Home improvement product manufacturer Masco Corp released its financial results for the second quarter of 2026. Although revenue declined due to strategic investments and a high comparison base from the same period last year, the company achieved robust profit growth through tariff refunds, pricing adjustments, and cost control measures, leading it to raise its full-year earnings forecast.
The financial report shows that net sales for the second quarter were $1.992 billion, a 3% decrease year-over-year, falling short of the market consensus of $2.08 billion. By region, North American sales declined 5% in local currency, while international sales grew 4%. However, profitability improved significantly, with adjusted operating profit rising 17% to $482 million and the operating margin expanding to 24.2%. Adjusted earnings per share came in at $1.64, a 26% increase year-over-year, significantly exceeding the market expectation of $1.32.
Profit growth was primarily driven by approximately $95 million in net benefits from tariff refunds under the International Emergency Economic Powers Act, along with pricing measures and cost-saving initiatives. These factors offset the impact of lower sales volumes, higher commodity costs, and increased employee compensation.
By segment, the plumbing business saw sales decline 3% but operating profit grew 26% to $361 million, with the operating margin expanding to 27%. The international business performed strongly, particularly in Germany and other European markets. The decorative architectural business experienced a 4% decline in sales, with professional paint sales posting mid-single-digit growth but DIY paint sales declining by high single digits. The operating margin for this segment improved to 22.6%.
Based on first-half performance and anticipated benefits from tariff refunds, the company raised its full-year 2026 adjusted earnings per share guidance from a range of $4.10 to $4.30 to a new range of $4.40 to $4.60. The full-year operating margin target was also increased from approximately 17% to about 18%. During the second quarter, the company returned $454 million to shareholders through dividends and share repurchases.