Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Masco Corporation (MAS) delivered solid Q1 2026 results with revenue up 6.5% YoY to $1.92B, net income surging 14.5% to $213M, and EPS jumping 20.7% to $1.05, though operating cash flow remained negative at -$79M amid aggressive share buybacks of $202M.
Revenue
$1.92B
+6.50% YoY
EPS (Diluted)
$1.05
+20.69% YoY
Gross Margin
35.8%
+0.0 pts YoY
Operating Income
$316M
+10.49% YoY
Source: SEC XBRL
Masco (MAS) reported Q1 FY2026 revenue of $1.92B, up 6.5% year over year. Operating margin was 16.5%, up 0.6 points from 15.9% a year earlier. Operating cash flow was negative $79M. MAS's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.64 | 1.33 | Beat +23.0% |
| Mar 2026This filing | 1.04 | 0.88 | Beat +17.6% |
| Dec 2025 | 0.82 | 0.80 | Beat +2.6% |
| Sep 2025 | 0.97 | 1.04 | Miss -7.0% |
Adjusted (non-GAAP) EPS of $1.04 versus the $0.88 analyst consensus — a +17.6% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.05.
Compiled by AI from this SEC filing
Total revenue grew 6.5% YoY to $1.92B in Q1 2026 (from $1.80B in Q1 2025), reflecting broad-based demand strength in Masco's home improvement and building products segments. This consistent top-line growth signals resilient consumer spending on repair and remodel activity.
Source: 10-Q Income Statement, Q1 2026
Operating income rose 10.5% YoY to $316M while SG&A grew only 3.1% to $369M, resulting in operating margin expansion of approximately 60 basis points to 16.5%. This demonstrates effective cost discipline as revenue scaled faster than overhead expenses.
Source: 10-Q Income Statement, Q1 2026
Diluted EPS increased 20.7% YoY to $1.05 from $0.87, outpacing net income growth of 14.5%, indicating that share repurchases meaningfully reduced the share count. Masco repurchased $202M in shares during Q1 2026, up 55.4% from $130M in Q1 2025.
Source: 10-Q Cash Flow Statement, Q1 2026
Operating cash flow was -$79M in Q1 2026, though this improved significantly from -$158M in Q1 2025 (a 50% improvement YoY). Negative operating cash flow in Q1 is likely seasonal in nature for building products companies, but warrants monitoring alongside the company's $2.95B long-term debt load.
Source: 10-Q Cash Flow Statement, Q1 2026
Gross margin held essentially flat at 35.77% versus 35.76% in Q1 2025, suggesting Masco successfully passed through cost increases or managed input costs effectively. Cost of revenue grew in line with revenue at 6.5% YoY to $1.23B.
Source: 10-Q Income Statement, Q1 2026
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Masco carries negative stockholders' equity of -$242M and long-term debt of $2.95B, resulting in a deeply negative debt-to-equity ratio of -21.5x. This balance sheet structure limits financial flexibility and increases vulnerability to rising interest rates or an economic downturn. The company's total liabilities of $5.21B exceed total assets of $5.23B by a thin margin.
Source: 10-Q Balance Sheet, Q1 2026
Masco generated -$79M in operating cash flow in Q1 2026, meaning the company consumed cash from operations rather than generating it. While improved from -$158M in Q1 2025, sustained negative operating cash flow combined with $202M in share buybacks and $36M in capital expenditures raises questions about near-term liquidity management.
Source: 10-Q Cash Flow Statement, Q1 2026
Masco spent $202M on share buybacks in Q1 2026 (up 55.4% YoY) while operating cash flow was negative, effectively funding buybacks through debt or existing cash reserves. Cash and equivalents stand at only $388M, which may limit the company's ability to sustain this pace of capital returns if business conditions deteriorate.
Source: 10-Q Cash Flow Statement & Balance Sheet, Q1 2026
Masco's revenue is closely tied to housing market activity and consumer spending on home improvement. A slowdown in existing home sales, rising mortgage rates, or reduced consumer confidence could materially impact demand for Masco's products. The 6.5% revenue growth in Q1 2026 could reverse if macroeconomic conditions weaken.
Source: 10-Q Income Statement, Q1 2026
Financing cash flow deteriorated to -$137M in Q1 2026 from -$72M in Q1 2025, a 90.3% increase in cash outflows, driven primarily by the accelerated share repurchase program. This trend, if continued, could pressure the company's liquidity position given its already thin cash buffer relative to its debt obligations.
Source: 10-Q Cash Flow Statement, Q1 2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.92 $B | 1.80 $B | +6.50% |
Cost of Revenue $B | 1.23 $B | 1.16 $B | +6.48% |
Gross Profit $M | 686.00 $M | 644.00 $M | +6.52% |
Operating Income $M | 316.00 $M | 286.00 $M | +10.49% |
Net Income $M | 213.00 $M | 186.00 $M | +14.52% |
EPS (Basic) $ | 1.05 $ | 0.87 $ | +20.69% |
EPS (Diluted) $ | 1.05 $ | 0.87 $ | +20.69% |
SG&A Expense $M | 369.00 $M | 358.00 $M | +3.07% |
Answers draw on this SEC filing and the data on this page
In 2026-Q2, Masco Corporation's net sales decreased 3% year-over-year to $1,992M due to lower North America sales volume, but net income increased 18% to $318M, substantially boosted by $95M in net IEEPA tariff refunds.
Masco Corporation (MAS) reported FY2025 revenue of $7.56B, down 3.4% year-over-year, with net income declining modestly to $810M, though EPS rose 2.7% to $3.87 on the back of continued share buybacks, while the company maintained solid operating cash flow of $1.02B despite margin compression.
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