MASCO CORP /DE/ — Call Transcript 2026

Presentation for today. with us today from Masco is Jon Nudi, President and Chief Executive Officer, as well as Robin Zondervan, Vice President, Investor Relations and FP&A. Jon, I believe your remarks, for 15, 20 minutes or so, which should allow us for a few minutes of Q&A. Following this will be a breakout session in Amarante Two, which I would thoroughly welcome. Speaking of thoroughly welcome, Jon, welcome to Orlando. Welcome to our conference. Thanks, Sam. Appreciate it. Good morning, everyone. Thanks for being here. Welcome to all those on the webcast as well. I know for some of you, Masco's a... We have a little bit of feedback here. I'll move over here. Masco's a new name, so I'm gonna keep this presentation fairly high level. I know we have a breakout session after this. I'm happy to jump into more detail and individual breakout sessions later today as well. Just a little background. I've been with Masco for eight months as the CEO. It's been a pleasure to jump into the company. It's not been completely new to me. I was actually on the board for a couple of years prior to taking this role, certainly the plan was not to move into this role. As I got to know the company and got to know the strengths as well as the opportunities, became really excited about the opportunity and the kind of stars aligned, and I'm here and couldn't be more happy to be at Masco, which is a amazing company with a 100-year history, strong brands, and really a strong team in place as well. In terms of an overview, you know, Masco is a global leader really in the design, manufacturing, distribution of branded products. Brand is important, and I'll come to that in just a second. We're very focused on the repair and remodel segment of the housing industry. I think there's three things that Masco's really been focused on. It's done a good job historically. One is, you know, focus on building our brands. Brands matter. It allows us to have the business model that we have, the margins that we have. We need to continue to make sure that they show up in a relevant way, that we keep, you know, showing up for consumers and being the trusted brand. I'll talk a little bit more about how we're gonna do that moving forward. The second thing we focused on historically is innovation. It's been really important to Masco over the years. We've had a design focus, we've been first in class to deliver innovation like the touch faucet at Delta Faucet. I'll talk more about innovation in a second. Finally, operational excellence. At the end of the day, the way that we service our customers really matters, we've done a really nice job over time. In terms of the company itself, we're about $7.6 billion in sales. We finished 2025 at $3.96 from the EPS standpoint, about $1.3 billion in operating profit. Our margins were down slightly, really due to the tariff environment. Clearly, that was a change versus what we expected at the beginning of the year. I'm really proud of the way that the team navigated through that, but it did take a bit of a hit on margins. We'll get back to growing margins in 2026, as we guided at our most recent call. We throw off lots of cash flow, and as a result, have a very disciplined capital allocation strategy, which I'll get to in just a bit. We have 44 manufacturing facilities. 20 of those are actually in the United States. In addition to that, we have 20 distribution centers in the U.S. as well. The U.S. is a big, important market for us. We have 18,000 employees around the world, and sustainability has been a focus as well. A little bit of background on Masco. Now you might ask, you know, how do these brands and how do these businesses come together? What we tell you is we think they're very complementary. At the end of the day, we have similar characteristics, industry structures, and channel relationships that increase value, whether it's Plumbing, Paint, or even our Watkins Wellness business, which is hot tubs and saunas, and I'll talk about that in just a bit. We're very focused on the repair and remodel market, with low-ticket items, which are less cyclical. Again, we don't play in a big way with new home construction, and that's a strategic choice and something that allows us, again, to weather some of the downturns a bit better than others. I mentioned brands and innovation. I'll dive more into that. Then customer and channel relationships are really important as well. We have a long history of deep partnerships with the retailers, the wholesalers, as well as the e-commerce players in this space as well. I'll touch more on that too. All right. Let me jump into our two businesses. We have two reported segments. The first is Plumbing. This is made up of our Delta Faucet business, which is really our North American business. That's brands like Delta, which is our biggest brand. It's the number one faucet in the United States. In addition to that, we have upper premium brands like Brizo, which is over $200 million in sales. We have a luxury portfolio as well, things like Newport Brass, which is a very high-end faucet that Masco's owned. We integrated into Delta in the last year and have seen good growth. In addition to that, we have Hansgrohe, which is really our international play based in the Black Forest of Germany. The two biggest markets are Germany as well as China. We compete in over 150 markets throughout the rest of the world. We think there's a lot more room to run on Hansgrohe. Finally, Watkins Wellness. Watkins is our wellness business. You know, it's interesting. Even as a board member, we didn't spend a lot of time digging into it. It's really an interesting business, with a lot of growth potential. We're actually the largest manufacturers of hot tubs and saunas in North America, and have leading premium brands in the space. Saunas, we acquired a company a few years ago in 2023, Sauna360, which has been a terrific acquisition for us. Saunas are very much on trend. We only have 1% household penetration in the U.S., and it's growing very quickly. I don't know about you probably have some friends or family members that might be talking about saunas. It seems to be the hot thing right now. From a Plumbing standpoint, we have strong brand recognition, which I talked about. Industry leading positions in North America as well as internationally. The product range matters, you know, get into this a bit more between good, better, best. We play across the spectrum. Innovation is part of the company's heritage and DNA. It'll continue to be as we move forward. Really strong track record of execution, navigating tough times like the tariff environment in the past year. We do think that there's numerous growth opportunities as we move ahead. When you break this business down, about $5.2 billion in sales, 17.6% margins. Again, the bulk of this really in repair and remodel with a little bit of new home construction. Channel mix. You know, wholesale and trade is the historical channel for Plumbing. It's still an important channel for us, but we've seen retail as well as e-commerce grow quickly. Particularly in the e-commerce space, our Delta Faucet group has done a really nice job being a leader in our industry and continues to grow share at a significant pace in e-commerce. Specialty dealers is really our Watkins Wellness business. Again, these are independent dealers that sell our products, and it's an important channel for us and one that we have strong relationships and a strong channel lineup. The second segment at Masco is Decorative Architectural Products, and this is essentially BEHR Paint and KILZ primer. The vast majority of this is sold through The Home Depot, and it's really an interesting story. Behr Paint's 43 years old. The Home Depot is about the same age. Really, these two businesses, you know, grew up together, and Behr has been exclusive to The Home Depot for that entire period. You know, Home Depot is obviously the world's largest home improvement retailer, over 2,300 locations. We have a really strong relationship. Again, we obviously have, you know, intense discussions around the things that you would expect, but at the same time have deep respect for each of our companies. This partnership has really stood the test of time. I've been very impressed. I've worked with lots of retailers in my time in an earlier career in a different industry, and this relationship I think is special and different and something that I've been very impressed by. When you look at Behr Paint, you know, it's a really high quality product at a great value. I think there's an opportunity for us to tell that story even better and more, and I'll talk more about that in a second. Repair and remodel is about $2.4 billion in sales, 18.9% profit margin. Really a mix of almost all of it at retail, almost all of it at The Home Depot. That is Decorative Architectural. We're excited about it. What I can tell you is that we're a leader when it comes to DIY paint. We have, you know, close to 1/3 of the share of that in the United States. The opportunity and what we've been able to do to partner with The Home Depot to grow very aggressively is the pro business. Over the last few years, we've grown that business by northwards of 70%. At the same time, we're still a small player. We have a less than a 10 share in pro paint. As you know, The Home Depot is very focused on the pro. One of the things we've been working to do with them is take friction really out of the buying process, whether that's, you know, buy online and deliver to the job site or buy online and deliver to the store. A few years ago, you couldn't do that. You can do it today. The Home Depot is also very focused on trade credit. We know that's important to pros as well, and they're working to introduce that. We believe there's a lot more room to run in pro, and this will very much be a focus for us as we move forward. All right, I talked about innovation. This is critically important for us. Our goal is to deliver 25% of our total business with new products that have been introduced over the last three years. One of the challenges, if you think about COVID, a lot of people stopped innovating. Masco did not. Masco kept the pipeline alive. As a result, we've got a great pipeline that is delivering against our target of 25%. Whether that's Delta shower filters, which are really solving a consumer need about water quality. Under sink point of use, tankless reverse osmosis systems that we introduced, we think is a big opportunity. Water quality is important today. It'll become even more important moving forward. Hansgrohe, bringing innovation, whether in the form of the way that the shower droplet comes out of the shower and the way that the feel engulfs your body or a new, innovative sink that actually allows you to wash your face in a very soft, gentle way. FreshWater IQ, we're the first in the industry to have an app where a consumer can check the chemistry on their hot tub, via their app and easily dose to make sure that you're in the right place. We just introduced a new innovation as well that will actually automatically dose the chemical for you. Again, it's really a hands-free, hands-off, care for your hot tub. Sauna360, I mentioned, was an acquisition that we did several years ago in 2023. This is a business out of, you know, Northern Europe, doing really, really well. Again, saunas are very much on trend. This added about 1 point of incremental growth to Masco and enterprise from this acquisition. We're really pleased with it. Cold plunges are a thing as well. We launched those in the last few years. Even on things like primer, which you wouldn't think would be ripe for innovation, we introduced a water-based primer. This is important for several reasons. 1, the odor is an issue for consumers, and this has noticeably less odor. The other reality is there's quite a few municipalities in the U.S. where you actually can't sell oil-based primer anymore. This provides the functionality of oil-based and allows us to sell really around the country. Innovation important. Finally, you know, you hear a lot about digital is for real. Digital is impacting all of our lives. When it comes to our products, we wanna focus on digital that solves a problem for consumers. One of the areas that we are seeing some momentum is really around digital showers, letting consumers be very specific about the temperature. We're also are launching steam showers, which we're seeing some really nice response from as well. We're not gonna do digital for the sake of digital, but where it solves a consumer problem, we will, focus on it. I talked a little bit about this before, but we play across the spectrum, whether it's Plumbing or paint. From a Plumbing standpoint, we have Peerless, which is our entry-level brand. Really the mainstream brand is Delta, which plays across the bulk of the category. We're known for our innovation. Hansgrohe is our German brand. Again, really strong reputation for innovation. Really plays across the middle tier of the category. The best, we've got Brizo, which I mentioned before, which we built to over $200 million, and AXOR, which is a really high-quality German faucet, 100% made of metal. Really a great product around the world. We think there's an opportunity for do even more in the U.S. with that one. Behr Paint, same thing. We have BEHR PREMIUM PLUS, which is our entry-level paint. We've got BEHR ULTRA and BEHR DYNASTY, which we know each leg up offers additional benefits. All of them at a great value, a significant value to what our major competitor offers. We think there's an opportunity for us to tell our quality story, and really our value story even more, you know, directly in the coming year. That's something we're focused on. From a channel split, mostly 80% North America, 21% international. Almost all of that international business is Hansgrohe. From a channel standpoint, wholesale and trade 34%, e-commerce 13% growing quickly, retail 45%. Specialty dealers, others, again, is Watkins Wellness, which is really the hot tub and sauna business for us. End consumers, we're split pretty evenly between DIY and pro. What I would tell you is, whether you're pro or you're DIY, you are a consumer, and our job is to make sure we deeply understand what you're looking for, what your problems are, and to make sure that we solve those problems via our brands, and that's something that we're very focused on. All right. Moving forward, there's so much to like about Masco. We have a long track record of success, delivering strong margins, delivering through cycles, and at the same time, we wanna make sure that we keep evolving and keep growing. We've done several things. One, we created a new executive committee. Masco historically has been very, very decentralized, which comes with a lot of advantages. We're focused on our business. We know our business. One of the things we did was elevate our four big business unit presidents to the senior team. The leaders of Delta Faucet Company, Hansgrohe, Watkins Wellness, and BEHR Paint now sit on the senior team. We meet at least once a week. We talk about what's happening in the markets. We talk about opportunities and how we can distort resources to get after them. We talk about challenges and the same thing, how can we get resources to solve them more quickly? I think this allows us to be more agile. It allows us to be more connected to the business, which is great. It also allows us to leverage our scale a bit more. We're beginning to create some capabilities that, you'll cut across, by having these leaders on the senior team, they have a voice in how we develop these strategies and certainly how we execute them. From a centers of excellence standpoint, we are building some groups in the center that are there to build capabilities and provide expertise that's hard for eight different business units today to try to create on their own. Think digital marketing and e-commerce. We are putting some experts in the center that are building capabilities and are really focused on making sure that we win in this space. Brand building and consumer insights to talk about how important our brands are. Brand building today is different than it was a few years back. At the end of the day, brand building is very much focused on digital today. We need to make sure we have the digital capabilities to have our brands show up in a modern way. Instead of doing that eight different times, we're gonna create these capabilities. We're not gonna do the marketing in the center. We're gonna make sure that our businesses are deployed these capabilities and run their business as they do today. They're just gonna have better capabilities to do it. The final one is commercial excellence, which is really revenue management. I talked about our channel breakdown, and we play across multiple channels. There's likely an opportunity for us to be a bit more strategic about how we play our product lineup, how we plan two to three years out in terms of products, innovation, as well as pricing, and that's something we're getting after. Obviously, our goal is to deliver above market top and bottom line growth. We've delivered strongly from a margin standpoint and a profit standpoint over time. I can tell you, we believe there's an opportunity to grow a bit faster, and that's one of the things we wanna do by not sacrificing margins or profit, but really leaning in to, you know, leverage our scale to create some dollars that we can invest back in the, in the business. People ask me all the time, "How are you gonna fund this?" You know, I can tell you, there's no desire to ask our investors to fund our growth. That's not us. We announced some restructuring actions at our last earnings call. We haven't historically done a lot of restructuring across Masco, but between 2025 and what we guided to in 2026, we'll do close to $70 million in restructuring, all of them with a really strong ROI, which will free up some additional dollars for us to invest back in the business. We wanna keep growing our margins, keep delivering on a profit standpoint, but grow faster on the top line. All right. Everyone, you know, I think has a question, when will this market come back? For someone that's only been in the market for eight months, I'm probably not the expert to talk to. What I can tell you, though, is I talk to everyone I can in this space, and I think everyone agrees that the long-term macro factors remain incredibly positive for this industry. We've seen a lot of home price appreciation. Obviously, that's tailed off a little bit. The reality is there's home equity levels that we have never seen before, up something like 80% over the last few years. The trick will be getting consumers to tap into those HELOCs to make sure that they, you know, use them for repair and remodel moving forward. The U.S. housing stock again should be a tailwind over time. We know that over 55% of all homes are over 40 years old, which requires step-up in repair and remodel. We also know that a slug of homes that were built in the early 2000s are moving into the 20-40 year age of homes, where we see a 15%-20% uptick in remodeling. All of those things again are continuing to happen, and we're starting to see pent-up demand for remodeling that at some point will unlock. Household formation and millennial homeownership are very much, you know, tailwinds as well as millennials have families and start moving into the housing market. Housing turnover has been at existing lows over the last few years. That correlates highly with DIY paint. It's been a challenge for us. This will flip. I think the thing for us that we believe is probably the biggest thing holding people back today is consumer confidence. I mentioned, you know, there is home equity, you know, lines at record levels. Interest rates have come down to probably a level that they're gonna be for a while. What's holding people back? We think it's consumer confidence. Whether it's the uncertain world around us, you hear a lot about AI and the impact on potential job market. We think all of those things are weighing at consumer confidence. That being said, this will unlock, and when it does, there's a significant amount of pent-up demand. In the meantime, we believe that we can weather this current period in a fashion that's strong, both in the top and bottom line. Talked about our brands, our innovation, our customer focus. I talked about low-ticket repair and remodel, less cyclical. We have strong free cash flow and value-creating capital allocation. Our model for the long term is to grow above GDP by 1 to 2 points. We think that our categories and our industry can do that. That's organic growth of 3%-5%. With acquisition, which is obviously more episodic, I mentioned Sauna360 in 2023, that's added a point to our enterprise growth. We wanna expand margins, which will drive operating profit out a bit faster than sales. We have capital deployment in this term of share buybacks at 2%-4% EPS, and then dividends of 1%-2% return on top of EPS growth. Our goal is to average at least 10% annual EPS. We have a very disciplined capital allocation strategy. One of the questions I get a lot as I came into this role is, "Are you gonna change this?" I can tell you that the short answer is no. This is very much aligned back up through the board, which I was on prior to taking this role. The first goal is to reinvest back in the business. We average between 2% and 2.5% of sales, target working capital at 16.5%. We are a capital-light business, which allows us, again, to generate lots of free cash flow, which is a positive. We wanna maintain an investment-grade credit rating with gross debt to even or below 2.5. We're just below 2 today. We're just upgraded by one of the major, rating agencies recently. Then maintain a relevant dividend. Our current expected dividend of $1.28. We target around 30% payout. The board just announced, an approval for a 13th consecutive year of increase in our dividend as well. Finally, we deploy excess free cash flow to either do bolt-on acquisitions where they make sense or buy back shares. We've been very aggressive over the last few years buying shares back, and we've guided that we'll spend at least, $600 million this year either buying shares or doing bolt-on acquisitions. We know this is a powerful lever for us to return cash to shareholders, which, we hear from investors is something that they value. To sum things up, I talked about, again, brands, innovation, and really strong customer service. Talked about our categories, how we like them. We like our business model and how it's operated over the short and long term. We have a very disciplined capital allocation strategy. Hopefully that was helpful. I look forward to talking and answering your questions as we move forward. With that, I'll turn it back over to Sam. Thank you, Jon. Questions? I'll start. You have a $200 million gross tariff exposure. With the striking down of IEEPA, replacing it with Section 122, what's the net impact on Masco as it stands? Yeah. I'm sorry. I'll get away from the speaker so I'm good. Obviously, a great question. Obviously, a dynamic environment when it comes to tariffs. We guided with our Q4 earnings just a few weeks ago about the $200 million for 2026. Obviously, things have changed. What I can tell you is we don't believe there's enough certainty today to really, you know, give a more refined guidance. As we come back at our first quarter earnings and the end of April, we'll provide a bit more direction. It's a very fluid environment, and at this point we're considering continuing to move ahead, you know, assuming that other tariffs will fill the void versus IEEPA. On a net basis, is it a net benefit? Again, we're not gonna get into that today. We'll talk about that in the first quarter earnings. Gotcha. Okay. all right. How is the, It's a public forum. How is the early read on business trends thus far in the quarter? Yeah. We don't talk about monthly trends. What I can tell you overall, we're encouraged that 2026 should be, from an end market standpoint, a bit better than 2025. That's what we guided to, right? Flat to up a low single digits. I would say early days, you know, we're seeing some green shoots across our business. Again, won't get into a whole lot of detail. We also have, you know, honestly, some comps that will work for us. If you remember, with Behr Paint in 2024, we had a big inventory move at the end of the year. We had a comp that in 2025, paint should have a better first quarter just from a comp standpoint. We really like the way that we're competing in Plumbing, particularly in North America. We know via our internal tracking that share is something we continue to grow. We're also excited about the lineup that we have at some of our major retailers in 2026. Again, nothing to report that's new today, but I can tell you know, we're cautiously optimistic that 2026 will be a better year. One thing that I found notable, you and the board have changed some of the variable comp metrics that are used to determine executive pay and C-level pay more towards organic growth and perhaps a little bit less towards just you know, absolute margin performance. In concert with that, it looks like you're increasing your R&D, your marketing spend as well. Can you go into some of the thinking behind that decision and perhaps what outgrowth expectations there should be from that part? Yeah. I mentioned earlier, I think historically Masco's really distinguished itself from a margin standpoint or profit standpoint. Right. To be clear, we do not wanna lose that focus. At the same time, we think there's an opportunity for us to grow a bit more quickly on the top line. You know, I'm a big believer, the board's a big believer, and you get what you incent. We made some shifts. One of the things we did was we took, you know, from a incentive standpoint, the balance was 75% profit, 25% growth. We think profit's still incredibly important, so it's still the majority of the incentive. It's now gonna be 60% in 2026, and then sales will be 40%. Just sending the message to our teams that that's, you know, growth on the top line is important as well, maybe more today than ever. In addition to that, even on the profit side, it was not only op profit growth, it was actually a percentage margin target, which we took out, because at the end of the day, we want our people to be investing both for the long term, certainly, and it's hard to make investments when, you know, you get penalized short term from a percentage standpoint. It's a balancing act. Again, you know, the bulk of our incentive still sits in profit. It's critically important to our investors. We know that. We just wanted to make a shift to get the top line growing a bit more quickly. What I'll tell you is that, you know, we're not changing. We have an investor day coming up in May. If we're gonna make any long-term changes, that'll be the time we talk about it. The facts are, and you can do the math, I mean, we haven't historically delivered the 3%-5% top line growth that we talk about, right? Our goal is to make sure that we have the plans in place, the capabilities in place to deliver on our algorithm on a more consistent basis. Questions from the room? Yes, in the back here. Yes. Yeah. Clearly we haven't seen the big inflection point yet. You know, it does feel like over the last three or four months, there's been some green shoots. Again, it's more anecdotal than any kinda hard data we can point to. It feels like, you know, consumers have been sitting on the sideline for a long time. We talked about this pent-up demand. The reality is, you know, if the existing home market, you know, isn't picking up dramatically, I think people are in their homes, and I think they feel like if you're in your home, you might as well remodel or at the very least make sure you repair everything that's broken. Nothing to report directly today. It does feel like there's been a few green shoots more recently. Yes, in the back. Yeah. Thank you. Talk a little bit about the scale for your show. Do you have any, like, timing schedules? Yeah. You know, again, we've talked a little bit directionally about clearly with the cost environment, the tariff environment. We took pricing in 2025. We took, you know, what we typically do in, at the beginning of 2026 as well. I can tell you, we haven't seen anything out of the ordinary in terms of inventories. Again, I think it's a pretty, you know, consistent year-over-year in terms of how that looks. With that, we're out of time. This will continue in the breakout session, Amarante Two. Thanks, everyone. Thank you all. Thank you.

Speaker 2: Presentation for today. with us today from Masco is Jon Nudi, President and Chief Executive Officer, as well as Robin Zondervan, Vice President, Investor Relations and FP&A. Jon, I believe your remarks, for 15, 20 minutes or so, which should allow us for a few minutes of Q&A. Following this will be a breakout session in Amarante Two, which I would thoroughly welcome. Speaking of thoroughly welcome, Jon, welcome to Orlando. Welcome to our conference. Presentation for today. with us today from Masco is Jon Nudi, President and Chief Executive Officer, as well as Robin Zondervan, Vice President, Investor Relations and FP&A. presentation for today with us today from masco is jon nudi president and chief executive officer as well as robin zondervan vice president investor relations and fp&a Jon, I believe your remarks, for 15, 20 minutes or so, which should allow us for a few minutes of Q&A. jon i believe your remarks for 15 20 minutes or so which should allow us for a few minutes of q&a Following this will be a breakout session in Amarante Two, which I would thoroughly welcome. following this will be a breakout session in amarante two which i would thoroughly welcome Speaking of thoroughly welcome, Jon, welcome to Orlando. speaking of thoroughly welcome jon welcome to orlando Welcome to our conference. welcome to our conference

Speaker 1: Thanks, Sam. Appreciate it. Good morning, everyone. Thanks for being here. Welcome to all those on the webcast as well. I know for some of you, Masco's a... We have a little bit of feedback here. I'll move over here. Masco's a new name, so I'm gonna keep this presentation fairly high level. I know we have a breakout session after this. I'm happy to jump into more detail and individual breakout sessions later today as well. Just a little background. I've been with Masco for eight months as the CEO. It's been a pleasure to jump into the company. It's not been completely new to me. I was actually on the board for a couple of years prior to taking this role, certainly the plan was not to move into this role. Thanks, Sam. thanks sam Appreciate it. appreciate it Good morning, everyone. good morning everyone Thanks for being here. thanks for being here Welcome to all those on the webcast as well. welcome to all those on the webcast as well I know for some of you, Masco's a... i know for some of you masco's a We have a little bit of feedback here. we have a little bit of feedback here I'll move over here. i'll move over here Masco's a new name, so I'm gonna keep this presentation fairly high level. masco's a new name so i'm gonna keep this presentation fairly high level I know we have a breakout session after this. i know we have a breakout session after this I'm happy to jump into more detail and individual breakout sessions later today as well. i'm happy to jump into more detail and individual breakout sessions later today as well Just a little background. just a little background I've been with Masco for eight months as the CEO. i've been with masco for eight months as the ceo It's been a pleasure to jump into the company. it's been a pleasure to jump into the company It's not been completely new to me. it's not been completely new to me I was actually on the board for a couple of years prior to taking this role, certainly the plan was not to move into this role. i was actually on the board for a couple of years prior to taking this role certainly the plan was not to move into this role As I got to know the company and got to know the strengths as well as the opportunities, became really excited about the opportunity and the kind of stars aligned, and I'm here and couldn't be more happy to be at Masco, which is a amazing company with a 100-year history, strong brands, and really a strong team in place as well. In terms of an overview, you know, Masco is a global leader really in the design, manufacturing, distribution of branded products. Brand is important, and I'll come to that in just a second. We're very focused on the repair and remodel segment of the housing industry. I think there's three things that Masco's really been focused on. It's done a good job historically. One is, you know, focus on building our brands. Brands matter. As I got to know the company and got to know the strengths as well as the opportunities, became really excited about the opportunity and the kind of stars aligned, and I'm here and couldn't be more happy to be at Masco, which is a amazing company with a 100-year history, strong brands, and really a strong team in place as well. as i got to know the company and got to know the strengths as well as the opportunities became really excited about the opportunity and the kind of stars aligned and i'm here and couldn't be more happy to be at masco which is a amazing company with a 100-year history strong brands and really a strong team in place as well In terms of an overview, you know, Masco is a global leader really in the design, manufacturing, distribution of branded products. in terms of an overview you know masco is a global leader really in the design manufacturing distribution of branded products Brand is important, and I'll come to that in just a second. brand is important and i'll come to that in just a second We're very focused on the repair and remodel segment of the housing industry. we're very focused on the repair and remodel segment of the housing industry I think there's three things that Masco's really been focused on. i think there's three things that masco's really been focused on It's done a good job historically. it's done a good job historically One is, you know, focus on building our brands. one is you know focus on building our brands Brands matter. brands matter It allows us to have the business model that we have, the margins that we have. We need to continue to make sure that they show up in a relevant way, that we keep, you know, showing up for consumers and being the trusted brand. I'll talk a little bit more about how we're gonna do that moving forward. The second thing we focused on historically is innovation. It's been really important to Masco over the years. We've had a design focus, we've been first in class to deliver innovation like the touch faucet at Delta Faucet. I'll talk more about innovation in a second. Finally, operational excellence. At the end of the day, the way that we service our customers really matters, we've done a really nice job over time. It allows us to have the business model that we have, the margins that we have. it allows us to have the business model that we have the margins that we have We need to continue to make sure that they show up in a relevant way, that we keep, you know, showing up for consumers and being the trusted brand. we need to continue to make sure that they show up in a relevant way that we keep you know showing up for consumers and being the trusted brand I'll talk a little bit more about how we're gonna do that moving forward. i'll talk a little bit more about how we're gonna do that moving forward The second thing we focused on historically is innovation. the second thing we focused on historically is innovation It's been really important to Masco over the years. it's been really important to masco over the years We've had a design focus, we've been first in class to deliver innovation like the touch faucet at Delta Faucet. we've had a design focus we've been first in class to deliver innovation like the touch faucet at delta faucet I'll talk more about innovation in a second. i'll talk more about innovation in a second Finally, operational excellence. finally operational excellence At the end of the day, the way that we service our customers really matters, we've done a really nice job over time. at the end of the day the way that we service our customers really matters we've done a really nice job over time In terms of the company itself, we're about $7.6 billion in sales. We finished 2025 at $3.96 from the EPS standpoint, about $1.3 billion in operating profit. Our margins were down slightly, really due to the tariff environment. Clearly, that was a change versus what we expected at the beginning of the year. I'm really proud of the way that the team navigated through that, but it did take a bit of a hit on margins. We'll get back to growing margins in 2026, as we guided at our most recent call. We throw off lots of cash flow, and as a result, have a very disciplined capital allocation strategy, which I'll get to in just a bit. We have 44 manufacturing facilities. 20 of those are actually in the United States. In terms of the company itself, we're about $7.6 billion in sales. in terms of the company itself we're about $7.6 billion in sales We finished 2025 at $3.96 from the EPS standpoint, about $1.3 billion in operating profit. we finished 2025 at $3.96 from the eps standpoint about $1.3 billion in operating profit Our margins were down slightly, really due to the tariff environment. our margins were down slightly really due to the tariff environment Clearly, that was a change versus what we expected at the beginning of the year. clearly that was a change versus what we expected at the beginning of the year I'm really proud of the way that the team navigated through that, but it did take a bit of a hit on margins. i'm really proud of the way that the team navigated through that but it did take a bit of a hit on margins We'll get back to growing margins in 2026, as we guided at our most recent call. we'll get back to growing margins in 2026 as we guided at our most recent call We throw off lots of cash flow, and as a result, have a very disciplined capital allocation strategy, which I'll get to in just a bit. we throw off lots of cash flow and as a result have a very disciplined capital allocation strategy which i'll get to in just a bit We have 44 manufacturing facilities. 20 of those are actually in the United States. we have 44 manufacturing facilities 20 of those are actually in the united states In addition to that, we have 20 distribution centers in the U.S. as well. The U.S. is a big, important market for us. We have 18,000 employees around the world, and sustainability has been a focus as well. A little bit of background on Masco. Now you might ask, you know, how do these brands and how do these businesses come together? What we tell you is we think they're very complementary. At the end of the day, we have similar characteristics, industry structures, and channel relationships that increase value, whether it's Plumbing, Paint, or even our Watkins Wellness business, which is hot tubs and saunas, and I'll talk about that in just a bit. We're very focused on the repair and remodel market, with low-ticket items, which are less cyclical. In addition to that, we have 20 distribution centers in the U.S. as well. in addition to that we have 20 distribution centers in the u.s as well The U.S. is a big, important market for us. the u.s is a big important market for us We have 18,000 employees around the world, and sustainability has been a focus as well. we have 18,000 employees around the world and sustainability has been a focus as well A little bit of background on Masco. a little bit of background on masco Now you might ask, you know, how do these brands and how do these businesses come together? now you might ask you know how do these brands and how do these businesses come together What we tell you is we think they're very complementary. what we tell you is we think they're very complementary At the end of the day, we have similar characteristics, industry structures, and channel relationships that increase value, whether it's Plumbing, Paint, or even our Watkins Wellness business, which is hot tubs and saunas, and I'll talk about that in just a bit. at the end of the day we have similar characteristics industry structures and channel relationships that increase value whether it's plumbing paint or even our watkins wellness business which is hot tubs and saunas and i'll talk about that in just a bit We're very focused on the repair and remodel market, with low-ticket items, which are less cyclical. we're very focused on the repair and remodel market with low-ticket items which are less cyclical Again, we don't play in a big way with new home construction, and that's a strategic choice and something that allows us, again, to weather some of the downturns a bit better than others. I mentioned brands and innovation. I'll dive more into that. Then customer and channel relationships are really important as well. We have a long history of deep partnerships with the retailers, the wholesalers, as well as the e-commerce players in this space as well. I'll touch more on that too. All right. Let me jump into our two businesses. We have two reported segments. The first is Plumbing. This is made up of our Delta Faucet business, which is really our North American business. That's brands like Delta, which is our biggest brand. It's the number one faucet in the United States. Again, we don't play in a big way with new home construction, and that's a strategic choice and something that allows us, again, to weather some of the downturns a bit better than others. again we don't play in a big way with new home construction and that's a strategic choice and something that allows us again to weather some of the downturns a bit better than others I mentioned brands and innovation. i mentioned brands and innovation I'll dive more into that. i'll dive more into that Then customer and channel relationships are really important as well. then customer and channel relationships are really important as well We have a long history of deep partnerships with the retailers, the wholesalers, as well as the e-commerce players in this space as well. we have a long history of deep partnerships with the retailers the wholesalers as well as the e-commerce players in this space as well I'll touch more on that too. i'll touch more on that too All right. all right Let me jump into our two businesses. let me jump into our two businesses We have two reported segments. we have two reported segments The first is Plumbing. the first is plumbing This is made up of our Delta Faucet business, which is really our North American business. this is made up of our delta faucet business which is really our north american business That's brands like Delta, which is our biggest brand. that's brands like delta which is our biggest brand It's the number one faucet in the United States. it's the number one faucet in the united states In addition to that, we have upper premium brands like Brizo, which is over $200 million in sales. We have a luxury portfolio as well, things like Newport Brass, which is a very high-end faucet that Masco's owned. We integrated into Delta in the last year and have seen good growth. In addition to that, we have Hansgrohe, which is really our international play based in the Black Forest of Germany. The two biggest markets are Germany as well as China. We compete in over 150 markets throughout the rest of the world. We think there's a lot more room to run on Hansgrohe. Finally, Watkins Wellness. Watkins is our wellness business. You know, it's interesting. Even as a board member, we didn't spend a lot of time digging into it. In addition to that, we have upper premium brands like Brizo, which is over $200 million in sales. in addition to that we have upper premium brands like brizo which is over $200 million in sales We have a luxury portfolio as well, things like Newport Brass, which is a very high-end faucet that Masco's owned. we have a luxury portfolio as well things like newport brass which is a very high-end faucet that masco's owned We integrated into Delta in the last year and have seen good growth. we integrated into delta in the last year and have seen good growth In addition to that, we have Hansgrohe, which is really our international play based in the Black Forest of Germany. in addition to that we have hansgrohe which is really our international play based in the black forest of germany The two biggest markets are Germany as well as China. the two biggest markets are germany as well as china We compete in over 150 markets throughout the rest of the world. we compete in over 150 markets throughout the rest of the world We think there's a lot more room to run on Hansgrohe. we think there's a lot more room to run on hansgrohe Finally, Watkins Wellness. finally watkins wellness Watkins is our wellness business. watkins is our wellness business You know, it's interesting. you know it's interesting Even as a board member, we didn't spend a lot of time digging into it. even as a board member we didn't spend a lot of time digging into it It's really an interesting business, with a lot of growth potential. We're actually the largest manufacturers of hot tubs and saunas in North America, and have leading premium brands in the space. Saunas, we acquired a company a few years ago in 2023, Sauna360, which has been a terrific acquisition for us. Saunas are very much on trend. We only have 1% household penetration in the U.S., and it's growing very quickly. I don't know about you probably have some friends or family members that might be talking about saunas. It seems to be the hot thing right now. From a Plumbing standpoint, we have strong brand recognition, which I talked about. Industry leading positions in North America as well as internationally. It's really an interesting business, with a lot of growth potential. it's really an interesting business with a lot of growth potential We're actually the largest manufacturers of hot tubs and saunas in North America, and have leading premium brands in the space. we're actually the largest manufacturers of hot tubs and saunas in north america and have leading premium brands in the space Saunas, we acquired a company a few years ago in 2023, Sauna360, which has been a terrific acquisition for us. saunas we acquired a company a few years ago in 2023 sauna360 which has been a terrific acquisition for us Saunas are very much on trend. saunas are very much on trend We only have 1% household penetration in the U.S., and it's growing very quickly. we only have 1% household penetration in the u.s and it's growing very quickly I don't know about you probably have some friends or family members that might be talking about saunas. i don't know about you probably have some friends or family members that might be talking about saunas It seems to be the hot thing right now. it seems to be the hot thing right now From a Plumbing standpoint, we have strong brand recognition, which I talked about. from a plumbing standpoint we have strong brand recognition which i talked about Industry leading positions in North America as well as internationally. industry leading positions in north america as well as internationally The product range matters, you know, get into this a bit more between good, better, best. We play across the spectrum. Innovation is part of the company's heritage and DNA. It'll continue to be as we move forward. Really strong track record of execution, navigating tough times like the tariff environment in the past year. We do think that there's numerous growth opportunities as we move ahead. When you break this business down, about $5.2 billion in sales, 17.6% margins. Again, the bulk of this really in repair and remodel with a little bit of new home construction. Channel mix. You know, wholesale and trade is the historical channel for Plumbing. It's still an important channel for us, but we've seen retail as well as e-commerce grow quickly. The product range matters, you know, get into this a bit more between good, better, best. the product range matters you know get into this a bit more between good better best We play across the spectrum. we play across the spectrum Innovation is part of the company's heritage and DNA. innovation is part of the company's heritage and dna It'll continue to be as we move forward. it'll continue to be as we move forward Really strong track record of execution, navigating tough times like the tariff environment in the past year. really strong track record of execution navigating tough times like the tariff environment in the past year We do think that there's numerous growth opportunities as we move ahead. we do think that there's numerous growth opportunities as we move ahead When you break this business down, about $5.2 billion in sales, 17.6% margins. when you break this business down about $5.2 billion in sales 17.6% margins Again, the bulk of this really in repair and remodel with a little bit of new home construction. again the bulk of this really in repair and remodel with a little bit of new home construction Channel mix. channel mix You know, wholesale and trade is the historical channel for Plumbing. you know wholesale and trade is the historical channel for plumbing It's still an important channel for us, but we've seen retail as well as e-commerce grow quickly. it's still an important channel for us but we've seen retail as well as e-commerce grow quickly Particularly in the e-commerce space, our Delta Faucet group has done a really nice job being a leader in our industry and continues to grow share at a significant pace in e-commerce. Specialty dealers is really our Watkins Wellness business. Again, these are independent dealers that sell our products, and it's an important channel for us and one that we have strong relationships and a strong channel lineup. The second segment at Masco is Decorative Architectural Products, and this is essentially BEHR Paint and KILZ primer. The vast majority of this is sold through The Home Depot, and it's really an interesting story. Behr Paint's 43 years old. The Home Depot is about the same age. Particularly in the e-commerce space, our Delta Faucet group has done a really nice job being a leader in our industry and continues to grow share at a significant pace in e-commerce. particularly in the e-commerce space our delta faucet group has done a really nice job being a leader in our industry and continues to grow share at a significant pace in e-commerce Specialty dealers is really our Watkins Wellness business. specialty dealers is really our watkins wellness business Again, these are independent dealers that sell our products, and it's an important channel for us and one that we have strong relationships and a strong channel lineup. again these are independent dealers that sell our products and it's an important channel for us and one that we have strong relationships and a strong channel lineup The second segment at Masco is Decorative Architectural Products, and this is essentially BEHR Paint and KILZ primer. the second segment at masco is decorative architectural products and this is essentially behr paint and kilz primer The vast majority of this is sold through The Home Depot, and it's really an interesting story. the vast majority of this is sold through the home depot and it's really an interesting story Behr Paint's 43 years old. behr paint's 43 years old The Home Depot is about the same age. the home depot is about the same age Really, these two businesses, you know, grew up together, and Behr has been exclusive to The Home Depot for that entire period. You know, Home Depot is obviously the world's largest home improvement retailer, over 2,300 locations. We have a really strong relationship. Again, we obviously have, you know, intense discussions around the things that you would expect, but at the same time have deep respect for each of our companies. This partnership has really stood the test of time. I've been very impressed. I've worked with lots of retailers in my time in an earlier career in a different industry, and this relationship I think is special and different and something that I've been very impressed by. When you look at Behr Paint, you know, it's a really high quality product at a great value. Really, these two businesses, you know, grew up together, and Behr has been exclusive to The Home Depot for that entire period. really these two businesses you know grew up together and behr has been exclusive to the home depot for that entire period You know, Home Depot is obviously the world's largest home improvement retailer, over 2,300 locations. you know home depot is obviously the world's largest home improvement retailer over 2,300 locations We have a really strong relationship. we have a really strong relationship Again, we obviously have, you know, intense discussions around the things that you would expect, but at the same time have deep respect for each of our companies. again we obviously have you know intense discussions around the things that you would expect but at the same time have deep respect for each of our companies This partnership has really stood the test of time. this partnership has really stood the test of time I've been very impressed. i've been very impressed I've worked with lots of retailers in my time in an earlier career in a different industry, and this relationship I think is special and different and something that I've been very impressed by. i've worked with lots of retailers in my time in an earlier career in a different industry and this relationship i think is special and different and something that i've been very impressed by When you look at Behr Paint, you know, it's a really high quality product at a great value. when you look at behr paint you know it's a really high quality product at a great value I think there's an opportunity for us to tell that story even better and more, and I'll talk more about that in a second. Repair and remodel is about $2.4 billion in sales, 18.9% profit margin. Really a mix of almost all of it at retail, almost all of it at The Home Depot. That is Decorative Architectural. We're excited about it. What I can tell you is that we're a leader when it comes to DIY paint. We have, you know, close to 1/3 of the share of that in the United States. The opportunity and what we've been able to do to partner with The Home Depot to grow very aggressively is the pro business. Over the last few years, we've grown that business by northwards of 70%. I think there's an opportunity for us to tell that story even better and more, and I'll talk more about that in a second. i think there's an opportunity for us to tell that story even better and more and i'll talk more about that in a second Repair and remodel is about $2.4 billion in sales, 18.9% profit margin. repair and remodel is about $2.4 billion in sales 18.9% profit margin Really a mix of almost all of it at retail, almost all of it at The Home Depot. really a mix of almost all of it at retail almost all of it at the home depot That is Decorative Architectural. that is decorative architectural We're excited about it. we're excited about it What I can tell you is that we're a leader when it comes to DIY paint. what i can tell you is that we're a leader when it comes to diy paint We have, you know, close to 1/3 of the share of that in the United States. we have you know close to 1/3 of the share of that in the united states The opportunity and what we've been able to do to partner with The Home Depot to grow very aggressively is the pro business. the opportunity and what we've been able to do to partner with the home depot to grow very aggressively is the pro business Over the last few years, we've grown that business by northwards of 70%. over the last few years we've grown that business by northwards of 70% At the same time, we're still a small player. We have a less than a 10 share in pro paint. As you know, The Home Depot is very focused on the pro. One of the things we've been working to do with them is take friction really out of the buying process, whether that's, you know, buy online and deliver to the job site or buy online and deliver to the store. A few years ago, you couldn't do that. You can do it today. The Home Depot is also very focused on trade credit. We know that's important to pros as well, and they're working to introduce that. We believe there's a lot more room to run in pro, and this will very much be a focus for us as we move forward. All right, I talked about innovation. At the same time, we're still a small player. at the same time we're still a small player We have a less than a 10 share in pro paint. we have a less than a 10 share in pro paint As you know, The Home Depot is very focused on the pro. as you know the home depot is very focused on the pro One of the things we've been working to do with them is take friction really out of the buying process, whether that's, you know, buy online and deliver to the job site or buy online and deliver to the store. one of the things we've been working to do with them is take friction really out of the buying process whether that's you know buy online and deliver to the job site or buy online and deliver to the store A few years ago, you couldn't do that. a few years ago you couldn't do that You can do it today. you can do it today The Home Depot is also very focused on trade credit. the home depot is also very focused on trade credit We know that's important to pros as well, and they're working to introduce that. we know that's important to pros as well and they're working to introduce that We believe there's a lot more room to run in pro, and this will very much be a focus for us as we move forward. we believe there's a lot more room to run in pro and this will very much be a focus for us as we move forward All right, I talked about innovation. all right i talked about innovation This is critically important for us. Our goal is to deliver 25% of our total business with new products that have been introduced over the last three years. One of the challenges, if you think about COVID, a lot of people stopped innovating. Masco did not. Masco kept the pipeline alive. As a result, we've got a great pipeline that is delivering against our target of 25%. Whether that's Delta shower filters, which are really solving a consumer need about water quality. Under sink point of use, tankless reverse osmosis systems that we introduced, we think is a big opportunity. Water quality is important today. It'll become even more important moving forward. This is critically important for us. this is critically important for us Our goal is to deliver 25% of our total business with new products that have been introduced over the last three years. our goal is to deliver 25% of our total business with new products that have been introduced over the last three years One of the challenges, if you think about COVID, a lot of people stopped innovating. one of the challenges if you think about covid a lot of people stopped innovating Masco did not. masco did not Masco kept the pipeline alive. masco kept the pipeline alive As a result, we've got a great pipeline that is delivering against our target of 25%. as a result we've got a great pipeline that is delivering against our target of 25% Whether that's Delta shower filters, which are really solving a consumer need about water quality. whether that's delta shower filters which are really solving a consumer need about water quality Under sink point of use, tankless reverse osmosis systems that we introduced, we think is a big opportunity. under sink point of use tankless reverse osmosis systems that we introduced we think is a big opportunity Water quality is important today. water quality is important today It'll become even more important moving forward. it'll become even more important moving forward Hansgrohe, bringing innovation, whether in the form of the way that the shower droplet comes out of the shower and the way that the feel engulfs your body or a new, innovative sink that actually allows you to wash your face in a very soft, gentle way. FreshWater IQ, we're the first in the industry to have an app where a consumer can check the chemistry on their hot tub, via their app and easily dose to make sure that you're in the right place. We just introduced a new innovation as well that will actually automatically dose the chemical for you. Again, it's really a hands-free, hands-off, care for your hot tub. Sauna360, I mentioned, was an acquisition that we did several years ago in 2023. Hansgrohe, bringing innovation, whether in the form of the way that the shower droplet comes out of the shower and the way that the feel engulfs your body or a new, innovative sink that actually allows you to wash your face in a very soft, gentle way. hansgrohe bringing innovation whether in the form of the way that the shower droplet comes out of the shower and the way that the feel engulfs your body or a new innovative sink that actually allows you to wash your face in a very soft gentle way FreshWater IQ, we're the first in the industry to have an app where a consumer can check the chemistry on their hot tub, via their app and easily dose to make sure that you're in the right place. freshwater iq we're the first in the industry to have an app where a consumer can check the chemistry on their hot tub via their app and easily dose to make sure that you're in the right place We just introduced a new innovation as well that will actually automatically dose the chemical for you. we just introduced a new innovation as well that will actually automatically dose the chemical for you Again, it's really a hands-free, hands-off, care for your hot tub. again it's really a hands-free hands-off care for your hot tub Sauna360, I mentioned, was an acquisition that we did several years ago in 2023. sauna360 i mentioned was an acquisition that we did several years ago in 2023 This is a business out of, you know, Northern Europe, doing really, really well. Again, saunas are very much on trend. This added about 1 point of incremental growth to Masco and enterprise from this acquisition. We're really pleased with it. Cold plunges are a thing as well. We launched those in the last few years. Even on things like primer, which you wouldn't think would be ripe for innovation, we introduced a water-based primer. This is important for several reasons. 1, the odor is an issue for consumers, and this has noticeably less odor. The other reality is there's quite a few municipalities in the U.S. where you actually can't sell oil-based primer anymore. This provides the functionality of oil-based and allows us to sell really around the country. Innovation important. This is a business out of, you know, Northern Europe, doing really, really well. this is a business out of you know northern europe doing really really well Again, saunas are very much on trend. again saunas are very much on trend This added about 1 point of incremental growth to Masco and enterprise from this acquisition. this added about 1 point of incremental growth to masco and enterprise from this acquisition We're really pleased with it. we're really pleased with it Cold plunges are a thing as well. cold plunges are a thing as well We launched those in the last few years. we launched those in the last few years Even on things like primer, which you wouldn't think would be ripe for innovation, we introduced a water-based primer. even on things like primer which you wouldn't think would be ripe for innovation we introduced a water-based primer This is important for several reasons. 1, the odor is an issue for consumers, and this has noticeably less odor. this is important for several reasons 1 the odor is an issue for consumers and this has noticeably less odor The other reality is there's quite a few municipalities in the U.S. where you actually can't sell oil-based primer anymore. the other reality is there's quite a few municipalities in the u.s where you actually can't sell oil-based primer anymore This provides the functionality of oil-based and allows us to sell really around the country. this provides the functionality of oil-based and allows us to sell really around the country Innovation important. innovation important Finally, you know, you hear a lot about digital is for real. Digital is impacting all of our lives. When it comes to our products, we wanna focus on digital that solves a problem for consumers. One of the areas that we are seeing some momentum is really around digital showers, letting consumers be very specific about the temperature. We're also are launching steam showers, which we're seeing some really nice response from as well. We're not gonna do digital for the sake of digital, but where it solves a consumer problem, we will, focus on it. I talked a little bit about this before, but we play across the spectrum, whether it's Plumbing or paint. From a Plumbing standpoint, we have Peerless, which is our entry-level brand. Finally, you know, you hear a lot about digital is for real. finally you know you hear a lot about digital is for real Digital is impacting all of our lives. digital is impacting all of our lives When it comes to our products, we wanna focus on digital that solves a problem for consumers. when it comes to our products we wanna focus on digital that solves a problem for consumers One of the areas that we are seeing some momentum is really around digital showers, letting consumers be very specific about the temperature. one of the areas that we are seeing some momentum is really around digital showers letting consumers be very specific about the temperature We're also are launching steam showers, which we're seeing some really nice response from as well. we're also are launching steam showers which we're seeing some really nice response from as well We're not gonna do digital for the sake of digital, but where it solves a consumer problem, we will, focus on it. we're not gonna do digital for the sake of digital but where it solves a consumer problem we will focus on it I talked a little bit about this before, but we play across the spectrum, whether it's Plumbing or paint. i talked a little bit about this before but we play across the spectrum whether it's plumbing or paint From a Plumbing standpoint, we have Peerless, which is our entry-level brand. from a plumbing standpoint we have peerless which is our entry-level brand Really the mainstream brand is Delta, which plays across the bulk of the category. We're known for our innovation. Hansgrohe is our German brand. Again, really strong reputation for innovation. Really plays across the middle tier of the category. The best, we've got Brizo, which I mentioned before, which we built to over $200 million, and AXOR, which is a really high-quality German faucet, 100% made of metal. Really a great product around the world. We think there's an opportunity for do even more in the U.S. with that one. Behr Paint, same thing. We have BEHR PREMIUM PLUS, which is our entry-level paint. We've got BEHR ULTRA and BEHR DYNASTY, which we know each leg up offers additional benefits. Really the mainstream brand is Delta, which plays across the bulk of the category. really the mainstream brand is delta which plays across the bulk of the category We're known for our innovation. we're known for our innovation Hansgrohe is our German brand. hansgrohe is our german brand Again, really strong reputation for innovation. again really strong reputation for innovation Really plays across the middle tier of the category. really plays across the middle tier of the category The best, we've got Brizo, which I mentioned before, which we built to over $200 million, and AXOR, which is a really high-quality German faucet, 100% made of metal. the best we've got brizo which i mentioned before which we built to over $200 million and axor which is a really high-quality german faucet 100% made of metal Really a great product around the world. really a great product around the world We think there's an opportunity for do even more in the U.S. with that one. we think there's an opportunity for do even more in the u.s with that one Behr Paint, same thing. behr paint same thing We have BEHR PREMIUM PLUS, which is our entry-level paint. we have behr premium plus which is our entry-level paint We've got BEHR ULTRA and BEHR DYNASTY, which we know each leg up offers additional benefits. we've got behr ultra and behr dynasty which we know each leg up offers additional benefits All of them at a great value, a significant value to what our major competitor offers. We think there's an opportunity for us to tell our quality story, and really our value story even more, you know, directly in the coming year. That's something we're focused on. From a channel split, mostly 80% North America, 21% international. Almost all of that international business is Hansgrohe. From a channel standpoint, wholesale and trade 34%, e-commerce 13% growing quickly, retail 45%. Specialty dealers, others, again, is Watkins Wellness, which is really the hot tub and sauna business for us. End consumers, we're split pretty evenly between DIY and pro. All of them at a great value, a significant value to what our major competitor offers. all of them at a great value a significant value to what our major competitor offers We think there's an opportunity for us to tell our quality story, and really our value story even more, you know, directly in the coming year. we think there's an opportunity for us to tell our quality story and really our value story even more you know directly in the coming year That's something we're focused on. that's something we're focused on From a channel split, mostly 80% North America, 21% international. from a channel split mostly 80% north america 21% international Almost all of that international business is Hansgrohe. almost all of that international business is hansgrohe From a channel standpoint, wholesale and trade 34%, e-commerce 13% growing quickly, retail 45%. from a channel standpoint wholesale and trade 34% e-commerce 13% growing quickly retail 45% Specialty dealers, others, again, is Watkins Wellness, which is really the hot tub and sauna business for us. specialty dealers others again is watkins wellness which is really the hot tub and sauna business for us End consumers, we're split pretty evenly between DIY and pro. end consumers we're split pretty evenly between diy and pro What I would tell you is, whether you're pro or you're DIY, you are a consumer, and our job is to make sure we deeply understand what you're looking for, what your problems are, and to make sure that we solve those problems via our brands, and that's something that we're very focused on. All right. Moving forward, there's so much to like about Masco. We have a long track record of success, delivering strong margins, delivering through cycles, and at the same time, we wanna make sure that we keep evolving and keep growing. We've done several things. One, we created a new executive committee. Masco historically has been very, very decentralized, which comes with a lot of advantages. We're focused on our business. We know our business. What I would tell you is, whether you're pro or you're DIY, you are a consumer, and our job is to make sure we deeply understand what you're looking for, what your problems are, and to make sure that we solve those problems via our brands, and that's something that we're very focused on. what i would tell you is whether you're pro or you're diy you are a consumer and our job is to make sure we deeply understand what you're looking for what your problems are and to make sure that we solve those problems via our brands and that's something that we're very focused on All right. all right Moving forward, there's so much to like about Masco. moving forward there's so much to like about masco We have a long track record of success, delivering strong margins, delivering through cycles, and at the same time, we wanna make sure that we keep evolving and keep growing. we have a long track record of success delivering strong margins delivering through cycles and at the same time we wanna make sure that we keep evolving and keep growing We've done several things. we've done several things One, we created a new executive committee. one we created a new executive committee Masco historically has been very, very decentralized, which comes with a lot of advantages. masco historically has been very very decentralized which comes with a lot of advantages We're focused on our business. we're focused on our business We know our business. we know our business One of the things we did was elevate our four big business unit presidents to the senior team. The leaders of Delta Faucet Company, Hansgrohe, Watkins Wellness, and BEHR Paint now sit on the senior team. We meet at least once a week. We talk about what's happening in the markets. We talk about opportunities and how we can distort resources to get after them. We talk about challenges and the same thing, how can we get resources to solve them more quickly? I think this allows us to be more agile. It allows us to be more connected to the business, which is great. It also allows us to leverage our scale a bit more. One of the things we did was elevate our four big business unit presidents to the senior team. one of the things we did was elevate our four big business unit presidents to the senior team The leaders of Delta Faucet Company, Hansgrohe, Watkins Wellness, and BEHR Paint now sit on the senior team. the leaders of delta faucet company hansgrohe watkins wellness and behr paint now sit on the senior team We meet at least once a week. we meet at least once a week We talk about what's happening in the markets. we talk about what's happening in the markets We talk about opportunities and how we can distort resources to get after them. we talk about opportunities and how we can distort resources to get after them We talk about challenges and the same thing, how can we get resources to solve them more quickly? we talk about challenges and the same thing how can we get resources to solve them more quickly I think this allows us to be more agile. i think this allows us to be more agile It allows us to be more connected to the business, which is great. it allows us to be more connected to the business which is great It also allows us to leverage our scale a bit more. it also allows us to leverage our scale a bit more We're beginning to create some capabilities that, you'll cut across, by having these leaders on the senior team, they have a voice in how we develop these strategies and certainly how we execute them. From a centers of excellence standpoint, we are building some groups in the center that are there to build capabilities and provide expertise that's hard for eight different business units today to try to create on their own. Think digital marketing and e-commerce. We are putting some experts in the center that are building capabilities and are really focused on making sure that we win in this space. Brand building and consumer insights to talk about how important our brands are. Brand building today is different than it was a few years back. We're beginning to create some capabilities that, you'll cut across, by having these leaders on the senior team, they have a voice in how we develop these strategies and certainly how we execute them. we're beginning to create some capabilities that you'll cut across by having these leaders on the senior team they have a voice in how we develop these strategies and certainly how we execute them From a centers of excellence standpoint, we are building some groups in the center that are there to build capabilities and provide expertise that's hard for eight different business units today to try to create on their own. from a centers of excellence standpoint we are building some groups in the center that are there to build capabilities and provide expertise that's hard for eight different business units today to try to create on their own Think digital marketing and e-commerce. think digital marketing and e-commerce We are putting some experts in the center that are building capabilities and are really focused on making sure that we win in this space. we are putting some experts in the center that are building capabilities and are really focused on making sure that we win in this space Brand building and consumer insights to talk about how important our brands are. brand building and consumer insights to talk about how important our brands are Brand building today is different than it was a few years back. brand building today is different than it was a few years back At the end of the day, brand building is very much focused on digital today. We need to make sure we have the digital capabilities to have our brands show up in a modern way. Instead of doing that eight different times, we're gonna create these capabilities. We're not gonna do the marketing in the center. We're gonna make sure that our businesses are deployed these capabilities and run their business as they do today. They're just gonna have better capabilities to do it. The final one is commercial excellence, which is really revenue management. I talked about our channel breakdown, and we play across multiple channels. At the end of the day, brand building is very much focused on digital today. at the end of the day brand building is very much focused on digital today We need to make sure we have the digital capabilities to have our brands show up in a modern way. we need to make sure we have the digital capabilities to have our brands show up in a modern way Instead of doing that eight different times, we're gonna create these capabilities. instead of doing that eight different times we're gonna create these capabilities We're not gonna do the marketing in the center. we're not gonna do the marketing in the center We're gonna make sure that our businesses are deployed these capabilities and run their business as they do today. we're gonna make sure that our businesses are deployed these capabilities and run their business as they do today They're just gonna have better capabilities to do it. they're just gonna have better capabilities to do it The final one is commercial excellence, which is really revenue management. the final one is commercial excellence which is really revenue management I talked about our channel breakdown, and we play across multiple channels. i talked about our channel breakdown and we play across multiple channels There's likely an opportunity for us to be a bit more strategic about how we play our product lineup, how we plan two to three years out in terms of products, innovation, as well as pricing, and that's something we're getting after. Obviously, our goal is to deliver above market top and bottom line growth. We've delivered strongly from a margin standpoint and a profit standpoint over time. I can tell you, we believe there's an opportunity to grow a bit faster, and that's one of the things we wanna do by not sacrificing margins or profit, but really leaning in to, you know, leverage our scale to create some dollars that we can invest back in the, in the business. There's likely an opportunity for us to be a bit more strategic about how we play our product lineup, how we plan two to three years out in terms of products, innovation, as well as pricing, and that's something we're getting after. there's likely an opportunity for us to be a bit more strategic about how we play our product lineup how we plan two to three years out in terms of products innovation as well as pricing and that's something we're getting after Obviously, our goal is to deliver above market top and bottom line growth. obviously our goal is to deliver above market top and bottom line growth We've delivered strongly from a margin standpoint and a profit standpoint over time. we've delivered strongly from a margin standpoint and a profit standpoint over time I can tell you, we believe there's an opportunity to grow a bit faster, and that's one of the things we wanna do by not sacrificing margins or profit, but really leaning in to, you know, leverage our scale to create some dollars that we can invest back in the, in the business. i can tell you we believe there's an opportunity to grow a bit faster and that's one of the things we wanna do by not sacrificing margins or profit but really leaning in to you know leverage our scale to create some dollars that we can invest back in the in the business People ask me all the time, "How are you gonna fund this?" You know, I can tell you, there's no desire to ask our investors to fund our growth. That's not us. We announced some restructuring actions at our last earnings call. We haven't historically done a lot of restructuring across Masco, but between 2025 and what we guided to in 2026, we'll do close to $70 million in restructuring, all of them with a really strong ROI, which will free up some additional dollars for us to invest back in the business. We wanna keep growing our margins, keep delivering on a profit standpoint, but grow faster on the top line. All right. Everyone, you know, I think has a question, when will this market come back? People ask me all the time, "How are you gonna fund this?" You know, I can tell you, there's no desire to ask our investors to fund our growth. people ask me all the time "how are you gonna fund this?" you know i can tell you there's no desire to ask our investors to fund our growth That's not us. that's not us We announced some restructuring actions at our last earnings call. we announced some restructuring actions at our last earnings call We haven't historically done a lot of restructuring across Masco, but between 2025 and what we guided to in 2026, we'll do close to $70 million in restructuring, all of them with a really strong ROI, which will free up some additional dollars for us to invest back in the business. we haven't historically done a lot of restructuring across masco but between 2025 and what we guided to in 2026 we'll do close to $70 million in restructuring all of them with a really strong roi which will free up some additional dollars for us to invest back in the business We wanna keep growing our margins, keep delivering on a profit standpoint, but grow faster on the top line. we wanna keep growing our margins keep delivering on a profit standpoint but grow faster on the top line All right. all right Everyone, you know, I think has a question, when will this market come back? everyone you know i think has a question when will this market come back For someone that's only been in the market for eight months, I'm probably not the expert to talk to. What I can tell you, though, is I talk to everyone I can in this space, and I think everyone agrees that the long-term macro factors remain incredibly positive for this industry. We've seen a lot of home price appreciation. Obviously, that's tailed off a little bit. The reality is there's home equity levels that we have never seen before, up something like 80% over the last few years. The trick will be getting consumers to tap into those HELOCs to make sure that they, you know, use them for repair and remodel moving forward. The U.S. housing stock again should be a tailwind over time. For someone that's only been in the market for eight months, I'm probably not the expert to talk to. for someone that's only been in the market for eight months i'm probably not the expert to talk to What I can tell you, though, is I talk to everyone I can in this space, and I think everyone agrees that the long-term macro factors remain incredibly positive for this industry. what i can tell you though is i talk to everyone i can in this space and i think everyone agrees that the long-term macro factors remain incredibly positive for this industry We've seen a lot of home price appreciation. we've seen a lot of home price appreciation Obviously, that's tailed off a little bit. obviously that's tailed off a little bit The reality is there's home equity levels that we have never seen before, up something like 80% over the last few years. the reality is there's home equity levels that we have never seen before up something like 80% over the last few years The trick will be getting consumers to tap into those HELOCs to make sure that they, you know, use them for repair and remodel moving forward. the trick will be getting consumers to tap into those helocs to make sure that they you know use them for repair and remodel moving forward The U.S. housing stock again should be a tailwind over time. the u.s housing stock again should be a tailwind over time We know that over 55% of all homes are over 40 years old, which requires step-up in repair and remodel. We also know that a slug of homes that were built in the early 2000s are moving into the 20-40 year age of homes, where we see a 15%-20% uptick in remodeling. All of those things again are continuing to happen, and we're starting to see pent-up demand for remodeling that at some point will unlock. Household formation and millennial homeownership are very much, you know, tailwinds as well as millennials have families and start moving into the housing market. Housing turnover has been at existing lows over the last few years. That correlates highly with DIY paint. It's been a challenge for us. This will flip. We know that over 55% of all homes are over 40 years old, which requires step-up in repair and remodel. we know that over 55% of all homes are over 40 years old which requires step-up in repair and remodel We also know that a slug of homes that were built in the early 2000s are moving into the 20-40 year age of homes, where we see a 15%-20% uptick in remodeling. we also know that a slug of homes that were built in the early 2000s are moving into the 20-40 year age of homes, where we see a 15%-20% uptick in remodeling All of those things again are continuing to happen, and we're starting to see pent-up demand for remodeling that at some point will unlock. all of those things again are continuing to happen and we're starting to see pent-up demand for remodeling that at some point will unlock Household formation and millennial homeownership are very much, you know, tailwinds as well as millennials have families and start moving into the housing market. household formation and millennial homeownership are very much you know tailwinds as well as millennials have families and start moving into the housing market Housing turnover has been at existing lows over the last few years. housing turnover has been at existing lows over the last few years That correlates highly with DIY paint. that correlates highly with diy paint It's been a challenge for us. it's been a challenge for us This will flip. this will flip I think the thing for us that we believe is probably the biggest thing holding people back today is consumer confidence. I mentioned, you know, there is home equity, you know, lines at record levels. Interest rates have come down to probably a level that they're gonna be for a while. What's holding people back? We think it's consumer confidence. Whether it's the uncertain world around us, you hear a lot about AI and the impact on potential job market. We think all of those things are weighing at consumer confidence. That being said, this will unlock, and when it does, there's a significant amount of pent-up demand. In the meantime, we believe that we can weather this current period in a fashion that's strong, both in the top and bottom line. I think the thing for us that we believe is probably the biggest thing holding people back today is consumer confidence. i think the thing for us that we believe is probably the biggest thing holding people back today is consumer confidence I mentioned, you know, there is home equity, you know, lines at record levels. i mentioned you know there is home equity you know lines at record levels Interest rates have come down to probably a level that they're gonna be for a while. interest rates have come down to probably a level that they're gonna be for a while What's holding people back? what's holding people back We think it's consumer confidence. we think it's consumer confidence Whether it's the uncertain world around us, you hear a lot about AI and the impact on potential job market. whether it's the uncertain world around us you hear a lot about ai and the impact on potential job market We think all of those things are weighing at consumer confidence. we think all of those things are weighing at consumer confidence That being said, this will unlock, and when it does, there's a significant amount of pent-up demand. that being said this will unlock and when it does there's a significant amount of pent-up demand In the meantime, we believe that we can weather this current period in a fashion that's strong, both in the top and bottom line. in the meantime we believe that we can weather this current period in a fashion that's strong both in the top and bottom line Talked about our brands, our innovation, our customer focus. I talked about low-ticket repair and remodel, less cyclical. We have strong free cash flow and value-creating capital allocation. Our model for the long term is to grow above GDP by 1 to 2 points. We think that our categories and our industry can do that. That's organic growth of 3%-5%. With acquisition, which is obviously more episodic, I mentioned Sauna360 in 2023, that's added a point to our enterprise growth. We wanna expand margins, which will drive operating profit out a bit faster than sales. We have capital deployment in this term of share buybacks at 2%-4% EPS, and then dividends of 1%-2% return on top of EPS growth. Talked about our brands, our innovation, our customer focus. talked about our brands our innovation our customer focus I talked about low-ticket repair and remodel, less cyclical. i talked about low-ticket repair and remodel less cyclical We have strong free cash flow and value-creating capital allocation. we have strong free cash flow and value-creating capital allocation Our model for the long term is to grow above GDP by 1 to 2 points. our model for the long term is to grow above gdp by 1 to 2 points We think that our categories and our industry can do that. we think that our categories and our industry can do that That's organic growth of 3%-5%. that's organic growth of 3%-5% With acquisition, which is obviously more episodic, I mentioned Sauna360 in 2023, that's added a point to our enterprise growth. with acquisition which is obviously more episodic i mentioned sauna360 in 2023 that's added a point to our enterprise growth We wanna expand margins, which will drive operating profit out a bit faster than sales. we wanna expand margins which will drive operating profit out a bit faster than sales We have capital deployment in this term of share buybacks at 2%-4% EPS, and then dividends of 1%-2% return on top of EPS growth. we have capital deployment in this term of share buybacks at 2%-4% eps and then dividends of 1%-2% return on top of eps growth Our goal is to average at least 10% annual EPS. We have a very disciplined capital allocation strategy. One of the questions I get a lot as I came into this role is, "Are you gonna change this?" I can tell you that the short answer is no. This is very much aligned back up through the board, which I was on prior to taking this role. The first goal is to reinvest back in the business. We average between 2% and 2.5% of sales, target working capital at 16.5%. We are a capital-light business, which allows us, again, to generate lots of free cash flow, which is a positive. We wanna maintain an investment-grade credit rating with gross debt to even or below 2.5. We're just below 2 today. Our goal is to average at least 10% annual EPS. our goal is to average at least 10% annual eps We have a very disciplined capital allocation strategy. we have a very disciplined capital allocation strategy One of the questions I get a lot as I came into this role is, "Are you gonna change this?" I can tell you that the short answer is no. one of the questions i get a lot as i came into this role is "are you gonna change this?" i can tell you that the short answer is no This is very much aligned back up through the board, which I was on prior to taking this role. this is very much aligned back up through the board which i was on prior to taking this role The first goal is to reinvest back in the business. the first goal is to reinvest back in the business We average between 2% and 2.5% of sales, target working capital at 16.5%. we average between 2% and 2.5% of sales target working capital at 16.5% We are a capital-light business, which allows us, again, to generate lots of free cash flow, which is a positive. we are a capital-light business which allows us again to generate lots of free cash flow which is a positive We wanna maintain an investment-grade credit rating with gross debt to even or below 2.5. we wanna maintain an investment-grade credit rating with gross debt to even or below 2.5 We're just below 2 today. we're just below 2 today We're just upgraded by one of the major, rating agencies recently. Then maintain a relevant dividend. Our current expected dividend of $1.28. We target around 30% payout. The board just announced, an approval for a 13th consecutive year of increase in our dividend as well. Finally, we deploy excess free cash flow to either do bolt-on acquisitions where they make sense or buy back shares. We've been very aggressive over the last few years buying shares back, and we've guided that we'll spend at least, $600 million this year either buying shares or doing bolt-on acquisitions. We know this is a powerful lever for us to return cash to shareholders, which, we hear from investors is something that they value. We're just upgraded by one of the major, rating agencies recently. we're just upgraded by one of the major rating agencies recently Then maintain a relevant dividend. then maintain a relevant dividend Our current expected dividend of $1.28. our current expected dividend of $1.28 We target around 30% payout. we target around 30% payout The board just announced, an approval for a 13th consecutive year of increase in our dividend as well. the board just announced an approval for a 13th consecutive year of increase in our dividend as well Finally, we deploy excess free cash flow to either do bolt-on acquisitions where they make sense or buy back shares. finally we deploy excess free cash flow to either do bolt-on acquisitions where they make sense or buy back shares We've been very aggressive over the last few years buying shares back, and we've guided that we'll spend at least, $600 million this year either buying shares or doing bolt-on acquisitions. we've been very aggressive over the last few years buying shares back and we've guided that we'll spend at least $600 million this year either buying shares or doing bolt-on acquisitions We know this is a powerful lever for us to return cash to shareholders, which, we hear from investors is something that they value. we know this is a powerful lever for us to return cash to shareholders which we hear from investors is something that they value To sum things up, I talked about, again, brands, innovation, and really strong customer service. Talked about our categories, how we like them. We like our business model and how it's operated over the short and long term. We have a very disciplined capital allocation strategy. Hopefully that was helpful. I look forward to talking and answering your questions as we move forward. With that, I'll turn it back over to Sam. To sum things up, I talked about, again, brands, innovation, and really strong customer service. to sum things up i talked about again brands innovation and really strong customer service Talked about our categories, how we like them. talked about our categories how we like them We like our business model and how it's operated over the short and long term. we like our business model and how it's operated over the short and long term We have a very disciplined capital allocation strategy. we have a very disciplined capital allocation strategy Hopefully that was helpful. hopefully that was helpful I look forward to talking and answering your questions as we move forward. i look forward to talking and answering your questions as we move forward With that, I'll turn it back over to Sam. with that i'll turn it back over to sam

Speaker 2: Thank you, Jon. Questions? I'll start. You have a $200 million gross tariff exposure. With the striking down of IEEPA, replacing it with Section 122, what's the net impact on Masco as it stands? Thank you, Jon. thank you jon Questions? questions I'll start. i'll start You have a $200 million gross tariff exposure. you have a $200 million gross tariff exposure With the striking down of IEEPA, replacing it with Section 122 , what's the net impact on Masco as it stands? with the striking down of ieepa replacing it with section 122 what's the net impact on masco as it stands

Speaker 1: Yeah. I'm sorry. I'll get away from the speaker so I'm good. Obviously, a great question. Obviously, a dynamic environment when it comes to tariffs. We guided with our Q4 earnings just a few weeks ago about the $200 million for 2026. Obviously, things have changed. What I can tell you is we don't believe there's enough certainty today to really, you know, give a more refined guidance. As we come back at our first quarter earnings and the end of April, we'll provide a bit more direction. It's a very fluid environment, and at this point we're considering continuing to move ahead, you know, assuming that other tariffs will fill the void versus IEEPA. Yeah. yeah I'm sorry. i'm sorry I'll get away from the speaker so I'm good. i'll get away from the speaker so i'm good Obviously, a great question. obviously a great question Obviously, a dynamic environment when it comes to tariffs. obviously a dynamic environment when it comes to tariffs We guided with our Q4 earnings just a few weeks ago about the $200 million for 2026. we guided with our q4 earnings just a few weeks ago about the $200 million for 2026 Obviously, things have changed. obviously things have changed What I can tell you is we don't believe there's enough certainty today to really, you know, give a more refined guidance. what i can tell you is we don't believe there's enough certainty today to really you know give a more refined guidance As we come back at our first quarter earnings and the end of April, we'll provide a bit more direction. as we come back at our first quarter earnings and the end of april we'll provide a bit more direction It's a very fluid environment, and at this point we're considering continuing to move ahead, you know, assuming that other tariffs will fill the void versus IEEPA. it's a very fluid environment and at this point we're considering continuing to move ahead you know assuming that other tariffs will fill the void versus ieepa

Speaker 2: On a net basis, is it a net benefit? On a net basis, is it a net benefit? on a net basis is it a net benefit

Speaker 1: Again, we're not gonna get into that today. We'll talk about that in the first quarter earnings. Again, we're not gonna get into that today. again we're not gonna get into that today We'll talk about that in the first quarter earnings. we'll talk about that in the first quarter earnings

Speaker 2: Gotcha. Okay. all right. How is the, It's a public forum. How is the early read on business trends thus far in the quarter? Gotcha. gotcha Okay. all right. okay all right How is the, It's a public forum. how is the it's a public forum How is the early read on business trends thus far in the quarter? how is the early read on business trends thus far in the quarter

Speaker 1: Yeah. We don't talk about monthly trends. What I can tell you overall, we're encouraged that 2026 should be, from an end market standpoint, a bit better than 2025. That's what we guided to, right? Flat to up a low single digits. I would say early days, you know, we're seeing some green shoots across our business. Again, won't get into a whole lot of detail. We also have, you know, honestly, some comps that will work for us. If you remember, with Behr Paint in 2024, we had a big inventory move at the end of the year. We had a comp that in 2025, paint should have a better first quarter just from a comp standpoint. Yeah. yeah We don't talk about monthly trends. we don't talk about monthly trends What I can tell you overall, we're encouraged that 2026 should be, from an end market standpoint, a bit better than 2025. what i can tell you overall we're encouraged that 2026 should be from an end market standpoint a bit better than 2025 That's what we guided to, right? that's what we guided to right Flat to up a low single digits. flat to up a low single digits I would say early days, you know, we're seeing some green shoots across our business. i would say early days you know we're seeing some green shoots across our business Again, won't get into a whole lot of detail. again won't get into a whole lot of detail We also have, you know, honestly, some comps that will work for us. we also have you know honestly some comps that will work for us If you remember, with Behr Paint in 2024, we had a big inventory move at the end of the year. if you remember with behr paint in 2024 we had a big inventory move at the end of the year We had a comp that in 2025, paint should have a better first quarter just from a comp standpoint. we had a comp that in 2025 paint should have a better first quarter just from a comp standpoint We really like the way that we're competing in Plumbing, particularly in North America. We know via our internal tracking that share is something we continue to grow. We're also excited about the lineup that we have at some of our major retailers in 2026. Again, nothing to report that's new today, but I can tell you know, we're cautiously optimistic that 2026 will be a better year. We really like the way that we're competing in Plumbing, particularly in North America. we really like the way that we're competing in plumbing particularly in north america We know via our internal tracking that share is something we continue to grow. we know via our internal tracking that share is something we continue to grow We're also excited about the lineup that we have at some of our major retailers in 2026. we're also excited about the lineup that we have at some of our major retailers in 2026 Again, nothing to report that's new today, but I can tell you know, we're cautiously optimistic that 2026 will be a better year. again nothing to report that's new today but i can tell you know we're cautiously optimistic that 2026 will be a better year

Speaker 2: One thing that I found notable, you and the board have changed some of the variable comp metrics that are used to determine executive pay and C-level pay more towards organic growth and perhaps a little bit less towards just you know, absolute margin performance. In concert with that, it looks like you're increasing your R&D, your marketing spend as well. Can you go into some of the thinking behind that decision and perhaps what outgrowth expectations there should be from that part? One thing that I found notable, you and the board have changed some of the variable comp metrics that are used to determine executive pay and C-level pay more towards organic growth and perhaps a little bit less towards just you know, absolute margin performance. one thing that i found notable you and the board have changed some of the variable comp metrics that are used to determine executive pay and c-level pay more towards organic growth and perhaps a little bit less towards just you know absolute margin performance In concert with that, it looks like you're increasing your R&D, your marketing spend as well. in concert with that it looks like you're increasing your r&d your marketing spend as well Can you go into some of the thinking behind that decision and perhaps what outgrowth expectations there should be from that part? can you go into some of the thinking behind that decision and perhaps what outgrowth expectations there should be from that part

Speaker 1: Yeah. I mentioned earlier, I think historically Masco's really distinguished itself from a margin standpoint or profit standpoint. Yeah. yeah I mentioned earlier, I think historically Masco's really distinguished itself from a margin standpoint or profit standpoint. i mentioned earlier i think historically masco's really distinguished itself from a margin standpoint or profit standpoint

Speaker 2: Right. Right. right

Speaker 1: To be clear, we do not wanna lose that focus. At the same time, we think there's an opportunity for us to grow a bit more quickly on the top line. You know, I'm a big believer, the board's a big believer, and you get what you incent. We made some shifts. One of the things we did was we took, you know, from a incentive standpoint, the balance was 75% profit, 25% growth. We think profit's still incredibly important, so it's still the majority of the incentive. It's now gonna be 60% in 2026, and then sales will be 40%. Just sending the message to our teams that that's, you know, growth on the top line is important as well, maybe more today than ever. To be clear, we do not wanna lose that focus. to be clear we do not wanna lose that focus At the same time, we think there's an opportunity for us to grow a bit more quickly on the top line. at the same time we think there's an opportunity for us to grow a bit more quickly on the top line You know, I'm a big believer, the board's a big believer, and you get what you incent. you know i'm a big believer the board's a big believer and you get what you incent We made some shifts. we made some shifts One of the things we did was we took, you know, from a incentive standpoint, the balance was 75% profit, 25% growth. one of the things we did was we took you know from a incentive standpoint the balance was 75% profit 25% growth We think profit's still incredibly important, so it's still the majority of the incentive. we think profit's still incredibly important so it's still the majority of the incentive It's now gonna be 60% in 2026, and then sales will be 40%. it's now gonna be 60% in 2026 and then sales will be 40% Just sending the message to our teams that that's, you know, growth on the top line is important as well, maybe more today than ever. just sending the message to our teams that that's you know growth on the top line is important as well maybe more today than ever In addition to that, even on the profit side, it was not only op profit growth, it was actually a percentage margin target, which we took out, because at the end of the day, we want our people to be investing both for the long term, certainly, and it's hard to make investments when, you know, you get penalized short term from a percentage standpoint. It's a balancing act. Again, you know, the bulk of our incentive still sits in profit. It's critically important to our investors. We know that. We just wanted to make a shift to get the top line growing a bit more quickly. What I'll tell you is that, you know, we're not changing. We have an investor day coming up in May. In addition to that, even on the profit side, it was not only op profit growth, it was actually a percentage margin target, which we took out, because at the end of the day, we want our people to be investing both for the long term, certainly, and it's hard to make investments when, you know, you get penalized short term from a percentage standpoint. in addition to that even on the profit side it was not only op profit growth it was actually a percentage margin target which we took out because at the end of the day we want our people to be investing both for the long term certainly and it's hard to make investments when you know you get penalized short term from a percentage standpoint It's a balancing act. it's a balancing act Again, you know, the bulk of our incentive still sits in profit. again you know the bulk of our incentive still sits in profit It's critically important to our investors. it's critically important to our investors We know that. we know that We just wanted to make a shift to get the top line growing a bit more quickly. we just wanted to make a shift to get the top line growing a bit more quickly What I'll tell you is that, you know, we're not changing. what i'll tell you is that you know we're not changing We have an investor day coming up in May. we have an investor day coming up in may If we're gonna make any long-term changes, that'll be the time we talk about it. The facts are, and you can do the math, I mean, we haven't historically delivered the 3%-5% top line growth that we talk about, right? Our goal is to make sure that we have the plans in place, the capabilities in place to deliver on our algorithm on a more consistent basis. If we're gonna make any long-term changes, that'll be the time we talk about it. if we're gonna make any long-term changes that'll be the time we talk about it The facts are, and you can do the math, I mean, we haven't historically delivered the 3%-5% top line growth that we talk about, right? the facts are and you can do the math i mean we haven't historically delivered the 3%-5% top line growth that we talk about right Our goal is to make sure that we have the plans in place, the capabilities in place to deliver on our algorithm on a more consistent basis. our goal is to make sure that we have the plans in place the capabilities in place to deliver on our algorithm on a more consistent basis

Speaker 2: Questions from the room? Yes, in the back here. Yes. Questions from the room? questions from the room Yes, in the back here. yes in the back here Yes. yes

Speaker 1: Yeah. Clearly we haven't seen the big inflection point yet. You know, it does feel like over the last three or four months, there's been some green shoots. Again, it's more anecdotal than any kinda hard data we can point to. It feels like, you know, consumers have been sitting on the sideline for a long time. We talked about this pent-up demand. The reality is, you know, if the existing home market, you know, isn't picking up dramatically, I think people are in their homes, and I think they feel like if you're in your home, you might as well remodel or at the very least make sure you repair everything that's broken. Nothing to report directly today. It does feel like there's been a few green shoots more recently. Yeah. yeah Clearly we haven't seen the big inflection point yet. clearly we haven't seen the big inflection point yet You know, it does feel like over the last three or four months, there's been some green shoots. you know it does feel like over the last three or four months there's been some green shoots Again, it's more anecdotal than any kinda hard data we can point to. again it's more anecdotal than any kinda hard data we can point to It feels like, you know, consumers have been sitting on the sideline for a long time. it feels like you know consumers have been sitting on the sideline for a long time We talked about this pent-up demand. we talked about this pent-up demand The reality is, you know, if the existing home market, you know, isn't picking up dramatically, I think people are in their homes, and I think they feel like if you're in your home, you might as well remodel or at the very least make sure you repair everything that's broken. the reality is you know if the existing home market you know isn't picking up dramatically i think people are in their homes and i think they feel like if you're in your home you might as well remodel or at the very least make sure you repair everything that's broken Nothing to report directly today. nothing to report directly today It does feel like there's been a few green shoots more recently. it does feel like there's been a few green shoots more recently

Speaker 2: Yes, in the back. Yes, in the back. yes in the back

Speaker 3: Yeah. Thank you. Talk a little bit about the scale for your show. Do you have any, like, timing schedules? Yeah. yeah Thank you. thank you Talk a little bit about the scale for your show. talk a little bit about the scale for your show do Do you have any, like, timing schedules? do you have any like timing schedules

Speaker 1: Yeah. You know, again, we've talked a little bit directionally about clearly with the cost environment, the tariff environment. We took pricing in 2025. We took, you know, what we typically do in, at the beginning of 2026 as well. I can tell you, we haven't seen anything out of the ordinary in terms of inventories. Again, I think it's a pretty, you know, consistent year-over-year in terms of how that looks. Yeah. yeah You know, again, we've talked a little bit directionally about clearly with the cost environment, the tariff environment. you know again we've talked a little bit directionally about clearly with the cost environment the tariff environment We took pricing in 2025. we took pricing in 2025 We took, you know, what we typically do in, at the beginning of 2026 as well. we took you know what we typically do in at the beginning of 2026 as well I can tell you, we haven't seen anything out of the ordinary in terms of inventories. i can tell you we haven't seen anything out of the ordinary in terms of inventories Again, I think it's a pretty, you know, consistent year-over-year in terms of how that looks. again i think it's a pretty you know consistent year-over-year in terms of how that looks

Speaker 2: With that, we're out of time. This will continue in the breakout session, Amarante Two. With that, we're out of time. with that we're out of time This will continue in the breakout session, Amarante Two. this will continue in the breakout session amarante two

Speaker 1: Thanks, everyone. Thanks, everyone. thanks everyone

Speaker 2: Thank you all. Thank you all. thank you all

Speaker 1: Thank you. Thank you. thank you