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Can Masco Build on 23% EPS Growth as Housing Demand Stays Soft?
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Key Takeaways
Masco's Q3 adjusted EPS rose 23% to $1.19, while sales increased 3% year over year.
North American Plumbing sales climbed 8%, helping segment operating profit rise 25% and margin reach 19.1%.
Masco raised 2026 adjusted EPS guidance to $4.65-$4.75, citing stronger execution and cost savings.
Masco Corporation (MAS - Free Report) delivered a robust third-quarter 2026 performance, with adjusted earnings per share (EPS) rising 23% year over year to $1.19 and sales increasing 3%. Adjusted operating margin expanded 160 basis points to 17.9%, reflecting pricing, cost savings and lower year-over-year tariff costs. The results suggest the company is generating stronger earnings despite a muted housing backdrop.
Plumbing Products was the key growth driver. Segment sales increased 4%, or 5% excluding Bristan and currency impacts, as pricing and higher North American volume offset weaker international demand and unfavorable mix. North American Plumbing sales rose 8% in local currency, led by Delta, while segment operating profit climbed 25% and margin widened to 19.1%. However, International Plumbing sales declined 5% amid difficult European comparisons and continued softness in China.
Decorative Architectural Products sales were flat. Mid-single-digit growth in PRO paint was offset by low-single-digit declines in DIY paint as consumers remained cautious. Behr's ChatHUE AI color-selection tool and marketing investments could strengthen its positioning when demand improves. Segment operating margin held at 20.1%.
Masco raised its 2026 adjusted EPS guidance to $4.65-$4.75 and expects operating margin of 18-18.5%, while retaining its low-single-digit sales growth outlook. Its repair-and-remodel focus, aging housing stock and pent-up project demand offer longer-term support. Still, mid-single-digit input-cost inflation, including copper, oil-based products and freight, could pressure margins. Management estimates an $85 million net tariff-refund benefit for 2026, but said the guidance increase reflects stronger operating execution. Execution on pricing, cost savings and brand investments remains key.
Masco vs. Fortune Brands & RPM: Growth Test?
Masco appears better positioned than Fortune Brands Innovations, Inc. (FBIN - Free Report) , while RPM International Inc. (RPM - Free Report) benefits from broader end-market exposure. Masco’s performance is supported by Delta-led North American Plumbing demand, pricing discipline, cost savings and operational efficiencies.
Meanwhile, Fortune Brands faces pressure from softer Water demand, execution issues and portfolio restructuring, although its established brands and retail relationships remain strengths. RPM’s diversified exposure to performance coatings, consumer products and construction markets provides demand support from maintenance, infrastructure and industrial activity.
MAS’ advantage lies in its strong plumbing brands, professional-channel traction and ability to expand margins despite uneven demand. Still, RPM’s diversification potentially makes Masco’s overall competitive edge less decisive.
MAS Stock’s Price Performance & Valuation Trend
Shares of this Michigan-based home improvement and building products manufacturer, seller and installer have climbed 32.1% so far this year, outperforming the Zacks Building Products - Miscellaneous industry, the Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
MAS stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 17.86, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of Masco
The Zacks Consensus Estimate for Masco’s 2026 and 2027 earnings reflects an upward trend over the past 30 days, currently settling at $4.67 and $4.70 per share, respectively. The revised estimates for 2026 and 2026 imply year-over-year improvements of 17.9% and 0.8%, respectively.
View the Zacks #1 Rank List
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Can Masco Build on 23% EPS Growth as Housing Demand Stays Soft?
Key Takeaways
Masco Corporation (MAS - Free Report) delivered a robust third-quarter 2026 performance, with adjusted earnings per share (EPS) rising 23% year over year to $1.19 and sales increasing 3%. Adjusted operating margin expanded 160 basis points to 17.9%, reflecting pricing, cost savings and lower year-over-year tariff costs. The results suggest the company is generating stronger earnings despite a muted housing backdrop.
Plumbing Products was the key growth driver. Segment sales increased 4%, or 5% excluding Bristan and currency impacts, as pricing and higher North American volume offset weaker international demand and unfavorable mix. North American Plumbing sales rose 8% in local currency, led by Delta, while segment operating profit climbed 25% and margin widened to 19.1%. However, International Plumbing sales declined 5% amid difficult European comparisons and continued softness in China.
Decorative Architectural Products sales were flat. Mid-single-digit growth in PRO paint was offset by low-single-digit declines in DIY paint as consumers remained cautious. Behr's ChatHUE AI color-selection tool and marketing investments could strengthen its positioning when demand improves. Segment operating margin held at 20.1%.
Masco raised its 2026 adjusted EPS guidance to $4.65-$4.75 and expects operating margin of 18-18.5%, while retaining its low-single-digit sales growth outlook. Its repair-and-remodel focus, aging housing stock and pent-up project demand offer longer-term support. Still, mid-single-digit input-cost inflation, including copper, oil-based products and freight, could pressure margins. Management estimates an $85 million net tariff-refund benefit for 2026, but said the guidance increase reflects stronger operating execution. Execution on pricing, cost savings and brand investments remains key.
Masco vs. Fortune Brands & RPM: Growth Test?
Masco appears better positioned than Fortune Brands Innovations, Inc. (FBIN - Free Report) , while RPM International Inc. (RPM - Free Report) benefits from broader end-market exposure. Masco’s performance is supported by Delta-led North American Plumbing demand, pricing discipline, cost savings and operational efficiencies.
Meanwhile, Fortune Brands faces pressure from softer Water demand, execution issues and portfolio restructuring, although its established brands and retail relationships remain strengths. RPM’s diversified exposure to performance coatings, consumer products and construction markets provides demand support from maintenance, infrastructure and industrial activity.
MAS’ advantage lies in its strong plumbing brands, professional-channel traction and ability to expand margins despite uneven demand. Still, RPM’s diversification potentially makes Masco’s overall competitive edge less decisive.
MAS Stock’s Price Performance & Valuation Trend
Shares of this Michigan-based home improvement and building products manufacturer, seller and installer have climbed 32.1% so far this year, outperforming the Zacks Building Products - Miscellaneous industry, the Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
MAS stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 17.86, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of Masco
The Zacks Consensus Estimate for Masco’s 2026 and 2027 earnings reflects an upward trend over the past 30 days, currently settling at $4.67 and $4.70 per share, respectively. The revised estimates for 2026 and 2026 imply year-over-year improvements of 17.9% and 0.8%, respectively.
Image Source: Zacks Investment Research
Masco currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.