With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are home equipment and furnishings and household and personal products.

Fortune Sector Leaders: Household Products

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

The home improvement manufacturing conglomerate operates 60 facilities in the U.S. and more than 20 in other parts of the world. Delta faucets and Behr paints are among its best-known brands.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-384-Masco

The Livonia, Mich.-based distributor of home improvement and building products also makes faucets, cabinets, coatings, and windows.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fortune Global 500

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Masco Corporation manufactures and distributes home-improvement and building products. Its plumbing portfolio includes shower drains, sinks, accessories for kitchens and bathrooms, spas, exercise pools, and saunas. The decorative products segment includes paints, primers, and bath and cabinet hardware. Its products appear under several brand names, such as Delta, Brizo, and Behr, and are sold through wholesalers, e-commerce, and other outlets for contractors and homebuilders, plus direct to the consumer.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Masco (MAS): Company Profile, Stock Price, News, Rankings

legacy

Masco

masco

Good morning, ladies and gentlemen. Welcome to the Masco Corporation's first quarter 2026 conference call. My name is Jeannie, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. To ask a question, please press star and the number one on your telephone keypad. To withdraw your question, please press star one again. Thank you. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP&A. You may begin.

Thank you, operator, and good morning, everyone. Welcome to Masco Corporation's 2026 first quarter conference call. With me today are Jon Nudi, President and CEO of Masco, and Rick Westenberg, Masco's Vice President and Chief Financial Officer. Our first quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can't take your question now, please call me directly at 313-792-5500. Our statements today will include our views about future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements.

We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K and our Form 10-Q that we filed with the Securities and Exchange Commission. Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to Jon.

Thank you, Robin, and good morning, everyone, and thank you for joining us. Before I discuss our quarterly results, I want to spend a few minutes talking about the continued evolution of our Masco Executive Committee, which we established at the end of last year. Jai Shah, Group President, Plumbing and Wellness, and Rick Marshall, Vice President of Masco Operating System, recently announced their intent to retire from Masco later this summer. I'd like to thank both Jai and Rick for their leadership and their important contributions to both our business and our culture. With Jai's retirement, we've taken steps to further streamline our organization. The leaders of our four largest businesses, Delta, Hansgrohe, Behr, and Watkins Wellness, will now all report directly to me.

These four leaders have over 80 years of combined service at Masco, have extensive experience in our industry, and are key contributors to Masco's performance and our culture. Furthermore, we are adding two new leaders to our Executive Committee with expertise in supply chain and procurement. The addition of these leaders and capabilities will enable us to drive additional efficiencies, leverage our scale, and enhance our speed of execution across the enterprise. The structure and leadership composition of our Executive Committee will help enable greater agility and tighter alignment between corporate and business unit priorities, all in the pursuit of delivering above-market top and bottom-line growth. In addition, we have continued the implementation of other initiatives that were announced earlier this year. Our integration of Liberty Hardware into Delta Faucet Company is on track as we further leverage the brands, capabilities, and scale for Delta Faucet business.

Restructuring actions to streamline our business, reduce headcount, and optimize operations are ongoing. We incurred approximately $8 million in restructuring charges in the first quarter, and we continue to expect approximately $50 million in total charges in 2026. The savings generated from these actions will fund additional growth initiatives and contribute to our future margin expansion. We're already experiencing the positive impact of these actions in our results. With that, let's dive into our first quarter results. Please turn to slide 5. Overall, we are pleased with our performance in an extremely dynamic environment. Net sales increased 6%, or 4% in local currency, primarily driven by favorable pricing. Additionally, while still down slightly, this was our strongest year-over-year first quarter volume performance since the end of the pandemic. Operating profit was $324 million, an increase of 13%. Operating profit margin was 16.9%, an improvement of 90 basis points.

Earnings per share grew 20% during the quarter to $1.04 per share. Now, turning to our segments, Plumbing Products sales increased 7% in local currency, exceeding our expectations, largely due to more resilient-than-expected volume. North American sales increased 9% in local currency, driven by favorable pricing as well as slightly higher volumes. Delta Faucet delivered a strong quarter with sales growth across all three channels, trade, retail, and e-commerce. Additionally, Delta Faucet was recognized by USA Today as a most trusted brand and by Newsweek as one of America's most trustworthy companies, demonstrating the significant strength of Delta's brand and service capabilities, which are resonating with customers and consumers. Turning to International Plumbing, sales increased 1% in local currency, driven by growth across many European markets, particularly Germany, partially offset by the ongoing weak market in China.

Operating profit for the plumbing product segment grew 10% to $250 million, and operating margin expanded 10 basis points to 18.3%. Turning to our Decorative Architectural segment, sales were in line with the prior year. DIY paint sales decreased low-single digits, while pro paint sales grew mid-single-digits. Operating profit for the segment increased 19% to $105 million, and operating margin was 19%. Showcasing our commitment to innovative new products, BEHR PREMIUM PLUS ECOMIX was recently named a 2026 Sustainable Products of the Year, where it continues its industry leadership in delivering both innovative and sustainable products. Turning to capital allocation, our strong cash flow allowed us to return $267 million to shareholders this quarter through dividends and share repurchases. We are pleased with the first quarter performance and the team's strong execution and operational focus.

Additionally, I'm proud of how our teams are working quickly to implement various restructuring actions to ensure we have the appropriate cost structure for our business in this rapidly changing environment. Turning to our expectations for the full year, we continue to face a highly dynamic macroeconomic and geopolitical environment. Therefore, we believe it is prudent to maintain our 2026 earnings per share guidance in the range of $4.10-$4.30 per share. Our guidance includes our expectation that our sales will now be up low-single digits for 2026, but that we will also incur higher than previously anticipated commodity costs. Rick will share additional details of our guidance in a few moments. While uncertainty remains in the near term, we are focused on positioning ourselves for ongoing sales and profit growth over the mid to long term.

The structural factors for repair and remodel activity are strong, including record high home equity levels, the age of the housing stock, and increasing pent-up demand for renovation projects. As consumer sentiment improves, interest rates decrease, and existing home turnover increases, we expect these favorable fundamentals to become a tailwind for our business. In addition, we are taking the right actions to optimize our business, leaving us well-positioned to deliver above-market top and bottom-line growth. We are committed to our consumer-driven strategy, which leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We look forward to further sharing this strategy and our long-term goals with you, either in person or online at our upcoming Investor Day on Wednesday, May 13th in New York City. With that, I'll now turn the call over to Rick to go over our first quarter results and 2026 outlook in more detail. Rick?

Thank you, Jon, and good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items. Turning to slide seven, we delivered strong first quarter results, with total sales increasing 6% or 4% excluding the favorable impact of currency. In local currency, North American sales increased 5% and international sales increased 1%. Gross margin expanded 10 basis points to 36% in the quarter. SG&A as a percent of sales was 19.1%, 80 basis points lower than the prior year. Operating profit grew 13% to $324 million in the quarter, and our margin expanded 90 basis points to 16.9%. Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Our EPS grew 20% to $1.04 per share in the quarter.

Turning to slide 8, plumbing sales increased 9% in the first quarter or 7% excluding the favorable impact of currency. While this growth was primarily driven by pricing actions, which increased sales by 6%, our performance was better than expected, driven by volume, which was up slightly in the quarter. In local currency, North American plumbing sales increased 9% in the quarter. This performance was primarily driven by strong growth in our Delta Faucet and Watkins Wellness businesses. In local currency, international plumbing sales increased 1% in the quarter. Hansgrohe grew in many of its European markets, including its key market of Germany. This growth was partially offset by softness in China and other smaller markets. Segment operating profit in the first quarter increased 10% to $250 million, and operating margin expanded 10 basis points to 18.3%.

Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Turning to slide 9, Decorative Architectural sales were in line with the prior year. This performance was driven by mid-single digit growth in our pro paint sales, offset by a low-single digit decrease in our DIY paint sales. These results were largely in line with our expectations, and we continue to anticipate full-year pro paint sales to increase mid-single digits and for DIY paint sales to decrease mid-single digits. Operating profit in the first quarter was $105 million. Growth versus the prior year was primarily driven by cost savings initiatives, which are inclusive of benefits from our recent restructuring actions as well as increased pricing. This was partially offset by higher commodity costs.

Operating margin was 19% in the quarter and reflects the benefits of our Liberty Hardware business now being reported in our plumbing segment. This was coupled with a more normalized first quarter for our paint business as we lapped the inventory timing dynamic that unfavorably impacted the first quarter of last year. Turning to slide 10, our balance sheet remained strong with gross debt to EBITDA at 2.1x at quarter end. We finished the quarter with $1.3 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 19.5% of sales at quarter end. As expected, working capital balances in the first half of the year remain elevated versus the prior year due to the timing of when tariffs were implemented. However, we continue to anticipate working capital as a percent of sales will be approximately 16.5% at the end of the year.

Our strong cash performance enabled us to return $267 million to shareholders through dividends and share repurchases, including the repurchase of $202 million of stock in the first quarter. Additionally, based on the strength of our balance sheet and confidence in our future performance, we recently entered into a two-year delayed draw term loan of up to $500 million. We plan to utilize the available funds under this facility to opportunistically repurchase our shares. As a result, we now expect to deploy at least $800 million towards share repurchases or acquisitions in 2026, up from our previous expectation of approximately $600 million. Now let's turn to slide 11 and review our outlook for 2026. While we are pleased with our strong results in the first quarter, there remains a high degree of uncertainty in the macroeconomic and geopolitical environment. As a result, we are largely maintaining our full-year outlook.

For Masco overall, we expect 2026 sales to be up low-single-digits versus our previous guide of flat to up low-single-digits, and we continue to expect our margins to expand to approximately 17%. Regarding cadence for the year, given the timing of tariff impacts, which largely impacted our results in the second half of last year, we anticipate total Masco margin to be relatively flat in the first half of the year versus our previous guide of margin contraction to expand in the second half of the year as we lap the tariff impact and as our mitigation actions continue to take hold. As it relates to tariffs, on our prior earnings call, we estimated the total cost impact from incremental tariffs to be approximately $200 million before mitigation this year.

Given the recent ruling on IEEPA tariffs, the implementation of temporary Section 122 tariffs, and changes to how Section 232 tariffs on steel, aluminum, and copper are applied, we do anticipate the impact of these tariff changes before mitigation to be favorable. However, given the great deal of uncertainty as to where tariffs will ultimately land, it is challenging to quantify. In addition, we anticipate any tailwind from these tariff changes will be more than offset by anticipated increases in commodity and related input costs. Copper prices remain elevated, and oil, which impacts a wide range of material as well as logistics costs, also remains elevated and volatile. We continue to monitor these dynamics and will work diligently to mitigate the impacts, as we have demonstrated in the past. Turning to our segments.

In our Plumbing segment, we continue to expect 2026 full year sales to be up low-single-digits and our operating margin to expand to approximately 18%, driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. In our Decorative Architectural segment, we continue to expect 2026 sales to be roughly flat with the prior year and our operating margin to be approximately 19% with a continued focus on cost savings initiatives. Finally, as Jon mentioned earlier, we are maintaining our 2026 EPS estimate of $4.10-$4.30 per share. This now assumes a 200 million average diluted share count for the year versus our previous guide of 202 million shares and a 24.5% effective tax rate. Additional financial assumptions for 2026 can be found on slide 14 of our earnings deck. With that, I would like to open up the call for questions. Operator?

In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session. Again, to ask a question, please press star then the number one on your telephone keypad. To withdraw your question, please press star one again. Your first question comes from the line of John Lovallo with UBS. Please go ahead.

Good morning, guys. Thanks for taking my questions. The first one is just on the Section 232s. You said that this could be actually favorable, which seems right to us, but is this really driven by the fact that the product that you're importing, whether it's faucets or shower heads, are not entirely copper and that some of the sub-assembly is done in the U.S.? How do you wrap your arms around what this potential benefit could be?

Yeah. Hey, John. Good morning. It's Rick. With regards to our comments on the potential favorability on the tariff impact, it's really a composite impact, so it's not just the 232 tariffs, but it's the ruling on the IEEPA tariffs at the end of February, the imposition of Section 122 tariffs, and then of course, the 232 tariffs which you speak. We look at it from a composite perspective. The 232 tariffs themselves are relatively nominal in terms of their net impact, but on composite, we expect a favorable impact. In addition to the ones that we talked about in our opening comments, as you probably are aware, the administration is looking into a couple investigations on Section 301 tariffs as well. The environment remains uncertain.

We think on net it'll be favorable for us for the year, but it's difficult to quantify just given the moving parts. As we also mentioned, we think any favorability will likely be offset by elevated commodity costs as we talked about.

Okay. That's helpful. I think you guys said your prior estimate was for consolidated pricing.

To be up low-single-digits with mid-single-digit pricing and plumbing and sort of flattish in Decorative Architectural. How are you guys kind of thinking about this now, particularly with the move in resins since the conflict in the Middle East began?

Yeah. With regards to our pricing expectations for the year, our Plumbing expectation is mid-single-digit%. In terms of Decorative Architectural, it's really going to be dependent on where we end up from a commodity perspective. We are seeing significant headwinds given the elevated and volatile oil prices and the impact that it has really across the input spectrum and including freight costs as well, but certainly on the Decorative Architectural side with regards to resins, et cetera. We're seeing upward pressure in the neighborhood of mid- to high-single-digit%. Obviously, that's still in discussion. That's something that we're tracking very closely. I think from an overall company perspective, we would expect mid-single-digit% inflation, and that's really commodities as well as run-of-the-mill inflation as well. It's something that we're monitoring and managing very closely.

We do have a track record of offsetting and managing through these challenges, and we believe we'll do so here as well through a combination of levers. That's really the landscape. A caveat is, as we all recognize, it's still uncertain, but there is upward pressure.

Your next question comes from the line of Stephen Kim with Evercore ISI. Please go ahead.

Yeah. Thanks very much, guys. Appreciate it. I think you effectively have said that you think—well, you just reiterated that you think that the changes in the tariffs will largely be offset by the commodity. Was wondering if you could give us just an overall estimate of how much that piece, which will be transferred effectively, will be for the year, and if there's a quarterly cadence to that that we should be mindful of?

Stephen, just to clarify your question, in terms of the transfer of cost, could you just elaborate?

The offset. You were basically saying that the tariff changes could be beneficial to you, but the commodity costs will be higher and that those pieces would effectively be offsetting, if I heard you correctly. I'm just wondering how big is that piece effectively?

Yeah. We're not going to quantify the actual magnitude of it. I think on a net basis, you can think of them as relatively flat to potentially a headwind for us for the year, just given the extent of commodity inflation that we've seen really across many input costs, particularly copper and zinc, as well as oil-based inputs, particularly resins, et cetera. We're basically tracking that. I think at the end of the day, those commodity costs are going to offset the favorability or potentially more than that. In terms of your second question, quarterly cadence, this is largely a back half of 2026 phenomenon. As I think we've described in the past, particularly on the plumbing side of the business, commodity costs, when they show up in the market, really have to flow through our inventory and then our P&L, usually a couple of quarters later.

We saw elevated copper and zinc costs really as we entered into 2026, so that'll be more of a back half 2026 phenomenon. As it pertains to oil and resin costs, that's a little bit more near term because we've been seeing that as of late, and that's more of a quarter to two quarters out. It's really kind of as we approach mid-year and the second half of the year that we would see that impact. That lines up pretty cleanly with regards to our tariff favorability, because the tariff favorability is largely driven by the IEEPA tariff ruling. That occurred, as we all know, on February 20th. That takes some time to flow through our P&L as well.

They tend to map pretty cleanly, but at the end of the day, there's still a lot of volatility out there, Stephen, as you recognize.

Okay, great. That's actually a good cleanup. Appreciate that. In the Decorative Architectural segment, your margins were stronger than we expected. I was curious if you could give us some sense for the relative importance of the cost savings initiatives from restructuring versus pricing. Give us a sense for what your expectation is about the quarterly cadence, because we typically see the margins rise in 2Q and 3Q from 1Q. Is there anything that we should be mindful of that would be different this year than normal?

Yeah. Hi, Stephen, it's Jon. I'll jump in first and then Rick can follow up with anything on this here. I guess overall, we feel good about the trajectory that our paint business is on. As you know, we exited 2025 with a challenging year behind us and we feel better about our performance. Again, we saw our business overall flat with pro paint growing mid-single digits, DIY down low-single-digits. We feel great about the plans we have in place with our retail partner. We'll continue to, again, grow share with the pro painter which is a big opportunity for us, and we've got a significant amount of headroom there. Then make sure that we continue to grow with DIY as well, where we have a significant share. In terms of margins, I would say yes, they were up significantly versus last year.

They were much more normalized versus a typical Q1, though we had an easy comp this year versus Q1 of last year. We feel good about our ability to continue to manage our margins and move forward. I would say our restructuring actions are paying off, and particularly at our Behr business, as we've taken significant steps to really streamline our cost structure and allow us to compete in a market that hasn't been growing the way that we'd like overall. I'll let Rick answer the question just on quarterly cadence, but hopefully that gives you a good perspective.

Yeah, Stephen. Jon's comments were spot on in terms of the implications on Q1. I would just reinforce that the performance in Q1 was driven really based off of cost reduction actions that were in our control, including the restructuring actions that Jon alluded to. We did see some low single-digit inflation in the commodity input costs. That's something that we are mindful of, and as I mentioned earlier, are expected to increase over time.

That's something that we're tracking. I think in terms of our margin performance in Q1, it was largely in line with what we would have seen from a historical standpoint on a clean Q1.

Your next question comes from the line of Sam Reid with Wells Fargo. Please go ahead.

Thanks, everyone. Congrats on the quarter here. In plumbing, really nice beat versus expectation. I just wanted to perhaps unpack the plumbing volumes that you put up during the quarter. I know they were modest, but I believe there was some volume benefit there. I just wanted to double confirm that there wasn't anything one-time or any pull forward in there around pricing that we should be mindful of.

Hi, Sam, this is Jon. I would say the short answer is no. It was a pretty normalized quarter in terms of inventories. We feel really good about our plumbing business and the performance that team put up really around the world, where we saw our business grow nicely. Our North American business in particular, with Delta Faucet Company, had a terrific first quarter, growing high single digits. If you look at our beat versus our internal expectations for Q1, it was really plumbing, and then primarily North America plumbing, and the vast majority of that beat was really just volume versus expectations. As you're aware, we took a fairly significant amount of pricing as we exited last year. The team's done a terrific job really putting that pricing in place, and navigating with our customers to have really good plans.

We saw our volume perform better than we would have expected from an elasticity standpoint. We feel like the fundamentals are incredibly strong. We grew share across our channels. In fact, we grew in every channel across plumbing, whether it be wholesale, trade, or e-commerce. We've got a great new product line up. Our marketing plans are strong. We feel really good about our plumbing business and we'll continue to focus on it as we move through the rest of the year.

That's super helpful. Then maybe double-clicking on the plumbing price in a little bit more detail. It sounds like the strength was widespread across all of your channels. Could you perhaps give us a little bit more color on whether there were any nuances between plumbing price, say, retail versus wholesale versus e-com? Would just love maybe a view on how that plumbing price might have looked by channel. Thanks.

Yeah, Sam. This is Jon again. We typically don't get into that level of detail from a pricing standpoint. I think suffice to say, though, is if you look at our results, we executed our plans well from a pricing standpoint across all channels, given that we saw the price realization from the market that we had hoped for, and our elasticities weren't as severe as they could be. Again, we feel really good about how we navigated. The performance was pretty consistent through all channels. Again, in North America, it was high-single-digits%, which is terrific.

Your next question comes from the line of Matthew Bouley with Barclays. Please go ahead.

Morning, everyone. Thank you for taking the questions. I wanted to start on the growth guidance in plumbing. You obviously started the year at this 9% growth and still guiding the full year up low-single-digits. Presumably, those pricing comps will get a lot tougher in the second half. I guess that part is understood. You would still need a lot more deceleration either as soon as Q2 or perhaps even a negative comp at some point just to kind of hit that guide. I guess the question is, should we be expecting that deceleration in growth is sort of already happening here in Q2? Or are you just really building in a lot of conservatism around the volume side that you kind of think is prudent here to sort of get that type of deceleration? Thank you.

You're welcome. This is Jon. As I mentioned, really pleased with the performance in Q1. As we look to the remainder of the year, really it's the uncertainty that we see in the world around us that causes us to keep our guidance where it is. Certainly, you had all of the uncertainty prior to the war in Iran with tariffs and consumer sentiment and things like that. Then obviously the war adds a whole another level of uncertainty. We're looking at two things very closely. One, the demand environment and how are consumers purchasing across our markets. To date, we have not seen a meaningful change, but it's something that we're looking at very closely. I think as the oil shock ripples through the economy, we have questions in terms of how the economy is going to perform.

Again, nothing to date that gives us pause, but we're going to continue to watch that closely. As Rick mentioned earlier, what we have seen certainly is the impact of inflation from the oil shock, particularly in petrochemicals and particularly in our Decorative Architectural business. As Rick also mentioned, our team has really, I think, distinguished itself as being able to navigate through tough times and a dynamic environment, and we'll do everything that we can to offset that inflation by negotiating with their suppliers, looking at footprint. But ultimately, if we have to take price, we'll work to do that in a very efficient and effective way.

Got it. Okay. That's very helpful. Secondly, shifting over to the Hansgrohe business. Question is on basically both demand and energy costs, specifically in Europe. As the conflict began, the question is, have you sort of seen any changes either from a consumer perspective? It sounded like Europe was still positive in the quarter, but anything changing on the margin around demand in Europe or just the energy costs related to natural gas in your business there? Any kind of color on how you expect that to play out. Thank you.

You're welcome. I'd say similar to what we're seeing in North America. We haven't seen a dramatic change to date, something we're obviously watching closely. We see commodity pressure in Europe just like we do in North America, and that Hansgrohe team is taking the initiatives to offset it. From a demand standpoint, again, remember that Hansgrohe is really a global business. We like how Europe's holding up at this point. China is no secret. It remains a challenging market from a new home construction standpoint and a building standpoint. If anything, that's the market we continue to look at in terms of trends and looking to improve our trends in that market. Europe's hanging in there pretty well to date, so I feel good about Hansgrohe as well.

Well, great. Thanks, Jon. Good luck, guys.

Your next question comes from the line of Ketan Mamtora with BMO Capital Markets. Please go ahead.

Good morning, and congrats on a strong quarter. Maybe just coming back to the full-year guidance. Jon or Rick, what is the right way to think about what you're embedding as the base case? If volumes, the demand environment stay where it is today, do you expect to be more at the midpoint of that range? How should we think about that?

Yeah, Ketan, good morning. It's Rick. With regards to our guidance, it's informed by all the information that we have to date with regards to what we're seeing in the marketplace. Obviously, the uncertainty in the macroeconomic and geopolitical environment, as well as from an earnings perspective, the tariff implications and the commodity implications that we've spoken to already. At the end of the day, we feel confident in terms of delivering our results within the range. Without further input on that, I think that you can comfortably assume that we'll end in the mid part of the range. From a top-line perspective, our guidance, we did increase our expectations for the year from flat to low-single-digits to up low-single-digits. We do expect growth on our top line this year from a total company perspective, driven primarily in our plumbing space.

From a bottom-line perspective, we do expect earnings growth and EPS expansion and landing in the $4.10-$4.30 range for the year.

Got it. No, that's helpful, Rick. Just as a follow-up, on the capital allocation side, you moved the target higher to $800 million. Is it fair to say that you see bigger opportunity on the share repurchase side, or are you seeing more M&A opportunity as well?

Yeah. Fair question. As it pertains to the increase in our share repurchase expectations or availability for share purchase or acquisitions, basically, we saw an opportunity with regards to the strength of our balance sheet. We've got a very healthy ROS-to-EBITDA ratio or leverage ratio, and our confidence in our performance, obviously demonstrated in Q1, and our confidence in our future performance, an opportunity to look at increasing the cash available for share repurchases from $600 million to at least $800 million. To enable to do that, we entered into, as I mentioned in my opening comments, a delayed draw term loan facility to enable that. So it's really going to be opportunistic. We like the flexibility that that offers. We like the opportunity in terms of the valuation that we're at today to be able to be opportunistic and leverage that.

We'll keep providing updates as we progress on each quarter. Right now, we do expect an increase in share repurchases from $600 million to $800 million plus absent any M&A at this point.

Just reiterating, our capital allocation strategy hasn't changed. We continue to look at M&A, and as we've said before, bolt-on M&A is our focus. If we find the right deal, we'll do it. As Rick mentioned, we just felt like this was a great opportunity because we have the ability to go out and borrow a bit more, and we frankly believe that our shares are at value right now, where we believe that we're performing well, and we think we can continue to as we move into the future as well.

Perfect. That's very helpful. I'll turn it over. Good luck.

Your next question comes from the line of Mike Dahl with RBC Capital Markets. Please go ahead.

Morning. Thanks for taking my questions. I wanted to circle back to some of the cost and margin dynamics. I think the question is, if you look at this being net neutral to less favorable in terms of costs and tariffs and a lot of uncertainty around the second half, I understand that historically you've had the ability to do things to offset this. When you have broad increases in inputs and global tariffs, it's a little harder to get those savings from shifting footprint, unless I'm wrong about that. In your guide, if that is potentially a net negative versus your initial assumption, what is the primary lever that you're relying on to offset that and giving you the confidence to still guide margins up in the back half?

Yeah. Mike, good morning. It's Rick. Your understanding of the playing field is accurate in terms of our read of the fact that commodity and input costs are likely to be a headwind that exceeds the favorability on tariffs. As I mentioned earlier, it is more of a back half of the 2026 dynamic. In terms of the levers that we're looking at, it's really the same levers that we've been executing against already. Footprint, in terms of sourcing footprint, is still a lever that we're pulling. That is really on track in terms of helping to mitigate the tariff impacts that we still are encountering. It's also cost reductions.

We've really executed well in terms of our cost savings initiatives. Of course, the restructuring that we announced in our February call, and Jon alluded to earlier in his opening comments, that is really taking hold. That is amplifying our cost savings initiatives, and we're streamlining the business, reducing headcount, and optimizing operations. That's a huge lever for us, and we're going to continue to do that. Pricing, obviously, we've been really effective at our execution on pricing. Although much of the pricing actions that we've been pursuing are implemented, there's still a lever that we're looking at selectively as we proceed during the course of the year. I would say overall, Mike, the levers remain the same, and we're going to continue to execute like we've done in the past.

We believe that the mitigation actions that we are executing and we intend to execute through the course of the year will be sufficient to allow us to mitigate the headwinds and allow us to deliver results compliant within the guidance range that we provided.

Okay, great. Thanks for that, Rick. That's helpful. Shifting gears and back to the, I guess part of this might tie back to the capital allocation. I did note that in your queue, you have a little bit of commentary about the potential to seek relief or refunds from previously paid tariffs, but that nothing has currently been done or contemplated. What can you articulate about your strategy in terms of seeking refunds, and does that tie in at all to the expanded buyback guidance, where if you do get some refunds, your inclination would be to return that back to shareholders? Or how would you frame that?

Mike, this is Jon. I would say we think the refund process still has a lot of uncertainty in it. Until, if and when we get refunds, we'll obviously report what they might be and how we might handle them. We are not banking on refunds, and it didn't really play any kind of role in our decision to take on the incremental debt that we talked about. Again, we're taking the steps necessary to protect our shareholders. At the same time, it's still highly uncertain, so when we have something to report, we'll certainly do that.

Your next question comes from the line of Trevor Allinson with Wolfe Research. Please go ahead.

Hi, good morning. Thank you for taking my questions. I wanted to follow up on the restructuring actions. I think last quarter you guys had talked about those being bigger impacts to 2027 and 2028, but it sounds like you're seeing those come through this year as well and providing nice tailwinds. Can you size for us what sort of benefit you're getting from the restructuring actions here in 2026? And then how much larger does that become as you move into 2027 and 2028?

Yeah, Trevor, good morning. It's Rick. With regards to the restructuring actions, we're really pleased with the execution, both the true execution and the timing of our restructuring actions. As we disclosed, we incurred about $8 million in Q1. We had incurred several million dollars in Q4 of last year, and we expect $50 million of restructuring costs for the calendar year. Those are on track. We're starting to see those savings. We haven't quantified, nor do we intend to quantify the savings per se, because part of the savings are going to be redeployed in terms of growth initiatives, as well as helping us to expand our margins. That's a contributing factor to our margin expansion this year. You're absolutely right.

The restructuring actions are going to be executed over the course of 2026, and so we'll see more of a full year benefit as we move into 2027, into 2028. We're going to be managing those cost savings and leveraging those to, as I mentioned, to drive growth, as well as managing our margin expansion.

Okay. Thanks for that, Rick. Second question maybe is related to that then. You guys have made some changes in your incentive comp structure recently. It looks like you're being more focused on growth than you have been in the past. Can you talk about that change, why you made the adjustment, and does that imply some shifting priorities for you guys in terms of growth moving forward?

Yeah, sure. This is Jon. Maybe I'll jump in. As I joined Masco last summer, it was clear to me Masco was a high-performing company. As I went and did a listening tour and talked to a lot of key constituents, the one thing I heard is that there's likely an opportunity for us to drive our top line a bit faster. Don't take the focus off of margins, don't take the focus off of cash flow. The company's done a great job on that. If you can continue to deliver the bottom line and grow a little bit faster is probably a benefit to everyone. We've been focused on doing just that. We're taking actions across the board, including the structuring of our Executive Committee to bring some external expertise in areas that we believe that we can benefit, see some additional savings.

We're standing up centers of excellence around things like digital marketing and e-commerce, commercial excellence, all in the pursuit of helping to not only grow the bottom line, but also grow our top line a bit more quickly. Certainly, incentive is important. We did make a change to change the weight in terms of how we incent our teams, and I would say profit's still the largest % of the pie. We just balanced it out a little bit to make sure that we have the appropriate focus on top line as well. I'm really pleased with the progress we're making. I'm pleased that we were able to grow the way we did in Q1. Our goal over time is to be able to do that consistently.

Thank you for all the color. Good luck moving forward.

Your next question comes from the line of Adam Baumgarten with Vertical Research Partners. Please go ahead.

Hey, everyone. Good morning. Nice quarter. I guess just on the margin piece, you talked about first half margins now being flattish year-over-year, which would still imply some margin pressure in 2Q. Do you expect both segments to see margin pressure next quarter?

Adam, good morning. It's Rick. In terms of our margin expectations, you're right. In terms of our updated guide for the first half of the year, it's flat margins. Given the fact that we had expanded margins in Q1, it does imply a margin contraction in Q2. I would just remind you that Q2 of 2025, so last year's quarter, we really weren't impacted by tariffs quite significantly at that point in time, and we had a very strong quarter with regards to 20% margins. It's a challenging quarter from a year-over-year perspective. We do expect a very solid quarter in Q2 from a margin contraction perspective. I'm not going to comment on the segments per se, but overall, we do expect some margin contraction. We do expect to deliver a very strong quarter in Q2.

Okay. Got it. Thanks. I think you guys alluded to maybe some incremental price actions. A couple questions. Would that be in both segments? And would that exist or happen if commodity costs stay where they are today? Or would you need to see more commodity inflation to then think about raising prices further?

Adam, it's Jon. I guess I would say we're not going to talk about prospective price advances. I just would probably tell you to look at history here, the recent history, in terms of how we'd approach things. Pricing is the last resort for us. We start with negotiating with our suppliers, changing our footprint where possible, taking costs out of our own system. If the need is there, I think our team has proven that they can take pricing very effectively and efficiently and do it in a way that benefits not only the bottom line, but doesn't harm the top line as well. We'll continue to monitor things. Again, as we talked before, I'd say the one surprise for us so far this year has been the impacts on petrochemicals and particularly on our architectural business.

That's an area that we have a lot of focus. We're spending a lot of time with our suppliers to negotiate the best deals we can, and then ultimately we'll work with our retail partner, in terms of how we approach that moving forward. Just know that we've had good practice over the last few years, given all the dynamic environment, and feel really confident the team can navigate as we move forward.

Your next question comes from the line of Phil Ng with Jefferies. Please go ahead.

Hey, guys. Congrats on a really impressive quarter. I guess to kind of kick things off, Jon, I think volumes for plumbing came in, as you pointed out, better than you expected. Is that a more resilient consumer, maybe better price elasticity? Can you tease out if there's any share gains or any that drove some of that? Help us kind of think through where plumbing would have surprised, and it sounds like it's been pretty resilient thus far.

Yeah, Phil. Good morning. Yeah, we're really pleased with plumbing. As I mentioned, it's globally we grew, which is great. I would say, again, versus expectations, it was really North America that we saw the beat. As I mentioned, the vast majority of that beat versus our expectation was volume. I would say our Delta team is firing on all cylinders right now. They've got a great marketing plan for the year. They've got terrific new products that they've launched. Our vitality rate continues to increase year-over-year. Our commercial plans with our key customers are incredibly strong as well. That team continues to perform. Then when you break it down across channels, we grew high single digits in North America across each of the channels. Wholesale, e-commerce, and retail. That's tricky to do.

The team is hyper-focused on building strong plans at each of our customers. We do feel like we're taking some share. At the same time, I think we executed pricing in a really effective way that we didn't see the elasticity maybe that we would have modeled out beforehand. I think it's, again, a testament to strong execution. The last thing I would add is we continue to see strength in our upper premium and luxury segment of the market, where we have brands such as Brizo and AXOR, and Newport Brass. The high-end consumer definitely seems to be hanging in there strong. We see really strong margins in that segment as well. We feel great about the performance and feel good about the plans we have in place for the rest of the year as well.

Got you. Just kind of teasing off of that, I guess for plumbing, for perhaps Rick, you guys kept your guidance for up low single-digit top-line growth, and it sounds like there was nothing of note for Q1 and volumes were up. It sounds like things are pretty resilient. Could that be a source of upside or are you kind of expecting volumes to kind of decline in the back half, perhaps just given some of the macro dynamics that is out there? Just want to kind of think through some of the puts and takes there on the demand side.

Yeah, sure, Phil. As it pertains to, as Jon mentioned and we talked before, Q1 was a really strong quarter. We're very pleased with our results in the consumer in terms of our business is holding in there. The uncertainty is something that we're continuing to track both on the macro and geopolitical. Consumer confidence is a bit challenged, but as it pertains to the fundamentals of our business are strong. The only thing I would point to from a first half versus second half perspective is we started to take pricing from a tariff mitigation standpoint in the second half of 2025, and so we'll lap that as we get to the middle of the year. As evidenced by our Q1 pricing of 6% in Q1, we won't see that type of year-over-year comp in the second half of the year. That's part of the dynamic, just mechanically.

Masco (MAS) Q1 2026 Earnings Call Transcript

Company Participants