Masco raises annual profit guidance on tariff refunds
The home improvement company raised its 2026 adjusted earnings per share forecast to a range of $4.40 to $4.60
Masco (MAS) reported a 26% increase in adjusted earnings per share for the second quarter. The home improvement company saw profit growth accelerate from the 20% increase reported in the first quarter.
Net sales fell 3% year-over-year to $1,992 million. This followed a 6% increase to $1,918 million in the prior quarter.
Profitability improved despite the decline in top-line revenue. Adjusted gross margin expanded 610 basis points year-over-year to 43.8%, up from 36.0% in the first quarter. Adjusted operating margin rose to 24.2%, compared to 20.1% in the second quarter of 2024 and 16.9% in the first quarter of 2025.
Performance diverged by region and product line. North American sales decreased 5% in local currency, a reversal from a 5% increase in the first quarter. International sales rose 4% in local currency, accelerating from a 1% increase in the prior quarter.
Plumbing Products net sales decreased 3% year-over-year, compared to a 9% increase in the first quarter. Decorative Architectural Products net sales fell 4% year-over-year, having been in line with the prior year during the first quarter.
Masco raised its 2025 adjusted earnings per share guidance to a range of $4.40 to $4.60 from a previous range of $4.10 to $4.30. The increase was driven by an anticipated full-year net benefit of approximately $85 million from IEEPA tariff refunds. In the second quarter, the company recognized a one-time net benefit of approximately $95 million from those refunds.
Masco returned $454 million to shareholders through dividends and share repurchases in the second quarter. This was an increase from the $267 million returned in the first quarter.