Masco Corp. (MAS): 2Q26 First Take

First-page research excerpt

Equity Research

29 July 2026 | 8:40AM EDT

Masco Corp. (MAS): 2Q26 First Take

2Q Beat Driven by IEEPA Refunds While Adj. Number Misses On One-Time Items,

Lower Revenues: Masco reported 2Q adj. EPS of $1.64, above our $1.30 estimate

and FactSet consensus of $1.32, including $95mn in IEEPA refunds, +$0.35 to results.

Excluding this, EPS came in below our model and consensus at $1.16. The miss was

led by adj. one-time items, ($0.09) and revenues down 3% vs our +1% forecast,

($0.06). Other factors to the included: 1) a lower EBIT margin given the loss of

operating leverage, ($0.02) and interest expense, ($0.01), which were offset by

minority interest and the share count, +$0.02 and +$0.01, respectively. Results were

consistent with a weak housing backdrop along with strategic investments as well as

an ongoing focus on cost savings and pricing in an effort to offset inflation. Given the

$95mn in tariff refunds, the 2026 adj. EPS guide was raised to $4.50 at the mid-point

vs our $4.25 forecast. On the call, we will look for more color on: 1) path for

plumbing volumes versus price and the sustainability of share gains, 2) efforts to

offset DIY paint headwinds and updates on growth in pro, and 3) price/cost given

commodities, productivity and other factors to margins.

Susan Maklari

+1(212)357-3906 |

Goldman Sachs & Co. LLC

Charles Perron-Piche, CFA

Goldman Sachs & Co. LLC

Rhea Bhatia

Goldman Sachs India SPL

Galilee Best

Goldman Sachs & Co. LLC

Both Segments Led to Underperformance: Revenues in decorative architectural

were down 4% YOY vs GSe -1%, though the adj. EBIT margin was 183bps above our

expectations and up 92bps YOY to 22.6% led by the tariff refunds, partially offset by

strategic investments. The top line in plumbing decreased 3%, below our +3%

estimate, with North America down 5% and international up 4% in local currency,

while the adj. EBIT margin came in 678bps above our estimate and rose 616bps YOY

to 27.0%.

Balance Sheet Provides Financial Flexibility: The company ended 2Q with net

debt/EBITDA of 1.8x flat sequentially and vs 1.7x a year ago, including $1.5bn of

liquidity with $548mn of cash. Management returned $454mn to shareholders

…