Masco Corporation Reports Second Quarter 2026 Results

Highlights Net sales decreased 3 percent to $1,992 million Operating profit margin was 23.6 percent; adjusted operating profit margin was 24.2 percent Earnings per share were $1.60; adjusted earnings per share grew 26 percent to $1.64 per share Returned $454 million to shareholders through dividends and share repurchases Expect 2026 earnings per share in the range of $4.21 - $4.41 per share, and on an adjusted basis, $4.40 - $4.60 per share Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter 2026 results. 2026 Second Quarter Results On a reported basis, compared to the second quarter 2025:Net sales decreased 3 percent to $1,992 million; currency had a minimal impactPlumbing Products’ net sales decreased 3 percentDecorative Architectural Products’ net sales decreased 4 percentIn local currency, North American sales decreased 5 percent and International sales increased 4 percentGross margin increased 600 basis points to 43.6 percent from 37.6 percentOperating profit increased 14 percent to $470 million from $412 millionOperating margin increased 350 basis points to 23.6 percent from 20.1 percentNet income per common share increased 25 percent to $1.60, compared to $1.28Compared to the second quarter 2025, results for key financial measures, as adjusted for certain items (see Exhibit A) and applying a normalized tax rate of 24.5 percent, were as follows:Gross margin increased 610 basis points to 43.8 percent from 37.7 percentOperating profit increased 17 percent to $482 million from $413 millionOperating margin increased 410 basis points to 24.2 percent from 20.1 percentNet income per common share increased 26 percent to $1.64, compared to $1.30Liquidity at the end of the second quarter was $1,548 million (including availability under our revolving credit facility) “We have executed well in the first half of the year,” said Masco’s President and CEO, Jon Nudi. “While the macroeconomic and geopolitical environments remain volatile, our teams remained focused on leveraging our industry leading brands, expanding our commercial capabilities and enhancing operational excellence to deliver strong year to date results. Second quarter sales results reflect a challenging comparison to the prior year as well as targeted strategic investments to support growth. In the quarter we also recognized a net benefit of approximately $95 million from IEEPA tariff refunds, which helped to drive adjusted operating profit growth of 17% and adjusted earnings per share growth of 26%. We also returned $454 million to shareholders through dividends and share repurchases, reflecting our continued commitment to a disciplined capital allocation strategy.” “While our underlying performance remains largely in line with our prior outlook, the anticipated full year net benefit from IEEPA tariff refunds of approximately $85 million has led us to increase our 2026 adjusted earnings per share guidance. We now expect adjusted earnings per share to be in the range of $4.40 to $4.60, compared to our previous guidance range of $4.10 to $4.30 per share,” continued Nudi. “Looking ahead, I am confident in our ability to navigate this dynamic market environment and execute our strategy to deliver above-market growth and continue creating long-term shareholder value.” About Masco Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower fixtures; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com. The 2026 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com. Conference Call Details A conference call regarding items contained in this release is scheduled for Wednesday, July 29, 2026 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-715-9871 or 646-307-1963. Please use the conference identification number 3880732. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website. A replay of the call will be available on Masco’s website or by phone by dialing 800-770-2030 or 609-800-9909. Please use the playback passcode 3880732#. The telephone replay will be available approximately two hours after the end of the call and remain available until August 28, 2026. Safe Harbor Statement This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tariffs, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise. Non-GAAP Financial Measures This release contains both U.S. generally accepted accounted principles (“GAAP”) and certain non-GAAP financial measures. Reconciliations of these non‑GAAP measures to the most directly comparable GAAP measures are included in the accompanying financial tables. We believe that certain non-GAAP financial measures used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. These non-GAAP financial measures should be considered in addition to, and not as an alternative for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. MASCO CORPORATION Condensed Consolidated Statements of Operations - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (in millions, except per common share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 1,992 $ 2,051 $ 3,910 $ 3,852 Cost of sales 1,124 1,278 2,356 2,435 Gross profit 868 772 1,553 1,416 Selling, general and administrative expenses 397 361 766 719 Operating profit 470 412 787 698 Other income (expense), net: Interest expense (28 ) (26 ) (54 ) (52 ) Other, net (2 ) (7 ) (2 ) (14 ) (30 ) (33 ) (55 ) (66 ) Income before income taxes 440 378 731 632 Income tax expense 107 95 170 150 Net income 333 283 561 482 Less: Net income attributable to noncontrolling interest 15 13 30 25 Net income attributable to Masco Corporation $ 318 $ 270 $ 531 $ 456 Income per common share attributable to Masco Corporation (diluted): Net income $ 1.60 $ 1.28 $ 2.64 $ 2.15 Average diluted common shares outstanding 199 211 201 212 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations Net sales $ 1,992 $ 2,051 $ 3,910 $ 3,852 Gross profit, as reported $ 868 $ 772 $ 1,553 $ 1,416 Rationalization charges 5 1 9 3 Gross profit, as adjusted $ 872 $ 774 $ 1,563 $ 1,419 Gross margin, as reported 43.6 % 37.6 % 39.7 % 36.8 % Gross margin, as adjusted 43.8 % 37.7 % 40.0 % 36.8 % Selling, general and administrative expenses, as reported $ 397 $ 361 $ 766 $ 719 Rationalization charges 7 1 11 1 Selling, general and administrative expenses, as adjusted $ 390 $ 360 $ 756 $ 718 Selling, general and administrative expenses as a percent of net sales, as reported 19.9 % 17.6 % 19.6 % 18.7 % Selling, general and administrative expenses as a percent of net sales, as adjusted 19.6 % 17.6 % 19.3 % 18.6 % Operating profit, as reported $ 470 $ 412 $ 787 $ 698 Rationalization charges 12 2 20 4 Operating profit, as adjusted $ 482 $ 413 $ 807 $ 701 Operating margin, as reported 23.6 % 20.1 % 20.1 % 18.1 % Operating margin, as adjusted 24.2 % 20.1 % 20.6 % 18.2 % Historical information is available on our website. Amounts may not add due to rounding MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (in millions, except per common share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Income Per Common Share Reconciliations Income before income taxes, as reported $ 440 $ 378 $ 731 $ 632 Rationalization charges 12 2 20 4 Realized losses from private equity funds, net — — — 5 Income before income taxes, as adjusted 452 380 751 640 Tax at 24.5% rate (111 ) (93 ) (184 ) (157 ) Less: Net income attributable to noncontrolling interest 15 13 30 25 Net income, as adjusted $ 326 $ 274 $ 537 $ 458 Net income per common share, as adjusted $ 1.64 $ 1.30 $ 2.67 $ 2.16 Average diluted common shares outstanding 199 211 201 212 Outlook for the Year Ended December 31, 2026 Year Ended December 31, 2026 Low End High End Income Per Common Share Reconciliation Net income per common share $ 4.21 $ 4.41 Rationalization charges 0.19 0.19 Net income per common share, as adjusted $ 4.40 $ 4.60 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited June 30, 2026 and December 31, 2025 (dollars in millions) June 30, 2026 December 31, 2025 Balance Sheet Assets Current assets: Cash and cash investments $ 548 $ 647 Receivables 1,342 1,028 Inventories 1,060 1,046 Prepaid expenses and other 119 119 Total current assets 3,069 2,840 Property and equipment, net 1,191 1,195 Goodwill 618 623 Other intangible assets, net 194 205 Operating lease right-of-use assets 253 233 Other assets 77 105 Total assets $ 5,401 $ 5,201 Liabilities Current liabilities: Accounts payable $ 890 $ 810 Notes payable 2 2 Accrued liabilities 754 761 Total current liabilities 1,646 1,573 Long-term debt 3,245 2,945 Noncurrent operating lease liabilities 246 221 Other liabilities 383 387 Total liabilities 5,519 5,125 Equity (118 ) 76 Total liabilities and equity $ 5,401 $ 5,201 As of June 30, 2026 2025 Other Financial Data Working capital days Receivable days 56 55 Inventory days 85 87 Payable days 69 68 Working capital $ 1,512 $ 1,544 Working capital as a % of sales (LTM) 19.8 % 20.1 % Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited For the Six Months Ended June 30, 2026 and 2025 (dollars in millions) Six Months Ended June 30, 2026 2025 Cash Flows From (For) Operating Activities: Cash provided by operating activities $ 705 $ 606 Working capital changes (288 ) (459 ) Net cash from operating activities 417 148 Cash Flows From (For) Financing Activities: Purchase of common stock (592 ) (231 ) Excise tax paid on the purchase of common stock (5 ) (6 ) Cash dividends paid (129 ) (132 ) Dividends paid to noncontrolling interest (13 ) (15 ) Proceeds from revolving credit borrowings, net — 46 Proceeds from term loan 300 — Proceeds from the exercise of stock options 23 2 Employee withholding taxes paid on stock-based compensation (14 ) (8 ) Payment of debt (1 ) (1 ) Debt financing costs (3 ) — Net cash for financing activities (433 ) (344 ) Cash Flows From (For) Investing Activities: Capital expenditures (77 ) (68 ) Other, net (1 ) (1 ) Net cash for investing activities (78 ) (70 ) Effect of exchange rate changes on cash and cash investments (6 ) 22 Cash and Cash Investments: Decrease for the period (100 ) (243 ) At January 1 647 634 At June 30 $ 548 $ 390 As of June 30, 2026 2025 Liquidity Cash and cash investments $ 548 $ 390 Revolver availability 1,000 954 Total Liquidity $ 1,548 $ 1,344 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Segment Data - Unaudited For the Three and Six Months Ended June 30, 2026 and 2025 (dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Plumbing Products Net sales $ 1,337 $ 1,372 (3 )% $ 2,700 $ 2,618 3 % Operating profit, as reported $ 352 $ 285 $ 595 $ 509 Operating margin, as reported 26.3 % 20.8 % 22.0 % 19.4 % Rationalization charges 9 2 16 4 Operating profit, as adjusted 361 286 611 513 Operating margin, as adjusted 27.0 % 20.8 % 22.6 % 19.6 % Depreciation and amortization 30 27 59 54 EBITDA, as adjusted $ 391 $ 314 $ 670 $ 566 Decorative Architectural Products Net sales $ 655 $ 679 (4 )% $ 1,209 $ 1,234 (2 )% Operating profit, as reported $ 147 $ 147 $ 251 $ 236 Operating margin, as reported 22.4 % 21.6 % 20.8 % 19.1 % Rationalization charges 1 — 2 — Accelerated depreciation related to rationalization activity — — 1 — Operating profit, as adjusted 148 147 254 236 Operating margin, as adjusted 22.6 % 21.6 % 21.0 % 19.1 % Depreciation and amortization 7 7 13 13 EBITDA, as adjusted $ 155 $ 154 $ 267 $ 249 Total Net sales $ 1,992 $ 2,051 (3 )% $ 3,910 $ 3,852 2 % Operating profit, as reported - segment $ 499 $ 432 $ 847 $ 745 General corporate expense, net (29 ) (20 ) (60 ) (47 ) Operating profit, as reported 470 412 787 698 Operating margin, as reported 23.6 % 20.1 % 20.1 % 18.1 % Rationalization charges - segment 10 2 17 4 Rationalization charges - other 2 — 2 — Accelerated depreciation related to rationalization activity - segment — — 1 — Operating profit, as adjusted 482 413 807 701 Operating margin, as adjusted 24.2 % 20.1 % 20.6 % 18.2 % Depreciation and amortization - segment 37 34 72 67 Depreciation and amortization - other 1 2 2 4 EBITDA, as adjusted $ 520 $ 449 $ 881 $ 772 Historical information is available on our website. Amounts may not add due to rounding. Source: Masco Corporation