2026 sales expected flat to up low single digits with margin expansion
Masco's Q4 results were in line with expectations, with plumbing revenue up and decorative architectural down. 2026 guidance is cautious, expecting flat markets and modest margin expansion driven by tariffs mitigation, pricing, and restructuring, particularly the integration of Liberty Hardware into Delta. Q4 2025: Net sales decreased 2%, with EPS of $0.82. The company is guiding 2026 EPS to $4.10-$4.30, reflecting a flat R&R market.
Buzzberg 분석2026 sales expected flat to up low single digits with margin expansionMasco's Q4 results were in line with expectations, with plumbing revenue up and decorative architectural down. 2026 guidance is cautious, expecting flat markets and modest margin expansion driven by tariffs mitigation, pricing, and restructuring, particularly the integration of Liberty Hardware into Delta. Q4 2025: Net sales decreased 2%, with EPS of $0.82. The company is guiding 2026 EPS to $4.10-$4.30, reflecting a flat R&R market.전체 분석 보기분석 접기
Masco's Q4 results were in line with expectations, with plumbing revenue up and decorative architectural down. 2026 guidance is cautious, expecting flat markets and modest margin expansion driven by tariffs mitigation, pricing, and restructuring, particularly the integration of Liberty Hardware into Delta. Q4 2025: Net sales decreased 2%, with EPS of $0.82. The company is guiding 2026 EPS to $4.10-$4.30, reflecting a flat R&R market.
Decorative architectural segment saw sales decrease 15% in Q4, impacted by inventory timing and a customer transition, with underlying DIY down high-single-digits and pro up low-single-digits.
Masco is integrating Liberty Hardware and Delta Faucet Company into one reporting segment to leverage scale, partly due to significant tariff and anti-dumping duties hitting the Liberty business.
The annualized tariff impact is now estimated at $200 million, down from $270 million, with mitigation actions expected to offset the direct cost impacts in 2026.
Revenue$1.793B
reported
EPS$0.82
reported
Gross margin33.69%
reported
Op margin14.39%
reported
이번 분기에 달라진 점
01
Guidance
2026 sales expected flat to up low single digits with margin expansion
Guidance · revenue to $0B
02
Tariffs
Tariff cost impact reduced to $200 million annualized
Q4 2025: Net sales decreased 2%, with EPS of $0.82. The company is guiding 2026 EPS to $4.10-$4.30, reflecting a flat R&R market.
03
Restructuring
Liberty Hardware integration into Delta to improve profitability
Decorative architectural segment saw sales decrease 15% in Q4, impacted by inventory timing and a customer transition, with underlying DIY down high-single-digits and pro up low-single-digits.
04
Supply Chain
China import exposure to fall below $300 million by end 2026
Masco is integrating Liberty Hardware and Delta Faucet Company into one reporting segment to leverage scale, partly due to significant tariff and anti-dumping duties hitting the Liberty business.
수요 및 자본지출
수요
수주 및 전환
Pro paint expected to grow mid-single digits in 2026. Management acknowledged challenging markets and tariff headwinds but emphasized mitigation actions, margin expansion, and confidence in long-term fundamentals.
자본지출
투자 및 생산능력
Management guided to approximately $190 million in capital expenditures for 2026, consistent with reinvesting in the business to accelerate growth and market share gains.
톤 · Measured
Management acknowledged challenging markets and tariff headwinds but emphasized mitigation actions, margin expansion, and confidence in long-term fundamentals.
공급망 알파
A1
Masco expects to import approximately $400 million from China subject to reciprocal tariffs in 2026, down from $450 million in 2025, and anticipates this to be below $300 million by year-end, representing a greater than 60% reduction from peak exposure in 2018.
“in 2026 we expect to import approximately $400 million from China that is subject to the reciprocal tariffs, down from our 2025 exposure of $450 million”
Masco estimates the total annualized tariff cost impact is now $200 million before mitigation, down from $270 million as of Q3, due to the 10% reduction in China tariffs and sourcing changes.
“we now estimate that the total annualized cost impact from tariffs to be approximately $200 million before mitigation, down from an annualized $270 million as of our third quarter earnings call”
Masco is assuming a mid-single-digit inflation rate for its plumbing segment in 2026, driven by copper prices, which have not yet been fully, built into the company's guidance plans.
“we saw in our plumbing segment mid single digit inflation in Q4. So we're seeing some of that pull through. And we're expecting mid single digit inflation in our guide for plumbing in the calendar 2026”
Masco's decision to integrate Liberty Hardware into Delta Faucet Company is largely a reaction to a 323% glass anti-dumping duty that hit its shower door sourcing, which the company is actively working to mitigate.
“we were hit significantly by tariff in the glass anti-dumping duties. And just as a reminder, the glass anti-dumping duties impact our shower door sourcing. And that was at a rate of 323%”
Masco's deep partnership with Home Depot continues to yield awards and strategic alignment, particularly in the paint and pro business, indicating strong ongoing demand from this critical customer.
“Delta Faucet was awarded the Home Depot Kitchen and Bath Partner of the Year”
… and thank you for joining us. Please turn to slide five. I want to start today by highlighting some of our key accomplishments from 2025, which we achieved while navigating a dynamic and challenging environment. Following that, I'll turn to our financial results for 2025 and share our expectations for 2026. Starting with our plumbing product segment, we continue to demonstrate our market leadership, even as we work to mitigate the impacts of higher tariff costs. Delta Faucet was awarded the Home Depot Kitchen and Bath Partner of the Year. This award recognized the strength of our brand, customer service and innovation. Delta also continued to achieve notable market share gains in the e-commerce channel, driven by our industry-leading capabilities that deliver solutions for consumers. At Hansgrohe, we continue to be a global leader, products with industry-leading designs hans growey also continues to demonstrate leadership and commitment to sustainability having recently received multiple awards for corporate strategy and production initiatives of the german sustainability projects 2025 award ceremony at watkins wellness our integration of sauna 360 into our existing dealer …
Masco is assuming a mid-single-digit inflation rate for its plumbing segment in 2026, driven by copper prices, which have not yet been fully, built into the company's guidance plans. — Continued high copper prices, as reflected in Masco's expectations, confirm sustained robust demand for the metal, a positive signal for major copper producers like Freeport-McMoRan.
Morning, everyone. Thank you for taking the questions. Maybe just one common question we're getting from investors now is around commodity inflation and specifically copper. So maybe just a quick question there around how you're embedding that into your guidance for plumbing margin expansion in 2026 and maybe the sort of timing of that commodity impact. Thank you.
Sure, Matt. It's Rick. Good morning. So with regards to commodity inflation, as I'm sure you've been seeing, particularly with copper, we saw that really take up later part of last year and really the first part of this year. We're monitoring very closely. It's obviously a volatile dynamic. With regards to inflation, we saw in our plumbing segment mid single digit inflation in Q4. So we're seeing some of that pull through. And we're expecting mid single digit inflation in our guide for plumbing in the calendar 2026. So it's something that we've contemplated. Admittedly, it is volatile and there's risk and upside depending on how things play out. And as a reminder, with regards to how you think about commodities flowing through to our P&L, it's usually about a six month lag in terms of when you see the commodity costs in the market before it hits our P&L. So that's why you're seeing it kind of later in Q4. in 2025 and in 2026. So that delays. And so to the extent that there's movement one way or the other, you can envision that leg would stay true.
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