Masco (NYSE:MAS) Releases Earnings Results, Beats Expectations By $0.32 EPS

Masco (NYSE:MAS) posted its quarterly earnings data on Wednesday. The construction company reported $1.64 EPS for the quarter, beating the consensus estimate of $1.32 by $0.32, FiscalAI reports. The business had revenue of $1.99 billion for the quarter, compared to the consensus estimate of $2.08 billion. Masco had a return on equity of 2,379.08% and a net margin of 11.61%.Masco’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.30 earnings per share. 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 Price Performance

Shares of MAS stock traded down $0.50 during trading hours on Friday, reaching $71.61. The stock had a trading volume of 1,230,325 shares, compared to its average volume of 2,735,378. The stock’s fifty day simple moving average is $75.29 and its 200 day simple moving average is $70.35. The company has a current ratio of 1.86, a quick ratio of 1.11 and a debt-to-equity ratio of 109.07. The firm has a market capitalization of $14.45 billion, a PE ratio of 16.47, a PEG ratio of 1.69 and a beta of 1.29. Masco has a 12 month low of $58.16 and a 12 month high of $83.64.

Masco Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Friday, May 22nd were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 22nd. Masco’s dividend payout ratio is presently 29.43%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MAS. Aptus Capital Advisors LLC boosted its position in shares of Masco by 8.9% during the 4th quarter. Aptus Capital Advisors LLC now owns 3,323 shares of the construction company’s stock valued at $211,000 after acquiring an additional 271 shares during the last quarter. Van Diest Capital LLC purchased a new position in shares of Masco during the fourth quarter worth about $209,000. Boothbay Fund Management LLC bought a new position in shares of Masco in the third quarter worth approximately $208,000. Moors & Cabot Inc. bought a new position in shares of Masco in the third quarter worth approximately $207,000. Finally, Quarry LP raised its stake in Masco by 86.6% in the fourth quarter. Quarry LP now owns 1,998 shares of the construction company’s stock valued at $127,000 after purchasing an additional 927 shares in the last quarter. 93.91% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on MAS shares. Weiss Ratings raised shares of Masco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. Wells Fargo & Company lifted their target price on shares of Masco from $85.00 to $87.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. BMO Capital Markets lowered their price target on shares of Masco from $77.00 to $75.00 and set a “market perform” rating on the stock in a research report on Monday, April 20th. Citigroup restated a “neutral” rating on shares of Masco in a research note on Friday. Finally, UBS Group cut their price objective on shares of Masco from $97.00 to $94.00 and set a “buy” rating for the company in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $79.93.

Masco declared that its board has approved a share repurchase plan on Thursday, May 7th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the construction company to purchase up to 2.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Masco News Roundup

Here are the key news stories impacting Masco this week:

• Positive Sentiment: Masco reported second-quarter adjusted earnings of $1.64 per share, well above the $1.32 analyst consensus. Pricing, cost savings and an approximately $85 million net tariff-refund benefit helped lift margins. Masco Earnings Rise as Pricing and Tariff Refunds Lift 2026 Margins
• Positive Sentiment: The company raised or maintained its fiscal 2026 earnings outlook at $4.40-$4.60 per share, supporting the bullish case that margin improvements can offset some operating headwinds. Masco raises 2026 EPS outlook
• Neutral Sentiment: Analyst views are mixed. Truist retains a “buy” rating with an $85 target, while Barclays rates the shares “equal weight” with a $79 target. Commentary also highlights Masco as a value stock based on valuation metrics. Analysts Conflicted on Industrial Goods Names
• Negative Sentiment: Second-quarter revenue was $1.99 billion, below the $2.08 billion consensus and down 2.9% year over year, indicating soft demand in Masco’s construction-related markets. Masco Slides as 2Q Sales Fall
• Negative Sentiment: Evercore downgraded Masco from “outperform” to “in-line,” and several firms lowered price targets following the results. The revisions reflect concerns that tariff effects and one-time benefits may not fully offset ongoing sales weakness. Masco Analysts Slash Their Forecasts After Q2 Results

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.