Revenue contracted 2.9% YoY in Q2 2026, yet gross margin expanded 590 basis points to 43.6%, driving operating income up 14.1% and EPS to $1.60, a 25% increase.
Masco Corporation (MAS) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 7.62B | 7.56B | 7.83B | 7.97B | 8.68B | 8.38B | 7.19B | 6.71B | 6.65B | 7.64B | 7.36B | 7.14B | 8.52B | 8.17B | 7.75B | 7.47B | 7.59B | 7.79B | 9.6B | 11.77B | 12.78B | 12.64B | 12.07B | 10.94B | 9.42B | 8.36B | 7.24B | 6.31B | 4.34B | 3.76B | 3.24B |
| Revenue Growth % | -0.56% | -3.4% | -1.74% | -8.21% | 3.64% | 16.51% | 7.17% | 0.8% | -12.95% | 3.9% | 3.01% | -16.18% | 4.26% | 5.53% | 3.72% | -1.65% | -2.57% | -18.83% | -18.44% | -7.89% | 1.08% | 4.7% | 10.41% | 16.1% | 12.7% | 15.39% | 14.84% | 45.16% | 15.56% | 16.16% | 10.59% |
| Cost of Goods Sold | 4.81B | 4.88B | 4.99B | 5.16B | 5.97B | 5.51B | 4.6B | 4.35B | 4.35B | 5.05B | 4.93B | 4.93B | 4.96B | 5.92B | 5.53B | 5.7B | 5.69B | 5.82B | 7.17B | 8.61B | 9.31B | 8.98B | 8.19B | 7.59B | 6.45B | 5.81B | 4.73B | 3.86B | 2.69B | 2.28B | 1.96B |
| COGS % of Revenue | - | 64.47% | 63.75% | 64.79% | 68.74% | 65.81% | 64.04% | 64.83% | 65.34% | 66.13% | 67% | 68.97% | 58.17% | 72.4% | 71.45% | 76.34% | 74.99% | 74.67% | 74.67% | 73.11% | 72.89% | 71.07% | 67.81% | 69.37% | 68.48% | 69.48% | 65.25% | 61.19% | 61.82% | 60.66% | 60.57% |
| Gross Profit | 2.81B | 2.69B | 2.84B | 2.81B | 2.71B | 2.86B | 2.58B | 2.36B | 2.31B | 2.59B | 2.43B | 2.22B | 2.05B | 2.26B | 1.96B | 1.77B | 1.79B | 1.97B | 2.32B | 3.17B | 3.46B | 3.58B | 3.66B | 3.35B | 2.97B | 2.55B | 2.52B | 2.45B | 1.66B | 1.48B | 1.28B |
| Gross Margin % | 36.93% | 35.53% | 36.25% | 35.21% | 31.26% | 34.19% | 35.96% | 35.17% | 34.66% | 33.84% | 33.06% | 31.03% | 24.05% | 27.6% | 25.32% | 23.66% | 23.62% | 25.33% | 24.13% | 26.89% | 27.11% | 28.35% | 30.34% | 30.63% | 31.52% | 30.52% | 34.75% | 38.81% | 38.18% | 39.34% | 39.43% |
| Gross Profit Growth % | - | -5.32% | 1.18% | 3.39% | -5.24% | 10.75% | 9.58% | 2.3% | -10.86% | 6.37% | 9.75% | 8.15% | -9.18% | 15.04% | 10.98% | -1.45% | -9.17% | -14.77% | -26.82% | -8.63% | -3.35% | -2.16% | 9.34% | 12.84% | 16.37% | 1.36% | 2.82% | 47.57% | 12.15% | 15.87% | 9.03% |
| Operating Expenses | 1.47B | 1.42B | 1.47B | 1.47B | 1.39B | 1.41B | 1.29B | 1.26B | 1.23B | 1.39B | 1.33B | 1.29B | 1.24B | 1.56B | 1.48B | 1.55B | 1.56B | 1.65B | 1.75B | 1.99B | 2.01B | 1.95B | 1.99B | 1.74B | 1.52B | 1.51B | 1.46B | 1.54B | 1.19B | 1.09B | 796M |
| OpEx % of Revenue | - | 18.71% | 18.73% | 18.44% | 16.01% | 16.87% | 17.95% | 18.82% | 18.47% | 18.17% | 18.05% | 18.05% | 14.56% | 19.12% | 19.1% | 20.78% | 20.61% | 21.15% | 18.23% | 16.88% | 15.71% | 15.46% | 16.47% | 15.87% | 16.18% | 18.08% | 20.16% | 24.36% | 27.47% | 28.97% | 24.59% |
| Selling, General & Admin | 1.47B | 1.42B | 1.47B | 1.47B | 1.39B | 1.41B | 1.29B | 1.26B | 1.23B | 1.39B | 1.33B | 1.29B | 1.24B | 1.56B | 1.48B | 1.55B | 1.56B | 1.65B | 1.75B | 1.99B | 2.01B | 1.95B | 1.99B | 1.75B | 1.39B | 1.42B | 1.22B | 1.35B | 1.04B | 957.8M | 696.3M |
| SG&A % of Revenue | - | 18.71% | 18.73% | 18.44% | 16.01% | 16.87% | 17.95% | 18.82% | 18.47% | 18.17% | 18.05% | 18.05% | 14.56% | 19.12% | 19.1% | 20.78% | 20.61% | 21.15% | 18.23% | 16.88% | 15.71% | 15.46% | 16.47% | 16.04% | 14.79% | 16.97% | 16.87% | 21.48% | 23.86% | 25.47% | 21.51% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19M | 131M | 93.2M | 238.33M | 181.8M | 156.7M | 131.5M | 99.7M |
| Operating Income | 1.35B | 1.27B | 1.37B | 1.34B | 1.32B | 1.45B | 1.29B | 1.1B | 1.08B | 1.2B | 1.1B | 927M | 808M | 693M | 482M | 215M | 228M | 326M | 566M | 1.18B | 1.46B | 1.63B | 1.67B | 1.45B | 1.27B | 1.04B | 1.06B | 911.5M | 866.4M | 705.9M | 480.5M |
| Operating Margin % | 17.68% | 16.82% | 17.53% | 16.77% | 15.24% | 17.31% | 18.02% | 16.36% | 16.19% | 15.67% | 15.01% | 12.98% | 9.48% | 8.48% | 6.22% | 2.88% | 3% | 4.18% | 5.9% | 10.01% | 11.39% | 12.89% | 13.86% | 13.25% | 13.45% | 12.44% | 14.59% | 14.45% | 19.94% | 18.77% | 14.84% |
| Operating Income Growth % | - | -7.29% | 2.69% | 0.98% | -8.76% | 11.97% | 18.05% | 1.86% | -10.1% | 8.51% | 19.09% | 14.73% | 16.59% | 43.78% | 124.19% | -5.7% | -30.06% | -42.4% | -51.95% | -19.09% | -10.67% | -2.63% | 15.53% | 14.36% | 21.85% | -1.6% | 15.93% | 5.21% | 22.74% | 46.91% | 19.41% |
| EBITDA | 1.5B | 1.42B | 1.52B | 1.49B | 1.47B | 1.6B | 1.43B | 1.27B | 1.25B | 1.35B | 1.26B | 1.08B | 964M | 885M | 673M | 502M | 540M | 618M | 845M | 1.47B | 1.75B | 1.87B | 1.91B | 1.69B | 1.49B | 1.31B | 1.3B | 1.09B | 1.02B | 837.4M | 580.2M |
| EBITDA Margin % | 19.67% | 18.78% | 19.44% | 18.64% | 16.91% | 19.12% | 19.89% | 18.91% | 18.85% | 17.66% | 17.17% | 15.12% | 11.31% | 10.83% | 8.69% | 6.72% | 7.11% | 7.93% | 8.8% | 12.45% | 13.73% | 14.8% | 15.83% | 15.48% | 15.79% | 15.67% | 17.88% | 17.33% | 23.55% | 22.27% | 17.92% |
| EBITDA Growth % | 0.47% | -6.7% | 2.49% | 1.16% | -8.31% | 11.96% | 12.78% | 1.12% | -7.11% | 6.89% | 16.94% | 12.03% | 8.93% | 31.5% | 34.06% | -7.04% | -12.62% | -26.86% | -42.32% | -16.52% | -6.2% | -2.09% | 12.88% | 13.85% | 13.57% | 1.1% | 18.45% | 6.86% | 22.18% | 44.33% | 17.81% |
| D&A (Non-Cash Add-back) | 152M | 148M | 150M | 149M | 145M | 151M | 135M | 171M | 177M | 152M | 159M | 153M | 156M | 192M | 191M | 287M | 312M | 292M | 279M | 287M | 299M | 241M | 237M | 244M | 220M | 269.49M | 238.33M | 181.8M | 156.7M | 131.5M | 99.7M |
| EBIT | 1.34B | 1.24B | 1.26B | 1.34B | 1.3B | 800M | 1.27B | 1.07B | 1.06B | 1.16B | 1.06B | 914M | 730M | 683M | 325M | -218M | -490M | 74M | 35M | 1.03B | 1.14B | 1.65B | 1.76B | 1.45B | 1.25B | 1.04B | 1.06B | 911.5M | 866.4M | 705.9M | 480.5M |
| Net Interest Income | -103M | -101M | -99M | -97M | -106M | -277M | -141M | -156M | -151M | -275M | -225M | -222M | -222M | -232M | -247M | -245M | -244M | -225M | -228M | -258M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 9M | 2M | 1M | 3M | 3M | 5M | 3M | 4M | 3M | 1M | 2M | 7M | 1M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 103M | 101M | 99M | 106M | 108M | 278M | 144M | 159M | 156M | 278M | 229M | 225M | 225M | 235M | 254M | 254M | 251M | 225M | 228M | 258M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -113M | -137M | -211M | -98M | -130M | -762M | -164M | -183M | -170M | -314M | -272M | -238M | -301M | -243M | -409M | -687M | -969M | -477M | -759M | -408M | -556M | -228M | -132M | -202M | -301M | -739.1M | -163.3M | -7.4M | 39.1M | 27.9M | 22.2M |
| Pretax Income | 1.23B | 1.14B | 1.16B | 1.24B | 1.19B | 688M | 1.13B | 914M | 907M | 884M | 832M | 689M | 507M | 450M | 73M | -472M | -741M | -151M | -193M | 770M | 900M | 1.4B | 1.54B | 1.22B | 1.03B | 300.7M | 893.4M | 904.1M | 755M | 630.9M | 502.7M |
| Pretax Margin % | 16.19% | 15.01% | 14.83% | 15.54% | 13.74% | 8.21% | 15.73% | 13.63% | 13.63% | 11.56% | 11.31% | 9.65% | 5.95% | 5.51% | 0.94% | -6.32% | -9.76% | -1.94% | -2.01% | 6.54% | 7.04% | 11.09% | 12.77% | 11.12% | 10.95% | 3.6% | 12.33% | 14.33% | 17.38% | 16.78% | 15.53% |
| Income Tax | 297M | 277M | 287M | 278M | 288M | 210M | 269M | 230M | 221M | 304M | 296M | 293M | -361M | 111M | 91M | -49M | 240M | -49M | 134M | 336M | 412M | 514M | 574M | 463M | 348.9M | 102.2M | 301.7M | 334.5M | 279M | 248.5M | 207.5M |
| Effective Tax Rate % | 24.07% | 24.41% | 24.72% | 22.46% | 24.14% | 30.52% | 23.78% | 25.16% | 24.37% | 34.39% | 35.58% | 42.53% | -71.2% | 24.67% | 124.66% | 10.38% | -32.39% | 32.45% | -69.43% | 43.64% | 45.78% | 36.66% | 37.22% | 38.08% | 33.84% | 33.99% | 33.77% | 37% | 36.95% | 39.39% | 41.28% |
| Net Income | 885M | 810M | 822M | 908M | 842M | 406M | 613M | 631M | 727M | 528M | 487M | 351M | 845M | 291M | -110M | -578M | -1.05B | -186M | -398M | 386M | 491M | 866M | 949M | 806M | 589.7M | 198.5M | 591.7M | 569.6M | 476M | 382.4M | 295.2M |
| Net Margin % | 11.61% | 10.71% | 10.5% | 11.4% | 9.7% | 4.85% | 8.53% | 9.41% | 10.93% | 6.91% | 6.62% | 4.91% | 9.92% | 3.56% | -1.42% | -7.74% | -13.78% | -2.39% | -4.15% | 3.28% | 3.84% | 6.85% | 7.86% | 7.37% | 6.26% | 2.38% | 8.17% | 9.03% | 10.96% | 10.17% | 9.12% |
| Net Income Growth % | 9.94% | -1.46% | -9.47% | 7.84% | 107.39% | -33.77% | -2.85% | -13.21% | 37.69% | 8.42% | 38.75% | -58.46% | 190.38% | 364.55% | 80.97% | 44.74% | -462.37% | 53.27% | -203.11% | -21.38% | -43.3% | -8.75% | 17.74% | 36.68% | 197.08% | -66.45% | 3.88% | 19.66% | 24.48% | 29.54% | 166.85% |
| Net Income (Continuing) | 937M | 858M | 874M | 960M | 905M | 478M | 862M | 684M | 686M | 580M | 536M | 396M | 868M | 339M | -18M | -423M | -981M | -102M | -327M | 434M | 488M | 888M | 968M | 769M | 639M | 198.5M | 591.7M | 569.6M | 565.1M | 444.1M | 295.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 414M | 0 | 98M | 107M | 0 | 0 | 35M | 29M | -59M | -178M | -18M | -40M | -18M | 0 | 0 | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 247M | 261M | 227M | 242M | 238M | 257M | 226M | 179M | 180M | 236M | 195M | 193M | 204M | 228M | 212M | 215M | 198M | 188M | 160M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.45 | 3.86 | 3.76 | 4.02 | 3.63 | 1.62 | 3.03 | 2.20 | 2.39 | 1.66 | 1.47 | 1.02 | 2.38 | 0.76 | -0.33 | -1.65 | -2.99 | -0.52 | -1.11 | 1.03 | 1.22 | 2.19 | 1.96 | 1.65 | 1.01 | 0.35 | 1.31 | 1.28 | 1.26 | 1.02 | 0.92 |
| EPS Growth % | 15.38% | 2.66% | -6.47% | 10.74% | 124.07% | -46.53% | 37.73% | -7.95% | 43.98% | 12.93% | 44.12% | -57.14% | 213.16% | 330.3% | 80% | 44.82% | -475% | 53.15% | -207.77% | -15.57% | -44.29% | 11.73% | 18.79% | 63.37% | 188.57% | -73.28% | 2.34% | 1.59% | 23.53% | 10.87% | 166.19% |
| EPS (Basic) | - | 3.88 | 3.77 | 4.04 | 3.65 | 1.63 | 3.03 | 2.21 | 2.50 | 1.72 | 1.54 | 1.03 | 2.40 | 0.78 | -0.33 | -1.65 | -2.99 | -0.52 | -1.11 | 1.05 | 1.23 | 2.23 | 2.01 | 1.69 | 1.07 | 0.37 | 1.34 | 1.31 | 1.30 | 1.05 | 0.92 |
| Diluted Shares Outstanding | 198.75M | 210M | 219M | 226M | 232M | 251M | 264M | 288M | 307M | 318M | 330M | 341M | 352M | 352M | 349M | 348M | 349M | 351M | 353M | 373M | 400M | 430M | 456M | 488.48M | 584.16M | 567.14M | 451.68M | 445M | 434.69M | 422.95M | 320.87M |
| Basic Shares Outstanding | 198.75M | 209M | 218M | 225M | 231M | 249M | 258.2M | 287M | 293.9M | 310.4M | 318M | 338M | 349M | 349.5M | 343.75M | 347.9M | 348.6M | 351M | 352.25M | 369M | 394M | 422M | 445M | 476.92M | 551.4M | 536.49M | 441.57M | 434.81M | 434.69M | 422.95M | 320.87M |
| Dividend Payout Ratio | - | 32.22% | 30.9% | 28.3% | 30.64% | 51.97% | 23.65% | 22.82% | 18.43% | 24.43% | 26.28% | 35.9% | 13.85% | 36.77% | - | - | - | - | - | 89.9% | 71.08% | 39.15% | 31.82% | 35.48% | 45.45% | 122.83% | 36.96% | 28.97% | 30.53% | 34.44% | 41.84% |
Quick answers to the most common questions about buying MAS stock.
For fiscal year 2025, Masco Corporation (MAS) reported total revenue of $7.56B. This represents a 133.6% increase compared to $3.24B in 1996.
Masco Corporation (MAS) is profitable, generating $810.0M in net income for the fiscal year ending 2025 with a net profit margin of 10.7%.
Masco Corporation (MAS) reported an operating income of $1.27B, resulting in an operating profit margin of 16.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Masco Corporation (MAS) generated $2.69B in gross profit for the year, representing a gross profit margin of 35.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Home Depot concentration and revenue contraction
Metrics are mathematically derived from official filings.
Revenue Contraction Persists Despite EPS Beat
MAS's revenue declined 3.4% year-over-year in Q2 2026, marking the fifth consecutive quarter of negative growth, according to the latest income statement data.
The persistent top-line decline, despite a significant EPS beat, suggests that volume weakness in the Decorative Architectural segment and soft housing turnover are outweighing any pricing gains. The company's reliance on the repair and remodel cycle, which is currently pressured by high mortgage rates, appears to be the primary drag. Investors should monitor whether the 'stay-in-place' renovation trend can stabilize revenue in the coming quarters.
Gross Margin Expansion Defies Volume Decline
Gross margin surged to 43.6% in Q2 2026, up from 37.7% a year earlier, as reported in the income statement, indicating strong pricing power or favorable input costs.
The 590 basis point year-over-year gross margin expansion is remarkable given the revenue decline, suggesting that management's operational excellence initiatives and possibly lower raw material costs are more than offsetting volume deleverage. However, the sustainability of this margin is questionable if commodity prices (TiO2, resins) rebound or if big-box retailers push back on price increases. The margin resilience may be temporary, driven by cost discipline rather than structural improvements.
Operating Leverage Amplifies Earnings Beat
Operating income jumped 14.1% year-over-year in Q2 2026 to $470M, with operating margin expanding to 23.6% from 20.1%, according to the income statement, showcasing significant operating leverage.
The operating margin expansion outpaced gross margin gains, indicating that SG&A expenses grew only 10% while gross profit grew 12.3%, leading to a 14% increase in operating income. This suggests that MAS is leveraging its fixed cost structure effectively, but the lack of revenue growth means this leverage is finite. If volumes continue to decline, the fixed cost base could become a drag, compressing margins.
EPS Quality Boosted by Tax and SBC Effects
Q2 2026 EPS of $1.60 exceeded estimates by $0.57, but net income growth of 17.8% outpaced operating income growth, implying a lower effective tax rate or non-operating gains, as per the income statement.
The EPS growth of 25% year-over-year is significantly higher than the 14% operating income growth, suggesting that the effective tax rate may have been lower than the prior year. Additionally, stock-based compensation was negative $14M in Q2, which is unusual and may indicate a reversal or adjustment that flattered reported earnings. Investors should scrutinize the tax rate and SBC line items to assess the sustainability of the earnings beat.
SG&A Discipline Drives Margin Resilience
SG&A as a percentage of revenue fell to 19.9% in Q2 2026 from 20.1% a year earlier, as reported in the income statement, reflecting tight cost control despite revenue decline.
The modest SG&A reduction, combined with a significant gross margin expansion, indicates that management is aggressively managing costs to protect profitability. However, the lack of R&D spending (reported as zero) may suggest underinvestment in innovation, which could hurt long-term competitiveness. The cost discipline appears to be a key driver of the earnings beat, but it may not be sustainable if revenue continues to contract.
Q2 2026 Marks a Margin Inflection Point
Q2 2026 gross margin of 43.6% is the highest in the ten-quarter period, a 590 basis point jump from the prior year, according to the income statement, signaling a potential structural shift.
This quarter represents a clear inflection in profitability, with gross margin, operating margin, and net margin all reaching multi-year highs. The driver appears to be a combination of pricing actions, favorable input costs, and operational efficiencies. However, the sustainability of this inflection is uncertain, as revenue remains in decline. If the margin gains are not accompanied by a return to growth, they may prove temporary, and the market could view the earnings beat as a one-time event.
What Could Invalidate the Base Case
The earnings beat may be unsustainable if revenue contraction persists, as margin gains from cost cuts and pricing could reverse with commodity inflation or retailer pushback, per the income statement.
Short-sellers could argue that the Q2 2026 margin expansion is not structural but a result of temporary factors such as lower input costs and aggressive cost cutting, which cannot offset volume declines indefinitely. The negative stock-based compensation and potential tax rate benefits may flatter EPS, and the high debt/equity ratio of 45.81% could constrain capital allocation if rates stay high. Additionally, the concentration risk with Home Depot and the ongoing decline in the Decorative segment could erode the margin gains if demand weakens further.