Masco Corp: Investor Day: positioned for outgrowth, but demand backdrop still challenged

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Masco Corp: Investor Day: positioned for outgrowth, but demand backdrop still challenged

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Masco Corp

Investor Day: positioned for outgrowth,

but demand backdrop still challenged

Maintain Rating: UNDERPERFORM | PO: 67.00 USD | Price: 67.48 USD

Investor Day: MAS outlines 2028 targets 14 May 2026

Masco (MAS) hosted an Investor Day on May 13th. Management outlined 2028 targets: Equity

(1) $8.1B-$8.4B net sales with 1-3% growth in 2026 and 3%-4% annual organic growth

Rafe Jadrosich

in 2027-2028. (2) 18%+ adjusted operating margin with margin expansion driven by Research Analyst

volume/mix growth, cost savings and positive price/cost. (3) ~$3.3B in 2026-2028 BofAS +1 646 855 5815

cumulative free cash flow. (4) ~10% annual EPS growth (2-4% from share repurchases). rafe.jadrosich@bofa.com

Our take: The updated long-term targets were below previous targets for long-term Shaun Calnan, CFA Research Analyst

revenue growth of 3-5% annual organic growth and 1-3% from acquisitions (no M&A in BofAS

updated guide) and operating margin of ~18.5%, reflecting a tougher macro backdrop. The +1shaun.calnan@bofa.com646 855 1362

updated guidance assumes the market grows ~2% annually and MAS gains 1-2 points of Victoria Piskarev

market share, which we believe is achievable given recent share gains, although our 2028 Research Analyst

estimates are below targets. While management didn’t provide segment guidance, we BofAS+1 646 855 0657

expect outperformance to be driven by the plumbing segment and Pro paint, which will victoria.piskarev@bofa.com

offset some of the secular headwinds in DIY paint. Pro paint segment share increased from

55% in 2000 to 69% in 2024. We maintain our Underperform given a challenging macro

backdrop for R&R spending and risks to the long-term targets.