Masco Gears Up for Q2 Earnings: What's in the Offing for the Stock?

Masco’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, the average surprise being 9.7%.

MAS’ Estimate Revision Trend

The Zacks Consensus Estimate for adjusted earnings per share (EPS) has remained unchanged at $1.29 over the past 30 days. The estimated figure indicates a 0.8% decline from the year-ago EPS of $1.30.

The consensus estimate for net sales is pegged at $2.09 billion, which indicates an increase of 1.8% from the prior-year quarter’s figure.

Factors Likely to Define Masco’s Q2 Results

Sales Trends

Masco’s second-quarter top line is expected to have increased year over year, supported by resilient demand in the Plumbing Products segment, which accounted for 71.1% of total net sales in the first quarter of 2026. The segment is likely to have benefited from pricing actions, better-than-expected volume trends and steady demand across trade, retail and e-commerce channels. Growth across several European markets is also expected to support results. Continued weakness in China is likely to have remained a drag.

Furthermore, demand in the Decorative Architectural Products segment, which accounted for 28.9% of total net sales in the first quarter of 2026, is likely to have remained mixed during the quarter. DIY paint demand is expected to have stayed soft due to muted existing home turnover, while PRO paint sales are likely to have remained relatively stronger. Ongoing weakness in DIY paint and softer housing-related activity are expected to have limited growth in the segment.

Segment-wise, our model expects the Plumbing Products segment’s net sales to inch up 1.4% year over year to $1.33 billion. The expectations for the Decorative Architectural Products segment’s net sales indicate a 2.1% increase year over year to $753.5 million.

Geographically, we expect net sales in North America (which accounted for 77.8% of first-quarter 2026 total net sales) to increase 1.6% year over year to $1.66 billion. Net sales in International (which accounted for 22.2% of first-quarter 2026 total net sales) are anticipated to increase year over year by 6.6% to $440.3 million.

Margins

The company’s bottom line in the second quarter of 2026 is likely to have declined year over year due to continued pressure from higher commodity costs and elevated input expenses. Copper, oil-based materials and other key inputs are expected to have remained inflationary during the quarter, while tariff-related costs are also likely to have weighed on profitability. Although pricing actions and mitigation efforts are expected to have offset part of these headwinds, they are unlikely to have fully neutralized the higher cost environment.

At the same time, restructuring initiatives, cost-saving actions and operational efficiencies are likely to have provided support to profitability during the quarter. However, higher input costs and continued macro uncertainty are expected to have limited overall earnings growth despite these mitigation efforts.

Segment-wise, we expect the adjusted operating margin for Plumbing Products to increase 30 basis points (bps) year over year to 21.3%, while Decorative Architectural Products' adjusted operating margin is expected to contract 20 bps to 21.1%.

What Our Model Unveils for MAS

Our proven model does not conclusively predict an earnings beat for Masco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

MAS’ Earnings ESP: MAS has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank of MAS: The company currently carries a Zacks Rank of 2. 

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Boise Cascade Company BCC has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boise Cascade’s earnings beat estimates in two of the last four quarters, missed on one occasion and met on the remaining occasion, the average surprise being 40.8%. The company’s earnings for the second quarter of 2026 are expected to decline 25% year over year.

Amentum Holdings, Inc. AMTM currently has an Earnings ESP of +3.18% and a Zacks Rank of 2.

The company's earnings beat estimates in each of the last four quarters, the average surprise being 4%. Amentum’s earnings for the second quarter of 2026 are expected to increase 12.5% year over year.

CRH plc CRH has an Earnings ESP of +4.08% and a Zacks Rank of 3.

The company’s earnings beat estimates in two of the last four quarters, missed on one occasion and met on the remaining occasion, the average surprise being 0.7%. CRH’s earnings for the second quarter of 2026 are expected to inch up 1% year over year.

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