Masco Raises 2026 Profit Outlook as Margins Widen, Despite Challenged Demand

Masco raised its full-year profit outlook on Wednesday after margins widened sharply in the third quarter, even as the maker of Behr paint and Delta faucets said it expects demand to stay challenged in the near term.

The Livonia, Michigan-based company now expects 2026 adjusted earnings of $4.65 to $4.75 per share, up from its previous range of $4.40 to $4.60, according to the earnings release it filed with an 8-K on Wednesday. On a GAAP basis, it expects $4.51 to $4.61 per share.

Margins do the heavy lifting

Third-quarter net sales rose 3% to $1,966 million. Excluding the divestiture of Bristan and currency effects, sales grew 4%, the company said.

Profitability improved faster than sales. Gross margin climbed 240 basis points to 36.6%, and operating profit rose 12% to $338 million, lifting operating margin to 17.2% from 15.8%.

Earnings per share rose 30% to $1.17 from 90 cents a year earlier. Adjusted earnings per share grew 23% to $1.19 from 97 cents, with adjusted operating margin expanding 160 basis points to 17.9%.

How the segments performed

Plumbing Products grew net sales 4%, or 5% in local currency and excluding the divestiture. Decorative Architectural Products posted net sales that were flat with a year earlier.

CEO: momentum, but a tough backdrop

"Our strong third quarter results reflect the strength of our teams, the disciplined execution of our strategy, and the resilience of our business," President and CEO Jon Nudi said in the release. He said the company is "delivering above-market growth and building momentum throughout the organization."

Nudi tied the higher outlook to "the strength of our operational performance year-to-date," but added a note of caution: "While we expect the demand environment to remain challenged in the near term, the long-term fundamentals of the repair and remodel market remain strong."

Cash returned to shareholders

Masco returned $322 million to shareholders through dividends and share repurchases during the quarter. Its board declared a quarterly dividend of 32 cents per share, payable Nov. 23, 2026, to shareholders of record on Nov. 6.

Liquidity stood at $1,610 million at the end of the quarter, including availability under the company's revolving credit facility, according to the release. Masco scheduled a conference call for 8 a.m. ET on Wednesday to discuss the results.

By the numbers

• Net sales: $1,966 million, up 3%
• Gross margin: 36.6%, up 240 basis points
• Operating profit: $338 million, up 12%
• EPS: $1.17 GAAP; $1.19 adjusted
• 2026 adjusted EPS outlook: $4.65 to $4.75, from $4.40 to $4.60

Sources

1. Masco Form 8-K with third-quarter 2026 earnings release (Exhibit 99), filed Oct. 28, 2026 (accession 0000062996-26-000032)

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