Masco Stock Up on Q4 Earnings Beat, Sales Miss Estimates

Masco Corporation MAS posted mixed fourth-quarter 2025 results, wherein the adjusted earnings surpassed the Zacks Consensus Estimate, while net sales missed the same. Both metrics tumbled on a year-over-year basis.

The quarter’s performance was largely in line with expectations as the company operated through a changing geopolitical and economic backdrop. The company began restructuring actions to simplify operations, lower costs and reduce headcount. These steps aim to improve efficiency and free up resources for growth efforts. Management expects the savings from these changes to support margin improvement over time.

The company also announced the integration of Liberty Hardware into the Delta Faucet business to better align brands and capabilities. Sales are expected to stay stable to slightly higher, with performance likely to outpace the broader market.

For 2026, the company expects demand across global repair and remodel markets to remain steady. Sales are projected to be flat to slightly higher on a currency-adjusted basis, with performance likely to outpace the broader market. Strong brands, a focused product portfolio, a solid balance sheet and disciplined capital allocation are expected to support earnings growth and long-term shareholder value.

Following the financial release, MAS stock moved up 4.8% in today’s pre-market trading session.

Inside MAS’ Headlines

The company reported adjusted earnings per share (EPS) of 82 cents, which topped the Zacks Consensus Estimate of 78 cents by 5.1%. In the year-ago quarter, it reported an adjusted EPS of 89 cents.

Net sales of $1.79 billion missed the consensus mark of $1.83 billion by 1.8% and declined 2% from the prior-year period. 

Masco Corporation Price, Consensus and EPS Surprise

Masco Corporation price-consensus-eps-surprise-chart | Masco Corporation Quote

Net sales in the North American region slipped 5% (in local currency) from the prior year, while International sales increased 1% year over year in local currency.

Masco’s Segmental Analysis

Plumbing Products: Net sales in the segment rose 5% year over year to $1.25 billion (up from our model’s projection of $1.22 billion). In local currency, net sales inched up 3% year over year.

The adjusted operating margin contracted 50 basis points (bps) year over year to 16.3%. Adjusted EBITDA during the quarter came in at $234 million, up from $228 million reported in the prior-year quarter.

Decorative Architectural Products: The segment reported sales of $545 million (down from our projection of $595.9 million), decreased 15% from the prior-year period. 

Adjusted operating margin contracted 380 bps from the prior-year level to 13.9%. Adjusted EBITDA came in at $83 million, down from the prior-year figure of $120 million.

Margin Performance of MAS

Adjusted gross margin during the quarter contracted 110 bps from the prior-year level to 33.7%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were up 40 bps to 19.3% from the year-ago figure of 18.9%.

Adjusted operating margin decreased 150 bps on a year-over-year basis to 14.4% (up from our model’s expected value of 13.5%). Adjusted EBITDA during the quarter came in at $298 million (up from our expected value of $285.9 million), lower than the $328 million reported in the prior-year quarter.

Sneak Peek at Masco’s 2025 Results

For the full year, the company reported net sales of $7.56 billion, down 3% year over year. Net sales declined 2% (excluding acquisitions and divestitures) in local currency. On a year-over-year basis in local currency, North American sales declined 5% while International sales increased 1%.

Adjusted gross margin contracted 80 bps from the prior-year level to 35.5%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were flat year over year at 18.7%.

Adjusted operating margin remained flat on a year-over-year basis at 20.1%. Adjusted EBITDA declined 6.7% year over year to $1.42 billion.

The company reported an adjusted EPS of $3.96, down 3% from $4.10 reported in 2024.

Financial Highlights of MAS

As of Dec. 31, 2025, Masco had a total liquidity of $1.65 billion compared with $1.63 billion as of Dec. 31, 2024. This includes cash and cash investments of $647 million and revolver availability of $1 billion. Long-term debt as of the fourth quarter was $2.95 billion, in line with 2024-end.

Masco Unveils 2026 Outlook

The company expects its adjusted EPS to be in the range of $4.10-$4.30.

Masco expects net sales to be flat to up in low single digits year over year, with an adjusted operating margin of approximately 17%.

Plumbing Products’ net sales are expected to be up in low single digits and the adjusted operating margin is anticipated to be about 18%. Decorative Architectural Products’ net sales are expected to be roughly flat. This segment’s adjusted operating margin is expected to be about 19%.

MAS’ Zacks Rank & Recent Construction Releases

Masco currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weyerhaeuser Company WY reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both top and bottom lines decreased.

Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics within the Wood Products segment. Despite these challenges, Weyerhaeuser continued to optimize its portfolio through disciplined, capital-efficient transactions. It successfully closed the divestiture of 28,000 acres in Oregon for $190 million and approximately 86,000 acres across Georgia and Alabama for $216 million.

PulteGroup PHM reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate, though both metrics declined year over year amid continued affordability pressures and margin compression.

Lower consumer confidence and higher incentive activity weighed on profitability, partially offset by stable order trends, higher community counts and disciplined capital deployment. Home sale revenues declined 5% year over year to $4.48 billion, due to a 3% decrease in closings to 7,821 homes and a 1% decline in average selling price or ASP to $573,000. Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand. PulteGroup remains focused on disciplined asset turnover, strong cash flow generation and sustained land investment to support 3-5% annual community count growth over time.

United Rentals, Inc. URI reported lower-than-expected fourth-quarter 2025 results, with adjusted EPS and total revenues both missing the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.

United Rentals’ fourth-quarter revenues improved year over year due to increased fleet productivity and strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism and healthy backlogs contributed to the overall strength. United Rentals expects to see continued growth in large projects and strong performance in the specialty segment. URI’s board of directors hiked the quarterly dividend payment by 10% to $1.97 per share ($7.88 annually).

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