$MAS · MASCO CORP /DE/
Masco Corporation reported Q3 2026 net sales of $1.966B (+2.6% YoY), with net income attributable to Masco of $230M and diluted EPS of $1.17, up 30% from $0.90. Gross margin expanded 240 bps to 36.6%, while operating margin improved 140 bps to 17.2%. The company completed the divestiture of its Bristan UK business for £49M and continued aggressive share repurchases totaling $852M year-to-date.
- Q3 net sales rose 2.6% YoY to $1.966B, driven by 4% higher net selling prices offsetting 2% lower volume.
- Gross margin expanded 240 bps to 36.6% on cost savings initiatives and lower tariff costs.
- Diluted EPS of $1.17 surged 30% from $0.90 a year ago.
- Operating profit grew 12% to $338M with operating margin improving 140 bps to 17.2%.
- Share repurchases totaled $852M in the first nine months, reducing shares outstanding to 192.8M from 204.3M at year-end.
Extended-hours trading shows MAS at $80.00, up 6.44% from the $75.16 regular close, indicating strong positive reaction to the margin expansion and EPS beat.
Masco's 30% EPS growth and 240 bps margin expansion in a challenged housing market demonstrate exceptional pricing power and cost discipline, driving a 6%+ after-hours rally.
Masco's 240 bps gross margin expansion and pricing power in plumbing and decorative architectural products contrasts with broader building products peers facing demand headwinds from elevated interest rates.
Higher commodity costs partially offset pricing gains; SG&A rose 8% to $381M driven by employee-related costs. Negative shareholders' deficit of $193M reflects aggressive buyback program funded partly by $300M term loan proceeds.