Masco (NYSE:MAS – Get Free Report) announced its quarterly earnings data on Wednesday. The construction company reported $1.64 earnings per share for the quarter, topping analysts’ consensus estimates of $1.32 by $0.32, FiscalAI reports. Masco had a net margin of 10.90% and a return on equity of 815.20%. The firm had revenue of $1.99 billion during the quarter, compared to analyst estimates of $2.08 billion. During the same period in the previous year, the business posted $1.30 EPS. The business’s quarterly revenue was down 2.9% on a year-over-year basis. Masco updated its FY 2026 guidance to 4.400-4.600 EPS.
Here are the key takeaways from Masco’s conference call:
- Masco raised its 2026 adjusted EPS guidance to $4.40–$4.60 from $4.10–$4.30, reflecting a net $85 million full-year benefit from IEEPA tariff refunds. The company also increased its expected operating margin to approximately 18% from 17%.
- Second-quarter sales declined 3%, although management said underlying sales were roughly flat after excluding targeted strategic investments; first-half underlying sales were up low single digits. Operating profit rose 17% to $482 million and adjusted EPS increased 26% to $1.64, primarily aided by the tariff refunds, pricing, and cost savings.
- The Plumbing Products segment delivered 4% international sales growth and a 26% increase in operating profit to $361 million, with margin expanding to 27%. Management maintained its expectation for low-single-digit full-year plumbing sales growth and now expects segment margin of approximately 20%.
- Decorative Architectural sales fell 4%, driven by high-single-digit declines in DIY paint amid weak industry conditions and a customer transition affecting primer and applicator products. Pro paint remained stronger, growing mid-single digits, but commodity inflation and higher employee-related costs are expected to pressure second-half margins.
- Strong cash generation enabled Masco to return $454 million to shareholders in the quarter, including $390 million of share repurchases. The company now expects to deploy approximately $1 billion toward share repurchases or acquisitions in 2026, up from at least $800 million previously.
Masco Stock Down 10.3%
MAS traded down $8.40 during trading on Wednesday, reaching $73.20. The stock had a trading volume of 5,681,587 shares, compared to its average volume of 2,708,701. Masco has a one year low of $58.16 and a one year high of $83.64. The company has a current ratio of 1.75, a quick ratio of 1.11 and a debt-to-equity ratio of 109.07. The stock’s 50 day moving average is $75.07 and its two-hundred day moving average is $70.29. The company has a market capitalization of $14.77 billion, a price-to-earnings ratio of 18.17, a P/E/G ratio of 2.00 and a beta of 1.29.
Masco Announces Dividend
Analyst Ratings Changes
Several research firms have weighed in on MAS. Evercore raised shares of Masco from an “in-line” rating to an “outperform” rating and set a $78.00 price target for the company in a research note on Monday, April 13th. UBS Group lifted their price objective on Masco from $96.00 to $97.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. JPMorgan Chase & Co. increased their target price on Masco from $74.00 to $78.00 and gave the company a “neutral” rating in a report on Friday, April 24th. Citigroup lowered their price objective on Masco from $84.00 to $79.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. Finally, The Goldman Sachs Group upped their price target on shares of Masco from $79.00 to $90.00 and gave the company a “buy” rating in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $80.67.
Check Out Our Latest Stock Report on Masco
Key Masco News
Here are the key news stories impacting Masco this week:
- Positive Sentiment: Masco reported second-quarter earnings of $1.64 per share, above the $1.32 analyst consensus and up from $1.30 a year earlier. Operating profit increased 14% to $470 million, while the operating margin expanded to 23.6%. Masco Surpasses Q2 Earnings Estimates
- Positive Sentiment: The company raised its 2026 adjusted EPS guidance to $4.40-$4.60, above the approximately $4.27 consensus estimate, signaling confidence that margin gains can continue. Masco Earnings and Guidance
- Positive Sentiment: Masco returned $454 million to shareholders through dividends and share repurchases during the quarter, supporting the company’s capital-return appeal. Masco Q2 Sales and EPS
- Neutral Sentiment: Institutional positioning was mixed in the latest quarter, with 378 investors adding shares and 359 reducing positions. Recent analyst targets also varied widely, producing a median target of $79.50.
- Negative Sentiment: Revenue fell about 3% year over year to $1.99 billion, missing the $2.08 billion consensus estimate. The sales decline was attributed in part to weaker North American volumes, raising concerns about demand in home-improvement and housing-related markets. Masco Q2 Earnings Beat and Sales Miss
- Negative Sentiment: Profitability benefited from tariff refunds, a potentially temporary tailwind. Investors may be concerned that underlying volume weakness and tariff-related cost pressure could limit the durability of the margin improvement.
- Negative Sentiment: The stock entered the report near recent highs, leaving elevated expectations. Management commentary about demand, margins, or the pace of recovery in the second half may therefore have amplified the reaction despite the earnings and guidance beats. Recent insider activity also showed five sales and no purchases over six months.
Masco announced that its Board of Directors has authorized a stock buyback program on Thursday, May 7th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the construction company to purchase up to 2.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.
Institutional Trading of Masco
A number of institutional investors and hedge funds have recently bought and sold shares of MAS. Focus Partners Wealth lifted its holdings in Masco by 2.6% in the first quarter. Focus Partners Wealth now owns 10,414 shares of the construction company’s stock valued at $724,000 after acquiring an additional 265 shares during the period. CW Advisors LLC purchased a new position in shares of Masco in the second quarter worth approximately $238,000. Bank of Nova Scotia increased its holdings in Masco by 14.8% during the second quarter. Bank of Nova Scotia now owns 25,555 shares of the construction company’s stock valued at $1,645,000 after buying an additional 3,294 shares during the last quarter. WINTON GROUP Ltd bought a new position in Masco in the second quarter worth approximately $415,000. Finally, Daiwa Securities Group Inc. boosted its stake in shares of Masco by 4.6% during the 2nd quarter. Daiwa Securities Group Inc. now owns 31,832 shares of the construction company’s stock worth $2,049,000 after acquiring an additional 1,413 shares during the last quarter. 93.91% of the stock is currently owned by institutional investors.
Masco Company Profile
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.
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