VOL. XCIV, NO. 247
WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES
Masco Corporation MAS
NYSEConstruction and building materialsFinancials to Jun 30, 2026 · Updated Oct 7, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 0.6 | 0.5 |
| Securities | 0.0 | 0.0 |
| Debt | 2.9 | 3.2 |
| Net cash | -2.3 | -2.7 |
| Equity | -0.2 | -0.4 |
- Debt / EBITDA
- 2.18×
- Debt / equity
- –
- Leases (12/31/25)
- $282M
- Diluted shares
- 199M
- Book value / share
- −$1.83
- Price / book
- –
- Net cash / share
- −$13.56
- Market cap
- $13.8B
- Enterprise value
- $16.5B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | -2.9% | -1.0 pts | |
| Operating margin | 23.6% | +3.5 pts | |
| FCF margin | 22.7% | +9.6 pts | |
| Capex / revenue | 2.2% | +0.4 pts | |
| Plumbing net sales | $1.3B | -3% | |
| Decorative net sales | $655M | -4% | |
| Net selling price contribution | 1.0% | – | |
| Plumbing net sales · 12/31/25 | $5.2B | +2% | |
| Decorative net sales · 12/31/25 | $2.4B | -13% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About MAS
Masco sells branded home improvement products through Delta, hansgrohe, Behr, Kilz and Watkins Wellness. Plumbing accounts for about 69% of recast 2025 revenue; coatings account for the rest.
- Brand Trust
Recognized Delta and hansgrohe brands can support consumer choice and professional specification through reputation, design and quality.
- Contractual Exclusivity
Behr grants Home Depot North American retail-channel brand exclusivity.
- Brand Trust
The filing identifies reputation as important in architectural coating purchases.
- Jul 29, 2026
Masco set 2026 GAAP EPS guidance at $4.21–$4.41 and adjusted EPS at $4.40–$4.60. Adjusted results retain the tariff-refund benefit, so earnings growth requires a separate demand test.
- Jun 30, 2026 · Gain +$95M
Approximately $95m of net IEEPA tariff refunds increased second-quarter operating profit, mainly in plumbing. Lower demand persisted; company-adjusted profit also includes the benefit.
- Apr 21, 2026
Masco expanded Jill Ehnes’s plumbing role and appointed supply-chain and procurement leaders. It announced Jai Shah’s July and Rick Marshall’s September retirements, making execution through the transition a watch point.
- Feb 20, 2026
The Supreme Court held that IEEPA does not authorize the challenged tariffs. Masco subsequently recognized about $95m of net refunds in Q2 profit; other tariffs and duties remain risks.
- Feb 10, 2026
Liberty Hardware joined Delta Faucet, effective immediately, broadening its kitchen and bath offering. Plumbing now includes hardware, and prior segment sales were recast.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 17.44 | 18.91 | 21.67 | 23.29 | 27.23 | 33.37 | 37.41 | 35.25 | 35.74 | 36.01 | 38.29 | +8.4%/yr | |
| Cash flow | 2.39 | 2.36 | 3.36 | 2.89 | 3.61 | 3.71 | 3.62 | 6.25 | 4.91 | 4.87 | 6.49 | +8.2%/yr | |
| Earnings | 1.29 | 1.34 | 2.07 | 2.22 | 3.07 | 1.63 | 3.64 | 4.02 | 3.75 | 3.86 | 4.45 | +12.9%/yr | |
| Free cash flow | 1.85 | 1.82 | 2.65 | 2.33 | 3.18 | 3.20 | 2.66 | 5.18 | 4.14 | 4.12 | 5.66 | +9.3%/yr | |
| Capex | 0.55 | 0.54 | 0.71 | 0.56 | 0.43 | 0.51 | 0.97 | 1.08 | 0.77 | 0.74 | 0.83 | +3.5%/yr | |
| Dividends | 0.39 | 0.41 | 0.44 | 0.50 | 0.55 | 0.84 | 1.11 | 1.14 | 1.16 | 1.24 | 1.30 | +13.8%/yr | |
| Book value | -0.90 | -0.17 | -0.36 | -0.82 | 0.74 | -0.71 | -2.07 | -0.56 | -1.27 | -0.88 | -1.83 | – | |
| Diluted shares (M) | 330 | 318 | 307 | 288 | 264 | 251 | 232 | 226 | 219 | 210 | 199 | -4.9%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 5.8 | 6.0 | 6.7 | 6.7 | 7.2 | 8.4 | 8.7 | 8.0 | 7.8 | 7.6 | 7.6 | +3.1%/yr | |
| Operating income | 1.0 | 1.0 | 1.1 | 1.1 | 1.3 | 1.4 | 1.3 | 1.3 | 1.4 | 1.2 | 1.3 | +2.7%/yr | |
| Net income | 0.4 | 0.4 | 0.6 | 0.6 | 0.8 | 0.4 | 0.8 | 0.9 | 0.8 | 0.8 | 0.9 | +7.4%/yr | |
| Free cash flow | 0.6 | 0.6 | 0.8 | 0.7 | 0.8 | 0.8 | 0.6 | 1.2 | 0.9 | 0.9 | 1.1 | +4.0%/yr | |
| Buybacks | 0.5 | 0.3 | 0.7 | 0.9 | 0.7 | 1.0 | 0.9 | 0.4 | 0.8 | 0.6 | 0.9 | +2.5%/yr | |
| Dividends | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | +8.2%/yr | |
| Net cash | -2.0 | -1.9 | -2.4 | -2.0 | -1.4 | -2.0 | -2.7 | -2.3 | -2.3 | -2.3 | -2.7 | −$0.3B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | – | 36.9 | 35.0 | 35.4 | 36.0 | 34.2 | 31.3 | 35.6 | 36.2 | 35.4 | 37.0 | – | |
| Operating margin | 17.1 | 17.1 | 16.2 | 16.2 | 18.0 | 16.8 | 14.9 | 16.9 | 17.4 | 16.5 | 17.5 | -0.6 pts | |
| Net margin | 7.4 | 7.1 | 9.6 | 9.5 | 11.3 | 4.9 | 9.7 | 11.4 | 10.5 | 10.7 | 11.6 | +3.3 pts | |
| FCF margin | 10.6 | 9.6 | 12.2 | 10.0 | 11.7 | 9.6 | 7.1 | 14.7 | 11.6 | 11.5 | 14.8 | +0.9 pts | |
| ROIC | 43.7 | 42.4 | 35.3 | 45.6 | 60.0 | 58.3 | 44.8 | 47.1 | 51.2 | 45.0 | 43.4 | +1.3 pts | |
| Stock pay % of revenue | 0.5 | 0.6 | 0.4 | 0.5 | 0.6 | 0.7 | 0.6 | 0.4 | 0.5 | 0.4 | – | -0.1 pts | |
| Capex % of revenue | 3.1 | 2.9 | 3.3 | 2.4 | 1.6 | 1.5 | 2.6 | 3.1 | 2.1 | 2.1 | 2.2 | -1.1 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Plumbing Products68.9%1 claim
- Decorative Architectural Products31.1%2 claims
Moat claims
- Applies to
- Plumbing Products
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Recognized Delta and hansgrohe brands can support consumer choice and professional specification through reputation, design and quality. The filing names Moen, Kohler, American Standard, GROHE, Pfister and private-label rivals. Brands support a moderate advantage; Masco does not disclose independent share, a customer price premium or switching costs that would establish stronger protection.
Delta and hansgrohe retain recognized brands and pricing support. Q2 plumbing sales fell 3%, while the $95m tariff refund increased profit; neither result verifies a change in brand protection.
- Plumbing net sales$1.3B-3%
- Plumbing net sales$5.2B+2%
- Net selling price contribution1.0%
- Plumbing net selling price contribution3.0%
- Repair and remodel sales share~84.0%
- E-commerce sales share~20.0%
- Private label and digitally native brands gaining shelf space
- Price competition from low-cost foreign manufacturers
- Product quality issues or recalls damaging reputation
- Applies to
- Decorative Architectural Products
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 7, 2026
Behr grants Home Depot North American retail-channel brand exclusivity. Kilz primer exclusivity covers US big-box retail and online-only mass-market retail marketplaces, and Canadian retail. This supports shelf access and joint merchandising, but restricts Masco’s alternative customers. Contract duration is not public, and Home Depot’s buying power limits the value Masco keeps.
The disclosed Home Depot exclusivity remains in place and customer concentration stayed about 38% in 2025. Q2 sales fell 4%; there is no new evidence that contract protection has strengthened or ended.
- Decorative net sales$655M-4%
- Decorative net sales$2.4B-13%
- Home Depot sales share~38.0%0.0 pts
- Repair and remodel sales share~100.0%
- E-commerce sales share~1.0%
- Renegotiation or loss of Home Depot relationship
- Home Depot increases private label penetration or promotes competing brands
- Channel shift toward pro paint stores or direct-to-consumer
- Applies to
- Decorative Architectural Products
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
The filing identifies reputation as important in architectural coating purchases. Behr and Kilz have established retail recognition, but Sherwin-Williams and Benjamin Moore reach professional painters through strong competing channels. Published evidence does not quantify an independent market share or sustained price premium.
Behr and Kilz retain brand and retail access, but Q2 decorative sales fell 4% and pro-store rivals remain strong. Cost savings support earnings without proving stronger customer preference.
- Decorative net sales$655M-4%
- Decorative net sales$2.4B-13%
- Home Depot sales share~38.0%0.0 pts
- Net selling price contribution1.0%
- Repair and remodel sales share~100.0%
- E-commerce sales share~1.0%
- Brand dilution if quality perception declines
- Aggressive promotions from larger competitors
- Consumers trading down in weak housing/remodel cycles
Profile change log
- Oct 7, 2026 · analyst revision
Added CEO governance, operating histories, an investment debate and the shared housing market. Macro evidence indicates weak remodeling growth rather than a broad demand recovery.
- Oct 7, 2026 · analyst revision
Brand and contract strengths are unchanged. Stable trajectories now distinguish selling-price support, weak volume, retailer dependence and the tariff-refund benefit; dated evidence replaces duplicated quotations.
- Oct 7, 2026 · analyst revision
Revenue weights now use recast full-year 2025 sales of $5.209bn Plumbing and $2.353bn Decorative. The former first-half profit shares excluded corporate costs and are removed; segment scope reflects Liberty and the Kichler sale.
- Oct 7, 2026 · business change
Masco set 2026 GAAP EPS guidance at $4.21–$4.41 and adjusted EPS at $4.40–$4.60. Adjusted results retain the tariff-refund benefit, so earnings growth requires a separate demand test.
- Oct 7, 2026 · business change
Masco expanded Jill Ehnes’s plumbing role and appointed supply-chain and procurement leaders. It announced Jai Shah’s July and Rick Marshall’s September retirements, making execution through the transition a watch point.
- Oct 7, 2026 · business change
The Supreme Court held that IEEPA does not authorize the challenged tariffs. Masco subsequently recognized about $95m of net refunds in Q2 profit; other tariffs and duties remain risks.
- Oct 7, 2026 · business change
Liberty Hardware joined Delta Faucet, effective immediately, broadening its kitchen and bath offering. Plumbing now includes hardware, and prior segment sales were recast.
- Oct 7, 2026 · business change
Jonathon Nudi became CEO after Keith Allman’s retirement, taking responsibility for the next phase of growth and capital allocation.
- Oct 7, 2026 · business change
Masco completed the Kichler Lighting sale to Kingswood. Lighting left Decorative, and the $88m annual sale loss reduces continuing-operation profit.
- Oct 7, 2026 · business change
Masco completed the Cabinetry sale for about $989m of cash and preferred-stock proceeds. Cabinetry and the earlier Windows disposal are excluded from continuing-operation income history.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Housing and building products
Factory-built and site-built housing, flooring, insulation, roofing, coatings and related building products. New construction and repair/remodeling have different demand cycles. Player names below are leading US site-built homebuilders by 2025 closings in Builder’s survey, not shares of all construction, manufactured housing or materials. Residential plumbing fixtures, bath hardware, spas and saunas also serve repair and remodeling. Added materials suppliers are named competitors in their own product groups, not leaders by measured share of this broad market.
- D.R. Horton
- Lennar
- PulteGroup
- NVR
- Masco
- Kohler
- Fortune Brands Innovations (Moen)
- Lixil (American Standard and GROHE)
- Sherwin-Williams
- Benjamin Moore
- Pittsburgh Paints Co.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| MAS | 58 | 37.0% | 17.5% | |
| Industry median | 6 | 65 | 28.2% | 20.2% |
| Sector median | 88 | 76 | 37.0% | 17.5% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Mortgage rates have a strong direct effect on affordability, housing turnover and demand. Lower rates help sales only when buyers can meet income and down-payment requirements.
- Household formation and housing availability support long-term demand. New housing and discretionary remodeling remain strongly cyclical. Engineered fastening demand follows construction activity and repair work. Faster installation and code compliance can support selected systems and replacement consumables.
- Factory production, components and integrated financing can improve delivery reliability. Reported shipments test scale, but do not establish unit-cost superiority.
- Dealer access and installer preference support repeat demand for premium materials. Benjamin Moore reaches about 4,000 Ace stores under a preferred-supplier agreement.
- Building codes, energy standards and local permits affect product demand, costs and completion times.
- Repair and replacement provide repeat demand, but elective bath upgrades, paint and spas remain strongly sensitive to homeowner budgets and housing turnover. Masco estimates repair/remodeling at 89% of its 2025 revenue; that exposure does not make earnings independent of the housing cycle.
- Copper, brass, zinc, resins, titanium dioxide and freight affect plumbing and paint costs. Pricing can lag input inflation because large buyers negotiate terms. The cost effect is strong, but no common dollar earnings sensitivity is disclosed.
- Currency has a moderate direct effect on European plumbing sales and translated earnings, and a separate effect on imported components. Local-currency demand and reported revenue can move differently.
- Water conservation, product standards and coating emissions rules affect designs and compliance costs. Established suppliers can fund compliance, but approval does not itself prevent competing brands from entering.
- Land, labor, lumber and transport costs can outpace selling prices. Incentives may preserve volumes at the expense of profit.
- High mortgage rates and weak consumer confidence can reduce volumes even when long-term housing need is large. Construction slowdowns reduce fastening volume; distributors and competing approved systems can limit pricing despite recognized brands.
- Builders and retail channels can negotiate harder or promote substitute brands. Access to a channel does not guarantee an exclusive customer relationship.
- Acquisitions and internal transfers break subgroup comparability: Taylor Morrison closed after June 2026 and Acme Brick moved to industrial products in January.
- Currency affects imported inputs and overseas materials sales; trade restrictions and shortages can delay production.
- Harvard’s July 2026 forecast expects US homeowner improvement and repair spending growth of only 0.5% by Q2 2027. Low turnover and discretionary spending can weaken branded plumbing and paint volumes despite long-term replacement needs.
- Retail exclusivity supports access but also restricts alternative customers. Home Depot represented about 38% of Masco’s 2025 sales; professional paint networks, private labels and e-commerce brands compete for the same consumer projects.
- The IEEPA ruling enabled Masco’s Q2 tariff refunds, but other tariffs and antidumping duties remain cost and sourcing risks. Refund gains are distinct from demand or sustained pricing advantages.
Bulls & bears
Can Masco sustain price and cash generation as homeowner demand slows, after removing the tariff-refund benefit?
Arguments
What to watch
- 1Plumbing and Decorative comparable sales, volume and price contribution
- 2Operating profit excluding separately identified tariff refunds
- 3Home Depot concentration and continued Behr/Kilz exclusivity
- 4Operating cash flow, capex, cash and borrowing balances
- 5Harvard remodeling outlook and housing turnover
Next check: October 22, 2026 Harvard remodeling forecast; October 28, 2026 confirmed Q3 results, including demand and tariff refund receivables.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 6, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 58/100 by <a href="https://www.findmymoat.com/stocks/XNYS:MAS">Find My Moat</a> (as of September 2026)Request update
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