Masco (MAS) Q3 2026 Earnings Report

The call was predominantly positive. Masco reported strong third-quarter earnings, expanded margins, raised EPS and operating-margin guidance, demonstrated momentum in North American Plumbing and PRO paint, and highlighted strong cash generation, brands and market-share gains. These positives outweighed challenges from international Plumbing weakness, China, declining DIY paint demand, macroeconomic uncertainty, inflation and higher employee-related costs.

Masco raised 2026 EPS guidance to $4.65 to $4.75 per share from $4.40 to $4.60, with 198 million average diluted share count and an effective tax rate of 24.5%; it continues to expect 2026 sales to increase low single digits and now expects operating profit margin between 18% to 18.5% versus approximately 18% previously, supported by a net tariff refund benefit of approximately $85 million. Plumbing full year sales are expected to increase low single digits, with sales growth towards the higher end of that range and operating margin to expand to approximately 20%, while Decorative Architectural sales are expected to be roughly flat with the prior year and operating margin approximately 19.5%; PRO paint sales are expected to increase mid-single digits and DIY paint sales to decrease mid-single digits. The company continues to anticipate working capital at approximately 16.5% of sales at year-end, expects to deploy approximately $1 billion towards share repurchases or acquisitions in 2026, and expects Q4 sales growth of low single digits in Plumbing and roughly flat sales in Decorative Architectural, with operating profit and margin roughly in line on a year-over-year basis; input cost inflation is expected to be mid-single-digit.