Net Sales Decline Driven by Lower North American Volume
Net sales for 2026-Q2 fell 3% year-over-year to $1,992M ($1,982M excluding currency translation). Lower North American sales volume reduced net sales by 5%, which was partially offset by a 1% increase from higher net selling prices and a 1% increase from higher International sales volume.
Gross Margin Expansion from IEEPA Tariff Refunds
Gross profit for 2026-Q2 grew 12% year-over-year to $868M, expanding gross margin by 600 basis points to 43.6%. Profitability benefited from lower tariff costs, including approximately $95M in net tariff benefits from IEEPA refunds following a U.S. Supreme Court ruling declaring IEEPA tariffs unlawful.
Segment Performance Dynamics
Plumbing Products sales declined 3% to $1,337M in 2026-Q2, but segment operating profit jumped 24% to $352M due to IEEPA tariff refunds and pricing. Decorative Architectural Products sales fell 4% to $655M with flat operating profit of $147M, as pricing gains were offset by lower volumes and commodity inflation.