Q1 2026 Masco Corp Earnings Call

April 22, 2026

Operator: Operations Q1 2026 conference call. My name is Jeannie, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. To ask a question, please press star and the number one on your telephone keypad. To withdraw your question, please press star one again. Thank you. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations, and FP&A. You may begin.

Speaker #1: Administration's first quarter 2026 conference call. My name is Jeannie, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes.

Speaker #1: To ask a question, please press star and the number 1 on your telephone keypad. To withdraw your question, please press star 1 again. Thank you.

Speaker #1: I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP&A. You may begin.

Speaker #2: Thank you, operator. And good morning, everyone. Welcome to Masco Corporation's 2026 first quarter conference call. With me today are Jonathon Nudi, President and CEO of Masco, and Richard Westenberg, Masco's Vice President and Chief Financial Officer.

Robin Zondervan: Thank you operator, and good morning everyone. Welcome to Masco Corporation's Q1 2026 conference call. With me today are Jonathon Nudi, President and CEO of Masco, and Richard Westenberg, Masco's Vice President and Chief Financial Officer. Our Q1 earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can't take your question now, please call me directly at 313-792-5500. Our statements today will include our views about future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements.

Robin Zondervan: Thank you operator, and good morning everyone. Welcome to Masco Corporation's Q1 2026 conference call. With me today are John Nudi, President and Chief Executive Officer of Masco, and Richard Westenberg, Masco's Vice President and Chief Financial Officer. Our Q1 earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can't take your question now, please call me directly at 313-792-5500. Our statements today will include our views about future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements.

Speaker #2: Our first quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions.

Speaker #2: Please limit yourself to one question, with one follow-up. If we can't take your question now, please call me directly at (313) 792-5500. Our statements today will include our views about future performance, which constitute forward-looking statements.

Speaker #2: These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K and our Form 10-Q that we filed with the Securities and Exchange Commission.

Robin Zondervan: We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K and our Form 10-Q that we filed with the Securities and Exchange Commission. Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted, unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to John.

Speaker #2: Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations.

Speaker #2: With that, I will now turn the call over to Jon.

Speaker #3: Thank you, Robin. Good morning, everyone, and thank you for joining us. Before I discuss our quarterly results, I want to spend a few minutes talking about the continued evolution of our MASCO Executive Committee, which we established at the end of last year.

Jonathon Nudi: Thank you, Robin. Good morning everyone, and thank you for joining us. Before I discuss our quarterly results, I want to spend a few minutes talking about the continued evolution of our Masco Executive Committee, which we established at the end of last year. Jai Shah, Group President, Plumbing and Wellness, and Rick Marshall, Vice President of Masco Operating System, recently announced their intent to retire from Masco later this summer. I'd like to thank both Jai and Rick for their leadership and their important contributions to both our business and our culture. With Jai's retirement, we've taken steps to further streamline our organization. The leaders of our four largest businesses, Delta, Hansgrohe, Behr, and Watkins Wellness, will now all report directly to me.

John N. Nudi: Thank you, Robin. Good morning everyone, and thank you for joining us. Before I discuss our quarterly results, I want to spend a few minutes talking about the continued evolution of our Masco Executive Committee, which we established at the end of last year. Jai Shah, Group President, Plumbing and Wellness, and Rick Marshall, Vice President of Masco Operating System, recently announced their intent to retire from Masco later this summer. I'd like to thank both Jai and Rick for their leadership and their important contributions to both our business and our culture. With Jai's retirement, we've taken steps to further streamline our organization. The leaders of our four largest businesses, Delta, Hansgrohe, Behr, and Watkins Wellness, will now all report directly to me.

Speaker #3: Jay Shah, Group President, Plumbing and Wellness, and Rick Marshall, Vice President of the MASCO Operating System, recently announced their intent to retire from MASCO later this summer.

Speaker #3: I'd like to thank both Jay and Rick for their leadership and their important contributions to both our business and our culture. With Jay's retirement, we've taken steps to further streamline our organization.

Speaker #3: The leaders of our four largest businesses, Delta, Hansgrohe, Baer, and Watkins Wellness, will now all report directly to me. These four leaders have over 80 years of combined service at Masco, have extensive experience in our industry, and are key contributors to Masco's performance and our culture.

Jonathon Nudi: These four leaders have over 80 years of combined service at Masco, have extensive experience in our industry, and are key contributors to Masco's performance and our culture. Furthermore, we are adding two new leaders to our Executive Committee with expertise in supply chain and procurement. The addition of these leaders and capabilities will enable us to drive additional efficiencies, leverage our scale, and enhance our speed of execution across the enterprise. The structure and leadership composition of our Executive Committee will help enable greater agility and tighter alignment between corporate and business unit priorities, all in the pursuit of delivering above-market top and bottom-line growth. In addition, we have continued the implementation of other initiatives that were announced earlier this year. Our integration of Liberty Hardware into Delta Faucet Company is on track as we further leverage the brands, capabilities, and scale for Delta Faucet business.

John N. Nudi: These four leaders have over 80 years of combined service at Masco, have extensive experience in our industry, and are key contributors to Masco's performance and our culture. Furthermore, we are adding two new leaders to our Executive Committee with expertise in supply chain and procurement. The addition of these leaders and capabilities will enable us to drive additional efficiencies, leverage our scale, and enhance our speed of execution across the enterprise. The structure and leadership composition of our Executive Committee will help enable greater agility and tighter alignment between corporate and business unit priorities, all in the pursuit of delivering above-market top and bottom-line growth. In addition, we have continued the implementation of other initiatives that were announced earlier this year.

Speaker #3: Furthermore, we are adding two new leaders to our executive committee with expertise in supply chain and procurement. The addition of these leaders and capabilities will enable us to drive additional efficiencies, leverage our scale, and enhance our speed of execution across the enterprise.

Speaker #3: The structure and leadership composition of our executive committee will help enable greater agility and tighter alignment between corporate and business unit priorities, all in the pursuit of delivering above-market top- and bottom-line growth.

Speaker #3: In addition, we have continued implementation of other initiatives that were announced earlier this year. Our integration of Liberty hardware into Delta Faucet companies is on track, as we further leverage the brand's capabilities and scale for the Delta Faucet business.

John N. Nudi: Our integration of Liberty Hardware into Delta Faucet Company is on track as we further leverage the brands, capabilities, and scale for Delta Faucet business. Restructuring actions to streamline our business, reduce headcount, and optimize operations are ongoing. We incurred approximately $8 million in restructuring charges in Q1, and we continue to expect approximately $50 million in total charges in 2026. The savings generated from these actions will fund additional growth initiatives and contribute to our future margin expansion. We're already experiencing the positive impact of these actions in our results. With that, let's dive into our Q1 results. Please turn to slide five. Overall, we are pleased with our performance in an extremely dynamic environment. Net sales increased 6%, or 4% in local currency, primarily driven by favorable pricing.

Speaker #3: Restructuring actions to streamline our business, reduce headcount, and optimize operations are ongoing. We incurred approximately $8 million in restructuring charges in the first quarter.

Jonathon Nudi: Restructuring actions to streamline our business, reduce headcount, and optimize operations are ongoing. We incurred approximately $8 million in restructuring charges in Q1, and we continue to expect approximately $50 million in total charges in 2026. The savings generated from these actions will fund additional growth initiatives and contribute to our future margin expansion. We're already experiencing the positive impact of these actions in our results. With that, let's dive into our Q1 results. Please turn to slide five. Overall, we are pleased with our performance in an extremely dynamic environment. Net sales increased 6%, or 4% in local currency, primarily driven by favorable pricing. Additionally, while still down slightly, this was our strongest year-over-year Q1 volume performance since the end of the pandemic. Operating profit was $324 million, an increase of 13%. Operating profit margin was 16.9%, an improvement of 90 basis points.

Speaker #3: And we continue to expect approximately $50 million in total charges in 2026. The savings generated from these actions will fund additional growth initiatives and contribute to our future margin expansion.

Speaker #3: We're already experiencing the positive impact of these actions in our results. With that, let's dive into our first quarter results. Please turn to slide 5.

Speaker #3: Overall, we are pleased with our performance in an extremely dynamic environment. Net sales increased 6%, or 4% in local currency, primarily driven by favorable pricing.

Speaker #3: Additionally, while still down slightly, this was our strongest year-over-year first quarter volume performance since the end of the pandemic. Operating profit was $324 million, an increase of 13%.

John N. Nudi: Additionally, while still down slightly, this was our strongest year-over-year Q1 volume performance since the end of the pandemic. Operating profit was $324 million, an increase of 13%. Operating profit margin was 16.9%, an improvement of 90 basis points.

Speaker #3: Operating profit margin was 16.9%, an improvement of 90 basis points. Earnings per share grew 20% during the quarter to $1.04 per share. Now, turning to our segments, plumbing product sales increased 7% in local currency, exceeding our expectations.

Jonathon Nudi: Earnings per share grew 20% during the quarter to $1.04 per share. Now, turning to our segments. Plumbing product sales increased 7% in local currency, exceeding our expectations, largely due to more resilient than expected volume. North American sales increased 9% in local currency, driven by favorable pricing as well as slightly higher volumes. Delta Faucet delivered a strong quarter with sales growth across all three channels, trade, retail, and e-commerce. Additionally, Delta Faucet was recognized by USA Today as a most trusted brand and by Newsweek as one of America's most trustworthy companies, demonstrating the significant strength of Delta's brand and service capabilities, which are resonating with customers and consumers. Turning to international plumbing, sales increased 1% in local currency, driven by growth across many European markets, particularly Germany, partially offset by the ongoing weak market in China.

John N. Nudi: Earnings per share grew 20% during the quarter to $1.04 per share. Now, turning to our segments. Plumbing product sales increased 7% in local currency, exceeding our expectations, largely due to more resilient than expected volume. North American sales increased 9% in local currency, driven by favorable pricing as well as slightly higher volumes. Delta Faucet delivered a strong quarter with sales growth across all three channels, trade, retail, and e-commerce. Additionally, Delta Faucet was recognized by USA Today as a most trusted brand and by Newsweek as one of America's most trustworthy companies, demonstrating the significant strength of Delta's brand and service capabilities, which are resonating with customers and consumers.

Speaker #3: Largely due to more resilient-than-expected volume. North American sales increased 9% in local currency, driven by favorable pricing as well as slightly higher volumes.

Speaker #3: Delta Faucet delivered a strong quarter, with sales growth across all three channels: trade, retail, and e-commerce. Additionally, Delta Faucet was recognized by USA Today as the most trusted brand and by Newsweek as one of America's most trustworthy companies.

Speaker #3: Demonstrating the significant strength of Delta's brand and service capabilities, which are resonating with customers and consumers. Turning to international plumbing, sales increased 1% in local currency, driven by growth across many European markets, particularly Germany, partially offset by the ongoing weak market in China.

John N. Nudi: Turning to international plumbing, sales increased 1% in local currency, driven by growth across many European markets, particularly Germany, partially offset by the ongoing weak market in China. Operating profit for the plumbing product segment grew 10% to $250 million, and operating margin expanded ten basis points to 18.3%. Turning to our decorative architectural segment, sales were in line with the prior year. DIY paint sales decreased low single digits, while pro paint sales grew mid-single digits. Operating profit for the segment increased 19% to $105 million, and operating margin was 19%. Showcasing our commitment to innovative new products, BEHR PREMIUM PLUS® ECOMIX™ was recently named a 2026 Green Building Sustainable Product of the Year. BEHR continues its industry leadership in delivering both innovative and sustainable products.

Speaker #3: Operating profit for the Plumbing Products segment grew 10% to $250 million, and operating margin expanded 10 basis points to 18.3%. Turning to our Decorative Architectural segment, sales were in line with the prior year.

Jonathon Nudi: Operating profit for the plumbing product segment grew 10% to $250 million, and operating margin expanded ten basis points to 18.3%. Turning to our decorative architectural segment, sales were in line with the prior year. DIY paint sales decreased low single digits, while pro paint sales grew mid-single digits. Operating profit for the segment increased 19% to $105 million, and operating margin was 19%. Showcasing our commitment to innovative new products, BEHR PREMIUM PLUS® ECOMIX™ was recently named a 2026 Green Building Sustainable Product of the Year. BEHR continues its industry leadership in delivering both innovative and sustainable products. Turning to capital allocation, our strong cash flow allowed us to return $267 million to shareholders this quarter through dividends and share repurchases. We are pleased with the first quarter performance and the team's strong execution, and operational focus.

Speaker #3: DIY paint sales decreased low single digits, while pro paint sales grew mid-single digits. Operating profit for the segment increased 19% to $105 million, and operating margin was 19%.

Speaker #3: Showcasing our commitment to innovative new products, Baer Premium Plus EcoMix was recently named a 2026 Green Building Sustainable Product of the Year. Baer continues its industry leadership in delivering both innovative and sustainable products.

Speaker #3: Turning to capital allocation, our strong cash flow allowed us to return $267 million to shareholders this quarter through dividends and share repurchases. We are pleased with our first quarter performance and the team's strong execution and operational focus.

John N. Nudi: Turning to capital allocation, our strong cash flow allowed us to return $267 million to shareholders this quarter through dividends and share repurchases. We are pleased with the Q1 performance and the team's strong execution, and operational focus. Additionally, I'm proud of how our teams are working quickly to implement various restructuring actions to ensure we have the appropriate cost structure for our business in this rapidly changing environment. Turning to our expectations for the full year, we continue to face a highly dynamic macroeconomic and geopolitical environment. Therefore, we believe it is prudent to maintain our 2026 earnings per share guidance in the range of $4.10 to $4.30 per share.

Speaker #3: Additionally, I'm proud of how our teams are working quickly to implement various restructuring actions to ensure we have the appropriate cost structure for our business in this rapidly changing environment.

Jonathon Nudi: Additionally, I'm proud of how our teams are working quickly to implement various restructuring actions to ensure we have the appropriate cost structure for our business in this rapidly changing environment. Turning to our expectations for the full year, we continue to face a highly dynamic macroeconomic and geopolitical environment. Therefore, we believe it is prudent to maintain our 2026 earnings per share guidance in the range of $4.10 to $4.30 per share. Our guidance includes our expectation that our sales will now be up low single digits for 2026, but that we will also incur higher than previously anticipated commodity costs. Rick will share additional details of our guidance in a few moments. While uncertainty remains in the near term, we are focused on positioning ourselves for ongoing sales and profit growth over the mid to long term.

Speaker #3: Turning to our expectations for the full year, we continue to face a highly dynamic macroeconomic and geopolitical environment. Therefore, we believe it is prudent to maintain our 2026 earnings per share guidance in the range of $4.10 to $4.30 per share.

Speaker #3: Our guidance includes our expectation that our sales will now be up low single digits for 2026, but that we will also incur higher than previously anticipated commodity costs.

John N. Nudi: Our guidance includes our expectation that our sales will now be up low single digits for 2026, but that we will also incur higher than previously anticipated commodity costs. Rick will share additional details of our guidance in a few moments. While uncertainty remains in the near term, we are focused on positioning ourselves for ongoing sales and profit growth over the mid to long term.

Speaker #3: Rick will share additional details of our guidance in a few moments. While uncertainty remains in the near term, we are focused on positioning ourselves for ongoing sales and profit growth over the mid to long term.

Speaker #3: The structural factors for repair and remodel activity are strong, including record-high at-home equity levels, the age of the housing stock, and increasing pent-up demand for renovation projects.

Jonathon Nudi: The structural factors for repair and remodel activity are strong, including record high home equity levels, the age of the housing stock, and increasing pent-up demand for renovation projects. As consumer sentiment improves, interest rates decrease, and existing home turnover increases, we expect these favorable fundamentals to become a tailwind for our business. In addition, we are taking the right actions to optimize our business, leaving us well positioned to deliver above market top and bottom-line growth. We are committed to our consumer-driven strategy, which leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We look forward to further sharing this strategy and our long-term goals with you, either in person or online at our upcoming Investor Day on Wednesday, 13 May in New York City.

John N. Nudi: The structural factors for repair and remodel activity are strong, including record high home equity levels, the age of the housing stock, and increasing pent-up demand for renovation projects. As consumer sentiment improves, interest rates decrease, and existing home turnover increases, we expect these favorable fundamentals to become a tailwind for our business. In addition, we are taking the right actions to optimize our business, leaving us well positioned to deliver above market top and bottom-line growth. We are committed to our consumer-driven strategy, which leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We look forward to further sharing this strategy and our long-term goals with you, either in person or online at our upcoming Investor Day on Wednesday, 13 May in New York City.

Speaker #3: As consumer sentiment improves, interest rates decrease, and existing home turnover increases, we expect these favorable fundamentals to become a tailwind for our business. In addition, we are taking the right actions to optimize our business, leaving us well-positioned to deliver above-market top- and bottom-line growth.

Speaker #3: We are committed to our consumer-driven strategy, which leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We look forward to further sharing the strategy and our long-term goals with you, either in person or online, at our upcoming Investor Day on Wednesday, May 13, in New York City.

Speaker #3: With that, I'll now turn the call over to Rick to go over our first quarter results and 2026 outlook in more detail. Rick?

Jonathon Nudi: With that, I'll now turn the call over to Rick to go over our Q1 results and 2026 outlook in more detail. Rick?

John N. Nudi: With that, I'll now turn the call over to Rick to go over our Q1 results and 2026 outlook in more detail. Rick?

Speaker #4: Thank you, Jonathon. And good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items.

Richard Westenberg: Thank you, John, and good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items. Turning to slide 7, we delivered strong Q1 results with total sales increasing 6% or 4% excluding the favorable impact of currency. In local currency, North American sales increased 5%, and international sales increased 1%. Gross margin expanded 10 basis points to 36% in the quarter. SG&A as a percent of sales was 19.1%, 80 basis points lower than the prior year. Operating profit grew 13% to $324 million in the quarter, and our margin expanded 90 basis points to 16.9%. Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Our EPS grew 20% to $1.04 per share in the quarter.

Speaker #4: Turning to slide 7, we delivered strong first quarter results, with total sales increasing 6%, or 4% excluding the favorable impact of currency. In local currency, North American sales increased 5%.

Speaker #4: In international sales, increased 1%. Gross margin expanded 10 basis points to 36% in the quarter. SG&A as a percent of sales was 19.1%, 80 basis points lower than the prior year.

Speaker #4: Operating profit grew 13% to $324 million in the quarter, and our margin expanded 90 basis points to 16.9%. Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs.

Richard Westenberg: Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Our EPS grew 20% to $1.04 per share in the quarter. Turning to slide 8, plumbing sales increased 9% in Q1 or 7% excluding the favorable impact of currency. While this growth was primarily driven by pricing actions, which increased sales by 6%, our performance was better than expected, driven by volume, which was up slightly in the quarter. In local currency, North American plumbing sales increased 9% in Q1. This performance was primarily driven by strong growth in our Delta Faucet and Watkins Wellness businesses. In local currency, international plumbing sales increased 1% in Q1. Hansgrohe grew in many of its European markets, including its key market of Germany.

Speaker #4: Our EPS grew 20% to $1.04 per share in the quarter. Turning to slide 8, Plumbing sales increased 9% in the first quarter, or 7% excluding the favorable impact of currency.

Richard Westenberg: Turning to slide 8, plumbing sales increased 9% in Q1 or 7% excluding the favorable impact of currency. While this growth was primarily driven by pricing actions, which increased sales by 6%, our performance was better than expected, driven by volume, which was up slightly in the quarter. In local currency, North American plumbing sales increased 9% in Q1. This performance was primarily driven by strong growth in our Delta Faucet and Watkins Wellness businesses. In local currency, international plumbing sales increased 1% in Q1. Hansgrohe grew in many of its European markets, including its key market of Germany. This growth was partially offset by softness in China and other smaller markets. Segment operating profit in Q1 increased 10% to $250 million, and operating margin expanded 10 basis points to 18.3%.

Speaker #4: While this growth was primarily driven by pricing actions, which increased sales by 6%, our performance was better than expected. This was driven by volume, which was up slightly in the quarter.

Speaker #4: In local currency, North American plumbing sales increased 9% in the quarter. This performance was primarily driven by strong growth in our Delta Faucet and Watkins Wellness businesses.

Speaker #4: In local currency, international plumbing sales increased 1% in the quarter. Hansgrohe grew in many of its European markets, including its key market of Germany.

Speaker #4: This growth was partially offset by softness in China and other smaller markets. Segment operating profit in the first quarter increased 10% to $250 million, and operating margin expanded 10 basis points to 18.3%.

Richard Westenberg: This growth was partially offset by softness in China and other smaller markets. Segment operating profit in Q1 increased 10% to $250 million, and operating margin expanded 10 basis points to 18.3%. Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Turning to slide 9, Decorative Architectural sales were in line with the prior year. This performance was driven by mid-single-digit growth in our pro paint sales, offset by a low single-digit decrease in our DIY paint sales. These results were largely in line with our expectations, and we continue to anticipate full-year pro paint sales to increase mid-single digits, and for DIY paint sales to decrease mid-single digits.

Speaker #4: Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Turning to slide 9, decorative architectural sales were in line with the prior year.

Richard Westenberg: Operating profit was driven by pricing actions and cost savings initiatives, partially offset by higher tariff and commodity costs. Turning to slide 9, Decorative Architectural sales were in line with the prior year. This performance was driven by mid-single-digit growth in our pro paint sales, offset by a low single-digit decrease in our DIY paint sales. These results were largely in line with our expectations, and we continue to anticipate full-year pro paint sales to increase mid-single digits, and for DIY paint sales to decrease mid-single digits. Operating profit in Q1 was $105 million. Growth versus the prior year was primarily driven by cost savings initiatives, which are inclusive of benefits from our recent restructuring actions as well as increased pricing. This was partially offset by higher commodity costs.

Speaker #4: This performance was driven by mid-single-digit growth in our pro paint sales, offset by a low-single-digit decrease in our DIY paint sales.

Speaker #4: These results were largely in line with our expectations. We continue to anticipate full-year pro paint sales to increase mid-single digits, and for DIY paint sales to decrease mid-single digits.

Speaker #4: Operating profit in the first quarter was $105 million. Growth versus the prior year was primarily driven by cost savings initiatives, which are inclusive of benefits from our recent restructuring actions, as well as increased pricing.

Richard Westenberg: Operating profit in Q1 was $105 million. Growth versus the prior year was primarily driven by cost savings initiatives, which are inclusive of benefits from our recent restructuring actions as well as increased pricing. This was partially offset by higher commodity costs. Operating margin was 19% in the quarter and reflects the benefits of our Liberty Hardware business now being reported in our Plumbing segment. This was coupled with a more normalized Q1 for our paint business as we lapped the inventory timing dynamic that unfavorably impacted the Q1 of last year. Turning to slide 10, our balance sheet remained strong with gross debt to EBITDA at 2.1x at quarter end. We finished the quarter with $1.3 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 19.5% of sales at quarter end.

Speaker #4: This was partially offset by higher commodity costs. Operating margin was 19% in the quarter, and reflects the benefits of our Liberty Hardware business now being reported in our Plumbing segment.

Richard Westenberg: Operating margin was 19% in the quarter and reflects the benefits of our Liberty Hardware business now being reported in our Plumbing segment. This was coupled with a more normalized Q1 for our paint business as we lapped the inventory timing dynamic that unfavorably impacted the Q1 of last year. Turning to slide 10, our balance sheet remained strong with gross debt to EBITDA at 2.1x at quarter end. We finished the quarter with $1.3 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 19.5% of sales at quarter end. As expected, working capital balances in H1 of the year remain elevated versus the prior year due to the timing of when tariffs were implemented. However, we continue to anticipate working capital as a percent of sales will be approximately 16.5% at the end of the year.

Speaker #4: This was coupled with a more normalized first quarter for our paint business, as we lapped the inventory timing dynamic that unfavorably impacted the first quarter of last year.

Speaker #4: Turning to slide 10, our balance sheet remained strong, with gross debt to EBITDA at 2.1 times at quarter end. We finished the quarter with $1.3 billion of liquidity, including cash and availability under our revolving credit facility.

Speaker #4: Working capital was 19.5% of sales at quarter end. As expected, working capital balances in the first half of the year remain elevated versus the prior year, due to the timing of when tariffs were implemented.

Richard Westenberg: As expected, working capital balances in H1 of the year remain elevated versus the prior year due to the timing of when tariffs were implemented. However, we continue to anticipate working capital as a percent of sales will be approximately 16.5% at the end of the year. Our strong cash performance enabled us to return $267 million to shareholders through dividends and share repurchases, including the repurchase of $202 million of stock in Q1. Additionally, based on the strength of our balance sheet and confidence in our future performance, we recently entered into a two-year delay draw term loan of up to $500 million. We plan to utilize the available funds under this facility to opportunistically repurchase our shares. As a result, we now expect to deploy at least $800 million towards share repurchases or acquisitions in 2026, up from our previous expectation of approximately $600 million.

Speaker #4: However, we continue to anticipate working capital as a percent of sales will be approximately 16.5% at the end of the year. Our strong cash performance enabled us to return $267 million to shareholders through dividends and share repurchases, including the repurchase of $202 million of stock in the first quarter.

Richard Westenberg: Our strong cash performance enabled us to return $267 million to shareholders through dividends and share repurchases, including the repurchase of $202 million of stock in Q1. Additionally, based on the strength of our balance sheet and confidence in our future performance, we recently entered into a two-year delay draw term loan of up to $500 million. We plan to utilize the available funds under this facility to opportunistically repurchase our shares. As a result, we now expect to deploy at least $800 million towards share repurchases or acquisitions in 2026, up from our previous expectation of approximately $600 million. Now let's turn to slide 11 and review our outlook for 2026. While we are pleased with our strong results in Q1, there remains a high degree of uncertainty in the macroeconomic and geopolitical environment. As a result, we are largely maintaining our full-year outlook.

Speaker #4: Additionally, based on the strength of our balance sheet and confidence in our future performance, we recently entered into a two-year delayed draw term loan of up to $500 million.

Speaker #4: We plan to utilize the available funds under this facility to opportunistically repurchase our shares. As a result, we now expect to deploy at least $800 million towards share repurchases or acquisitions in 2026, up from our previous expectation of approximately $600 million.

Speaker #4: Now, let's turn to slide 11 and review our outlook for 2026. While we are pleased with our strong results in the first quarter, there remains a high degree of uncertainty in the macroeconomic and geopolitical environment.

Richard Westenberg: Now let's turn to slide 11 and review our outlook for 2026. While we are pleased with our strong results in Q1, there remains a high degree of uncertainty in the macroeconomic and geopolitical environment. As a result, we are largely maintaining our full-year outlook.

Speaker #4: As a result, we are largely maintaining our full-year outlook. For MASCO overall, we expect 2026 sales to be up low single digits, versus our previous guide of flat to up low single digits.

Richard Westenberg: For Masco overall, we expect 2026 sales to be up low single digits versus our previous guide of flat to up low single digits, and we continue to expect our margins to expand to approximately 17%. Regarding cadence for the year, given the timing of tariff impacts, which largely impacted our results in the H2 of last year, we anticipate total Masco margin to be relatively flat in the H1 of the year versus our previous guide of margin contraction, and to expand in the H2 of the year as we lap the tariff impact and as our mitigation actions continue to take hold. As it relates to tariffs, on our prior earnings call, we estimated the total cost impact from incremental tariffs to be approximately $200 million before mitigation this year.

Speaker #4: And we continue to expect our margins to expand to approximately 17%. Regarding cadence for the year, given the timing of tariff impacts, which largely impacted our results in the second half of last year, we anticipate total Masco margin to be relatively flat in the first half of the year.

Speaker #4: Versus our previous guide of margin contraction, and to expand in the second half of the year as we lap the tariff impact and as our mitigation actions continue to take hold.

Speaker #4: As it relates to tariffs, on our prior earnings call, we estimated the total cost impact from incremental tariffs to be approximately $200 million before mitigation this year.

Speaker #4: Given the recent ruling on NAIPA tariffs, the implementation of temporary Section 122 tariffs, and changes to how Section 232 tariffs on steel, aluminum, and copper are applied, we do anticipate the impact of these tariff changes before mitigation to be favorable.

Richard Westenberg: Given the recent ruling on IEEPA tariffs, the implementation of temporary Section 122 tariffs, and changes to how Section 232 tariffs on steel, aluminum, and copper are applied, we do anticipate the impact of these tariff changes before mitigation to be favorable. However, given the great deal of uncertainty as to where tariffs will ultimately land, it is challenging to quantify. In addition, we anticipate any tailwind from these tariff changes will be more than offset by anticipated increases in commodity and related input costs. Copper prices remain elevated, and oil, which impacts a wide range of material as well as logistics costs, also remains elevated and volatile. We continue to monitor these dynamics and will work diligently to mitigate the impacts, as we have demonstrated in the past. Turning to our segments.

Speaker #4: However, given the great deal of uncertainty as to where tariffs will ultimately land, it is challenging to quantify. In addition, we anticipate any tailwind from these tariff changes will be more than offset by anticipated increases in commodity and related input costs.

Speaker #4: Copper prices remain elevated, and oil—which impacts a wide range of materials as well as logistics costs—also remains elevated and volatile. We continue to monitor these dynamics and will work diligently to mitigate the impacts, as we have demonstrated in the past.

Speaker #4: Turning to our segments, in our Plumbing segment, we continue to expect 2026 full-year sales to be up low single digits, and our operating margin to expand to approximately 18%.

Richard Westenberg: In our Plumbing segment, we continue to expect 2026 full year sales to be up low single digits and our operating margin to expand to approximately 18%, driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. In our Decorative Architectural segment, we continue to expect 2026 sales to be roughly flat with the prior year and our operating margin to be approximately 19%, with a continued focus on cost savings initiatives. Finally, as John mentioned earlier, we are maintaining our 2026 EPS estimate of $4.10 to $4.30 per share. This now assumes a 200 million average diluted share count for the year versus our previous guide of 202 million shares and a 24.5% effective tax rate. Additional financial assumptions for 2026 can be found on slide 14 of our earnings deck. With that, I would like to open up the call for questions. Operator?

Speaker #4: Driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. In our Decorative Architectural segment, we continue to expect 2026 sales to be roughly flat with the prior year, and our operating margin to be approximately 19%, with a continued focus on cost savings initiatives.

Speaker #4: Finally, as John mentioned earlier, we are maintaining our 2026 EPS estimate of $4.10 to $4.30 per share. This now assumes a 200 million average diluted share count for the year, versus our previous guide of 202 million shares.

Speaker #4: And a 24.5% effective tax rate. Additional financial assumptions for 2026 can be found on slide 14 of our earnings deck. With that, I would like to open up the call for questions.

Richard Westenberg: With that, I would like to open up the call for questions. Operator?

Speaker #4: Operator?

Speaker #5: In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session.

Operator: In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session. Again, to ask a question, please press star then the number one on your telephone keypad. To withdraw your question, please press star one again. Your first question comes from the line of John Lovallo with UBS. Please go ahead.

Speaker #5: Again, to ask a question, please press star, then the number one on your telephone keypad. To withdraw your question, please press star one again.

Speaker #5: And your first question comes from the line of John Lovallo with UBS. Please go ahead.

Speaker #6: Good morning, guys. Thanks for taking my questions. The first one is just on the Section 232s. You said that this could be actually favorable, which seems right to us.

John Lovallo: Good morning, guys. Thanks for taking my questions. The first one is just on the Section 232s. You said that this could be actually favorable, which it seems right to us, but is this really driven by the fact that the product that you're importing, whether it's faucets or shower heads, are not entirely copper and that some of the sub-assembly is done in the US? How do you wrap your arms around what this potential benefit could be?

Speaker #6: But is this really driven by the fact that the product that you're importing—whether it's faucets or showerheads—are not entirely copper, and that some of the sub-assembly is done in the U.S.?

Speaker #6: And how do you kind of wrap your arms around what this potential benefit could be?

Speaker #7: Yeah. Hey, John. Good morning. It's Rick. So, with regards to our comments on the potential favorability on the tariff impacts, it's really an impact—it's really a composite impact.

Richard Westenberg: Yeah. Hey, John. Good morning. It's Rick. With regards to our comments on the potential favorability on the tariff impact, it's really a composite impact. It's not just the 232 tariffs, but it's the ruling on the IEEPA tariffs at the end of February, the imposition of Section 122 tariffs, and then of course the 232 tariffs which you speak. We look at it from a composite perspective. The 232 tariffs themselves are relatively nominal in terms of their net impact. On composite, we expect a favorable impact. In addition to the ones that we talked about in our opening comments, as you probably are aware, the administration is looking into a couple investigations on Section 301 tariffs as well. The environment remains uncertain.

Speaker #7: So it's not just the 232 tariffs, but it's the ruling on the NAIPA tariffs at the end of February, the imposition of Section 122 tariffs, and then, of course, the 232 tariffs, which you speak.

Speaker #7: So we look at it from a composite perspective. The 232 tariffs themselves are relatively nominal in terms of their net impact. But on composite, we expect a favorable impact.

Speaker #7: But in addition to the ones that we talked about in our opening comments, as you probably are aware, the administration is looking into a couple of investigations on Section 301 tariffs as well.

Speaker #7: The environment remains uncertain. We think, net-net, it'll be favorable for us for the year. But it's difficult to quantify, just given the moving parts.

Richard Westenberg: We think on net it'll be favorable for us for the year, but it's difficult to quantify just given the moving parts. As we also mentioned, we think any favorability will likely be offset by elevated commodity costs, as we talked about.

Speaker #7: And as we also mentioned, we think any favorability will likely be offset by elevated commodity costs, as we talked about.

Speaker #6: Okay, that's helpful. And then I think you guys had your prior estimate for consolidated pricing to be up low single digits, with mid-single-digit pricing in Plumbing, and sort of flattish in Deck and Architectural.

John Lovallo: Okay. That's helpful. I think you guys had your prior estimate was for consolidated pricing to be up low single digits with mid-single digit pricing in plumbing and sort of flattish in deck arch. How are you guys kind of thinking about this now, particularly with the move in resins since the conflict in the Middle East began?

Speaker #6: I mean, how are you guys kind of thinking about this now, particularly with the move-in residents since the conflict in the Middle East began?

Speaker #7: Yeah. So, with regards to our pricing expectations for the year, our plumbing expectation is mid-single digit. In terms of Deckorators, it's really going to be dependent on where we end up from a commodity perspective.

Richard Westenberg: Yeah. With regards to our pricing expectations for the year, our plumbing expectation is mid-single digit. In terms of deck arc, it's really going to be dependent on where we end up from a commodity perspective. We are seeing significant headwinds given the elevated and volatile oil prices and the impact that it has really across the input spectrum, and including freight costs as well, but certainly on the deck arc side with regards to resins, et cetera. We're seeing upward pressure in the neighborhood of mid to high single digits. Obviously, that's still in discussion. That's something that we're tracking very closely. I think from an overall company perspective, we would expect mid-single digit inflation, and that's really commodities as well as wage inflation as well. It's something that we're monitoring and managing very closely.

Speaker #7: We are seeing significant headwinds, given the elevated and volatile oil prices and the impact that it has really across the input spectrum, including freight costs as well.

Speaker #7: But certainly on the Deck Arc side, with regards to residents, etc., we're seeing upward pressure in the neighborhood of mid- to high-single digits.

Speaker #7: Obviously, it's still in discussion, and so that's something that we're tracking very closely. I think from an overall company perspective, we would expect mid-single digit inflation, and that's really commodities as well as one other way inflation as well.

Speaker #7: So, it’s something that we’re monitoring and managing very closely. We do have a track record of offsetting and managing through these challenges, and we believe we’ll do so here as well through a combination of levers.

Richard Westenberg: We do have a track record of offsetting and managing through these challenges, and we believe we'll do so here as well through a combination of levers. That's really the landscape. A caveat is, as we all recognize, it's still uncertain, but there is upward pressure.

Speaker #7: But that's really the landscape. And a caveat is, as we all recognize, it's still uncertain. But there is upward pressure.

Speaker #6: Okay. Thanks very much.

John Lovallo: Okay. Thanks very much.

Speaker #5: Your next question comes from the line of Stephen Kim with Evercore ISI. Please go ahead.

Operator: Your next question comes from the line of Stephen Kim with Evercore ISI. Please go ahead.

Speaker #8: Yeah. Thanks very much, guys, appreciate it. I think you effectively have said that you think—well, you just reiterated that you think that the changes in the tariffs will largely be offset by the commodity.

Stephen Kim: Yeah, thanks very much, guys. Appreciate it. I think you effectively have said that you think well, you just reiterated that you think that the changes in the tariffs will largely be offset by the commodity. Was wondering if you could give us just an overall estimate of how much that piece, which will be transferred effectively, will be for the year, and if there's a quarterly cadence to that that we should be mindful of.

Speaker #8: I was wondering if you could give us just an overall estimate of how much that piece, which will be transferred effectively, will be for the year.

Speaker #8: And if there's a quarterly cadence to that that we should be mindful of.

Speaker #7: Let's see. Just to clarify your question, in terms of the transfer of costs, could you elaborate a bit more?

Richard Westenberg: Stephen, just to clarify your question, in terms of the transfer of cost, could you just elaborate?

Stephen Kim: The offset. Yeah, the offset. You were basically saying that the tariff changes could be beneficial to you, but the commodity costs will be higher, and that those pieces would effectively be offsetting, if I heard you correctly. I'm just wondering, how big is that piece effectively?

Speaker #8: The offset. Yeah, the offset. You were basically saying that the tariff changes could be beneficial to you, but the commodity costs will be higher, and that those pieces would effectively be offsetting, if I heard you correctly.

Speaker #8: And so I'm just wondering, how big is that piece, effectively?

Speaker #7: Yeah. We're not going to quantify the actual magnitude of it. I think on a net basis, you can think of them as relatively flat to potentially a headwind for us for the year.

Richard Westenberg: Yeah, we're not going to quantify the actual magnitude of it. I think on a net basis, you can think of them as relatively flat to potentially a headwind for us for the year, just given the extent of commodity inflation that we've seen really across many input costs, particularly copper and zinc, as well as oil-based inputs, particularly resins, et cetera. We're basically tracking that. I think at the end of the day, those commodity costs are going to offset the favorability or potentially more than that. In terms of your second question, quarterly cadence, this is largely a back half of 2026 phenomenon. As I think we've described in the past, particularly on the plumbing side of the business, commodity costs, when they show up in the market, really have to flow through our inventory and then our P&L, usually a couple of quarters later.

Speaker #7: Just given the extent of commodity inflation that we've seen, really across many input costs, particularly copper and zinc, as well as oil-based inputs, particularly resins, etc., so we're basically tracking that.

Speaker #7: But I think, at the end of the day, those commodity costs are going to offset the favorability, or potentially more than that. In terms of your second question—quarterly cadence—this is largely a back half of 2026 phenomenon.

Richard Westenberg: As I think we've described in the past, particularly on the plumbing side of the business, commodity costs, when they show up in the market, really have to flow through our inventory and then our P&L, usually a couple of quarters later. We saw elevated copper and zinc costs really as we entered into 2026, so that'll be more of a back half 2026 phenomenon. As it pertains to oil and resin costs, that's a little bit more near term because we've been seeing that as of late, and that's more of a quarter to two quarters out. It's really kind of as we approach mid-year and H2 of the year that we would see that impact.

Speaker #7: I think we've described in the past, particularly on the plumbing side of the business, that commodity costs, when they show up in the market, really have to flow through our inventory and then our P&L, usually a couple of quarters later.

Speaker #7: And we saw elevated copper and zinc costs really as we entered into 2026, so that'll be more of a back-half '26 phenomenon. As it pertains to oil and resin costs, that's a little bit more near-term because we've been seeing that as of late.

Richard Westenberg: We saw elevated copper and zinc costs really as we entered into 2026, so that'll be more of a back half 2026 phenomenon. As it pertains to oil and resin costs, that's a little bit more near term because we've been seeing that as of late, and that's more of a quarter to two quarters out. It's really kind of as we approach mid-year and H2 of the year that we would see that impact. That lines up pretty cleanly with regards to our tariff favorability, because the tariff favorability is largely driven by the IEEPA tariff ruling, and that occurred, as we all know, on February 20th. That takes some time to flow through our P&L as well.

Speaker #7: And that's more of a quarter to two quarters out. So it's really kind of as we approach mid-year and the second half of the year that we would see that impact.

Speaker #7: And that lines up pretty cleanly with regards to our tariff favorability, because the tariff favorability is largely driven by the NAIPA tariff ruling. And that occurred, as we all know, on February 20th.

Richard Westenberg: That lines up pretty cleanly with regards to our tariff favorability, because the tariff favorability is largely driven by the IEEPA tariff ruling, and that occurred, as we all know, on February 20th. That takes some time to flow through our P&L as well. They tend to map pretty cleanly, but at the end of the day, there's still a lot of volatility out there, Stephen, as you recognize.

Speaker #7: And so that takes some time to flow through our P&L as well. So they tend to map pretty cleanly. But at the end of the day, there's still a lot of volatility out there, Stephen, as you recognize.

Richard Westenberg: They tend to map pretty cleanly, but at the end of the day, there's still a lot of volatility out there, Stephen, as you recognize.

Speaker #8: Okay, great. That's actually a good cleanup—appreciate that. In the Deck Arc segment, your margins were stronger than we expected, and I was curious if you could give us some sense for the relative importance of the cost savings initiatives from a restructuring versus pricing.

Stephen Kim: Okay, great. That's actually a good cleanup. Appreciate that. In the deck arch segment, your margins were stronger than we expected. I was curious if you could give us some sense for the relative importance of the cost savings initiatives from restructuring versus pricing, and give us a sense for what your expectation is about the quarterly cadence, because we typically see the margins rise in Q2 and Q3 from Q1. Is there anything that we should be mindful of that would be different this year than normal?

Speaker #8: And give us a sense for what your expectation is about the quarterly cadence, because we typically see the margins rise in Q2 and Q3 from Q1.

Speaker #8: Is there anything that we should be mindful of that would be different this year than normal?

Speaker #9: Yeah. Hi, Stephen. It's John. I'll jump in first, and then Rick can follow up with anything I missed here. I guess, overall, I feel good about the trajectory that our paint business is on.

Jonathon Nudi: Yeah. Hi, Stephen, it's Jonathon. I'll jump in first, and then Richard can follow up with anything on this year. I guess overall, I feel good about this trajectory that our paint business is on. As you know, we exited 2023 with a challenging year behind us, and we feel better about our performance. Again, we saw our business overall flat with pro paint growing mid-single digits, DIY down low single digits. We feel great about the plans we have in place with our retail partner. We'll continue to, again, grow share with the pro painter, which is a big opportunity for us, and we've got a significant amount of headroom there. Then make sure that we continue to grow with DIY as well, where we have a significant share. In terms of margins, I would say, yes, they were up significantly versus last year.

John N. Nudi: Yeah. Hi, Stephen, it's Jonathon. I'll jump in first, and then Richard can follow up with anything on this year. I guess overall, I feel good about this trajectory that our paint business is on. As you know, we exited 2023 with a challenging year behind us, and we feel better about our performance. Again, we saw our business overall flat with pro paint growing mid-single digits, DIY down low single digits. We feel great about the plans we have in place with our retail partner. We'll continue to, again, grow share with the pro painter, which is a big opportunity for us, and we've got a significant amount of headroom there.

Speaker #9: As you know, we exited 2025 with a challenging year behind us, and we feel better about our performance again. We saw our business overall flat, with Pro Paint growing mid-single digits and DIY down low single digits.

Speaker #9: We feel great about the plans we have in place with our retail partner. And we'll continue to, again, grow share with the pro painter, which is a big opportunity for us.

Speaker #9: And we've got a significant amount of headroom there. And then make sure that we continue to grow with DIY as well, where we have a significant share.

John N. Nudi: Then make sure that we continue to grow with DIY as well, where we have a significant share. In terms of margins, I would say, yes, they were up significantly versus last year. They were much more normalized versus a typical Q1, though we had an easy comp this year versus Q1 of last year. We feel good about our ability to continue to manage our margins and move forward. I would say our restructuring actions are paying off, and particularly in our Behr business, as we've taken significant steps to really streamline our cost structure and allow us to compete in a market that hasn't been growing the way that we'd like overall. I'll let Rick answer the question just on quarterly cadence, but hopefully that gives you a good perspective.

Speaker #9: In terms of margins, I would say yes, they were up significantly versus last year. They were much more normalized versus a typical Q1, though.

Jonathon Nudi: They were much more normalized versus a typical Q1, though we had an easy comp this year versus Q1 of last year. We feel good about our ability to continue to manage our margins and move forward. I would say our restructuring actions are paying off, and particularly in our Behr business, as we've taken significant steps to really streamline our cost structure and allow us to compete in a market that hasn't been growing the way that we'd like overall. I'll let Rick answer the question just on quarterly cadence, but hopefully that gives you a good perspective.

Speaker #9: We had an easy comp this year versus Q1 of last year, and we feel good about our ability to continue to manage our margins and move forward.

Speaker #9: I would say our restructuring actions, our payoffs, and particularly in our BEHR business, as we've taken significant steps to really streamline our cost structure and allow us to compete in a market that hasn't been growing the way that we'd like overall.

Speaker #9: And I'll let Rick answer the question just about quarterly cadence. But hopefully, that gives you a good perspective.

Speaker #7: Yeah, Stephen, so with regards to John's comments, we're spot on in terms of the implications on Q1. I would just reinforce that the performance in Q1 was driven really based off of cost reduction actions that were in our control, including the restructuring actions that John alluded to.

Richard Westenberg: Yeah, Stephen. With regards to Jonathon's comments were spot on in terms of the implications on Q1. I would just reinforce that the performance in Q1 was driven really based off of cost reduction actions that were in our control, including the restructuring actions that Jonathon alluded to. We did see some low single digit inflation in the commodity input costs, so that's something that we are mindful of, and as I mentioned earlier, are expected to increase over time. That's something that we're tracking. I think in terms of our margin performance in Q1, it was largely in line with what we would have seen from a historical standpoint on a clean Q1.

Speaker #7: We did see some low single-digit inflation in the commodity input costs, so that's something that we are mindful of. And as I mentioned earlier, we expect that to increase over time.

Speaker #7: So that's something that we're tracking. But I think, in terms of our margin performance in Q1, it was largely in line with what we would have seen from a historical standpoint on a clean Q1.

Speaker #8: Okay. Appreciate it, guys. Thanks.

Stephen Kim: Okay. Appreciate it, guys. Thanks.

Speaker #9: Thank you.

Jonathon Nudi: Thank you.

John N. Nudi: Thank you.

Speaker #10: Your next question comes from a line of Sam Reid with Wells Fargo. Please go ahead.

Operator: Your next question comes from the line of Sam Reid with Wells Fargo. Please go ahead.

Speaker #11: Thanks, everyone. Congrats on the quarter here. In Plumbing, really nice beat versus expectations. I just wanted to perhaps unpack the Plumbing volumes that you put up during the quarter.

Sam Reid: Thanks, everyone. Congrats on the quarter here. In Plumbing, really nice beat versus expectation. I just wanted to perhaps unpack the Plumbing volumes that you put up during the quarter. I know they were modest, but I believe there were some volume benefit there. I just wanted to double confirm that there wasn't anything one-time or any pull forward in there around pricing that we should be mindful of.

Speaker #11: I know they were modest, but I believe there were some volume benefits there. And just wanted to double-confirm that there wasn't anything one-time or any pull-forward in there around pricing that we should be mindful of.

Jonathon Nudi: Yeah, hi, Sam, this is John. I would say the short answer is no. It was a pretty normalized quarter in terms of inventories. We feel really good about our plumbing business and the performance that that team put up really around the world, where we saw our business grow nicely. Our North American business in particular with Delta Faucet Company had a terrific Q1, growing high single digits. If you look at our beat versus our internal expectations for Q1, it was really plumbing, and then primarily North American plumbing, and the vast majority of that beat was really just volume versus expectations. As you're aware, we took a fairly significant amount of pricing as we exited last year. The team's done a terrific job really putting that pricing in place, and navigating with our customers to have really good plans.

John N. Nudi: Yeah, hi, Sam, this is John. I would say the short answer is no. It was a pretty normalized quarter in terms of inventories. We feel really good about our plumbing business and the performance that that team put up really around the world, where we saw our business grow nicely. Our North American business in particular with Delta Faucet Company had a terrific Q1, growing high single digits. If you look at our beat versus our internal expectations for Q1, it was really plumbing, and then primarily North American plumbing, and the vast majority of that beat was really just volume versus expectations. As you're aware, we took a fairly significant amount of pricing as we exited last year.

Speaker #9: Yeah. Hi, Sam. This is John. I would say the short answer is no. It was a pretty normalized quarter in terms of inventories. We feel really good about our plumbing business and the performance that team put up, really around the world.

Speaker #9: We saw our business grow nicely, North American business in particular with Delta Faucet Company had a terrific first quarter, growing high single digits.

Speaker #9: I think one of the—if you look at our beat versus our internal expectations for Q1, it was really plumbing, and then primarily North American plumbing, and the vast majority of that beat was really just volume versus expectations.

Speaker #9: As you're aware, we took a fairly significant amount of pricing as we exited last year. And the team's done a terrific job, really, putting that pricing in place.

John N. Nudi: The team's done a terrific job really putting that pricing in place, and navigating with our customers to have really good plans. We saw our volume perform better than we would've expected from an elasticity standpoint. We feel like the fundamentals are incredibly strong. We grew share across our channels. In fact, we grew in every channel across plumbing, whether it be wholesale, trade, or e-commerce. We've got a great new product line up. Our marketing plans are strong. We feel really good about our plumbing business, and we'll continue to focus on it as we move through the rest of the year.

Speaker #9: And navigating with our customers to have really good plans. And we saw our volume perform better than we would have expected from any elasticity standpoint.

Jonathon Nudi: We saw our volume perform better than we would've expected from an elasticity standpoint. We feel like the fundamentals are incredibly strong. We grew share across our channels. In fact, we grew in every channel across plumbing, whether it be wholesale, trade, or e-commerce. We've got a great new product line up. Our marketing plans are strong. We feel really good about our plumbing business, and we'll continue to focus on it as we move through the rest of the year.

Speaker #9: So we feel like the fundamentals are incredibly strong. We grew share across our channels. In fact, we grew in every channel across plumbing, whether it be wholesale, trade, or e-commerce.

Speaker #9: We've got a great new product lineup. Our marketing plans are strong. We feel really good about our plumbing business, and we'll continue to focus on it as we move through the rest of the year.

Speaker #11: That's super helpful. And then maybe double-clicking on the plumbing price in a little bit more detail. I mean, it sounds like the strength was widespread across all of your channels.

Sam Reid: That's super helpful. Then maybe double-clicking on the plumbing price in a little bit more detail. It sounds like the strength was widespread across all of your channels. Could you perhaps give us a little bit more color on whether there were any nuances between plumbing price, say, retail versus wholesale versus e-com? Would just love maybe a view on how that plumbing price might have looked by channel. Thanks.

Speaker #11: But could you perhaps give us a little bit more color on whether there were any nuances between plumbing price, say, retail versus wholesale, wholesale versus e-com? Which is less maybe a view on how that plumbing price might have looked by channel?

Speaker #11: Thanks.

Speaker #9: Yes, Sam, this is John again. We typically don't get into that level of detail from a pricing standpoint. I think, suffice to say, though, if you look at our results, we executed our plans well from a pricing standpoint across all channels.

Jonathon Nudi: Yeah, Sam. This is John again. We typically don't get into that level of detail from a pricing standpoint. I think suffice to say, though, if you look at our results, we executed our plans well from a pricing standpoint across all channels, given that we saw the price realization from the market that we had hoped for, and our elasticities weren't as severe as they could be. We feel really good about how we navigated. The performance was pretty consistent through all channels. In North America, it was high single digits, which is terrific.

John N. Nudi: Yeah, Sam. This is John again. We typically don't get into that level of detail from a pricing standpoint. I think suffice to say, though, if you look at our results, we executed our plans well from a pricing standpoint across all channels, given that we saw the price realization from the market that we had hoped for, and our elasticities weren't as severe as they could be. We feel really good about how we navigated. The performance was pretty consistent through all channels. In North America, it was high single digits, which is terrific.

Speaker #9: Given that we saw the price realization in the market that we had hoped for, and our elasticities weren't as severe as they could be.

Speaker #9: So again, we feel really good about how we navigated. And in the performance, it was pretty consistent through all channels. And again, in North America, it was high single digits, which is terrific.

Speaker #11: All helpful. Thanks so much.

Sam Reid: All helpful. Thanks so much.

Speaker #9: Thank you.

Jonathon Nudi: Thank you.

John N. Nudi: Thank you.

Speaker #10: Your next question comes from a line of Matthew Bulley with Berkeley's. Please go ahead.

Operator: Your next question comes from the line of Matthew Bouley with Barclays. Please go ahead.

Speaker #8: Good morning, everyone. Thank you for taking the questions. I wanted to start on the growth guidance in Plumbing. So, obviously, the start of the year at this 9% growth and still guiding the full year up low single digits.

Matthew Bouley: Morning, everyone. Thank you for taking the questions. Wanted to start on the growth guidance in Plumbing. You obviously started the year at this 9% growth and still guiding the full year to low single digits. Presumably, those pricing comps will get a lot tougher in H2, so I guess that part is understood. You would still need a lot more deceleration either as soon as Q2 or perhaps even a negative comp at some point just to kind of hit that guide. I guess the question is, should we be expecting that that deceleration in growth is sort of already happening here in Q2? Are you just really building in a lot of conservatism around the volume side that you kind of think is prudent here to sort of get that type of deceleration? Thank you.

Speaker #8: And so, presumably, those pricing comps will get a lot tougher in the second half. So, I guess that part is understood. But you would still need a lot more deceleration, either as soon as Q2 or perhaps even a negative comp at some point, just to kind of hit that guide.

Speaker #8: So I guess the question is, should we be expecting that deceleration in growth? Is it sort of already happening here in Q2, or are you just really building in a lot on the volume side that you kind of think is prudent here to sort of get that type of deceleration?

Speaker #8: Thank you.

Speaker #9: Yeah, you're welcome. This is John. So, as I mentioned, really pleased with the performance in Q1. As we look to the remainder of the year, really, it's the uncertainty that we see in the world around us that causes us to keep our guidance where it is.

Jonathon Nudi: You're welcome. This is John. As I mentioned, really pleased with the performance in Q1. As we look to the remainder of the year, really it's the uncertainty that we see in the world around us that causes us to keep our guidance where it is. Certainly, you add all of the uncertainty prior to the war in Iran with tariffs, consumer sentiment, and things like that. Then obviously the war adds a whole other level of uncertainty. We're looking at two things very closely. One, the demand environment and how are consumers purchasing across our markets. To date, we have not seen a meaningful change, but it's something that we're looking at very closely. I think as the oil shock ripples through the economy, we have questions in terms of how the economy is going to perform.

John N. Nudi: You're welcome. This is John. As I mentioned, really pleased with the performance in Q1. As we look to the remainder of the year, really it's the uncertainty that we see in the world around us that causes us to keep our guidance where it is. Certainly, you add all of the uncertainty prior to the war in Iran with tariffs, consumer sentiment, and things like that. Then obviously the war adds a whole other level of uncertainty. We're looking at two things very closely. One, the demand environment and how are consumers purchasing across our markets. To date, we have not seen a meaningful change, but it's something that we're looking at very closely. I think as the oil shock ripples through the economy, we have questions in terms of how the economy is going to perform.

Speaker #9: Certainly, you had all of the uncertainty prior to the war in Iran with tariffs. And the consumer sentiment and things like that. And then, obviously, the war as a whole another level of uncertainty.

Speaker #9: So we're looking at two things very closely. One, the demand environment, and how our consumers are purchasing across our markets. And to date, we have not seen a meaningful change, but it's something that we're looking at very, very closely.

Speaker #9: And I think as the oil shock ripples through the economy, we have questions in terms of how the economy is going to perform. Again, nothing to date that gives us pause but we're going to continue to watch that closely.

Jonathon Nudi: Again, nothing to date that gives us pause, but we're going to continue to watch that closely. As Rick mentioned earlier, what we have seen certainly is the impact of inflation from the oil shock, particularly in petrochemicals and particularly in our decorative architectural business. As Rick also mentioned, our team has really, I think, distinguished itself as being able to navigate through tough times and a dynamic environment, and we'll do everything that we can to offset that inflation by negotiating with their suppliers, looking at footprint. But ultimately, if we have to take price, we'll work to do that in a very efficient and effective way.

John N. Nudi: Again, nothing to date that gives us pause, but we're going to continue to watch that closely. As Rick mentioned earlier, what we have seen certainly is the impact of inflation from the oil shock, particularly in petrochemicals and particularly in our decorative architectural business. As Rick also mentioned, our team has really, I think, distinguished itself as being able to navigate through tough times and a dynamic environment, and we'll do everything that we can to offset that inflation by negotiating with their suppliers, looking at footprint. But ultimately, if we have to take price, we'll work to do that in a very efficient and effective way.

Speaker #9: As Rick mentioned earlier, what we have seen certainly is the impact of inflation from the oil shock, particularly in petrochemicals and particularly in our decorative architectural business.

Speaker #9: As Rick also mentioned, our team has really, I think, distinguished itself as being able to navigate through tough times and dynamic environment. And we'll do everything that we can to offset that inflation by negotiating with our suppliers, looking at footprint, but ultimately, if we have to take price, we'll work to do that in a very efficient and effective way.

Speaker #8: Got it. Okay. That's very helpful. Secondly, shifting over to the Hansgrohe business. Question is on basically both demand and energy costs, specifically in Europe.

Matthew Bouley: Got it. Okay. That's very helpful. Secondly, shifting over to the Hansgrohe business. Question is on basically both demand and energy costs, specifically in Europe. As the conflict began, the question is, have you sort of seen any changes either from a consumer perspective? It sounded like Europe was still positive in the quarter. Anything changing on the margin around demand in Europe or just the energy costs related to natural gas in your business there? Any kind of color on how you expect that to play out. Thank you.

Speaker #8: So, as the conflict began, the question is: Have you sort of seen any changes, either from a consumer perspective? I mean, it sounded like Europe was still positive in the quarter.

Speaker #8: Is anything changing on the margin around demand in Europe, or is it just the energy costs related to natural gas in your business there? Any color on how you expect that to play out?

Speaker #8: Thank you.

Speaker #9: You're welcome. I'd say it's similar to what we're seeing in North America. We haven't seen a dramatic change to date—something we're obviously watching closely.

Jonathon Nudi: You're welcome. I'd say similar to what we're seeing in North America, we haven't seen a dramatic change to date, something we're obviously watching closely. We see commodity pressure in Europe just like we do in North America, and that Hansgrohe team is taking the initiatives to offset it. Then from a demand standpoint, again, remember that Hansgrohe is really a global business. We like how Europe's holding up at this point. China is no secret. It remains a challenging market from a new home construction standpoint and a building standpoint. If anything, that's the market we continue to look at in terms of trends and looking to improve our trends in that market. Europe's hanging in there pretty well to date, so I feel good about Hansgrohe as well.

John N. Nudi: You're welcome. I'd say similar to what we're seeing in North America, we haven't seen a dramatic change to date, something we're obviously watching closely. We see commodity pressure in Europe just like we do in North America, and that Hansgrohe team is taking the initiatives to offset it. Then from a demand standpoint, again, remember that Hansgrohe is really a global business. We like how Europe's holding up at this point. China is no secret. It remains a challenging market from a new home construction standpoint and a building standpoint. If anything, that's the market we continue to look at in terms of trends and looking to improve our trends in that market. Europe's hanging in there pretty well to date, so I feel good about Hansgrohe as well.

Speaker #9: We see commodity pressure in Europe just like we do in North America. And that team is taking the Hansgrohe team is taking the initiatives to offset it.

Speaker #9: And then from a demand standpoint, again, remember that Hansgrohe is really a global business. We like how Europe's holding up at this point. China is no secret and remains a challenging market from a new home construction standpoint and a building standpoint.

Speaker #9: So if anything, that's the market we continue to look at in terms of trends and looking to improve our in there pretty well to date.

Speaker #9: So feel good about Hansgrohe as well.

Speaker #8: Well, great. Thanks, John. Good luck, guys.

Matthew Bouley: Well, great. Thanks, John. Good luck, guys.

Speaker #9: Thank you.

Jonathon Nudi: Thank you.

John N. Nudi: Thank you.

Speaker #10: Your next question comes from the line of Catan Mentora with BMO Capital Markets. Please go ahead.

Operator: Your next question comes from the line of Ketan Mamtora with BMO Capital Markets. Please go ahead.

Speaker #8: Good morning, and congrats on a strong quarter. Maybe just coming back to the full-year guidance—Jon or Rick, what is the right way to think about what you're embedding as the base case?

Ketan Mamtora: Good morning, and congrats on a strong quarter. Maybe just coming back to the full-year guidance. John or Rick, what is the right way to think about sort of what you're embedding as the base case? If volumes, the demand environment stay kind of where it is today, do you expect to be more sort of at the midpoint of that range? How should we think about that?

Speaker #8: If volumes and the demand environment stay kind of where it is today, do you expect to be more sort of at the midpoint of the range?

Speaker #8: How should we think about that?

Speaker #11: Yeah. Hey, good morning. It's Rick. So with regards to our guidance, it's informed by all the information that we have to date with regards to what we're seeing in the marketplace.

Richard Westenberg: Yeah, Ketan, good morning. It's Rick. With regards to our guidance, it's informed by all the information that we have to date with regards to what we're seeing in the marketplace. Obviously, the uncertainty in the macroeconomic and geopolitical environment, as well as from an earnings perspective, the tariff implications and the commodity implications that we've spoken to already. At the end of the day, we feel confident in terms of delivering our results within the range. Without further input on that, I think that you can comfortably assume that we'll end in the mid part of the range. From a top-line perspective, our guidance, we did increase our expectations for the year from flat to low single digits to up low single digits. We do expect growth on our top line this year from a total company perspective, driven primarily in our plumbing space.

Speaker #11: Obviously, the uncertainty in the macroeconomic and geopolitical environment as well as from an earnings perspective, the tariff implications and the commodity implications that we've spoken to already.

Speaker #11: I mean, at the end of the day, we feel confident in terms of delivering our results within the range. And without further input on that, I think you can comfortably assume that we'll end in the mid-part of the range.

Speaker #11: From a top-line perspective, our guidance, we did increase our expectations for the year from flat to low single digits to up low single digits.

Speaker #11: So we do expect growth on our top line this year from a total company perspective. Driven primarily in our plumbing space. And from a bottom line perspective, we do expect earnings growth and EPS expansion in landing in the 410 to 430 range for the year.

Richard Westenberg: We do expect growth on our top line this year from a total company perspective, driven primarily in our plumbing space. From a bottom-line perspective, we do expect earnings growth and EPS expansion landing in the $410 to $430 range for the year.

Richard Westenberg: From a bottom-line perspective, we do expect earnings growth and EPS expansion landing in the $410 to $430 range for the year.

Speaker #8: Got it. No, that's helpful, Rick. And just as a follow-up, on the capital allocation side, you moved the target higher to 800 million. Is it fair to say that you see bigger opportunity on sort of the share repurchases side?

Ketan Mamtora: Got it. No, that's helpful, Rick. Just as a follow-up, on the capital allocation side, you moved the target higher to $800 million. Is it fair to say that you see bigger opportunity on sort of the share repurchase side, or are you seeing kind of more M&A opportunity as well?

Speaker #8: Or are you seeing kind of more M&A opportunity as well?

Speaker #11: Yeah, fair question. As it pertains to the increase in our share repurchase expectations, or availability for share repurchase or acquisitions, basically, we saw an opportunity with regards to the strength of our balance sheet.

Richard Westenberg: Yeah. Fair question. As it pertains to the increase in our share repurchase expectations or availability for share purchase or acquisition, basically, we saw an opportunity with regards to the strength of our balance sheet. We've got a very healthy net debt to EBITDA ratio or leverage ratio, and our confidence in our performance obviously demonstrated in Q1 and our confidence in our future performance, an opportunity to look at increasing the cash available for share repurchases from $600 million to at least $800 million. To enable to do that, we entered into, as I mentioned in my opening comments, a delayed draw term loan facility to enable that. So it's really going to be opportunistic. We like the flexibility that that offers. We like the opportunity in terms of the valuation that we're at today to be able to be opportunistic and leverage that.

Speaker #11: We've got a very healthy gross net EBITDA ratio, or leverage ratio. And our confidence in our performance is obviously demonstrated in Q1, and our confidence in our future performance.

Speaker #11: An opportunity to look at increasing the cash available for share repurchases from $600 million to at least $800 million. To enable us to do that, we entered into, as I mentioned in my opening comments, a delayed draw term loan facility to enable that.

Speaker #11: So it's really going to be opportunistic. We like the flexibility that that offers, and we like the opportunity, in terms of the valuation that we're at today, to be able to be opportunistic and leverage that.

Richard Westenberg: We like the flexibility that that offers. We like the opportunity in terms of the valuation that we're at today to be able to be opportunistic and leverage that. We'll keep providing updates as we progress on each quarter. Right now, we do expect an increase in share repurchases from $600 million to $800 million-plus, absent any M&A at this point.

Speaker #11: And so we'll keep providing updates as we progress on each quarter. But right now, we do expect an increase in share repurchases from $600 million to $800 million plus, absent any M&A at this point.

Richard Westenberg: We'll keep providing updates as we progress on each quarter. Right now, we do expect an increase in share repurchases from $600 million to $800 million-plus, absent any M&A at this point.

Speaker #9: And just to reiterate, our capital allocation strategy hasn't changed. We continue to look at M&A and, as we've said before, bolt-on M&A is our focus.

Jonathon Nudi: Just reiterating, our capital allocation strategy hasn't changed. We continue to look at M&A, and as we've said before, bolt-on M&A is our focus. If we find the right deal, we'll do it. As Rick mentioned, we just felt like this was a great opportunity because we have the ability to go out and borrow a bit more, and we frankly believe that our shares are our value right now, where we believe that we're performing well, and we think we can continue to as we move into the future as well.

John N. Nudi: Just reiterating, our capital allocation strategy hasn't changed. We continue to look at M&A, and as we've said before, bolt-on M&A is our focus. If we find the right deal, we'll do it. As Rick mentioned, we just felt like this was a great opportunity because we have the ability to go out and borrow a bit more, and we frankly believe that our shares are our value right now, where we believe that we're performing well, and we think we can continue to as we move into the future as well.

Speaker #9: If we find the right deal, we'll do it. As Rick mentioned, we just felt like this was a great opportunity because we have the ability to go out and borrow a bit more.

Speaker #9: And we, frankly, believe that our shares at our value right now—we believe that we're performing well. And we think we can continue to as we move into the future as well.

Speaker #8: Perfect. That's very helpful. I'll turn it over. Good luck.

Ketan Mamtora: Perfect. That's very helpful. I'll turn it over. Good luck.

Speaker #11: Thank you.

Richard Westenberg: Thank you.

Speaker #9: Thank you.

Jonathon Nudi: Thank you.

John N. Nudi: Thank you.

Speaker #10: Your next question comes from the line of Michael Dahl with RBC Capital Markets. Please go ahead.

Operator: Your next question comes from the line of Michael Dahl with RBC Capital Markets. Please go ahead.

Operator: Your next question comes from the line of Mike Dahl with RBC Capital Markets. Please go ahead.

Speaker #12: Morning. Thanks for taking my questions. I wanted to circle back to some of the cost and margin dynamics that I think the question is, if you look at this being kind of net neutral to less favorable in terms of cost and tariffs and a lot of uncertainty around the second half, I understand that historically, you've had the ability to do things to offset this.

Michael Dahl [Managing Director, Equity Research: Morning. Thanks for taking my questions. I wanted to circle back to some of the cost and margin dynamics. I think the question is, if you look at this being kind of net neutral to less favorable in terms of costs and tariffs and a lot of uncertainty around H2, I understand that historically you've had the ability to do things to offset this. When you have broad increases in inputs and global tariffs, it's a little harder to get those savings from shifting footprint, unless I'm wrong about that. In your guide, if that is potentially a net negative versus your initial assumption, what is the primary lever that you're relying on to offset that and giving you the confidence to still guide margins up in H2?

Mike Dahl [Managing Director, Equity Research: Morning. Thanks for taking my questions. I wanted to circle back to some of the cost and margin dynamics. I think the question is, if you look at this being kind of net neutral to less favorable in terms of costs and tariffs and a lot of uncertainty around H2, I understand that historically you've had the ability to do things to offset this. When you have broad increases in inputs and global tariffs, it's a little harder to get those savings from shifting footprint, unless I'm wrong about that. In your guide, if that is potentially a net negative versus your initial assumption, what is the primary lever that you're relying on to offset that and giving you the confidence to still guide margins up in H2?

Speaker #12: When you have broad increases in inputs and global tariffs, it's a little harder to get those savings from shifting footprint, unless I'm wrong about that.

Speaker #12: So, in your guide, if that is potentially a net negative versus your initial assumption, what is the primary lever that you're relying on to offset that and giving you the confidence to still guide margins up in the back half?

Speaker #11: Yeah, Mike, good morning. It's Rick. So your understanding of the playing field is accurate in terms of our read of the fact that commodity and input costs are likely to be a headwind that exceeds the favorability on tariffs.

Richard Westenberg: Yeah, Mike, good morning. It's Rick. Your understanding of the playing field is accurate in terms of our read of the fact that commodity and input costs are likely to be a headwind that exceeds the favorability on tariffs. As I mentioned earlier, it is more of a back half of the 2026 dynamic. In terms of the levers that we're looking at, it's really the same levers that we've been executing against already. Footprint in terms of sourcing footprint is still a lever that we're pulling. That is really on track in terms of helping to mitigate the tariff impacts that we still are encountering. It's also cost reductions we've really executed well in terms of our cost savings initiatives.

Speaker #11: And as I mentioned earlier, it is more of a back half of the 2026 dynamic. In terms of the levers that we're looking at, it's really the same levers that we've been executing against already.

Speaker #11: So footprint in terms of sourcing footprint is still a lever that we're pulling. And that is really on track in terms of helping to mitigate the tariff impacts that we still are encountering.

Speaker #11: But it's also cost reductions. We've really executed well in terms of our cost savings initiative. And of course, the restructuring that we announced in our February call and John alluded to earlier in his opening comments, that has really taken hold.

Richard Westenberg: Of course, the restructuring that we announced in our February call, and John alluded to earlier in his opening comments, that is really taking hold. That is amplifying our cost savings initiatives, and we're streamlining the business, reducing headcount, and optimizing operations. That's a huge lever for us, and we're going to continue to do that. Pricing, obviously, we've been really effective at our execution on pricing. Although much of the pricing actions that we've been pursuing are implemented, there's still a lever that we're looking at selectively as we proceed during the course of the year. I would say, overall, Mike, the levers remain the same, and we're going to continue to execute like we've done in the past.

Speaker #11: And so that is amplifying our cost savings initiatives. And we're streamlining the business, reducing headcount, and optimizing operations. And so that's a huge lever for us.

Speaker #11: And we're going to continue to do that. And then pricing. Obviously, we've been really effective at our execution on pricing. And although much of the pricing actions that we've been pursuing are implemented, there's still a lever that we're looking at selectively as we proceed during the course of the year.

Speaker #11: So I would say overall, Mike, the levers remain the same. And we're going to continue to execute like we've done in the past. And we believe that the mitigation actions that we are executing and we intend to execute through the course of the year will be sufficient to allow us to mitigate the headwinds and allow us to deliver results complement within the guidance range that we provided.

Richard Westenberg: We believe that the mitigation actions that we are executing and we intend to execute through the course of the year will be sufficient to allow us to mitigate the headwinds and allow us to deliver results compliant within the guidance range that we provided.

Speaker #12: Okay. Great. Thanks for that, Rick. That's helpful. Then shifting gears and back to the, I guess, part of this might tie back to the capital allocation.

Michael Dahl [Managing Director, Equity Research: Okay, great. Thanks for that, Rick. That's helpful. Shifting gears and back to the, I guess, part of this might tie back to the capital allocation. I did note that in your Q, you have a little bit of commentary about the potential to seek relief or refunds from previously paid tariffs, but that nothing has currently been done or contemplated. What can you articulate about your strategy in terms of seeking refunds, and does that tie in at all to kind of the expanded buyback guidance, where if you do get some refunds, your inclination would be to return that back to shareholders? Or how would you frame that?

Mike Dahl [Managing Director, Equity Research: Okay, great. Thanks for that, Rick. That's helpful. Shifting gears and back to the, I guess, part of this might tie back to the capital allocation. I did note that in your Q, you have a little bit of commentary about the potential to seek relief or refunds from previously paid tariffs, but that nothing has currently been done or contemplated. What can you articulate about your strategy in terms of seeking refunds, and does that tie in at all to kind of the expanded buyback guidance, where if you do get some refunds, your inclination would be to return that back to shareholders? Or how would you frame that?

Speaker #12: I did note that in your Q, you have a little bit of commentary about the potential to seek relief or refunds from previously paid tariffs.

Speaker #12: But that nothing is currently been done or contemplated. What can you articulate about your strategy in terms of seeking refunds? And does that tie in at all to kind of the expanded buyback guide where if you do get some refunds, your inclination would be to return that back to shareholders?

Speaker #12: Or how would you frame that?

Speaker #9: Yeah, Mike, this is John. I would say we think the refund process still has a lot of uncertainty in it. Until if and when we get refunds, we'll obviously report what they might be and how we might handle them.

Richard Westenberg: Yeah, Mike, this is John. I would say we think the refund process still has a lot of uncertainty in it. Until, if and when we get refunds, we'll obviously report what they might be and how we might handle them. We are not banking on refunds, and it didn't really play any kind of role in our decision to take on the incremental debt that we talked about. Again, we're taking the steps necessary to protect our shareholders. At the same time, it's still highly uncertain. When we have something to report, we'll certainly do that.

John N. Nudi: Yeah, Mike, this is John. I would say we think the refund process still has a lot of uncertainty in it. Until, if and when we get refunds, we'll obviously report what they might be and how we might handle them. We are not banking on refunds, and it didn't really play any kind of role in our decision to take on the incremental debt that we talked about. Again, we're taking the steps necessary to protect our shareholders. At the same time, it's still highly uncertain. When we have something to report, we'll certainly do that.

Speaker #9: But we are not banking on refunds. And it didn't really play any kind of role in our decision to take on the incremental debt that we talked about.

Speaker #9: So again, we're taking the steps necessary to protect our shareholders. And at the same time, it's still highly uncertain. So when we have some of the report, we'll certainly do that.

Speaker #12: Understood. Thanks, John.

Michael Dahl [Managing Director, Equity Research: Understood. Thanks, John.

Mike Dahl [Managing Director, Equity Research: Understood. Thanks, John.

Speaker #9: Thank you.

Richard Westenberg: Thank you.

John N. Nudi: Thank you.

Speaker #10: Your next question comes from the line of Trevor Allenson with Wolf Research. Please go ahead.

Operator: Your next question comes from the line of Trevor Allinson with Wolfe Research. Please go ahead.

Speaker #12: Hi. Good morning. Thank you for taking my questions. I wanted to follow up on the restructuring actions. I think last quarter, you guys had talked about those being bigger impacts to 27 and 28.

Trevor Allinson: Hi, good morning. Thank you for taking my questions. I wanted to follow up on the restructuring actions. I think last quarter you guys had talked about those being bigger impacts to 2027 and 2028, but it sounds like you're seeing those come through this year as well and providing nice tailwinds. Can you size for us what sort of benefit you're getting from the restructuring actions here in 2026? And then how much larger does that become as you move into 2027 and 2028?

Speaker #12: But it sounds like you're seeing those come through this year as well and providing nice tailwinds. So can you size for us what sort of benefit you're getting from the restructuring actions here in 26?

Speaker #12: And then how much larger does that become as you move into 27 and 28?

Speaker #11: Yeah. Trevor, good morning. It's Rick. So with regards to the restructuring actions, we're really pleased with the execution, both the true execution and the timing of our restructuring actions.

Richard Westenberg: Yeah, Trevor, good morning. It's Rick. With regards to the restructuring actions, we're really pleased with the execution, both the true execution and the timing of our restructuring actions. As we disclosed, we incurred about $8 million in Q1. We had incurred several million dollars in Q4 of last year, and we expect $50 million of restructuring costs for the calendar year. Those are on track. We're starting to see those savings. We haven't quantified, nor do we intend to quantify the savings per se, because part of the savings are going to be redeployed in terms of growth initiatives, as well as helping us to expand our margins. That's a contributing factor to our margin expansion this year. You're absolutely right.

Speaker #11: As we disclosed, we incurred about $8 million in Q1. We had incurred several million dollars in Q4 of last year. And we expect $50 million of restructuring costs for the calendar year.

Speaker #11: And those are on track. And so we're starting to see those savings. We haven't quantified, nor do we intend to quantify, the savings per se because part of the savings are going to be redeployed in terms of growth initiatives.

Speaker #11: As well as helping us to expand our margins. And that's a contributing factor to our margin expansion this year. You're absolutely right. The restructuring actions are going to be executed over the course of 2026.

Richard Westenberg: The restructuring actions are going to be executed over the course of 2026, and so we'll see more of a full-year benefit as we move into 2027 into 2028. We're going to be managing those cost savings and leveraging those to, as I mentioned, to drive growth, as well as managing our margin expansion.

Speaker #11: And so we'll see more of a full-year benefit as we move into 27, into 28. But we're going to be managing those cost savings and leveraging those to, as I mentioned, to drive growth, as well as managing our margin expansion.

Speaker #12: Okay. Thanks for that, Rick. And then second question maybe is related to that then. I mean, you guys have made some changes in your incentive comp structure recently.

Trevor Allinson: Okay. Thanks for that, Rick. Second question maybe is related to that then. You guys have made some changes in your incentive comp structure recently. It looks like you're being more focused on growth than you have been in the past. Can you talk about that change, why you made the adjustment, and does that imply some shifting priorities for you guys in terms of growth moving forward?

Speaker #12: It looks like you're being more focused on growth than you have been in the past. Can you talk about that change? Why you made the adjustment?

Speaker #12: And does that imply some shifting priorities for you guys in terms of growth, moving forward?

Speaker #9: Yeah, Trevor. This is John. Maybe I'll jump in. So as I joined MASCO last summer, it was clear to me MASCO was a high-performing company.

Jonathon Nudi: Yeah, Trevor, this is John. Maybe I'll jump in. As I joined Masco last summer, it was clear to me Masco is a high-performing company. As I went and did a listening tour and talked to a lot of key constituents, the one thing I heard is that there's likely an opportunity for us to drive our top line a bit faster. Don't take the focus off of margins. Don't take the focus off of cash flow. The company's done a great job on that. If you can continue to deliver the bottom line and grow a little bit faster is probably a benefit to everyone. We've been focused on doing just that, and we're taking actions across the board, including the structuring of our Executive Committee to bring some external expertise in areas that we believe that we can benefit, see some additional savings.

John N. Nudi: Yeah, Trevor, this is John. Maybe I'll jump in. As I joined Masco last summer, it was clear to me Masco is a high-performing company. As I went and did a listening tour and talked to a lot of key constituents, the one thing I heard is that there's likely an opportunity for us to drive our top line a bit faster. Don't take the focus off of margins. Don't take the focus off of cash flow. The company's done a great job on that. If you can continue to deliver the bottom line and grow a little bit faster is probably a benefit to everyone.

Speaker #9: As I wanted to do the listening tour and talk to a lot of key constituents, the one thing I heard is that there is likely an opportunity for us to drive our top line a bit faster.

Speaker #9: Don't take the focus off the margins. Don't take the focus off of cash flow. The company's done a great job on that. But if you can continue to deliver the bottom line and grow a little bit faster, it's probably a benefit to everyone.

Speaker #9: So, we've been focused on doing just that. We're taking actions across the board, including the structuring of our executive committee to bring some external expertise in—areas where we believe we can benefit and see some additional savings.

John N. Nudi: We've been focused on doing just that, and we're taking actions across the board, including the structuring of our Executive Committee to bring some external expertise in areas that we believe that we can benefit, see some additional savings. We're setting up centers of excellence around things like digital marketing and e-commerce, commercial excellence, all in the pursuit of helping to not only grow the bottom line, but also grow our top line a bit more quickly. Certainly, incentive is important. We did make a change to change the weight in terms of how we incent our teams, and I would say profit's still the largest percentage of the pie. We just balanced it out a little bit to make sure that we have the appropriate focus on top line as well.

Speaker #9: We're setting up centers of excellence around things like digital marketing and e-commerce. Commercial excellence. All in the pursuit of helping to not only grow the bottom line, but also grow our top line a bit more quickly.

Jonathon Nudi: We're setting up centers of excellence around things like digital marketing and e-commerce, commercial excellence, all in the pursuit of helping to not only grow the bottom line, but also grow our top line a bit more quickly. Certainly, incentive is important. We did make a change to change the weight in terms of how we incent our teams, and I would say profit's still the largest percentage of the pie. We just balanced it out a little bit to make sure that we have the appropriate focus on top line as well. I'm really pleased with the progress we're making. I'm pleased that we were able to grow the way we did in Q1, and again, our goal over time is to be able to do that consistently.

Speaker #9: And then, certainly, incentive is important. So we did make a change to adjust the weights in terms of how we incent our teams. And I would say profit is still the largest percentage of the pie.

Speaker #9: We just bounced it out a little bit to make sure that we had the appropriate focus on top line as well. So, I'm really pleased with the progress we're making.

John N. Nudi: I'm really pleased with the progress we're making. I'm pleased that we were able to grow the way we did in Q1, and again, our goal over time is to be able to do that consistently.

Speaker #9: I'm pleased that we were able to grow the way we did in Q1. And again, our goal over time is to be able to do that consistently.

Speaker #12: Thank you for all the color. Good luck moving forward.

Trevor Allinson: Thank you for all the color. Good luck moving forward.

Speaker #9: Thank you, Trevor.

Jonathon Nudi: Thank you, Trevor.

John N. Nudi: Thank you, Trevor.

Speaker #10: Your next question comes from the line of Adam Baumgarten with Vertical Research Partners. Please go ahead.

Operator: Your next question comes from the line of Adam Baumgarten with Vertical Research Partners. Please go ahead.

Speaker #12: Hey, everyone. Good morning. Next quarter. I guess just on the margin piece, you talked about first-half margins now being flattish year over year, which would still imply some margin pressure in 2Q.

Adam Baumgarten: Hey, everyone. Good morning. Nice quarter. I guess just on the margin piece, you talked about H1 margins now being flattish year over year, which would still imply some margin pressure in Q2. Do you expect both segments to see margin pressure next quarter?

Speaker #12: Do you expect both segments to see margin pressure next quarter?

Speaker #11: Adam, good morning. It's Rick. So in terms of our margin expectations, you're right. In terms of our updated guide for the first half of the year, it's flat margins.

Richard Westenberg: Adam, good morning. It's Rick. In terms of our margin expectations, you're right in terms of our updated guide for H1 is flat margins. Given the fact that we had expanded margins in Q1, it does imply a margin contraction in Q2. I would just remind you that Q2 of 2025, so last year's quarter, we really weren't impacted by tariffs quite significantly at that point in time, and we had a very strong quarter with regards to 20% margins. It's a challenging quarter from a year-over-year perspective. We do expect a very solid quarter in Q2 from a margin contraction perspective. I'm not going to comment on the segments per se, but overall, we do expect some margin contraction, but we do expect to deliver a very strong quarter in Q2.

Speaker #11: And given the fact that we had expanded margins in Q1, it does imply a margin contraction in Q2. I would just remind you that Q2 of 2025—so last year's quarter—we really weren't impacted by tariffs quite significantly at that point in time.

Speaker #11: And we had a very strong quarter with regards to 20% margin. So it's a challenging quarter from a year-over-year perspective. But we do expect a very solid quarter in Q2.

Speaker #11: From a margin contraction perspective, I'm not going to comment on the segments per se. But overall, we do expect some margin contraction. However, we do expect to deliver a very strong quarter in Q2.

Speaker #12: Okay, got it. Thanks. And then I think you guys alluded to maybe some incremental price actions. A couple of questions: would that be in both segments?

Adam Baumgarten: Okay. Got it. Thanks. I think you guys alluded to maybe some incremental price actions. A couple questions. Would that be in both segments? Would that happen if commodity costs stay where they are today? Would you need to see more commodity inflation to then think about raising prices further?

Speaker #12: And would that happen if kind of commodity costs stay where they are today? Or would you need to see more commodity inflation to then think about raising prices further?

Speaker #9: Adam, it's John. I guess I would say we're not going to talk about prospective price advances. I just would probably tell you to look at history here.

Jonathon Nudi: Adam, it's John. I guess I would say we're not going to talk about prospective price advances. I just would probably tell you to look at history here, the recent history, in terms of how we'd approach things. Pricing is the last resort for us. We start with negotiating with our suppliers, changing our footprint where possible, taking costs out of our own system. If the need is there, I think our teams have proven that they can take pricing very effectively and efficiently and do it in a way that benefits not only the bottom line, but doesn't harm the top line as well. We'll continue to monitor things. Again, as we talked before, I'd say the one surprise for us so far this year has been the impacts on petrochemicals and particularly on our decorative architectural business.

John N. Nudi: Adam, it's John. I guess I would say we're not going to talk about prospective price advances. I just would probably tell you to look at history here, the recent history, in terms of how we'd approach things. Pricing is the last resort for us. We start with negotiating with our suppliers, changing our footprint where possible, taking costs out of our own system. If the need is there, I think our teams have proven that they can take pricing very effectively and efficiently and do it in a way that benefits not only the bottom line, but doesn't harm the top line as well. We'll continue to monitor things. Again, as we talked before, I'd say the one surprise for us so far this year has been the impacts on petrochemicals and particularly on our decorative architectural business.

Speaker #9: The recent history in terms of how we've approached things—pricing is the last resort for us. We start with negotiating with our suppliers, changing our footprint.

Speaker #9: Where possible, taking costs out of our own system. But if the need is there, I think our team is a proven that they can take pricing very effectively and efficiently and do it in a way that benefits not only the bottom line, but doesn't harm the top line as well.

Speaker #9: So, we'll continue to monitor things. Again, as we talked before, I'd say the one surprise for us so far this year has been the impacts on petrochemicals, and particularly on our Decorative Architectural business.

Speaker #9: So that's an area that we have a lot of focus. We're spending a lot of time with our suppliers to negotiate the best deals we can.

Jonathon Nudi: That's an area that we have a lot of focus. We're spending a lot of time with our suppliers to negotiate the best deals we can, and then ultimately, we'll work with our retail partner, in terms of how we approach that looking forward. Just know that we've had good practice over the last few years, given all the dynamic environment, and feel really confident the team can navigate as we move forward.

John N. Nudi: That's an area that we have a lot of focus. We're spending a lot of time with our suppliers to negotiate the best deals we can, and then ultimately, we'll work with our retail partner, in terms of how we approach that looking forward. Just know that we've had good practice over the last few years, given all the dynamic environment, and feel really confident the team can navigate as we move forward.

Speaker #9: And then ultimately, we'll work with our retail partner in terms of how we approach that moving forward. But just know that we've had good practice over the last few years, given all the dynamic environment, and feel really confident the team can navigate as we move forward.

Speaker #12: Okay, great. Thanks. Best of luck.

Adam Baumgarten: Okay, great. Thanks. Best of luck.

Speaker #9: Thanks, Adam.

Jonathon Nudi: Thanks, Adam.

John N. Nudi: Thanks, Adam.

Speaker #10: Your next question comes from the line of Phil Ng with Jefferies. Please go ahead.

Operator: Your next question comes from the line of Phil Ng with Jefferies. Please go ahead.

Speaker #13: Hey, guys. Congrats on our really impressive quarter. I guess to kind of kick things off, John, I mean, I think volumes for plumbing came in, as you've pointed out, better than you expected.

Phil Ng: Hey, guys. Congrats on a really impressive quarter. I guess to kind of kick things off, Jonathon, I think volumes for Plumbing came in, as you've pointed out, better than you expected. Is that a more resilient consumer, maybe better price elasticity? Can you tease out if there's any share gains in Delta that drove some of that? Help us kind of think through where Plumbing would have surprised, and it sounds like it's been pretty resilient thus far.

Speaker #13: Is that a more resilient consumer? Maybe better price elasticity? Can you tease out if there's any share gains of note that drove some of that?

Speaker #13: Help us kind of think through where I guess plumbing would have surprised and it sounds like it's been pretty resilient thus far.

Speaker #9: Yeah, Phil, good morning. Yeah. I mean, we're really pleased with plumbing, as I mentioned. Globally, we grew, which is great. I would say, again, versus expectations, it was really North America where we saw the beat.

Jonathon Nudi: Yeah, Phil. Good morning. Yeah, we're really pleased with Plumbing. As I mentioned, it's globally we grew, which is great. I would say, again, versus expectations, it was really North America that we saw the beat. As I mentioned, the vast majority of that beat versus our expectation was volume. I would say our Delta team is firing on all cylinders right now. They've got a great marketing plan for the year. They've got terrific new products that they've launched. Our vitality rate continues to increase year-over-year. Our commercial plans with our key customers are incredibly strong as well. That team continues to perform. When you break it down across channels, we grew high single digits in North America across each of the channels, so wholesale, e-commerce, and retail. That's tricky to do.

John N. Nudi: Yeah, Phil. Good morning. Yeah, we're really pleased with Plumbing. As I mentioned, it's globally we grew, which is great. I would say, again, versus expectations, it was really North America that we saw the beat. As I mentioned, the vast majority of that beat versus our expectation was volume. I would say our Delta team is firing on all cylinders right now. They've got a great marketing plan for the year. They've got terrific new products that they've launched. Our vitality rate continues to increase year-over-year. Our commercial plans with our key customers are incredibly strong as well. That team continues to perform. When you break it down across channels, we grew high single digits in North America across each of the channels, so wholesale, e-commerce, and retail. That's tricky to do.

Speaker #9: And as I mentioned, the vast majority of that beat versus our expectation was volume. And I would say our Delta team is firing on all cylinders right now.

Speaker #9: They've got a great marketing plan for the year. They've got terrific new products that they've launched or vitality rate continues to increase year over year.

Speaker #9: Our commercial plans with our key customers are incredibly strong as well. So that team continues to perform. And then when you break it down across channels, we grew high single digits in North America across each of the channels.

Speaker #9: So wholesale, e-commerce, and retail. And that's tricky to do. And the team is hyper-focused on building strong plans at each of our customers. So we do feel like we're taking some share.

Jonathon Nudi: The team is hyper-focused on building strong plans at each of our customers. We do feel like they're taking some share. At the same time, I think executed pricing in a really effective way that we didn't see the elasticity maybe that we would have modeled out beforehand. I think it's, again, a testament to strong execution. The last thing I would add is we continue to see strength in our upper premium and luxury segment of the market where we have brands such as Brizo, Axor, and Newport Brass. The high-end consumer definitely seems to be hanging in there strong. We see really strong margins in that segment as well. Feel great about the performance and feel good about the plans we have in place for the rest of the year as well.

John N. Nudi: The team is hyper-focused on building strong plans at each of our customers. We do feel like they're taking some share. At the same time, I think executed pricing in a really effective way that we didn't see the elasticity maybe that we would have modeled out beforehand. I think it's, again, a testament to strong execution. The last thing I would add is we continue to see strength in our upper premium and luxury segment of the market where we have brands such as Brizo, Axor, and Newport Brass. The high-end consumer definitely seems to be hanging in there strong. We see really strong margins in that segment as well. Feel great about the performance and feel good about the plans we have in place for the rest of the year as well.

Speaker #9: And at the same time, I think executed pricing in a really effective way that we didn't see the elasticity maybe that we would have modeled out beforehand.

Speaker #9: And I think it's, again, a testament to strong execution. So the last thing I would add is we continue to see strength in our upper premium and luxury segment of the market, where we have brands such as Brizo and AXOR.

Speaker #9: And Newport Brass. And the high-end consumer definitely seems to be hanging in there strong. And we see really strong margins on that segment as well.

Speaker #9: So, I feel great about the performance, and feel good about the plans we have in place for the rest of the year as well.

Speaker #13: Gotcha. And just kind of teasing off of that, I guess for plumbing for perhaps Rick, you guys kept your guidance for up low single digit top line growth.

Phil Ng: Got you. Just kind of teasing off that, I guess for Plumbing, for perhaps Rick, you guys kept your guidance for up low-single-digit top-line growth, and it sounds like there was nothing of note for Q1 and volumes were up. It sounds like things are pretty resilient. Could that be a source of upside or are you kind of expecting volumes to kind of decline in H2, perhaps just given some of the macro dynamics that is out there? Just want to kind of think through some of the puts and takes there on the demand side.

Speaker #13: And it sounds like there was nothing of note for 1Q and volumes were up. It sounds like things are pretty resilient. Could that be a source of upside?

Speaker #13: Or are you kind of expecting volumes to decline in the back half, perhaps, just given some of the macro dynamics that are out there?

Speaker #13: Just want to kind of think through some of the puts and takes there on the demand side.

Speaker #11: Yeah, sure, Phil. As it pertains to, as John mentioned and we talked about before, Q1 was a really strong quarter. We're very pleased with our results.

Richard Westenberg: Yeah, sure, Phil. As it pertains to, as John mentioned and we talked before, Q1 was a really strong quarter. We're very pleased with our results, and the consumer in terms of our business is holding in there. The uncertainty is something that we're continuing to track both on the macro and geopolitical. Consumer confidence is a bit challenged, but as it pertains to the fundamentals of our business are strong. The only thing I would point to from an H1 versus H2 perspective is we started to take pricing from a tariff mitigation standpoint in H2 2025, and so we'll lap that as we get to the middle of the year. As evidenced by our Q1 pricing of 6% in Q1, we won't see that type of year-over-year comp in H2 of the year.

Speaker #11: And the consumer, in terms of our business, is holding in there. The uncertainty is something that we're continuing to track, both on the macro and geopolitical. Consumer confidence is a bit challenged.

Speaker #11: But as it pertains to the fundamentals of our business, they're strong. The only thing I would point to from a first half versus second half perspective is we started to take pricing from a tariff mitigation standpoint in the second half of 2025.

Speaker #11: And so we'll lap that as we get to the middle of the year. As evidenced by our Q1 pricing of 6% in Q1, we won't see that type of year-over-year comp in the second half of the year.

Speaker #11: So that's part of the dynamic, just mechanically. But we still feel pretty confident. And obviously, we're hopeful that there is upside relative to our expectations.

Richard Westenberg: That's part of the dynamic, just mechanically. We still feel pretty confident and obviously we're hopeful that there is upside relative to our expectations. At this point we're guiding at low single digit in terms of growth for the year.

Speaker #11: But at this point, we're guiding at low single-digit growth for the year.

Speaker #13: Okay, thank you. Really appreciate the color, guys.

Phil Ng: Okay. Thank you. Really appreciate the color, guys.

Speaker #11: Super, Phil.

Richard Westenberg: Sure, Phil.

Speaker #9: Thanks, Phil.

Jonathon Nudi: Thanks, Phil.

John N. Nudi: Thanks, Phil.

Speaker #10: Your next question comes from the line of Michael Rejo with JPMorgan. Please go ahead.

Operator: Your next question comes from the line of Michael Rehaut with JPMorgan. Please go ahead.

Michael Rehaut: Hi. Thanks. Good morning, everyone. Thanks for taking my questions. I wanted to shift the focus to decorative, and the sales were flat, still better than what we were looking for, down low single digits. I was hoping to get a sense of DIY versus pro and the different drivers there, and where things might be, if it's indeed the case, maybe coming in a little stronger, if you're seeing any momentum similar to what you've seen in plumbing, and how you might contrast the sales momentum that you've seen in plumbing versus what you're seeing in decorative across, again, DIY versus pro on the paint side.

Speaker #12: Hi. Thanks. Good morning, everyone. Thanks for taking my questions. Wanted to shift the focus to decorative. And the sales were flat, still better than what we were looking for down low single digits.

Speaker #12: Was hoping to get a sense of DIY versus pro. And the different drivers there. And where things might be if it's indeed the case, maybe coming in a little stronger.

Speaker #12: If you're seeing any momentum similar to what you've seen in plumbing, and how you might contrast the sales momentum that you've seen in plumbing versus what you're seeing in decorative, across, again, DIY versus pro.

Speaker #12: On the paint side.

Speaker #9: And my good question is, Jon, so our sales for the quarter were flat. Clearly, that was a better performance than what we saw in Q4 of 2025.

Jonathon Nudi: Mike, good question. It's John. Our sales for the quarter were flat. Clearly that was a better performance than what we saw in Q4 of 2025 and really most of 2025. When you break it down, we saw pro continue to grow mid-single digits. DIY was down low single digits. We feel good about the plans we have in place. I do believe that DIY is going to remain pressured. When you look at that business, it's highly correlated with existing home sales, and obviously existing home sales remain pressured. As a result, we're putting strong plans in place. We're going to focus on the great quality that we provide at the best value in the industry, really make sure that's playing through, and feel good about our plans with our retail partner.

John N. Nudi: Mike, good question. It's John. Our sales for the quarter were flat. Clearly that was a better performance than what we saw in Q4 of 2025 and really most of 2025. When you break it down, we saw pro continue to grow mid-single digits. DIY was down low single digits. We feel good about the plans we have in place. I do believe that DIY is going to remain pressured. When you look at that business, it's highly correlated with existing home sales, and obviously existing home sales remain pressured. As a result, we're putting strong plans in place. We're going to focus on the great quality that we provide at the best value in the industry, really make sure that's playing through, and feel good about our plans with our retail partner.

Speaker #9: And really, most of 2025. When you break it down, we saw Pro continue to grow mid-single digits. DIY was down low single digits. And we feel good about the plans we have in place.

Speaker #9: I mean, I do believe that DIY is going to remain pressured when you look at that business. It's highly correlated with existing home sales.

Speaker #9: And obviously, existing home sales remain pressured. So as a result, we're putting strong plans in place. We're going to focus on the great quality that we provide at the best value in the industry.

Speaker #9: Really make sure that that's playing through, and feel good about our plans with our retail partner. The pro side is where we continue to see a tremendous amount of opportunity.

Jonathon Nudi: The pro side is where we continue to see a tremendous amount of opportunity. That's where the growth has been over the last longer time. We have a relatively small share in that space as well. We've grown our share by 200 basis points over the last few years. We're continuing to invest to take friction out of the experience for pros. Whether that be order online, pick up at the store, or online, have it delivered to the job site. We continue to hire both inside and outside sales reps to develop those pro relationships. I can tell you that The Home Depot has that same exact laser focus on the pro as well. I think we hope to see incremental progress as we move throughout the year. It will remain a tough DIY market, we believe, for the short term.

John N. Nudi: The pro side is where we continue to see a tremendous amount of opportunity. That's where the growth has been over the last longer time. We have a relatively small share in that space as well. We've grown our share by 200 basis points over the last few years. We're continuing to invest to take friction out of the experience for pros. Whether that be order online, pick up at the store, or online, have it delivered to the job site. We continue to hire both inside and outside sales reps to develop those pro relationships. I can tell you that The Home Depot has that same exact laser focus on the pro as well. I think we hope to see incremental progress as we move throughout the year.

Speaker #9: I mean, that's where the growth has been over the last longer time. We have a relatively small share in that space as well. We've grown our share by 200 basis points over the last few years.

Speaker #9: Continue to invest, take friction out of the experience for pros. So whether that be order online, pick up at the store, order online, have it delivered to the job site.

Speaker #9: We continue to hire both inside and outside sales reps to develop those pro relationships. And I can tell you that the home depot has that same exact laser focus on the pro as well.

Speaker #9: So, I think we hope to see incremental progress as we move throughout the year. We'll remain a tough DIY market, we believe, for the short term.

John N. Nudi: It will remain a tough DIY market, we believe, for the short term. I feel really good about the plans we have in place and the trajectory that we're heading on.

Speaker #9: But feel really good about the plans we have in place. And the trajectory that we're heading on.

Jonathon Nudi: I feel really good about the plans we have in place and the trajectory that we're heading on.

Speaker #12: Great. No, that's helpful. And I know at the risk of beating this one to death a little bit, but I think it's going to be a big topic over the next month or two around the strength in plumbing.

Michael Rehaut: Great. No, that's helpful. I know at the risk of beating this one to death a little bit, but I think it's going to be a big topic over the next month or two around the strength in plumbing, particularly the volume side. You just highlighted the fact that you've seen that strength across different channels in North America, a lot of success in your execution. Notwithstanding maybe being a little more conservative in the back half for various reasons, and I presume you also hit on this at your Analyst Day next month. Are we to think about, let's say, the share gains that you've been able to achieve in Q1 as sustainable? Are there parts of the market that maybe you see an opportunity where this share gain dynamic can persist throughout this year and into 2027, 2028?

Speaker #12: Particularly on the volume side. And you just highlighted the fact that you've seen that strength across different channels. In North America, a lot of success from your execution.

Speaker #12: Notwithstanding, maybe being a little more conservative in the back half for various reasons. And I presume you also hit on this at your analyst day next month.

Speaker #12: But are we to think about, let's say, the share gains that you've been able to achieve in the first quarter as sustainable? And are there parts of the market that maybe you see an opportunity where this share gain dynamic can persist throughout this year and into 2027-28?

Michael Rehaut: Are there parts of the market that maybe you see an opportunity where this share gain dynamic can persist throughout this year and into 2027, 2028? Just trying to get a sense of the sustainability in the performance and if there's anything that's shifted within the market, either on the customer side or some of your competitors out there that lead you to believe that the share gain dynamic can persist on a, let's say, medium-term basis?

Speaker #12: Just trying to get a sense of the sustainability and the performance, and if there's anything that's shifted within the market, either on the customer side or some of your competitors out there, that leads you to believe that the share gain dynamic can persist on, let's say, a medium-term basis.

Michael Rehaut: Just trying to get a sense of the sustainability in the performance and if there's anything that's shifted within the market, either on the customer side or some of your competitors out there that lead you to believe that the share gain dynamic can persist on a, let's say, medium-term basis?

Speaker #9: And good question. I mean, as I mentioned, we feel terrific about what our team has delivered in Q1, particularly in North America. We don't take anything for granted.

Jonathon Nudi: Mike, good question. As I mentioned, we feel terrific about what our team has delivered in Q1, particularly in North America. We don't take anything for granted. Our competitors are strong. There's good brands out there, and it's a dynamic environment. We're going to keep playing our game, keep focused on building our brands, innovating, and then executing at a high level. If we do that, we believe that we'll continue to be strong as we move forward. As I mentioned earlier, the big question mark for us is just what happens with the end consumer. A couple of months ago, we clearly talked about it being uncertain times and a lot of dynamic environment. Obviously since the conflict in the Middle East, it's taken it to a whole new level.

John N. Nudi: Mike, good question. As I mentioned, we feel terrific about what our team has delivered in Q1, particularly in North America. We don't take anything for granted. Our competitors are strong. There's good brands out there, and it's a dynamic environment. We're going to keep playing our game, keep focused on building our brands, innovating, and then executing at a high level. If we do that, we believe that we'll continue to be strong as we move forward. As I mentioned earlier, the big question mark for us is just what happens with the end consumer. A couple of months ago, we clearly talked about it being uncertain times and a lot of dynamic environment. Obviously since the conflict in the Middle East, it's taken it to a whole new level.

Speaker #9: Our competitors are strong. There are good brands out there, and it's a dynamic environment. So we're going to keep playing our game, stay focused on building our brands, innovating, and executing at a high level.

Speaker #9: And if we do that, we believe that we'll continue to be strong as we move forward. As I mentioned earlier, I mean, the big question mark for us is just what happens with the end consumer.

Speaker #9: And a couple of months ago, we clearly talked about it being uncertain times and a lot of dynamic environment. And obviously, since the conflict in the Middle East, it's taken it to a whole new level.

Speaker #9: So, we believe that we're just being prudent in terms of, 'Hey, let's wait and see what happens and how it plays out with consumers.' And, as we mentioned before, we are starting to see some inflation move through.

Jonathon Nudi: We believe that we're just being prudent in terms of, hey, let's wait and see what happens and how it plays out with consumers. As we mentioned before, we are starting to see some inflation through. If there's any caution, it's just that, and certainly these are very uncertain times that we'll continue to monitor. In terms of what we can control, I feel great about what our teams are doing. I feel we have a very clear line of sight into our plans for the rest of the year, and I expect our performance to be strong, certainly versus the category. Ultimately it's the category, how that performs with all this uncertainty is the thing that we're watching.

John N. Nudi: We believe that we're just being prudent in terms of, hey, let's wait and see what happens and how it plays out with consumers. As we mentioned before, we are starting to see some inflation through. If there's any caution, it's just that, and certainly these are very uncertain times that we'll continue to monitor. In terms of what we can control, I feel great about what our teams are doing. I feel we have a very clear line of sight into our plans for the rest of the year, and I expect our performance to be strong, certainly versus the category. Ultimately it's the category, how that performs with all this uncertainty is the thing that we're watching.

Speaker #9: So if there's any caution, it's just that. And certainly, these are very uncertain times that we'll continue to monitor in terms of what we can control.

Speaker #9: I feel great about what our teams are doing. I feel we have a very clear line of sight into our plans for the rest of the year.

Speaker #9: And I expect our performance to be strong. Certainly, versus the category. And ultimately, it's the category, how that performs with all this uncertainty is the thing that we're watching.

Speaker #12: Great. Thanks. Best of luck.

Michael Rehaut: Great. Thanks. Best of luck.

Speaker #9: Thanks. Bye.

Jonathon Nudi: Thanks, Mike.

John N. Nudi: Thanks, Mike.

Speaker #13: Your next question comes from the line of Anthony Pettenari with Citi. Please go ahead.

Operator: Your next question comes from the line of Anthony Pettinari with Citi. Please go ahead.

Anthony Pettinari: Good morning.

Speaker #14: Good morning.

Jonathon Nudi: Hi, Anthony.

John N. Nudi: Hi, Anthony.

Speaker #9: Good morning, Anthony.

Speaker #14: Hey, just following up on plumbing. Can you give any additional color on the growth you saw in Watkins and the opportunity or the TAM there?

Anthony Pettinari: Hey, just following up on plumbing, can you give any additional color on the growth you saw in Watkins and the opportunity or the TAM there? I think you flagged Delta and Watkins as your strongest growers. Is Watkins growing maybe similar to Delta or is it growing faster off of a lower base? Is there any product set or brand within Watkins that's really driving the strength?

Speaker #14: I think you flagged Delta in Watkins as your strongest growers. Is Watkins growing maybe similar to Delta, or is it growing faster off a lower base?

Speaker #14: Is there any product set or brand within Watkins that's really driving the strength?

Speaker #9: Anthony, it's John. We feel, as we've talked about, great about Watkins and the opportunity. Watkins did grow in Q1. And we're going to get into a lot more detail at our investor day next month in New York City.

Jonathon Nudi: Anthony Pettinari, it's Jonathon Nudi. We feel, as we've talked about, great about Watkins and the opportunity. Watkins did grow in Q1. We're getting into a lot more detail at our Investor Day next month in New York City. We'll walk you through the TAM. We'll walk you through the opportunities that we see. What I would tell you is that hot tubs is our biggest business, and we like the momentum. We're the share leader in that space across North America, where we're seeing outsize

John N. Nudi: Anthony Pettinari, it's Jonathon Nudi. We feel, as we've talked about, great about Watkins and the opportunity. Watkins did grow in Q1. We're getting into a lot more detail at our Investor Day next month in New York City. We'll walk you through the TAM. We'll walk you through the opportunities that we see. What I would tell you is that hot tubs is our biggest business, and we like the momentum. We're the share leader in that space across North America, where we're seeing outsize

Speaker #9: So we'll walk you through the TAM. We'll walk you through the opportunities that we see. What I would tell you is that Hutt Tubs is our biggest business.

Speaker #9: And we'd like the momentum, or the share leader in that space across North America. Where we're seeing outsized growth is really where there is only 1% household penetration in the US today.

Jonathon Nudi: Which is only 1% household penetration in the US today. It's very much front and center in the wellness movement, and we're seeing just a lot of demand for that product. We grew nicely from a Watkins standpoint in Q1. We'll give you a lot more details next month when we get together.

John N. Nudi: Which is only 1% household penetration in the US today. It's very much front and center in the wellness movement, and we're seeing just a lot of demand for that product. We grew nicely from a Watkins standpoint in Q1. We'll give you a lot more details next month when we get together.

Speaker #9: It's very much front and center in the wellness movement, and we're seeing just a lot of demand for that product. So we grew nicely from a Watkins standpoint in Q1.

Speaker #9: We'll give you a lot more details next month when we get together.

Speaker #14: Great, great. And then I guess, given the rise in diesel and gas prices, I'm wondering if you’ve historically seen real sensitivity between gasoline prices and consumer spending for your products.

Anthony Pettinari: Great. I guess, given the rise in diesel and gas prices, I'm wondering if you've historically seen a real sensitivity between gasoline prices and consumer spending for your products. I guess I'm thinking specifically about DIY paint and maybe some of the smaller ticket items. It seems like you haven't seen that so far, but I'm just wondering if that's something historically that's moved the business.

Speaker #14: I guess I'm thinking specifically about DIY paint, and maybe some of the smaller-ticket items. It seems like you haven't seen that so far.

Speaker #14: But I'm just wondering if that's something historically that's moved the business.

Speaker #9: Yeah, Anthony, it's Rick. So it's tough to single out a particular driver. I think what we watch, generally speaking, is consumer sentiment as well as the overall health of the economy.

Richard Westenberg: Anthony, it's Rick. It's tough to single out a particular driver. I think, what we watch, generally speaking, is consumer sentiment, as well as the overall health of the economy. Higher oil prices, as we all recognize, is generally a headwind to consumer confidence, is generally a headwind to disposable income. It's a headwind in terms of input costs. Those are things that we're monitoring closely, and that's one of the reasons that gives us caution and why we're prudent with regards to our expectations as we move out through the course of the year. Again, the fundamentals of the business, as John articulated, are really strong. We're pleased with the execution of what we've been doing here at Masco and across our business unit.

Speaker #9: And so higher oil prices, as we all recognize, are generally a headwind to consumer confidence. It's generally a headwind to disposable income, and it's a headwind in terms of input costs.

Speaker #9: So those are things that we're monitoring closely, and that's one of the reasons that gives us caution and why we're prudent with regards to our expectations as we move out through the course of the year.

Speaker #9: Again, the fundamentals of the business, as John articulated, are really strong. We're pleased with the execution of what we've been doing here at MASCO and across our business unit.

Speaker #9: Oil prices is something that is a headwind. But it's more how it manifests itself in terms of consumer confidence, etc. For us, in terms of our products, they tend to be lower ticket R&R items.

Richard Westenberg: Oil prices is something that is a headwind, but it's more how it manifests itself in terms of consumer confidence, et cetera. For us, in terms of our products, they tend to be lower ticket R&R items, so they tend to be more resilient in these types of environments. Nonetheless, we're not immune to it, but it's something that we'll continue to monitor and track as we progress through the course of the year.

Speaker #9: So they tend to be more resilient in these types of environments. But nonetheless, we're not immune to it. But it's something that we'll continue to monitor and track as we progress through the course of the year.

Speaker #14: Great. That's very helpful. I'll turn it over.

Anthony Pettinari: Great. That's very helpful. I'll turn it over.

Speaker #13: Your next question comes from the line of Susan McClary with Goldman Sachs. Please go ahead.

Operator: Your next question comes from the line of Susan Maklari with Goldman Sachs. Please go ahead.

Speaker #15: Thank you. Good morning, everyone. Thanks for taking the questions. I want to talk about the longer-term growth path with the changes in leadership that you announced this week.

Susan Maklari: Thank you. Good morning, everyone. Thanks for taking the questions.

Richard Westenberg: Good morning.

Susan Maklari: I want to talk about the longer-term growth path. With the changes in leadership that you announced this week, you now have the heads of those four key businesses reporting directly to you, Jonathon Nudi. Can you talk about what that means in terms of your ability to drive growth over time, and how the Executive Committee is focused on some of these items, and what that will mean for Masco?

Speaker #15: You now have the heads of those four key businesses reporting directly to you, Jon. Can you talk about what that means in terms of your ability to drive growth over time, and how the executive committee is focused on some of these items?

Speaker #15: And what will that mean for Masco?

Speaker #9: Yeah. So great question. As I mentioned before, as I came into MASCO, I heard that top-line growth was something that probably was an opportunity, something for us to focus on.

Jonathon Nudi: Yeah, Sue, great question. As I mentioned before, as I came into Masco, I heard that top-line growth was something that probably was an opportunity, something for us to focus on. As I took a step deeper in terms of feedback, the other thing I heard is just our ability to move with pace and be agile is probably the other area to focus on. With the Masco Executive Committee, we're trying to do two things. One, make sure that we have the right experts in terms of our centers of excellence and deep functional knowledge where it matters. We announced just earlier this week that we're bringing in a chief procurement officer who has 30 years of experience in the space and will be able to help us bring the most modern capabilities as we move forward, which I feel great about.

John N. Nudi: Yeah, Sue, great question. As I mentioned before, as I came into Masco, I heard that top-line growth was something that probably was an opportunity, something for us to focus on. As I took a step deeper in terms of feedback, the other thing I heard is just our ability to move with pace and be agile is probably the other area to focus on. With the Masco Executive Committee, we're trying to do two things. One, make sure that we have the right experts in terms of our centers of excellence and deep functional knowledge where it matters.

Speaker #9: And then, as I took a step deeper in terms of feedback, the other thing I heard is just our ability to move with pace and be agile is probably the other area to focus on.

Speaker #9: So with the executive committee, we're trying to do two things. One, make sure that we have the right experts in terms of our centers of excellence and deep functional knowledge where it matters.

Speaker #9: We announced just earlier this week that we're bringing in a procurement chief procurement officer who has 30 years of experience in the space. And we'll be able to help us capabilities as we move forward, which feel great about.

John N. Nudi: We announced just earlier this week that we're bringing in a chief procurement officer who has 30 years of experience in the space and will be able to help us bring the most modern capabilities as we move forward, which I feel great about.

Speaker #9: And also with the executive committee, really trying to streamline the organization to have more frequent communication, allow us to make decisions more quickly and move with pace.

Jonathon Nudi: Also with the Masco Executive Committee, really trying to streamline the organization to have more frequent communication, allow us to make decisions more quickly, and move with pace. With the new organization, essentially have removed a layer, and with that, we think that our speed and agility will increase even more. We talk as the Masco Executive Committee, we meet once a week. I can tell you, I talk to my direct reports many more times than that. I think with the world around us and the pace that we're seeing, it's really important that we have the organization that's set up to read and respond and deliver to consumers and customers what they expect from us.

John N. Nudi: Also with the Masco Executive Committee, really trying to streamline the organization to have more frequent communication, allow us to make decisions more quickly, and move with pace. With the new organization, essentially have removed a layer, and with that, we think that our speed and agility will increase even more. We talk as the Masco Executive Committee, we meet once a week. I can tell you, I talk to my direct reports many more times than that. I think with the world around us and the pace that we're seeing, it's really important that we have the organization that's set up to read and respond and deliver to consumers and customers what they expect from us.

Speaker #9: So with the new organization, essentially we've removed a layer, and with that, we think that our speed and agility will increase even more. We talk as an executive committee.

Speaker #9: We meet once a week. I can tell you I talked to my direct reports many more times than that. And I think with the world around us and the pace that we're seeing, it's really important that we have the organization that's set up to read and respond and deliver to consumers and customers what they expect from us.

Speaker #15: Okay, that's great color. And then, despite the moving parts around inventories and costs, you're still targeting to get that working capital down to about 16.5% of sales this year.

Susan Maklari: Okay. That's great color. Despite the moving parts around inventories and costs, you're still targeting to get that working capital down to about 16.5% of sales this year. Can you just talk through some of the pieces in there and how we should think about that coming together?

Speaker #15: Can you just talk through some of the pieces in there and how we should think about that coming together?

Speaker #9: Sure. So it's Rick. Part of the reason our working capital is higher than it typically is this time of year, or has been for the last several months, is because of the implications of tariffs.

Richard Westenberg: Sure, Sue. It's Rick. Part of the reason our working capital is higher than it typically is this time of year or has been for the last several months is because of the implications of tariffs. The higher tariff costs and commodity costs, quite frankly, that lead into our inventory and receivables, have elevated our working capital and the shorter payment terms on the tariff bills or invoices also reduces our payables. There's an overarching tariff dynamic that has been at play. We'll see that normalize as we get into H2. We continue to be. The team is very focused on managing not only cost but also working capital, and so that's something that we'll continue to execute on.

Speaker #9: So the higher tariff costs and commodity costs, quite frankly, that lead into our inventory and receivables have elevated our working capital in the shorter payment terms on the tariff bills or invoices also reduces our payables.

Speaker #9: So, there's a number of arching tariff dynamics that have been at play. We'll see that normalize as we get into the second half of the year.

Speaker #9: And we continue to be the team is very focused on managing not only costs but also working capital and so that's something that we're continuing to execute on.

Speaker #9: And once we get through the normalization of the tariff implications, the second half of the year, we should be able to execute towards the working capital that's more in line with our historical average.

Richard Westenberg: Once we get through the normalization of the tariff implications, H2, we should be able to execute towards a working capital that's more in line with our historical average, and we've guided towards 16.5%.

Speaker #9: And we've guided towards 16.5%.

Speaker #15: Okay, thank you. Good luck with the quarter.

Susan Maklari: Okay. Thank you. Good luck with the quarter.

Speaker #9: Great. Thanks, Sue.

Richard Westenberg: Great. Thanks, Susan.

Speaker #13: And your last question comes from Rafe Jadricic with Bank of America. Please go ahead.

Operator: Your last question comes from Rafe Jadrosich with Bank of America. Please go ahead.

Speaker #16: Hi. Good morning. Thanks for taking my questions. Just the outperformance in plumbing volume in the first quarter in North America how much would you attribute to just broader consumer resilience and the category holding up relative to your market share outperforming what you were expecting going into the quarter?

Rafe Jadrosich: Hi, good morning. Thanks for taking my questions. Just the outperformance in plumbing volume in the Q1 in North America, how much would you attribute to just broader consumer resilience and the category holding up relative to your market share outperforming what you were expecting going into the quarter?

Speaker #9: Yeah. So again, I'm not sure we'll quantify it to the level of detail you're looking for. I mean, I think the category performed fairly well.

Jonathon Nudi: Again, I'm not sure we'll quantify it to the level of detail you're looking for. I think the category performed fairly well. I am very confident we also took market share. As I mentioned, I believe that we're firing on all cylinders right now and really placing across each of our channels, each of our customers. Just we'll leave it as is, probably a bit of both, but if I had to say which one was the bigger driver, I would say probably our market share gains are bigger.

John N. Nudi: Again, I'm not sure we'll quantify it to the level of detail you're looking for. I think the category performed fairly well. I am very confident we also took market share. As I mentioned, I believe that we're firing on all cylinders right now and really placing across each of our channels, each of our customers. Just we'll leave it as is, probably a bit of both, but if I had to say which one was the bigger driver, I would say probably our market share gains are bigger.

Speaker #9: I am very confident we also took market share. As I mentioned, I believe that we're firing on all cylinders right now and really strong plans in place across each of our channels, each of our customers.

Speaker #9: So just leave it out as probably a bit of both. But if I had to say which one was the bigger driver, I would say probably our market share gains.

Speaker #16: Great. That's helpful. And then in terms of the input cost inflation and what you're expecting, can you talk about what either copper price is embedded in guidance for the second half of the year or should we be assuming that copper prices and things stay where they are today?

Rafe Jadrosich: Great. That's helpful. In terms of the input cost and inflation, what you're expecting, can you talk about what the copper price is embedded in guidance for H2 of the year, or should we be assuming that copper prices and zinc stay where they are today? Just what are you assuming to get to the full year guidance?

Speaker #16: So just what are you assuming to get to the full-year guidance?

Speaker #9: Yeah. Sure, Rafe. It's Rick. We're not going to disclose a specific assumption in our outlook. But suffice it to say, I would assume that where we have been recently, particularly as we closed out 2025, is a pretty reasonable place to be.

Richard Westenberg: Yeah, sure, Rafe, it's Rick. We're not going to disclose a specific assumption in our outlook. Suffice it to say, I would assume that where we have been recently, pretty well as we closed out 2025, is a pretty reasonable place to be. Obviously, it's volatile in that nature. I think as we sit at $6 or above $6 per pound, that is something that represents a bit of a headwind to us, but it's a volatile environment. And at the end of the day, as I've mentioned before, we're not only monitoring the situation, but we're proactively taking actions from a cost reduction standpoint, from an efficiency standpoint, and as necessary, a pricing standpoint to mitigate those impacts, whether they're copper, oil inputs, tariffs, et cetera, to be able to deliver the results that we've guided to for the year.

Speaker #9: Obviously, it's volatile in that nature. I mean, I think as we sit at $6 or above $6 per pound, that is something that represents a bit of a headwind to us.

Speaker #9: But it's a volatile environment. And at the end of the day, as I've mentioned before, we're not only monitoring the situation, but we're proactively taking actions from a cost reduction standpoint, from an efficiency standpoint.

Speaker #9: And as necessary, a pricing standpoint to mitigate those impacts. Whether they're copper oil inputs, tariffs, etc. To be able to deliver the results that we've got to do for the year.

Speaker #16: That's really helpful. Thank you.

Rafe Jadrosich: That's really helpful. Thank you.

Speaker #9: Thank you.

Richard Westenberg: Thank you.

Speaker #13: This concludes the question and answer session. I will now turn the call back to Robin Zondervan for closing remarks.

Operator: This concludes the question and answer session. I will now turn the call back to Robin Zondervan for closing remarks.

Operator: This concludes the Q&A session. I will now turn the call back to Robin Zondervan for closing remarks.

Speaker #17: We'd like to thank all of you for joining us on the call this morning and for your interest in MASCO. That concludes today's call.

Robin Zondervan: We'd like to thank all of you for joining us on the call this morning and for your interest in Masco. That concludes today's call. Have a wonderful day.

Speaker #17: Have a wonderful day.

Operator: This concludes today's conference call. Thank you all for joining. You may now disconnect.

Q1 2026 Masco Corp Earnings Call

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