MASCO CORP /DE/ (MAS)·Q4 2025 Earnings Summary

Masco Beats on EPS, Announces $2B Buyback as Paint Segment Struggles

February 10, 2026 · by Fintool AI Agent

Masco Corporation (NYSE: MAS) reported Q4 2025 results this morning, delivering a mixed quarter with adjusted EPS of $0.82 beating consensus by 3.8% while revenue of $1.79 billion missed estimates by 1.4% . The home improvement products manufacturer announced a new $2.0 billion share repurchase program and guided 2026 adjusted EPS of $4.10-$4.30, above prior analyst expectations . The stock rose 1.6% in after-hours trading to $74.04 following the results.

Did Masco Beat Earnings?

Masco delivered a split decision in Q4 2025, beating on profitability while missing on the top line:

*Values retrieved from S&P Global

The EPS beat was driven by effective cost management and share repurchases, which reduced diluted shares outstanding to 207 million from 215 million a year ago . The revenue miss reflected continued weakness in the Decorative Architectural Products segment, which includes the Behr paint business.

What Drove the Segment Divergence?

The story of Q4 was a tale of two businesses—Plumbing thriving while Decorative struggled:

Plumbing Products delivered solid growth:

• Revenue: $1,248M, +5% YoY (+3% in local currency)
• Adjusted operating margin: 16.3%
• International sales +1% in local currency
• Key brands Delta and hansgrohe continue to outperform

Decorative Architectural Products faced headwinds:

• Revenue: $545M, -15% YoY
• Adjusted operating margin: 13.9%, down 380bps YoY
• Behr paint volumes declined amid soft DIY demand
• North American sales -5% in local currency

A notable organizational change: Liberty Hardware is being integrated into Delta Faucet Company and will be reported within Plumbing Products going forward, part of Masco's "consumer driven strategy to leverage our brands, capabilities, and scale" .

What Did Management Guide?

Masco's 2026 outlook calls for modest improvement despite uncertain macro conditions:

CEO Jon Nudi set expectations: "For 2026, we believe sales across the global repair and remodel markets will be roughly flat. We expect our sales to be roughly flat to up low-single digits when adjusted for currency, as we expect to continue to outperform the market" .

The guidance includes approximately $50 million in restructuring charges in 2026 ($0.19/share impact), on top of $18 million incurred in Q4 2025 . Management expects these actions to "fund additional growth initiatives and contribute to future margin expansion."

How Did the Stock React?

Masco shares initially traded lower during the session but reversed course following the earnings release:

• Previous close: $72.87
• Intraday low: $71.33 (-2.1%)
• Regular close: $71.61 (-1.7%)
• After-hours: $74.04 (+1.6% vs close)

The positive after-hours reaction suggests investors responded favorably to the EPS beat, the $2B buyback announcement, and the 2026 guidance that implies margin recovery despite flat sales.

Looking at the last 8 quarters, Masco has beaten EPS estimates in 6 of 8 reports (75% beat rate). The Q3 2025 miss ($0.97 vs $1.03 expected) was followed by this Q4 beat, suggesting management has right-sized expectations.

What Changed From Last Quarter?

Several notable shifts from Q3 2025:

Improving:

• Plumbing segment momentum: +5% growth vs flat in Q3
• Capital returns accelerating: $281M returned in Q4 vs $832M for full year
• New buyback authorization provides ammunition for continued returns

Deteriorating:

• Decorative segment: -15% vs -10% in Q3, showing acceleration of weakness
• Gross margins: 33.9% vs 34.2% in Q3
• Operating margins compressed further from restructuring actions

New Developments:

• Executive Committee established with "dual corporate and business unit representation"
• Liberty Hardware integration into Delta Faucet announced
• $2.0 billion buyback authorization effective immediately

Q&A Highlights: What Investors Asked

Copper Inflation Risk — Matthew Bouley (Barclays) pressed on copper prices. CFO Rick Westenberg acknowledged mid-single-digit commodity inflation in Q4 plumbing, with the same expected in 2026 . There's a ~6 month lag before commodity costs hit the P&L. Management hasn't modeled copper above $6/lb COMEX: "We do have the opportunity to respond, whether it's through further cost actions or pricing, to mitigate those impacts" .

Tariff Exposure Quantified — Total annualized tariff cost impact is now $200M (down from $270M as of Q3 call), with ~$80M from 20% China tariffs and ~$120M from other tariffs plus 323% glass anti-dumping duties . China import exposure will fall below $300M by year-end 2026, a 60%+ reduction from 2018 peak .

Plumbing Pricing Mechanics — Pricing contributed 5% in Q4 plumbing (more pronounced in North America than international) . Management expects mid-single-digit pricing benefit for full-year 2026 as mitigation actions lap .

DIY vs Pro Paint Strategy — CEO Nuti highlighted the pro paint market as "the biggest single segment Masco competes in... over $10 billion" . Masco has less than 10% share but has gained 200bps since 2019. Home Depot is trialing trade credit, which management believes "will make a real difference" for pro adoption .

Liberty Hardware Margins — The business dropped to mid-to-high single-digit operating margins in 2025 (vs 16-17% in 2024) due to tariffs and 323% glass anti-dumping duties on shower door sourcing . Integration into Delta expected to drive improvement in 2026.

2026 Margin Cadence — Expect margin contraction in H1 2026 as tariff impacts that hit H2 2025 are lapped, with expansion in H2 as "mitigation actions continue to take hold" .

Watkins Wellness Opportunity — Spas/hot tubs have only 5-6% household penetration in North America; saunas just 1% . Management sees significant runway in wellness trends.

What Did Management Emphasize?

CEO Jon Nudi struck a cautiously optimistic tone while acknowledging the challenging environment:

"Overall, our fourth quarter operating results were largely in line with our expectations, as we continued to navigate through a dynamic geopolitical and macroeconomic environment."

On the restructuring actions:

"We are taking decisive actions to further position our business to drive results and deliver long-term shareholder value... We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion."

On capital allocation:

"Our dividend and our share repurchase program are important pillars of our capital allocation strategy to deliver value to our shareholders. The new $2.0 billion share repurchase program underscores Masco's resilient business model, strong financial position and the Board's confidence in our future performance."

Full Year 2025 Summary

For context, here's how the full year shaped up:

Despite the revenue decline, Masco maintained strong cash generation and continued aggressive capital returns, buying back $571 million in stock and paying $261 million in dividends .

Balance Sheet & Liquidity

Masco's financial position remains solid:

The company has ample capacity for the new $2B buyback program with $1.6B+ in liquidity and stable debt levels.

Looking Ahead: Key Catalysts

Near-term (Q1-Q2 2026):

• Housing market trends and mortgage rate trajectory
• Restructuring benefits beginning to flow through
• Spring selling season performance for Behr paint
• H1 margin pressure as tariff comps lap, H2 recovery expected

Medium-term:

• Liberty Hardware integration synergies
• International Plumbing expansion (upper premium/luxury fastest growing)
• Repair & remodel market recovery timing
• Home Depot trade credit trial expansion for pro paint

Risks to monitor:

• Copper prices above $6/lb COMEX not modeled in guidance
• Continued DIY paint demand weakness (correlated with existing home sales at multi-decade lows)
• Tariff exposure: $200M annualized impact including 323% glass anti-dumping duties
• Housing affordability constraints limiting R&R spending
• Restructuring execution risk ($50M in charges ahead)

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Masco reports Q1 2026 earnings in early May. The company's investor relations materials are available at masco.com.

Related: View Masco Company Profile | Q4 2025 Transcript | Q3 2025 Earnings