Masco reported stronger third-quarter 2026 results, with higher sales, wider margins and increased earnings. The home-improvement products maker also raised its full-year adjusted earnings forecast, citing year-to-date operating performance, while saying near-term demand remains challenging.
Key details
- Sales rose 3% to $1.966 billion. In local currency and excluding the divestiture of Bristan, sales increased 4%.
- Plumbing Products sales increased 4% as reported, or 5% in local currency excluding Bristan. Decorative Architectural Products sales were flat year over year.
- By geography, North American sales rose 5% in local currency. International sales fell 5% in local currency, or 1% excluding Bristan.
- Reported gross margin expanded 2.4 percentage points to 36.6%. Operating profit climbed 12% to $338 million, and operating margin rose 1.4 percentage points to 17.2%.
- Reported earnings per share increased to $1.17 from $0.90 a year earlier.
- On an adjusted basis, with a normalized tax rate applied, gross margin rose 2.5 percentage points to 37.1%; operating profit increased 13% to $351 million; and operating margin widened 1.6 percentage points to 17.9%. Adjusted EPS grew 23% to $1.19 from $0.97.
- Masco ended the quarter with $1.61 billion in liquidity, including availability under its revolving credit facility.
- The company returned $322 million to shareholders during the quarter through dividends and share repurchases.
- Masco now expects 2026 reported EPS of $4.51 to $4.61 and adjusted EPS of $4.65 to $4.75. Its previous adjusted EPS outlook was $4.40 to $4.60.
- CEO Jon Nudi said the company expects near-term demand conditions to remain challenging, while describing the long-term fundamentals of the repair-and-remodel market as strong.
What changes for investors
The higher adjusted EPS outlook reflects Masco’s stronger operating performance so far this year. The quarter’s margin gains and shareholder returns also show the company paired improved profitability with substantial cash distributions.