0000062996-26-000014
SEC filingMasco delivered solid revenue and profit growth in Q1 2026, driven by pricing actions and cost savings, though operating cash flow remained negative due to seasonal working capital build.
Net sales for the first quarter of 2026 were $1.9 billion, a 6.5% increase compared to $1.8 billion in the prior year. Excluding the effect of currency translation, net sales increased four percent, primarily due to higher net selling prices across the entire company, which increased sales by five percent, partially offset by lower sales volume of paints and other coating products, which decreased sales by one percent. In the Decorative Architectural Products segment, net sales were consistent with the prior period as lower sales volume was mostly offset by higher net selling prices.
Gross profit increased 6.5% to $686 million, and gross margin was 35.8%. Operating income grew 10.5% to $316 million, resulting in an operating margin of 16.5%. The improvement in operating profit was driven by higher net selling prices and cost savings initiatives, which more than offset higher commodity and tariff costs and an increase in other expenses. Net income rose 14.5% to $213 million, and diluted earnings per share increased 20.7% to $1.05, reflecting higher net income and the benefit of share repurchases.
Operating profit in the Plumbing Products segment was positively impacted by higher net selling prices and cost savings initiatives, partially offset by higher commodity and tariff costs and an increase in other expenses. The company continues to take actions to drive efficiency through strategic rationalization, including business consolidations, plant closures, headcount reductions, and other cost savings initiatives.
Due to a dynamic geopolitical and macroeconomic environment, Masco is experiencing, and may continue to experience, lower market demand for its products. The company expects to manage these headwinds through pricing actions, cost savings, and sourcing initiatives. Longer-term working capital and other general corporate requirements are expected to be satisfied through cash flows from operations and, to the extent necessary, from bank borrowings and future financial market activities.