Why Is Masco (MAS) Down 18.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Masco (MAS). Shares have lost about 18.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Masco due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Masco Corporation before we dive into how investors and analysts have reacted as of late.

Masco's Q4 Earnings Beat, Sales Miss Estimates

Masco Corporation posted mixed fourth-quarter 2025 results, wherein the adjusted earnings surpassed the Zacks Consensus Estimate, while net sales missed the same. Both metrics tumbled on a year-over-year basis.

The quarter’s performance was largely in line with expectations as the company operated through a changing geopolitical and economic backdrop. The company began restructuring actions to simplify operations, lower costs and reduce headcount. These steps aim to improve efficiency and free up resources for growth efforts. Management expects the savings from these changes to support margin improvement over time.

The company also announced the integration of Liberty Hardware into the Delta Faucet business to better align brands and capabilities. Sales are expected to stay stable to slightly higher, with performance likely to outpace the broader market.

For 2026, the company expects demand across global repair and remodel markets to remain steady. Sales are projected to be flat to slightly higher on a currency-adjusted basis, with performance likely to outpace the broader market. Strong brands, a focused product portfolio, a solid balance sheet and disciplined capital allocation are expected to support earnings growth and long-term shareholder value.

Inside MAS’ Headlines

The company reported adjusted earnings per share (EPS) of 82 cents, which topped the Zacks Consensus Estimate of 78 cents by 5.1%. In the year-ago quarter, it reported an adjusted EPS of 89 cents.

Net sales of $1.79 billion missed the consensus mark of $1.83 billion by 1.8% and declined 2% from the prior-year period.

Net sales in the North American region slipped 5% (in local currency) from the prior year, while International sales increased 1% year over year in local currency.

Masco’s Segmental Analysis

Plumbing Products: Net sales in the segment rose 5% year over year to $1.25 billion (up from our model’s projection of $1.22 billion). In local currency, net sales inched up 3% year over year.

The adjusted operating margin contracted 50 basis points (bps) year over year to 16.3%. Adjusted EBITDA during the quarter came in at $234 million, up from $228 million reported in the prior-year quarter.

Decorative Architectural Products: The segment reported sales of $545 million (down from our projection of $595.9 million), decreased 15% from the prior-year period.

Adjusted operating margin contracted 380 bps from the prior-year level to 13.9%. Adjusted EBITDA came in at $83 million, down from the prior-year figure of $120 million.

Margin Performance of MAS

Adjusted gross margin during the quarter contracted 110 bps from the prior-year level to 33.7%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were up 40 bps to 19.3% from the year-ago figure of 18.9%.

Adjusted operating margin decreased 150 bps on a year-over-year basis to 14.4% (up from our model’s expected value of 13.5%). Adjusted EBITDA during the quarter came in at $298 million (up from our expected value of $285.9 million), lower than the $328 million reported in the prior-year quarter.

Sneak Peek at Masco’s 2025 Results

For the full year, the company reported net sales of $7.56 billion, down 3% year over year. Net sales declined 2% (excluding acquisitions and divestitures) in local currency. On a year-over-year basis in local currency, North American sales declined 5% while International sales increased 1%.

Adjusted gross margin contracted 80 bps from the prior-year level to 35.5%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were flat year over year at 18.7%.

Adjusted operating margin remained flat on a year-over-year basis at 20.1%. Adjusted EBITDA declined 6.7% year over year to $1.42 billion.

The company reported an adjusted EPS of $3.96, down 3% from $4.10 reported in 2024.

Financial Highlights of MAS

As of Dec. 31, 2025, Masco had a total liquidity of $1.65 billion compared with $1.63 billion as of Dec. 31, 2024. This includes cash and cash investments of $647 million and revolver availability of $1 billion. Long-term debt as of the fourth quarter was $2.95 billion, in line with 2024-end.

Masco Unveils 2026 Outlook

The company expects its adjusted EPS to be in the range of $4.10-$4.30.

Masco expects net sales to be flat to up in low single digits year over year, with an adjusted operating margin of approximately 17%.

Plumbing Products’ net sales are expected to be up in low single digits and the adjusted operating margin is anticipated to be about 18%. Decorative Architectural Products’ net sales are expected to be roughly flat. This segment’s adjusted operating margin is expected to be about 19%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

Currently, Masco has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Masco Corporation (MAS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research