Masco Q2 profit beats; raises 2026 adjusted EPS forecast

Masco

29/07/2026 12:12

Overview
U.S. home improvement products maker's Q2 sales fell 3%, missing analyst expectations
Adjusted EPS for Q2 rose 26% and beat analyst expectations
Company returned $454 mln to shareholders via dividends and buybacks

Outlook
Masco raises 2026 adjusted EPS guidance to $4.40-$4.60 from $4.10-$4.30
Company expects 2026 EPS in the range of $4.21-$4.41
Masco says volatility in macroeconomic and geopolitical environments expected to persist

Result Drivers
SALES DECLINE - Co said Q2 sales fell due to a challenging comparison with the prior year and targeted strategic investments to support growth
TARIFF REFUNDS - Co recognized a net benefit of about $95 mln from IEEPA tariff refunds, which helped drive adjusted operating profit and adjusted EPS growth
MARGIN IMPROVEMENT - Gross and operating margins increased, attributed to operational excellence and leveraging industry leading brands

Company press release: ID:nBw2jR40qa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.99 bln
$2.08 bln (19 Analysts)
Q2 Adjusted EPS
Beat
$1.64
$1.32 (19 Analysts)
Q2 EPS
 
$1.60
 
Q2 Gross Margin
 
43.60%
 
Q2 Adjusted EBIT Margin
 
24.20%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Masco Corp is $82.00, about 0.5% above its July 28 closing price of $81.61
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
July 28 - Sherwin-Williams raises profit forecast, expects higher prices to drive growth
July 29 - Stanley Black & Decker Q2 adjusted EPS beats estimates on volume growth 
July 28 - Pentair falls as pool equipment destocking hits sales; to buy Taco Group for $1.4 billion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)