01—Abstract
Summary
Summary of the 10-Q filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation's Form 10-Q for the quarter ended September 30, 2026 shows net sales of $1,966 milliona for the three months, up from $1,917 million a year earlier, and $5,875 million for the nine months, up from $5,769 million.
Net income attributable to Masco Corporation was $230 millionb for the quarter versus $189 million, and diluted income per common share was $1.17 versus $0.90. Operating profit rose to $338 million from $303 million, with gross margin of 36.6% versus 34.2%. For the nine months, operating profit included a net tariff benefit from IEEPA tariff refunds of approximately $90 million, principally in the Plumbing Products segment.
Excluding divestitures and currency translation, quarterly net sales increased four percent, driven mainly by higher net selling prices. Capital allocation was a major focus during the period. The company repurchased and retired approximately 12.3 million shares for about $861 millionc in the nine months, and it borrowed $300 million under a delayed draw term loan to fund repurchases.
The Board authorized up to $2.0 billiond of repurchases in February 2026, with approximately $1.2 billion remaining at quarter end, and management anticipates using about $1.0 billion of cash, including term loan funds, for repurchases in 2026. Total shareholders' deficit was $(448) million attributable to Masco, and total equity was $(193) million at September 30, 2026, compared with $76 million total equity at December 31, 2025. Long-term debt increased to $3,245 million from $2,945 million.
During the quarter, Masco completed the divestiture of its Bristan Group business for $65 million, net of cash disposed, recognizing a preliminary gain of $13 million. Restructuring charges were approximately $13 million for the quarter and $33 million for the nine months, with about $50 million expected for full-year 2026. Management cites a dynamic geopolitical and macroeconomic environment, elevated commodity and input costs, and tariffs, particularly those related to China, as ongoing pressures.
02—Key points
Key Highlights
- Net sales were $1,966 million for Q3 2026, up 3% from $1,917 million, with growth excluding divestitures and currency translation of 4%, driven mainly by higher net selling prices.
- Operating profit rose 12% to $338 million in Q3 2026; gross margin expanded to 36.6% from 34.2%.
- Diluted EPS was $1.17 for Q3 2026 versus $0.90 a year earlier; nine-month diluted EPS was $3.81 versus $3.06.
- Nine-month operating profit included a net tariff benefit of approximately $90 million from IEEPA tariff refunds, principally in Plumbing Products.
- Masco repurchased about 12.3 million shares for approximately $861 million in the nine months, funded partly by a $300 million term loan; about $1.2 billion remained under the 2026 authorization.
- Total equity moved to a deficit of $(193) million at September 30, 2026, from $76 million at December 31, 2025, while long-term debt rose to $3,245 million from $2,945 million.
- The Bristan Group divestiture closed in Q3 2026 for $65 million, net of cash disposed, with a preliminary gain of $13 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Masco kept $0.12.
- Revenue$1.97B100.0%
- Cost of revenue−$1.25B63.4%
- Gross profit$720.0M36.6%
- Operating costs−$382.0M19.4%
- Operating income$338.0M17.2%
- Interest, other & tax−$108.0M5.5%
- Net income$230.0M11.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.97B$1.92B | +2.6% |
| Cost of Revenue | $1.25B$1.26B | −1.2% |
| Gross Profit | $720.00M$656.00M | +9.8% |
| SG&A Expenses | $381.00M$353.00M | +7.9% |
| Operating Income | $338.00M$303.00M | +11.6% |
| Net Income | $230.00M$189.00M | +21.7% |
| EPS (Basic) | $1.17$0.91 | +28.6% |
| EPS (Diluted) | $1.17$0.90 | +30.0% |
| Shares Outstanding (Basic) | 196.00M209.00M | −6.2% |
| Shares Outstanding (Diluted) | 196.00M209.00M | −6.2% |
05—Questions
Frequently Asked Questions
How did Masco perform in the third quarter of 2026?
Net sales rose 3% to $1,966 million, and operating profit rose 12% to $338 million. Net income attributable to Masco Corporation increased 22% to $230 million, and diluted EPS was $1.17 versus $0.90. Higher net selling prices were the main driver of sales growth.
What is driving the change in Masco's capital structure?
Masco repurchased about $861 million of stock in the nine months ended September 30, 2026, funded in part by $300 million drawn under a delayed draw term loan. Total equity turned to a deficit of $(193) million, and long-term debt increased to $3,245 million from $2,945 million at year-end 2025.
How significant were IEEPA tariff refunds to results?
The filing states that operating profit for the nine months included a net tariff benefit from IEEPA tariff refunds of approximately $90 million, principally in the Plumbing Products segment. The company also recognized a receivable for tariff refunds not yet paid that it considers probable of collection and reasonably estimable.
What are the company's expected restructuring costs and share repurchase plans for 2026?
Masco incurred approximately $13 million of restructuring charges in Q3 2026 and $33 million for the nine months, and expects about $50 million for the full year. It anticipates using approximately $1.0 billion of cash, including term loan funds, for share repurchases in 2026, outside of potential acquisitions.
How did the segments perform?
Plumbing Products net sales rose 4% to $1,338 million in Q3 2026, and its segment operating profit rose 24% to $244 million. Decorative Architectural Products net sales were flat at $628 million, while segment operating profit fell 2% to $125 million.
06—Continue