Masco Reports $1.966 Billion in Sales and Raises 2026 Adjusted Earnings Outlook

Key Facts

Masco reported net sales of $1.966 billion in the third quarter of 2026, up 3% from the same period in 2025, according to its earnings release dated October 28. Adjusted earnings per share were $1.19, beating analysts’ estimate of $1.02 by $0.17, while revenue reached $1.97 billion against an estimate of $1.93 billion. Adjusted earnings per share rose 23% from $0.97 a year earlier, while reported earnings per share increased to $1.17 from $0.90. The figures reflect an improvement in sales and profitability compared with the decline in sales in the third quarter of last year. At the same time, the company raised its full-year adjusted earnings outlook while maintaining its warning about weak near-term demand.

The company said sales rose 4% in local currency after excluding the divestiture of the Pristina business, a step that helps explain some of the difference between reported sales growth and growth on a local-currency basis. In the plumbing products segment, sales increased 4%, or 5% in local currency after excluding the divestiture. Sales of architectural and decorative products were flat from a year earlier. That stability followed a 12% decline in sales in the business in the third quarter of 2025, while the plumbing segment posted growth of 2% at the time. The comparison shows differing performance between the two segments in the current period, with plumbing growth continuing as losses in the architectural and decorative business halted.

Geographically, North American sales rose 5% in local currency during the quarter. International sales, by contrast, fell 5% in local currency, with the decline narrowing to 1% after excluding the Pristina divestiture. The results put overall growth in the context of uneven regional performance, with pressure continuing outside North America. On profitability, reported gross margin rose to 36.6% from 34.2% a year earlier. Operating profit increased 12% to $338 million, compared with $303 million in the third quarter of 2025.

Reported operating margin rose to 17.2% from 15.8% a year earlier, while adjusted margin climbed to 17.9% from 16.3%. Adjusted margin had fallen 190 basis points in the third quarter of 2025, according to the company’s prior results. Net sales also declined 3% to $1.917 billion at the time, making growth in the current quarter a reversal from the prior-year comparison. Second-quarter 2026 sales had fallen 3% to $1.992 billion compared with the same period a year earlier. In July, management said that quarter’s results were affected by a difficult comparison and strategic investments to support growth, amid macroeconomic and geopolitical volatility.

Masco raised its fiscal 2026 adjusted earnings-per-share outlook to $4.65–$4.75, from the previous range of $4.40–$4.60, and forecast reported earnings of $4.51 to $4.61. Chief Executive John Nudi said the company expects "the demand environment to remain challenging in the near term," but added that "the long-term fundamentals of the repair and remodeling market remain strong." The company declared a quarterly cash dividend of $0.32 per share, payable on November 23, 2026, to shareholders of record on November 6. Nudi also said the company returned $322 million to shareholders through dividends and share repurchases during the quarter. The company’s stock closed at $75.17 on October 27, before results were announced the following morning.