Here's How Masco Shocked the Market This Week
Summarize this article with:
By Lee Samaha – Apr 24, 2026 at 8:16AM ESTKey PointsProfit growth was driven by price increases and cost control.Masco is well-insulated from online competition and housing market weakness.Shares in plumbing and paints company Masco (MAS +1.95%) rose by 13.2% in the week to Friday morning. The move comes after a surprisingly strong set of first-quarter 2026 earnings was released earlier in the week. Masco bucks the trend A combination of soaring raw material prices and the absence of a significant recovery in the housing market and weak consumer market is creating what Masco's management describes as "a dynamic macroeconomic and geopolitical environment." Still, you wouldn't know it from looking at the company's first quarter 2026 results. ExpandNYSE: MASMascoToday's Change(1.95%) $1.44Current Price$75.40Key Data PointsMarket Cap$15BDay's Range$74.35 - $76.0652wk Range$58.16 - $79.19Volume461Avg Vol3MGross Margin35.41%Dividend Yield1.66% Company sales rose 4% in local currency to $1.92 billion in the quarter, with an impressive increase in operating profit margin to 16.9% from 16% in the same quarter of 2025. Given that the adjusted gross profit margin was flat at 36%, the increase in operating profit clearly came from keeping sales, general, and administrative (SG&A) costs under control at $366 million, compared to $358 million in last year's first quarter. In short, the excellent results were achieved by increasing prices and controlling SG&A expenses. In addition, Masco is relatively well-positioned in the housing products market because 84% of its plumbing sales go to the repair-and-remodel market, and 100% of its paint sales go to the same market. Repair-and-remodel sales tend to be less cyclical than sales in the new housing market. In addition, the nature of its products means it's relatively insulated from low-cost online competition, not least because paint is difficult to transport and consumers like to see and feel faucets and other plumbing supplies in showrooms. Image source: Getty Images. Where next for Masco? Masco's management acknowledged that it's facing higher-than-expected costs in 2026, and expects sales to increase at a low single-digit rate. Full-year earnings per share guidance was maintained at $4.10 to $4.30, putting the stock on slightly less than 18 times the midpoint of 2026 earnings. That looks like a fair valuation. Read NextApr 22, 2026 •By Motley Fool TranscribingMasco (MAS) Q2 2025 Earnings TranscriptApr 22, 2026 •By Motley Fool TranscribingMasco (MAS) Q1 2026 Earnings TranscriptApr 22, 2026 •By Motley Fool TranscribingMasco (MAS) Q3 2025 Earnings Call TranscriptApr 23, 2026 •By Jeremy BowmanHigh Oil Prices Are Driving an EV Boom. Who's the Next Winner After Tesla?Apr 23, 2026 •By Lee SamahaHow the Iran Conflict Is Squeezing GE Aerospace's OutlookApr 24, 2026 •By Stefon WaltersThe Iran War Is Rattling Markets.
But History Says Investors Who Do This Will Win.About the AuthorLee Samaha is a contributing Stock Market Analyst at The Motley Fool covering industrials, electricals, energy, materials, transportation, and infrastructure stocks. Prior to The Motley Fool, Lee was a Civil Engineer and Investment Manager. He holds a Bachelor of Civil and Structural Engineering from Southampton University and a Certificate in Investment Management from Chartered Institute for Securities & Investment. Lee first cut his investing teeth on The Motley Fool bulletin boards (commonly referred to as the “Fool Boards,”) and he’s infinitely grateful to all of the investors he learned from in this powerful investing community.TMFSaintGermainX@LeeSamahaStocks MentionedMascoNYSE: MAS$75.40(+1.95%)+$1.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.