Polisher

Masco Corp raised its 2026 earnings per share (EPS) guidance to $4.65-$4.75 from $4.40-$4.60 after a strong third quarter. It also lifted its operating margin outlook to 18%-18.5%. Third-quarter EPS rose 23% to $1.19, while net sales grew 3% and operating profit increased 13%. Plumbing operating profit climbed 25%, with margin up 320 basis points to 19.1%, helped by pricing, cost savings, and lower tariff costs. North American plumbing sales rose 8% in local currency. International plumbing sales fell 5%, and DIY paint sales declined. Masco returned $322 million to shareholders in the quarter. It expects fourth-quarter operating margin to be roughly flat, as rising copper and oil-based costs offset growth.

Masco Q3 earnings call highlights. Masco (NYSE:MAS) reported third-quarter 2026 results that included higher sales, expanded margins and a 23% increase in adjusted earnings per share, as growth in North American plumbing and professional paint helped offset continued weakness in international markets and do-it-yourself paint. Net sales increased 3% from the prior-year quarter, or 4% excluding unfavorable currency effects and the July divestiture of its Bristan business. Adjusted operating profit rose 13% to $351 million, while operating margin expanded 160 basis points to 17.9%. Adjusted earnings per share increased to $1.19 from the prior year. "We delivered strong third quarter results reflecting the disciplined execution of our teams and the resilience of our business in the face of a challenging macroeconomic backdrop," President and CEO Jon Nudi said. Plumbing leads sales and profit growth. Plumbing products sales increased 4%, or 5% excluding the Bristan divestiture and unfavorable currency. North American plumbing sales rose 8% in local currency, led by Delta Faucet Company. Nudi said Delta's recently introduced Bonacci bath collection was gaining traction in showroom and e-commerce channels, while the company's premium and luxury brands, including Brizo and Newport Brass, continued to perform well. Masco said Delta was the top U.S. faucet brand based on 2025 dollar sales and was ranked the leading go-to brand among professionals in a third-party survey. Delta and BEHR also received supplier-partnership recognition from The Home Depot, with Delta named Interconnected Partner of the Year and BEHR named Marketing Partner of the Year. International plumbing sales declined 5% in local currency, though the decline was 1% excluding Bristan. The company cited lower Hansgrohe sales against difficult comparisons in some European markets and continued softness in China. Year to date, international plumbing sales were up 1% in local currency excluding the divestiture. Plumbing segment operating profit increased 25% to $256 million, and its operating margin expanded 320 basis points to 19.1%. Chief Financial Officer Rick Westenberg attributed the improvement to pricing, cost savings and lower year-over-year tariff costs, partly offset by higher commodity and employee-related expenses. During the question-and-answer session, Westenberg said pricing added 5 percentage points to plumbing sales growth during the quarter, while North American volume increased. International volume and unfavorable mix partly offset those gains. He said Masco posted growth across its trade, retail and e-commerce plumbing channels in North America. Professional paint offsets DIY pressure. Sales in Masco's decorative architectural segment were flat from a year earlier. Professional paint sales grew at a mid-single-digit rate, while DIY paint sales declined by a low-single-digit percentage amid ongoing market softness. Nudi said BEHR was benefiting as more consumers turn to professionals for painting projects. The company is investing with The Home Depot to retain and attract professional painters, including efforts to make ordering and delivery easier. Masco also recently launched a BEHR marketing campaign focused on its "best quality at the best price" positioning. For DIY customers, Masco continues to develop ChatHUE, its artificial intelligence-powered color-selection tool. Nudi said choosing a color remains a major barrier for consumers undertaking paint projects. He added that DIY paint demand is closely tied to existing-home turnover, which remains at low levels. Decorative architectural operating profit was roughly flat at $126 million, with an operating margin of 20.1%. Higher commodity costs and lower volume were mostly offset by pricing and cost-savings actions. Westenberg said the company still expects full-year professional paint sales to rise at a mid-single-digit rate and DIY paint sales to decline at a mid-single-digit rate. Outlook raised as margin expectations improve. Masco raised its 2026 adjusted EPS outlook to $4.65 to $4.75, from a prior range of $4.40 to $4.60. The company maintained its expectation for low-single-digit sales growth for the full year but increased its operating-margin outlook to 18% to 18.5%, from approximately 18% previously. * Plumbing sales are expected to rise at the higher end of the low-single-digit range, with operating margin of about 20%. * Decorative architectural sales are expected to be roughly flat, with operating margin of approximately 19.5%. * Masco expects a net tariff-refund benefit of about $85 million for the year. Westenberg said the company expects mid-single-digit input-cost inflation for the full year in both major segments. While Masco expects pricing to be modestly positive relative to costs in plumbing, it expects price-cost neutrality in decorative architectural products because of its arrangement with The Home Depot. The company expects fourth-quarter sales growth to remain in the low-single digits, primarily in plumbing, while decorative architectural revenue is expected to be roughly flat. Management said higher commodity, freight and employee-related costs are expected to weigh on fourth-quarter profitability, although it expects continued benefits from cost-reduction efforts. Capital allocation and strategic investments. Masco returned $322 million to shareholders during the quarter through dividends and share repurchases. It ended the period with $1.6 billion in liquidity and gross debt-to-EBITDA of 2.1 times. The company has repurchased more than $850 million of shares year to date and continues to expect to deploy about $1 billion toward share repurchases or acquisitions in 2026. Westenberg said Masco plans to invest a portion of tariff refunds in initiatives intended to support long-term growth, including brands, digital marketing, revenue-growth management and customer partnerships. He said the investments would be deployed over several quarters. Masco also appointed Brad Hiranaga as chief marketing officer and Yaron Ben David as chief technology and AI officer. Nudi said Ben David will help develop digital and AI capabilities spanning consumer engagement, e-commerce, manufacturing, procurement and logistics. About Masco (NYSE:MAS). Masco Corporation (NYSE: MAS) is a manufacturer of branded home improvement and building products. The company's portfolio includes faucets, showering and bathing products, architectural coatings, decorative hardware and related products sold to residential and commercial customers. Masco operates through two principal areas: Plumbing Products and Decorative Architectural Products. Its brands include Delta Faucet, Brizo, Hansgrohe, Behr Paint and Kichler Lighting, among others. These products are distributed through home improvement retailers, specialty dealers, distributors and other channels. Founded in 1929 by Alex Manoogian, Masco is headquartered in Livonia, Michigan, and serves customers primarily in North America and Europe, with products sold in additional international markets.

MASCO Corp has begun producing its Optimus humanoid robot in Fremont, California. It expects initial output of 10,000 to 20,000 units, with commercial deliveries due at the end of 2027. The company is shifting its supply-chain focus from whole-robot manufacturing to component supply, after identifying the robot's hand mechanism as a key bottleneck. MASCO also announced a $40 billion debt facility to buy NVIDIA GPUs, which are due in the first and second quarters of next year. The debt is structured to preserve its investment-grade credit status and is tied to stable revenue from satellite and launch services. The company reaffirmed that it will not acquire new cloud-service providers.