01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation's first-quarter 2026 results show net sales of $1,918 milliona, up six percent from $1,801 million a year earlier.
Excluding currency translation, net sales rose four percent, driven mainly by higher net selling prices across the company, which added five percent, partly offset by lower paint and coatings volume. Gross profit grew seven percent to $686 millionb with gross margin flat at 35.8 percent. Operating profit rose 10 percent to $316 million, and net income attributable to Masco Corporation increased to $213 million from $186 million, or $1.05 diluted earnings per share versus $0.87.
Plumbing Products net sales increased nine percent to $1,364 millionc, while Decorative Architectural Products was flat at $554 million. Cash flow was weaker. Net cash used for operating activities was $79 million, driven mainly by working capital changes, and cash and cash investments fell to $388 million from $647 million at year-end 2025.
Total equity was $27 milliond at March 31, 2026, down from $76 million, and Masco shareholders' deficit was $(242) million. Share repurchases totaled $203 million in the quarter under a new $2.0 billion authorization approved February 10, 2026, leaving about $1.9 billion remaining. Management anticipates using at least $800 million of cash, including funds from a delayed draw term loan, for share repurchases in 2026.
Debt activity included a new $1.0 billion revolving credit agreement dated March 20, 2026, maturing in 2031, which replaced the 2022 facility, and a subsequent up to $500 million delayed draw term loan entered April 21, 2026, due April 21, 2028. Management flagged tariffs, particularly those related to China, as a continuing cost pressure, and noted a possible but unquantified tariff refund following a Supreme Court ruling, with no amounts recognized as of March 31, 2026.
02—Key points
Key Highlights
- Net sales rose 6% to $1,918 million; excluding currency translation, up 4%, mainly from higher net selling prices adding 5%.
- Operating profit increased 10% to $316 million, with operating margin of 16.5% versus 15.9% a year earlier.
- Diluted EPS of $1.05 compared with $0.87 in the prior-year quarter; net income attributable to Masco was $213 million versus $186 million.
- Plumbing Products net sales grew 9% to $1,364 million, while Decorative Architectural Products was flat at $554 million.
- Net cash used for operating activities was $79 million, and cash and cash investments declined to $388 million from $647 million at December 31, 2025.
- Repurchased about 3.1 million shares for roughly $203 million; a new $2.0 billion authorization was approved February 10, 2026, with about $1.9 billion remaining.
- Entered a $1.0 billion revolving credit agreement (March 2026) and a up to $500 million delayed draw term loan (April 21, 2026), with $127 million borrowed under the revolver at a 4.690% weighted average rate.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Masco kept $0.11.
- Revenue$1.92B100.0%
- Cost of revenue−$1.23B64.2%
- Gross profit$686.0M35.8%
- Operating costs−$370.0M19.3%
- Operating income$316.0M16.5%
- Interest, other & tax−$103.0M5.4%
- Net income$213.0M11.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.92B$1.80B | +6.5% |
| Cost of Revenue | $1.23B$1.16B | +6.5% |
| Gross Profit | $686.00M$644.00M | +6.5% |
| SG&A Expenses | $369.00M$358.00M | +3.1% |
| Operating Income | $316.00M$286.00M | +10.5% |
| Net Income | $213.00M$186.00M | +14.5% |
| EPS (Basic) | $1.05$0.87 | +20.7% |
| EPS (Diluted) | $1.05$0.87 | +20.7% |
| Shares Outstanding (Basic) | 204.00M212.00M | −3.8% |
| Shares Outstanding (Diluted) | 204.00M213.00M | −4.2% |
05—Questions
Frequently Asked Questions
How did Masco perform in the first quarter of 2026?
Net sales increased 6% to $1,918 million, operating profit rose 10% to $316 million, and diluted EPS was $1.05 versus $0.87. Growth was driven mainly by higher net selling prices, with lower paint and coatings volume a partial offset.
What is driving cost pressure at Masco?
Management cites elevated commodity and other input costs, employee-related cost inflation, and significantly higher costs from tariffs, particularly those related to China, principally in the Plumbing Products segment. Pricing, cost savings, and sourcing changes are used to mitigate these costs over time.
How is Masco returning capital to shareholders?
In the first quarter, Masco repurchased shares for about $203 million and paid $65 million in cash dividends ($0.32 per share). Management anticipates using at least $800 million of cash, including funds from the delayed draw term loan, for share repurchases in 2026.
What changes were made to Masco's debt and credit facilities?
On March 20, 2026, Masco entered a $1.0 billion revolving credit agreement maturing in 2031, replacing its 2022 facility. On April 21, 2026, it entered a two-year delayed draw term loan of up to $500 million due April 21, 2028. Long-term debt was $2,945 million at both March 31, 2026 and December 31, 2025.
Could tariff refunds affect Masco's financial results?
Management is monitoring a Supreme Court ruling related to tariffs under the International Emergency Economic Powers Act, which may allow previously paid tariffs to be refunded. Recovery, timing, and amount are uncertain, and no amounts had been recognized as of March 31, 2026.
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