Masco Q3 sales beat on Plumbing Products unit strength

Overview

• US home improvement products maker's Q3 net sales rose 3%, beating analyst expectations

• Adjusted EPS for Q3 grew 23%, beating analyst expectations

• Company returned $322 mln to shareholders via dividends and share repurchases

Outlook

• Masco raises 2026 adj EPS guidance to $4.65-$4.75 from $4.40-$4.60

• Company expects 2026 EPS in the range of $4.51-$4.61

• Company expects near-term demand environment to remain challenged

Result Drivers

• PLUMBING PRODUCTS - Co said Q3 sales growth was driven by higher sales in Plumbing Products segment

• GROSS MARGIN EXPANSION - Co attributed improved profitability to higher gross margin

• NORTH AMERICA - Co said North American sales rose 5% in local currency

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Masco Corporation is $79.50, about 5.8% above its October 27 closing price of $75.17

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 27 - Sherwin-Williams Q3 sales beat estimates on higher pricing

• Oct 27 - Armstrong World Q3 revenue beat estimates on sales volume, higher pricing

• Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)