Masco (MAS) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 decreased 3% year-over-year to $1,992 million, with minimal currency impact, while six-month sales rose 2% to $3,910 million, driven by higher selling prices but offset by lower North America volume.

• Operating profit rose 17% to $482 million, with a margin of 24.2%, aided by a $95 million net IEEPA tariff refund and cost savings.

• Adjusted EPS grew 26% to $1.64 per share, and diluted EPS was $1.60, up 25% year-over-year.

• $454 million was returned to shareholders via dividends and share repurchases in Q2.

• Launched five new kitchen and bath collections, celebrated Hansgrohe's 125th anniversary, and received customer service recognitions.

Financial highlights

• Q2 2026 net sales: $1,992 million (down 3%); six months: $3,910 million (up 2%).

• Gross margin increased to 43.8% (adjusted), up 610 basis points year-over-year; SG&A as a percent of sales was 19.6%.

• Operating margin expanded by 410 basis points to 24.2% (adjusted); operating profit was $482 million.

• Net income attributable to shareholders was $318 million, up 18% year-over-year.

• Liquidity at quarter-end was $1.55 billion, including revolver availability; gross debt to EBITDA at 2.1x.

Outlook and guidance

• 2026 adjusted EPS guidance raised to $4.40–$4.60, reflecting anticipated $85 million full-year IEEPA tariff refund benefit.

• Plumbing segment sales expected up low single digits, with margin expanding to ~20%; Decorative Architectural segment sales expected to be flat, with margin at ~19%.

• Capital expenditures projected at ~$190 million for 2026; free cash flow conversion expected at ~95%.

• Working capital expected to end year at 16.5% of sales.

• Commodity inflation expected to be mid-single digits in H2 2026.