Masco Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 3% year-over-year to $1,966 million; increased 4% excluding the divestiture of Bristan and currency impacts.
• Gross margin increased 240 basis points to 36.6% from 34.2% in the prior year quarter; adjusted gross margin increased 250 basis points to 37.1% from 34.6%.
• Operating profit increased 12% to $338 million from $303 million; adjusted operating profit increased 13% to $351 million from $312 million.
• Operating margin increased 140 basis points to 17.2% from 15.8%; adjusted operating margin increased 160 basis points to 17.9% from 16.3%.
• Net income per common share increased 30% to $1.17 from $0.90; adjusted net income per common share increased 23% to $1.19 from $0.97.
• Liquidity at the end of the quarter was $1,610 million, including availability under the revolving credit facility.
• Cash provided by operating activities for the nine months ended September 30, 2026, was $981 million, compared to $896 million in the prior year.
• Net cash used for financing activities was $765 million for the nine months ended September 30, 2026, primarily driven by $852 million in stock purchases and $191 million in dividends paid.

Guidance and Future Outlook:

• Full-year 2026 earnings per share guidance raised to a range of $4.51 to $4.61 (previously $4.40 to $4.60 implied by adjusted range).
• Full-year 2026 adjusted earnings per share guidance raised to a range of $4.65 to $4.75 (previously $4.40 to $4.60).
• Management expects the demand environment to remain challenged in the near term but anticipates strong long-term fundamentals in the repair and remodel market.
• Strategy focuses on leveraging industry-leading brands, expanding commercial capabilities, and driving operational excellence.

Business Segments and Product Lines:

• Plumbing Products net sales increased 4% year-over-year to $1,338 million; adjusted operating profit increased to $256 million from $205 million.
• Decorative Architectural Products net sales were flat year-over-year at $628 million; adjusted operating profit was $126 million compared to $127 million.
• North American net sales increased 5% in local currency.
• International net sales decreased 5% in local currency; decreased 1% excluding the divestiture of Bristan.
• The company divested its Bristan Group business, recognized a gain on sale of $13 million in the quarter, and received $60 million in proceeds from disposition net of cash disposed for the nine-month period.

Market and Competitive Landscape:

• Masco is positioned as a global leader in the design, manufacture, and distribution of branded home improvement and building products.
• The company reports delivering above-market growth and building momentum throughout the organization.
• Key brands include Behr paint, Delta and hansgrohe fixtures, Liberty hardware, and HotSpring spas.

Risks and Challenges:

• Future performance may be affected by levels of residential repair and remodel activity and new home construction.
• Risks include maintaining strong brands, developing innovative products, and responding to changing consumer preferences.
• Potential impacts from tariffs, material cost and availability, and reliance on suppliers and service providers.
• Risks associated with international operations, extreme weather events, cybersecurity threats, and workforce retention.

Management Commentary and Tone:

• President and CEO Jon Nudi stated results reflect team strength, disciplined strategy execution, and business resilience.
• Management expressed confidence in the ability to create long-term shareholder value through operational excellence and brand leverage.
• The tone emphasized strong cash flow generation and a commitment to disciplined capital allocation.

Other Key Points:

• Returned $322 million to shareholders through dividends and share repurchases in the third quarter.
• Board of Directors declared a quarterly dividend of $0.32 per share, payable November 23, 2026, to shareholders of record on November 6, 2026.
• Long-term debt increased to $3,245 million as of September 30, 2026, from $2,945 million as of December 31, 2025.
• Total assets were $5,338 million as of September 30, 2026, compared to $5,201 million at year-end 2025.
• Working capital was $1,444 million as of September 30, 2026, representing 18.8% of sales (LTM).