder value. With that, I'll now turn the call over to Rick to go over our second quarter results and 2026 outlook in more detail. Rick? Richard Westenberg: Thank you, Jon, and good morning, everyone. Thank you for joining. As Renee mentioned, my comments today will focus on adjusted performance. Turning to Slide 8. Sales decreased 3%, with currency having a minimal impact on our second quarter results. In local currency, North American sales decreased 5%, while international sales increased 4%. North American sales were impacted by a challenging comparison to a strong Q2 last year. as well as targeted strategic investments to support growth. Gross margin in the second quarter was 43.8%. The overall performance versus prior year was primarily driven by the net benefit from the IPA tariff refund with underlying performance largely in line with the prior year. SG&A as a percent of sales was 19.6% and was impacted primarily by higher employee-related costs, including incentive compensation. Operating profit grew 17% to $482 million in the quarter, and our margin expanded to 24.2%. Operating profit was driven by the approximately $95 million net tariff refund benefit, pricing actions and cost savings initiatives. This was partially offset by lower volume and higher commodity, tariff and employee-related costs. Our EPS grew 26% to $1.64 per share in the quarter. Turning to Slide 9. Plumbing sales decreased 3% in the second quarter. Currency had a minimal impact on our results. The year-over-year performance was primarily driven by lower volume and the recognition of targeted strategic investments in North American plumbing, partially offset by higher international volume and pricing actions across the segment. In local currency, North American plumbing sales decreased 6% in the quarter. This was primarily driven by a challenging comparison to a strong second quarter last year and the targeted strategic investments. Looking at our North American plumbing performance in the first half of the year, sales increased low single digits, excluding the impact of the strategic investments. This performance which was driven by strong growth at our Delta Faucet and Watkins Wellness businesses was in line with our expectations, giving us confidence to deliver low single-digit growth for the year. In local currency, International plumbing sales increased 4% in the quarter. Hansgrohe grew in many of its European markets, including its key market of Germany. This growth was partially offset by continued softness in China. Segment operating profit in the second quarter increased 26% to $361 million and operating margin expanded to 27%. Operating profit was driven by the net tariff refund benefit pricing actions and cost savings initiatives. This was partially offset by lower volume and higher commodity, tariff and employee-related costs. Turning to Slide 10. Decorative Architectural sales decreased 4% in the second quarter. Our strong PRO paint performance continued with sales increasing mid-single digits in the quarter. DIY paint sales decreased high single digits in the second quarter, reflecting ongoing weakness in the DIY paint market and the unfavorable impact from the customer transition of our primer and applicator business. We do not expect this transition to have a meaningful impact on our results in the back half of the year. Overall, our paint sales remain largely in line with our expectations and we continue to anticipate full year PRO paint sales to increase mid-single digits, and DIY paint sales to decrease mid-single digits. Operating profit in the second quarter was $148 million operating margin was 22.6%. Operating profit was in line with the prior year, with cost savings initiatives and increased pricing, offset by lower volume and higher commodity costs. Turning to Slide 11. Our balance sheet remains strong with gross debt-to-EBITDA at 2.1x at quarter end. We finished the quarter with $1.5 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 19.8% of sales at quarter end. As expected, working capital balances in the first half of the year remained elevated due to the impact of tariffs. However, we continue to anticipate working capital as a percent of sales will be approximately 16.5% at the end of the year. Our strong cash performance enabled us to return $454 million to shareholders through dividends and share repurchases, including the repurchase of $390 million of stock in the second quarter, as we executed on our $300 million accelerated share repurchase program that we announced in May. With our ASR and the benefit from the tariff refunds, we now expect to deploy approximately $1 billion towards share repurchases or acquisitions in 2026, up from our previous expectation of at least $800 million. Now let's turn to Slide 12 and review our outlook for 2026. Our underlying performance in the first half of the year was strong and largely in line with our expectations. As a result, we are maintaining our full year outlook while incorporating the estimated $85 million full year net benefit from the IPA tariff refunds, essentially all in our Plumbing segment. For Masco overall, we continue to expect 2026 sales to be up low single digits and now expect our operating margin to expand to approximately 18%, up from our previous guidance of approximately 17%. Turning to our segments. In our Plumbing segment, we continue to expect 2026 full year sales to be up low single digits and now expect our operating margin to expand to approximately 20%, p from our previous guidance of 18%, driven by the net tariff refund benefit, pricing discipline, operational efficiencies and continued cost savings initiatives. In our Decorative Architectural segment, we continue to expect 2026 sales to be roughly flat with the prior year and our operating margin to be approximately 19%, with a continued focus on cost savings initiatives. Finally, as Jon mentioned earlier, we are increasing our 2026 EPS estimate to be in the range of $4.40 to $4.60 per share, up from our previous guidance of $4.10 to $4.30 per share. This continues to assume a $200 million average diluted share count for the year and a 24.5% effective tax rate. Additional financial assumptions for 2026 can be found on Slide 15 of our earnings deck. With that, I would like to open up the call for questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of John Lovallo from UBS. John Lovallo: The first one is just on the thought process behind, including the IEEPA tariff refund in the core numbers. And then also along those lines, why is the full year benefit of $85 million, $10 million less than the $95 million that was incorporated in the first quarter? Richard Westenberg: John, it's Rick. In terms of incorporating the IEEPA tariff refunds, we thought it was appropriate to include in terms of providing financial forecast for the full year and obviously provides explanation in terms of our guidance for the year. We did, obviously, as you saw throughout our prepared remarks, quantify the impact on a net basis for the quarter at $95 million and for the year at $85 million. So we created that visibility. In terms of the difference between the quarter impact and the calendar year impact is really an accounting convention. It's really related to employee-related incentive comp that is not able to be booked in the full amount in the quarter in Q2 gets amortized over the remaining part of the year. So that $10 million delta you'd expect to see in the second half of the year. John Lovallo: Okay. Understood. That's helpful. And then what drove the strength in the deck a margin of 22.6% in it seems to imply a deceleration in the back half? And what would be driving that? Jonathon Nudi: John, it's Jon Nudi. We feel overall good about our momentum on Behr, particularly on the PRO paint side of things and very much remain on track with our business up mid-single digits. DIY was more pressured, obviously, in the quarter. Part of that was the primary conversion at one of our key customers last year. I'd say our underlying performance was very much in line with what we expected. From a margin standpoint, we recognize that the market is challenging, and the Behr team has been taking actions to really reduce cost and really try to mitigate as much inflation as possible. So I would say the margin impact is really due to the efforts of the team to focus on driving cost out, while recognizing the market is likely to remain soft, particularly in the DIY side of the business moving forward. Operator: Your next question comes from the line of Sam Reid from Wells Fargo. Richard Reid: Wanted to drill down a little bit on the plumbing top line in greater detail. You talked to strategic investments in plumbing as being a key driver behind the year-over-year change in revenues. Could you just elaborate on what those strategic investments were? And did that involve stepping up promos in any way? Jonathon Nudi: Hey Sam, it's Jon. I guess maybe taking a step back and ladder back to our strategy that we one or an Investor Day in May, really, we're trying to accelerate growth through a consumer-driven strategy. And 3 key focus areas: one, really industry-leading brands, second expanded commercial capabilities and finally, enhancing our operational excellence. We had the opportunity in accord to make some investments to really jump start our strategy and really set us up for accelerated growth as we move to the future. And for competitive reasons, we're not going to detail each of those investments, but rest assured that they align squarely to those 3 areas and our strategy that I talked about. We feel like there's going to be a strong ROI. And particularly when it comes to promo, I can tell you that's not necessarily the focus. And certainly, we're trying to invest for the longer term to make sure that we can deliver our strategy. Richard Reid: That's helpful. Maybe just following up here. You obviously sell a lot of plumbing product into the home centers and the home centers are very notorious for being quite price sensitive with their customers. Have you -- how is the dialogue gone with the home center channel? And are they looking for any reinvestment back in price as you receive tariff refunds? Jonathon Nudi: Yes, I would say that channel like all of our channels, obviously remain competitive. And I think that the conversation is really about how do we drive the category. And our plumbing business, particularly in North America, has been strong for quite some time, really growing faster than our competition. and that's what we continue to focus on. So I would say our conversation is more about the category, how do we grow, and how do we innovate, how we continue to build our brands and really leverage our portfolio. We talked at the Investor Day about our luxury portfolio and how strong momentum has been, and we continue to make sure that we grow really across all of our different parts of the business. So specifically, again, we're focused on the long term. Our partners are as well, and that's where most of our conversations have been. Operator: Your next question comes from the line of Matthew Bouley from Barclays. Matthew Bouley: Just another one on the strategic investments in Plumbing. I guess the question is this kind of onetime? Or should we assume that this is kind of all gone by Q3? Is there sort of a customer transition situation here like we're seeing in decorative architectural right now? And then you mentioned the improvement in ROI over time, but just how should we think about what the eventual benefits of these investments might look like and when that would arrive. Jonathon Nudi: Matt, what I would say is we try to contain the impact of the EPA tariff refunds in 1 quarter. So I would say they were onetime in nature. And again, for competitive reasons, where I can give a lot of detail, but the ROI is strong for the longer term. And I think it will play out in future quarters. And again, importantly, it very much ladders back to our strategy of accelerating top line growth. So we feel good about these investments. I wouldn't expect just hear about these ongoing really isolated to Q2 of 2026. Matthew Bouley: Okay. Got it. And then secondly, just wanted to kind of drill down into the raw material environment and looks like some of the metals, copper, especially may still be drifting higher relative to your prior quarter. So just curious what you're assuming from a raw material perspective going forward and sort of timing of all that. Richard Westenberg: Sure, Matt. It's Rick. So what we've seen in terms of the commodity inflationary landscape is for the first half of the year, a low single-digit inflationary dynamic, both in terms of our plumbing and our decorative segment. But as you articulated, we've seen upward pressure, both from a copper and metals input standpoint, as well as from an oil as we've always seen across the sector. And that's putting pressure in the second half of the year. Our commodity inflation expectations in H2 are in for the calendar year overall. Our mid-single digits, both for the Plumbing and Decorative Architectural segment. It's something that we're monitoring very closely that's factored into our guidance for the year. But it's something that we are managing. And as we've articulated in the past, and have a track record of doing its work to offset and mitigate those headwinds, and that's what we've contemplated in our expectations for the rest of this year. Operator: Your next question comes from the line of Stephen Kim from Evercore. Stephen Kim: On the strategic investments. I guess something I was curious about is, are you implying that you would not have investment had the IEEPA refund occured? Or would you have spread out over a longer time -- if you can just give us some color on [indiscernible] Richard Westenberg: Stephen, it's difficult. There's some interference. Would you mind repeating your question? Stephen Kim: I'm sorry. Yes, I was asking whether the strategic investments you made, would you have made them had you not received the refund? Richard Westenberg: Yes, Stephen, it's Rick. I think if I understood your question correctly, effectively, what we've done is, overall, we're investing in growth. You see that as a continued theme in terms of investing in our brands, our products or services and so that's a continued effort from our standpoint to double down on our growth narrative. I think as it pertains to the IEEPA tariff refund, we send opportunity to be selective in terms of redeploying some of that to enhance our investments in growth. So it is opportunistic and is building upon our other growth initiatives overall. Stephen Kim: Okay. Got you. And then I guess second question relates to Behr, sort of following up on your comments that you had -- you drove some costs out I guess I was curious if you could elaborate a little bit more on that. And again, if this is something that you see as sort of a onetime in nature sort of event? Or was the timing accelerated this quarter for a particular reason, if you could just give us some color on that. Jonathon Nudi: Yes, Stephen, it's Jon. So as we exited 2025, we were clear that the core remain challenged, particularly in DIY. So we announced some restructuring actions coming out of 2025, which we're playing out in market today. And we're going to continue to stay aggressive, obviously, in driving our top line try to get back to the growth that we expect to see. But at the same time, making sure we have the appropriate cost structure with where the market is today. So this isn't something new. It's something that, again, we have talked about in the past. You're starting to see the benefits of those restructuring actions start to hit the P&L. Operator: Your next question comes from the line of Trevor Allinson from Wolfe Research. Trevor Allinson: A follow-up question on your inflation expectations. I think a peer of your words yesterday was talking about pain inflation maybe exiting the year closer to high single digits. So across both of your businesses, maybe can you talk about where you're expecting input cost inflation to be kind of exiting 2026? Or if you think the year-over-year inflation impact would be pretty similar between 3Q and 4Q? Richard Westenberg: Sure, Trevor. It's Rick. What I would say is it's obviously a volatile situation out there. We monitor it closely. But as you've seen, as we've all seen oil prices jump around just given the conflict in the Middle East. So it's a tough one to call per se, but I would say our expectations for the balance of the year as we articulated a mid-single-digit inflation, and that's a reasonable run rate as we think about as we exit the year. But again, that's something that we're tracking very closely, and we'll respond accordingly. Trevor Allinson: Okay. Makes sense. And then second question on debt Arc margin guidance. It seems to imply that margins could be down more than 100 basis points in the second half of the year, presuming there's some volume headwinds there. DIY is still pretty weak. But is it -- is there also a price cost headwind that is more timing related with your largest customer, just given the nature of the relationship you have there? And if that's the case, then would you expect some price cost recovery as you get in early next year? Richard Westenberg: Trevor, it's Rick. In terms of the back half of the year for Decartes a couple of factors at play. One is employee-related costs in terms of incentive compensation, which we've referenced a little bit earlier, but also to -- you've been is a bit of timing in terms of our investments for growth. I mean we talked about strategic investments in the plumbing space. But as I referenced earlier, we're making investments across the board. And there's just some timing elements to that in the back half of 2026. And then finally, the commodity headwinds that we referenced before. We're not going to talk about pricing with our customers. It's something that we track. And as we've articulated before, we look for -- we have an agreement with our biggest channel partner to be price cost neutral. And so it's something that we aim to do. But as we've articulated a couple of times and I know a dialogue more broadly in terms of the commodity inflation, it's a factor that we're seeing in the second half of the year. Operator: Your next question comes from the line of Susan Maklari from Goldman Sachs. Susan Maklari: Good morning, everyone. My first question is maybe referring a bit more to the wellness part of the business, which is something that you talked a lot about at your Investor Day. Can you give us an update on how Watkins performed in the quarter, and how that aligns with the overall strategy that you talked to? And then maybe within that, just an update on the health of the consumer and especially at the higher end, what you're seeing there? Jonathon Nudi: Sue, it's Jon. We continue to remain excited about our wellness business, as we talked about at the Investor Day. It's really driven off a secular long-term trend with a lot of tailwinds. And we continue to see good growth. We saw a good quarter overall and wellness with spa going up nicely and saunas continued to grow at a very rapid rate. And the reality is, it is a case shipped economy, and I think the upper income consumer continues to hang in there pretty strongly. So we've seen good momentum on that business. We expect to see good momentum as we move throughout the year as well. Susan Maklari: Okay. All right. That's helpful. And then one of the initiatives that you've also talked about is improving your working capital this year and focusing on some of the cash generation of the business. I guess just given all the puts and takes that we're seeing coming through, talk about the ability to generate that cash? Any thoughts on working capital and what that implies in terms of your priorities for capital allocation? Richard Westenberg: Sure, Sue. It's Rick. So in terms of our working capital expectations, we articulate, at least in my opening comments, where we're trending year-to-date, which is a bit higher just given the tariff impact on working capital and what I mean by that is with the higher tariff and commodity costs for that matter, you have higher input costs that flow into inventory and receivables. And then in terms of payment terms, the tariff payment terms are shorter than our regular payment terms. And so that has implication on our working capital. That said, we continue to be very disciplined on working capital to make sure we've got enough inventory and safety stock, but otherwise really focused on being lean and focused on managing that for cash flow purposes. And as I articulated earlier, our expectations for the ending working capital balance is at about 16.5% of sales, which is consistent with historical levels. And overall, taking a step back, our cash flows were strong. I mean it's one of strong attributes of our business model as we convert much, if not all, of our earnings into cash. And that really enables us to reinvest in the business. make sure we have a very strong balance sheet and returning cash to shareholders through dividends and share buybacks. And as you heard earlier, we've increased our expectations of cash available for share buybacks or M&A to $1 billion for the year. And that's a reflection not only of the ASR and the funding through a term loan, but also the cash flows from the business. And so we feel really strong both the cash health and the cash performance of the business. Operator: Our next question comes from the line of Phil Ng from Jefferies. Margaret Grady: It's Maggie on for Phil. I just wanted to go into the pricing impact in the quarter. Maybe if you could break out any color by segment? And then just more overall how you would characterize the current pricing environment? Are you seeing any change in price elasticity or pricing fatigue following several years of kind of outsized pricing? Jonathon Nudi: Yes. Maggie, it's Jon. I would tell you that we saw on an underlying basis, the pricing consistent with what we would have expected. So taking out the onetime impact of the tariff refund to that benefit and some of the investments we made pricing for plumbing, it was up mid-single digits and pricing for pain was up low single digits. That's very consistent with what we would have expected. We continue to work hard to limit the amount of price we have to take. It starts with and really optimizing our footprint. And the team has moved quickly over the past year to really do that after tariffs were put into place a year ago, April. In addition to that, we are working on restructuring and taking cost out of our own company so that we can be as efficient as possible. And then finally, where necessary, we will price and really pleased with how the team has approached pricing. It's taken a strategic [indiscernible] to it. We're leveraging some of our strategic revenue management tools. and overall feel like we priced it in an appropriate way. We continue to see good momentum in our market, whether it be on plumbing or other businesses as well, as where we believe that we continue to gain share across almost every channel. So feel good about our initiatives and the way that we're pricing and we'll continue to assess the market and commodities as we go through the back half of the year. Margaret Grady: Okay. Great. And then obviously, a dynamic cost environment. But any update on how potential changes in Section 232 or the 301 tariffs are impacting you? And then does the back half guide assume any incremental pricing coming through? Or is it all already in place? Richard Westenberg: Sure, Maggie. It's Rick. You articulate is a dynamic environment out there in many respects, but certainly with regards to the tariff environment, and what I would say is our guidance and our expectations for the rest of the year do contemplate the tariffs that are in place as we stand today. So inclusive of the 232 tariffs on copper, steel and aluminum, as well as the Section 301 tariffs that were just implemented a few days ago, that amount to about 10% to 12.5% that effectively replaced the Section 122 tariffs that expired on July 24. So that's all contemplated in our guidance. Obviously, it's a dynamic environment, there is discussion in investigation for further Section 301 tariffs. While I would say those aren't contemplated in our guide. As we get closer to the end of the year and the timing of when tariffs flow into our P&L. And just as a reminder, effectively, it's about a 1 quarter lag between when tariffs are announced or implemented and when they ultimately flow through our inventory into our P&L. And so as we get closer to the end of the year, any changes in tariffs will likely to have a significant impact for this year. it'd be something that we'd be looking into -- looking at as low as we roll into next year, et cetera. But what I would say is we're pretty confident that the current tariff environment is fully contemplated in our guidance for the year. Operator: Your next question comes from the line of Keith Hughes from Truist. Keith Hughes: Back to the strategic investments. Is that in plumbing? Is that going to one [indiscernible] end-user market, big box versus wholesale versus builder, how is that playing out? Jonathon Nudi: Yes. So Keith, as I mentioned before, we're not going to get into a whole lot of details just for competitive reasons. What I would say is it's very much focused on our entire business. It's not certainly one channel. And I would tell you, it's likely longer term in nature as well. So again, really focused took the opportunity to make some investments and down payment on really getting after our strategy of accelerating growth. And again, as they play out over the quarters ahead, we're going to be pleased with the results and the ROI. But to answer your question is across all of our customers and businesses and not focused on one particular area. Operator: Your next question comes from the line of Mike Dahl from RBC Capital Markets. Michael Dahl: Can you help us understand, you have some -- a lot of nets against the tariff refunds. What were your gross refunds just so we can contextualize what some of those offsets represented? Richard Westenberg: Mike, it's Rick. So we're not going to break down the composition of the net tariff refund impact. We want to be transparent and provide visibility in terms of the net impact. We believe that's most meaningful in terms of understanding the impacts to our financial performance. And so at the end of the day, we are disclosing the fact that on a net basis, we had a favorable impact of $95 million in the quarter. What I would say is, Jon alluded to this before, as we endeavor to capture as much of the impact in Q2 as possible. And that includes all of the refunds. So we have received much of the refunds in cash, but that which we haven't we booked as a receivable. So that full benefit in as much as possible the full impact in terms of our investments and employee-related costs are captured here in Q2 with a bit of a spillover for an earlier question of incentive comp, that translates into an $85 million impact for the year. But at this point, Mike, that's where we're planning to disclose in terms of the implications on our financials. Michael Dahl: Got it. Okay. Understood. And sorry to harp on this, but the investments, I think Jon mentioned in response to an earlier question that it's not promote -- if not leaning on promos, but at the same time, some of the other commentary was talking about underlying pricing ex some of these investments? And then also you don't expect to be talking about the impact going forward, it sounds like there is something maybe pricing related to this. And so then the question would be, why wouldn't that be an ongoing impact to the balance of the year? Is it because the offset on volume comes through fairly immediately or something else? I mean it's still a little in our view, like a little too vague in terms of the description and impacts understanding that there are some sensitivities around competitive dynamics? Richard Westenberg: Yes, Mike, it's Rick. I understand the question. as it pertains, it's really a function of our intent to capture as much of the impact in Q2 as possible as previously articulated, as well as kind of the accounting around it. Much of our -- our investments will impact our various parts of the P&L. Effectively, many of our investments in our programs run through net sales. So that's where we've captured the impact in the quarter. And as John articulated, we captured what is our best estimate of the investments we plan to make. They're still being deployed. And so from a time perspective, we'll see that impact future quarters, hopefully, to the benefit in terms of incremental sales. But our expectation and our estimate is that we would capture it here within the quarter in terms of the accounting P&L side of things. And we'll obviously track it going forward, but the intent is to capture our best estimate here in the quarter. Operator: Your next question comes from the line of Rafe Jadrosich from Bank of America. Rafe Jadrosich: On the strategic investments, were they contemplated in the previous guidance? And are they associated with any specific opportunities to gain shelf space or share? Jonathon Nudi: Yes, I would say they weren't contemplated the previous guidance. And again, we were opportunistic given the tariff refund situation in Q2 and took the opportunity to make a down payment on our strategy moving forward to accelerate growth. So again, opportunistic and again, not really focused on a particular channel or a customer. There will be broad-based investments that again will help accelerate growth as we move forward. Rafe Jadrosich: Okay. That's helpful. And then just following up on that, if the investments were not in the guidance at the beginning of the year, what's sort of the offset that's letting you hold the full year plumbing revenue guide? Is it that you'll start to get the better volume by the end of the year? Obviously, it's like incremental to the -- an incremental price headwind in the second quarter, what's the offset that's letting you hold the full year guide? Richard Westenberg: Yes. Rafe, maybe I'll tackle it from a couple of ways here. In terms of the impact, and I'll get to the revenue side in a moment. But from a P&L standpoint, as we've articulated, we've captured the net impact of the $95 million for the full net tariff refund net impact in the quarter. And so that is on an overall operating profit and P&L standpoint, incremental to our guidance on a net basis. From a revenue standpoint, we were still very confident in terms of delivering low single-digit top line growth for plumbing. I mean that is inclusive of these investments that we referred to. So we believe that we've got enough momentum in terms of the underlying performance, which has been strong in the first half of the year, our Plumbing business is up low single digits even net of the strategic investments. And so our expectation is that we'll be able to deliver low single-digit performance in the back half of the year and for the year overall. Jonathon Nudi: Yes. I would just reinforce, while there's certainly some noise in the quarter given the tariff refunds. Our underlying plumbing business remains quite strong. We have seen no shift downwards in terms of the trajectory and impact of anything very confident as we move throughout the back half of the year. So I just want to make sure that's not lost and some of the noise of this tariff refund in the quarter. Operator: And your final question comes from the line of David McGregor from Longbow Research. Unknown Analyst: This is Joe Nolan on for David. First, I just wanted to ask about international sales with those up 4% employment. Could you just talk about what you're seeing in some of your international markets? Jonathon Nudi: Yes, absolutely. International business is primarily Hansgrohe and Axor and we're seeing good momentum across that business, particularly in Europe and our key home market of Germany was quite strong. offset by softness in China. We're bullish about our global business, and we mentioned in our prepared remarks, the divestiture of Bristan, which is really nice U.K. brand, but we're very committed to making sure that we focus on our core, which is really has growing Axor. And that's going to be our focus moving forward. As I mentioned, first, we good buyer for that business that's going to be very focused to Sweco, SMBs want to affect the Bristan team for all they've done over the many years at Masco. I know that they're set up for success moving forward. But we feel very good about applying business globally and had good momentum in the quarter. Unknown Analyst: Got it. Okay. And then there's been a few questions and discussion on pricing and costs. Just wondering, is there enough pricing put through right now to maintain price cost neutrality into the second half of the year? Richard Westenberg: Yes. Maybe just to clarify the point of the question. In terms of our segment, price on our plumbing side of the -- our Plumbing segment, we do expect price cost positive for the year and for our decorative architectural price cost neutral for the year. And that's consistent with our prior guidance. Operator: And I'll now turn the call back over to Renee Benedict for some final closing remarks. Renee Benedict: We'd like to thank all of you for joining us on the call this morning and for your interest in Masco. That concludes today's call. Have a great day. Operator: This concludes today's conference call. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Masco. The Motley Fool has a disclosure policy. Masco (MAS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Masco Corporation MAS delivered a mixed second quarter of 2026. Earnings and margins improved sharply, but sales moved lower.The quarter showed the benefit of pricing, cost savings, tariff refunds and share repurchases. It also showed that demand remains uneven, especially in North America and do-it-yourself paint. Adjusted earnings per share rose 26% year over year to $1.64. That topped the Zacks Consensus Estimate by 26.2%. Masco Corporation price-eps-surprise | Masco Corporation Quote Sales told a different story. Net sales declined 2.9% to $1.99 billion and missed the consensus mark by 4.6%, making the quarter difficult to judge on earnings alone. Adjusted operating profit increased 17%, while adjusted operating margin expanded 410 basis points to 24.2%. Adjusted gross margin also improved to 43.8%.The margin gain needs context. Masco recognized a roughly $95 million net benefit from International Emergency Economic Powers Act tariff refunds, so investors should not treat the full improvement as structural. Pricing and cost initiatives helped, but the refund was a major driver. Masco’s portfolio remains anchored by Delta, Hansgrohe, Behr and other established brands across plumbing and architectural coatings. That brand base matters because much of the company’s demand is tied to repair and remodel activity rather than new construction.International plumbing sales rose 4% in local currency, while professional paint sales increased in the mid-single digits. New Delta, Brizo and Newport Brass collections, e-commerce gains and customer-service recognition support share retention during choppy demand.The Home Depot HD remains a relevant reference point for investors tracking repair-and-remodel spending. Sherwin-Williams SHW also offers a useful comparison for paint and coatings demand, particularly as Masco balances weakness in do-it-yourself paint with growth in the professional channel. North American sales fell 5% in local currency during the quarter. Lower volume partly offset the benefit from pricing and cost savings.Decorative Architectural Products also faced pressure. Do-it-yourself paint sales fell in the high-single-digit range, hurt by weak industry conditions and a customer transition in primers and applicators. Masco is still dealing with elevated commodity costs, employee-related inflation and tariff costs outside the refund benefit. Continued reliance on pricing could become harder if consumer demand stays soft. The bottom line is that Masco’s second-quarter earnings quality was mixed. Profitability improved, but the sales decline, volume pressure and temporary tariff-refund benefit limit how much investors should extrapolate from the margin expansion.MAS currently carries a Zacks Rank #3 (Hold). That rank points to a balanced near-term view rather than a clearly bullish or bearish signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The stock’s Style Scores are stronger. Masco has a VGM Score of A, including a Momentum Score of A and Value Score and Growth Score of B each. These scores indicate favorable style characteristics, but the Hold rank keeps the near-term stance measured as demand-related uncertainty persists. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masco Corporation (MAS) : Free Stock Analysis Report The Sherwin-Williams Company (SHW) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Masco Corporation? Here are five stocks we like better. Masco raised its full-year adjusted EPS outlook to $4.40–$4.60 from $4.10–$4.30, helped by an estimated $85 million net benefit from tariff refunds, while maintaining its low-single-digit sales growth forecast. Second-quarter sales fell 3%, but operating profit rose 17% to $482 million and adjusted EPS increased 26% to $1.64. Results benefited from pricing, cost savings and tariff refunds, partly offset by strategic investments and higher costs. Business trends diverged by market: pro paint sales grew mid-single digits, while DIY paint declined high single digits and North American plumbing sales fell 6% due partly to strategic investments. Masco plans to deploy approximately $1 billion on share repurchases or acquisitions in 2026. 3 Under-The-Radar Stocks to Buy Now Masco (NYSE:MAS) reported second-quarter results that included lower sales but higher operating profit and earnings per share, aided by tariff refunds, pricing actions and cost savings initiatives. The company raised its full-year earnings outlook while maintaining its sales forecast amid continued uncertainty in housing-related markets, commodity costs and trade policy. Second-quarter net sales declined 3% from a year earlier, though President and CEO Jon Nudi said sales would have been roughly flat excluding the effect of targeted strategic investments recognized during the period. Operating profit increased 17% to $482 million, while operating margin expanded to 24.2%. Adjusted earnings per share rose 26% to $1.64. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Masco recorded an approximately $95 million net benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act, or IEEPA. Nudi said the benefit was partly offset by strategic investments intended to support growth and employee-related incentive compensation costs. Sales in Masco’s Plumbing Products segment declined 3% in local currency during the quarter. North American plumbing sales fell 6% in local currency, reflecting a difficult comparison with the prior-year quarter and the company’s strategic investments. Nudi said those investments accounted for more than half of the year-over-year impact on North American sales. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Masco did not detail the investments for competitive reasons, but Nudi said they were broad-based rather than directed toward one customer or channel. He said the company viewed them as a “down payment” on its strategy to accelerate growth through stronger brands, expanded commercial capabilities and operational improvements. The investments were not primarily promotional in nature, according to Nudi, and were concentrated in the second quarter. Excluding the investments, North American plumbing sales increased low single digits in the first half. CFO Richard Westenberg said growth at Delta Faucet and Watkins Wellness supported the performance. The company continues to expect full-year Plumbing segment sales to rise low single digits. → Innovative ETF Strategies That Are Paying Off This Summer International plumbing sales rose 4% in local currency, driven by growth across several European markets, including Germany, partially offset by continued weakness in China. Nudi said Masco remains focused internationally on its Hansgrohe and Axor brands after divesting its U.K.-based Bristan Group business to FM Mattsson Group. Plumbing operating profit rose 26% to $361 million, and segment operating margin expanded to 27%. The improvement reflected the net tariff refund benefit, pricing actions and cost savings, partially offset by lower volume and higher commodity, tariff and employee-related costs. Sales in Masco’s Decorative Architectural segment declined 4%. Pro paint sales increased mid-single digits, while DIY paint sales declined high single digits amid continued weakness in the DIY paint market. The segment also faced an unfavorable comparison related to a customer transition in its primer and applicator business. Masco said it does not expect the primer and applicator transition to have a meaningful impact in the second half. It maintained its expectation for full-year pro paint sales to increase mid-single digits and DIY paint sales to decrease mid-single digits. Decorative Architectural operating profit was unchanged from the prior year at $148 million, with operating margin at 22.6%. Cost savings and price increases offset lower volume and higher commodity costs. During the question-and-answer session, Westenberg said second-half Decorative Architectural margins will also reflect employee-related incentive compensation costs, the timing of growth investments and commodity inflation. Masco expects to remain price-cost neutral in the segment for the full year, while it expects Plumbing price-cost to be positive. Masco said its full-year guidance includes tariffs currently in effect, including Section 232 tariffs on copper, steel and aluminum, as well as recently implemented Section 301 tariffs. Westenberg said the company generally sees about a one-quarter lag between tariff implementation and the impact on its profit and loss statement. The company expects mid-single-digit commodity inflation in both the Plumbing and Decorative Architectural segments during the second half of 2026. Westenberg cited upward pressure in metals, including copper, as well as oil-related inputs. With the estimated $85 million full-year net benefit from IEEPA tariff refunds, Masco raised its adjusted 2026 earnings outlook to $4.40 to $4.60 per share from its prior range of $4.10 to $4.30. It maintained its expectation for companywide sales to rise low single digits. Masco now expects companywide operating margin of about 18%, compared with prior guidance of about 17%. Plumbing operating margin is expected to reach about 20%, up from prior guidance of 18%. Decorative Architectural sales are expected to be roughly flat for the year, with operating margin of about 19%. Masco ended the quarter with $1.5 billion of liquidity and gross debt to EBITDA of 2.1 times. Working capital was 19.8% of sales at quarter-end, elevated by tariffs and higher input costs. The company still expects working capital to finish the year at approximately 16.5% of sales. The company returned $454 million to shareholders in the quarter through dividends and share repurchases, including $390 million of stock repurchases. Masco now expects to deploy approximately $1 billion toward share repurchases or acquisitions in 2026, compared with its prior expectation of at least $800 million. Nudi said the company continues to see long-term support for repair and remodeling activity from home equity levels, an aging housing stock and pent-up demand for improvement projects. He said Masco is investing in its brands and operational performance to position the business for growth as market conditions improve. Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Founded in 1929 and headquartered in Livonia, Michigan, the company has evolved from a small door‐bell manufacturer into a diversified enterprise serving both residential and commercial markets. Over its history, Masco has grown through a combination of organic innovation and strategic acquisitions, building a portfolio of well-recognized brands. The company's product offerings are organized into two primary segments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Masco Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Sales: Decreased 3% in the second quarter. Operating Profit: Increased 17% to $482 million. Operating Profit Margin: Expanded to 24.2%. Earnings Per Share (EPS): Grew 26% to $1.64 per share. Plumbing Products Sales: Decreased 3% in local currency. International Plumbing Sales: Increased 4% in local currency. Plumbing Products Operating Profit: Grew 26% to $361 million. Plumbing Products Operating Margin: Expanded to 27%. Decorative Architectural Sales: Decreased 4%. Decorative Architectural Operating Profit: $148 million, in line with the prior year. Decorative Architectural Operating Margin: 22.6%. Cash Returned to Shareholders: $454 million through dividends and share repurchases. Net Tariff Refund Benefit: Approximately $95 million during the quarter. 2026 EPS Guidance: Raised to $4.40 to $4.60 per share. 2026 Sales Outlook: Expected to be up low single digits. 2026 Operating Margin Outlook: Expected to expand to approximately 18%. Warning! GuruFocus has detected 5 Warning Sign with MAS. Is MAS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Masco Corp (NYSE:MAS) reported a 17% increase in operating profit to $482 million, with an operating profit margin of 24.2%. Earnings per share grew 26% during the quarter to $1.64 per share. The company received a net tariff refund benefit of approximately $95 million during the quarter. International Plumbing sales increased 4% in local currency, driven by growth in European markets, particularly Germany. Masco Corp (NYSE:MAS) raised its 2026 earnings per share guidance to $4.40 to $4.60, up from the prior range of $4.10 to $4.30. Net sales in the second quarter decreased 3%, impacted by a challenging comparison to the prior year and strategic investments. North American Plumbing sales decreased 6% in local currency, driven by strategic investments and a challenging comparison to Q2 2025. DIY paint sales decreased high single digits due to ongoing challenging industry dynamics. The company faced higher employee-related costs, including incentive compensation, impacting SG&A as a percent of sales. Commodity inflation expectations for the second half of the year are mid-single digits, posing a cost pressure. Q: Can you explain the inclusion of the IEEPA tariff refund in the core numbers and why the full-year benefit is $85 million, $10 million less than the $95 million recognized in the first quarter? A: Richard Westenberg, CFO, explained that the inclusion of the IEEPA tariff refunds was to provide a comprehensive financial forecast for the year. The $10 million difference is due to accounting conventions related to employee-related incentive compensation, which is amortized over the year. Q: What were the strategic investments in plumbing that impacted year-over-year revenue changes, and did they involve increased promotions? A: Jonathon Nudi, CEO, stated that the strategic investments were aligned with their consumer-driven strategy focusing on industry-leading brands, expanded commercial capabilities, and operational excellence. These investments were not focused on promotions but aimed at long-term growth. Q: Are the strategic investments in plumbing a one-time occurrence, or will they continue into Q3? A: Jonathon Nudi, CEO, indicated that the strategic investments were primarily contained within Q2 and are not expected to be ongoing. They are intended to support long-term growth and align with the company's strategy. Q: How is the raw material environment affecting your business, particularly with metals like copper? A: Richard Westenberg, CFO, noted that the first half of the year saw low single-digit inflation, but there is upward pressure on metals and oil prices. The company expects mid-single-digit inflation for the rest of the year and is working to mitigate these headwinds. Q: How did Watkins Wellness perform, and what is the outlook for the wellness segment? A: Jonathon Nudi, CEO, reported strong performance in the wellness segment, with growth in spas and saunas. The upper-income consumer remains strong, and the company expects continued momentum in this segment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Home-building design and manufacturing company Masco Corporation (NYSE:MAS) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 2.9% year on year to $1.99 billion. Its non-GAAP profit of $1.64 per share was 25.1% above analysts’ consensus estimates. Is now the time to buy Masco? Find out in our full research report. Revenue: $1.99 billion vs analyst estimates of $2.08 billion (2.9% year-on-year decline, 4.2% miss) Adjusted EPS: $1.64 vs analyst estimates of $1.31 (25.1% beat) Adjusted EBITDA: $520 million vs analyst estimates of $441.4 million (26.1% margin, 17.8% beat) Management raised its full-year Adjusted EPS guidance to $4.50 at the midpoint, a 7.1% increase Operating Margin: 23.6%, up from 20.1% in the same quarter last year Free Cash Flow Margin: 22.7%, up from 13.2% in the same quarter last year Market Capitalization: $16.19 billion “We have executed well in the first half of the year,” said Masco’s President and CEO, Jon Nudi. Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Masco struggled to consistently increase demand as its $7.62 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and suggests it’s a low quality business. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Masco’s annualized revenue declines of 1.6% over the last two years align with its five-year trend, suggesting its demand has consistently shrunk. This quarter, Masco missed Wall Street’s estimates and reported a rather uninspiring 2.9% year-on-year revenue decline, generating $1.99 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 3.4% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Masco has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.5%. This result isn’t too surprising as its gross margin gives it a favorable starting point. Looking at the trend in its profitability, Masco’s operating margin rose by 2 percentage points over the last five years, showing its efficiency has improved. In Q2, Masco generated an operating margin profit margin of 23.6%, up 3.5 percentage points year on year. Since its gross margin expanded more than its operating margin, we can infer that leverage on its cost of sales was the primary driver behind the recently higher efficiency. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Masco’s EPS grew at 3.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its flat revenue and tells us management responded to softer demand by adapting its cost structure. We can take a deeper look into Masco’s earnings to better understand the drivers of its performance. As we mentioned earlier, Masco’s operating margin expanded by 2 percentage points over the last five years. On top of that, its share count shrank by 21%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Masco, its two-year annual EPS growth of 6.2% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point. In Q2, Masco reported adjusted EPS of $1.64, up from $1.30 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Masco’s full-year EPS to stay about the same, moving from $4.47 to $4.50. It was good to see Masco beat analysts’ EPS expectations this quarter, with full-year EPS guidance raised. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue missed. Overall, we think this was a mixed quarter. The stock remained flat at $81 immediately following the results. Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

Masco Corporation MAS reported mixed second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate and increasing year over year. However, net sales missed the consensus mark and declined from the prior-year quarter.Earnings benefited from tariff refunds, pricing actions, cost savings and share repurchases, while lower North American volumes weighed on revenues. The company also raised its 2026 adjusted earnings outlook, primarily reflecting an anticipated benefit from tariff refunds and growing year over year.MAS stock declined 6.7% during today’s pre-trading hours following the earnings release. Second-quarter 2026 earnings of $1.64 per share increased 26.2% from $1.30 a year ago. The figure topped the Zacks Consensus Estimate of $1.30 by 26.2%. Masco Corporation price-consensus-eps-surprise-chart | Masco Corporation Quote Net sales declined 2.9% year over year to $1.99 billion and missed the consensus mark of $2.09 billion by 4.6%. Currency translation had a minimal impact on quarterly revenues. In local currency, North American sales fell 5%, while international sales increased 4%. Reported gross profit increased 12.4% year over year to $868 million. Gross margin expanded 600 basis points to 43.6%.On an adjusted basis, gross profit rose to $872 million from $774 million. Adjusted gross margin improved 610 basis points to 43.8%, supported by lower tariff costs, including refunds, cost-saving initiatives and higher selling prices. These benefits were partly offset by lower sales volume, increased commodity costs, unfavorable product mix and other expenses.Adjusted operating profit increased 16.7% to $482 million. Adjusted operating margin expanded 410 basis points to 24.2%. The quarter included an approximately $95 million net benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act.Selling, general and administrative expenses increased 10% to $397 million. Higher employee-related expenses and increased legal and professional fees contributed to the rise. Plumbing Products segment sales decreased 2.6% year over year to $1.337 billion (up from our model’s projection of $1.22 billion). Currency had a minimal impact on the segment’s results.Adjusted operating profit increased to $361 million from $286 million. The adjusted operating margin expanded 620 basis points to 27%. The improvement reflected the tariff refund benefit, pricing and cost savings, partly offset by lower volume and higher tariff, commodity and employee-related costs. Decorative Architectural Products segment sales decreased 3.5% year over year to $655 million (down from our model’s projection of $609.3 million). Professional paint sales increased in the mid-single digits, but do-it-yourself paint sales declined in the high-single digits.The DIY decline was affected by the customer transition of Masco’s primer and applicator business. Lower sales volume also pressured the segment’s overall top line.Adjusted operating profit edged up to $148 million from $147 million. Adjusted operating margin increased 100 basis points to 22.6%, as cost-saving initiatives and higher prices offset lower volume and increased commodity costs. Masco returned $454 million to its shareholders through dividends and share repurchases during the quarter. In the first six months of 2026, the company spent $592 million on common-stock repurchases and paid $129 million in cash dividends.Cash and cash investments totaled $548 million at quarter-end. Total liquidity was $1.548 billion, including $1 billion of available revolving credit. Gross debt to EBITDA was 2.1X, while working capital represented 19.8% of trailing sales.Net cash from operating activities increased to $417 million in the first half from $148 million a year earlier. Capital expenditures rose to $77 million from $68 million. Masco raised its adjusted earnings forecast for 2026 to $4.40-$4.60 per share from $4.10-$4.30. The revision reflects an anticipated full-year net benefit of approximately $85 million from tariff refunds, while management indicated that underlying business performance remained largely aligned with its previous outlook.The company expects total sales to increase in the low-single digits. Plumbing Products sales are projected to rise in the low-single digits, while Decorative Architectural Products revenues are expected to remain in line with 2025. Masco forecasts adjusted operating margins of about 20% for Plumbing Products, 19% for Decorative Architectural Products and 18% companywide. Masco currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Comfort Systems USA, Inc. FIX delivered impressive second-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate and increasing sharply year over year.Comfort Systems’ quarterly performance reflected continued strength across its end markets, robust execution by the operating teams and sustained demand that drove record backlog growth, reinforcing its confidence in the business momentum. Backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion on March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago.United Rentals, Inc. URI reported solid second-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year.Record rental revenues, higher fleet productivity and robust specialty demand supported United Rentals’ results. Fleet productivity improved 3.4% year over year. Rental revenues increased 12.7% year over year to a quarterly record of $3.85 billion. Management raised its 2026 revenue outlook to $17.5-$17.8 billion from $16.9-$17.4 billion. The adjusted EBITDA forecast increased to $7.98-$8.13 billion from $7.63-$7.88 billion.PulteGroup, Inc. PHM reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth. The number of homes closed declined 8.4% year over year to 6,997 units. Net new orders increased 6.4% year over year to 7,536 homes. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Masco Corporation (MAS) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Highlights Net sales decreased 3 percent to $1,992 million Operating profit margin was 23.6 percent; adjusted operating profit 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., July 29, 2026--(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: Compared to the second quarter 2025, results for key financial measures, as adjusted for certain items (see Exhibit A) and applying a normalized tax rate of 24.5 percent, were as follows: 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 first 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 reflect a challenging comparison to the prior year as well as targeted strategic investments to support growth. In the quarter we also recognized a net benefit of approximately $95 million from IEEPA tariff refunds, which helped to drive adjusted operating profit growth of 17% and adjusted earnings per share growth of 26%. We also returned $454 million to shareholders through dividends and share repurchases, reflecting 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 benefit from IEEPA tariff 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 confident 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 fixtures; 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 five to ten minutes prior to the scheduled start time by dialing 800-715-9871 or 646-307-1963. Please use the conference identification 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 reflect our views about our future performance and constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified 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 difficult to predict and, accordingly, our actual results may differ 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 affected 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 tariffs, our ability to achieve the anticipated benefits 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 filings 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 differ 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 financial measures. Reconciliations of these non‑GAAP measures to the most directly comparable GAAP measures are included in the accompanying financial tables. We believe that certain non-GAAP financial measures used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. These non-GAAP financial 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729809915/en/ Contacts Investor Contact Renee BenedictVice President, Investor Relations and Corporate FP&[email protected]