A month has gone by since the last earnings report for Masco (MAS Quick QuoteMAS - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Masco due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Masco Corporation before we dive into how investors and analysts have reacted as of late.

Masco's Q2 Earnings Beat on Tariff Refunds, Sales Miss

Masco reported mixed second-quarter 2026 results, with adjusted earnings surpassing the Zacks Consensus Estimate and increasing year over year. However, net sales missed the consensus mark and declined from the prior-year quarter.

Earnings benefited from tariff refunds, pricing actions, cost savings and share repurchases, while lower North American volumes weighed on revenues. The company also raised its 2026 adjusted earnings outlook, primarily reflecting an anticipated benefit from tariff refunds.

Masco’s Q2 Earnings & Sales

Second-quarter 2026 earnings of $1.64 per share increased 26.2% from $1.30 a year ago. The figure topped the Zacks Consensus Estimate of $1.30 by 26.2%.

Net sales declined 2.9% year over year to $1.99 billion and missed the consensus mark of $2.09 billion by 4.6%. Currency translation had a minimal impact on quarterly revenues. In local currency, North American sales fell 5%, while international sales increased 4%.

MAS’ Operating Margin Expands on Tariff Refunds

On an adjusted basis, gross profit rose to $872 million from $774 million. Adjusted gross margin improved 610 basis points to 43.8%, supported by lower tariff costs, including refunds, cost-saving initiatives and higher selling prices. These benefits were partly offset by lower sales volume, increased commodity costs, unfavorable product mix and other expenses.

Adjusted operating profit increased 16.7% to $482 million. Adjusted operating margin expanded 410 basis points to 24.2%. The quarter included an approximately $95 million net benefit from refunds of tariffs imposed under the International Emergency Economic Powers Act.

Selling, general and administrative expenses increased 10% to $397 million. Higher employee-related expenses and increased legal and professional fees contributed to the rise.

Masco’s Plumbing Products Face Volume Pressure

Plumbing Products segment sales decreased 2.6% year over year to $1.337 billion (up from our model’s projection of $1.22 billion). 

Adjusted operating profit increased to $361 million from $286 million. The adjusted operating margin expanded 620 basis points to 27%. The improvement reflected the tariff refund benefit, pricing and cost savings, partly offset by lower volume and higher tariff, commodity and employee-related costs.

MAS’ Decorative Products Sales Decline

Decorative Architectural Products segment sales decreased 3.5% year over year to $655 million (down from our model’s projection of $609.3 million). Professional paint sales increased in the mid-single digits, but do-it-yourself paint sales declined in the high-single digits. The DIY decline was affected by the customer transition of Masco’s primer and applicator business. 

Adjusted operating profit edged up to $148 million from $147 million. Adjusted operating margin increased 100 basis points to 22.6%, as cost-saving initiatives and higher prices offset lower volume and increased commodity costs.

Masco’s Capital Returns Remain a Major Feature

Masco returned $454 million to its shareholders through dividends and share repurchases during the quarter. In the first six months of 2026, the company spent $592 million on common-stock repurchases and paid $129 million in cash dividends.

Cash and cash investments totaled $548 million at quarter-end. Total liquidity was $1.548 billion, including $1 billion of available revolving credit. Gross debt to EBITDA was 2.1X, while working capital represented 19.8% of trailing sales. Net cash from operating activities increased to $417 million in the first half from $148 million a year earlier. Capital expenditures rose to $77 million from $68 million.

MAS Raises Its 2026 Earnings Range

Masco raised its adjusted earnings forecast for 2026 to $4.40-$4.60 per share from $4.10-$4.30. The revision reflects an anticipated full-year net benefit of approximately $85 million from tariff refunds, while management indicated that underlying business performance remained largely aligned with its previous outlook.

The company expects total sales to increase in the low-single digits. Plumbing Products sales are projected to rise in the low-single digits, while Decorative Architectural Products revenues are expected to remain in line with 2025. Masco forecasts adjusted operating margins of about 20% for Plumbing Products, 19% for Decorative Architectural Products and 18% companywide.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Masco has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Masco belongs to the Zacks Building Products - Miscellaneous industry. Another stock from the same industry, Armstrong World Industries (AWI Quick QuoteAWI - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Armstrong World Industries reported revenues of $472 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $2.36 for the same period compares with $2.09 a year ago.

Armstrong World Industries is expected to post earnings of $2.35 per share for the current quarter, representing a year-over-year change of +14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

Armstrong World Industries has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.