MASCO CORP /DE/ — Call Transcript 2026

Good morning, ladies and gentlemen. Welcome to Masco Corporation's fourth quarter and full year 2025 conference call. My name is Danny, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. To ask a question, please press star, then the number one on your telephone keypad. To withdraw your question, please press star, then the number two. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP&A. You may begin. Thank you, operator, and good morning, everyone. Welcome to Masco Corporation's 2025 fourth quarter and full year conference call. With me today are John Nuti, President and CEO of Masco, and Rick Westenberg, Masco's Vice President and Chief Financial Officer. Our fourth quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can't take your question now, please call me directly at 313-792-5500. Our statements today will include our views about our future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K that we filed with the Securities and Exchange Commission. Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to John. Thank you, Robin. Good morning, everyone, and thank you for joining us. Please turn to slide 5. I want to start today by highlighting some of our key accomplishments from 2025, which we achieved while navigating a dynamic and challenging environment. Following that, I'll turn to our financial results for 2025 and share our expectations for 2026. Starting with our plumbing product segment, we continue to demonstrate our market leadership even as we work to mitigate the impacts of higher tariff costs. Delta Faucet was awarded The Home Depot Kitchen and Bath Partner of the Year. This award recognized the strength of our brand, customer service, and innovation. Delta also continued to achieve notable market share gains in the e-commerce channel, driven by our industry-leading capabilities that deliver solutions for consumers. At Hansgrohe, we continue to be a global leader, gaining additional market share through premium products with industry-leading designs. Hansgrohe also continues to demonstrate leadership and commitment to sustainability, having recently received multiple awards for corporate strategy and production initiatives at the German Sustainability Projects 2025 award ceremony. At Watkins Wellness, our integration of Sauna360 into our existing dealer network has generated double-digit sales growth in a market with ongoing opportunities for increased household penetration. We also introduced our cold plunge products, further expanding our presence in the consumer wellness market. In our decorative architectural segment, the strength of our brands continued to resonate with our customers. Behr was once again rated number one in interior paint, number one in exterior paint, and number one in exterior stain in a third-party study, demonstrating the exceptional quality and strength of our leading Behr brand. Our continued strategic alignment and partnership with The Home Depot led to our recognition as Supplier of the Year for the paint department in the United States and Canada, and Interconnected Partner of the Year in Mexico. Our annual Pro sales are approximately $950 million, and our share of the Pro paint market has grown over 200 basis points since 2019. We've continued building capabilities to enhance the buying experience for our Pro customers, including expanded delivery options, loyalty programs, and a growing sales force, which allow us to further capitalize on the sizable growth opportunity in the Pro paint market. I want to thank all of our employees for their resilience, commitment, and leadership, which made these accomplishments possible. Now, onto our results. Please turn to slide six. Beginning with our fourth quarter, results overall were largely in line with our expectations as we continue to navigate a dynamic geopolitical and macroeconomic environment. Net sales decreased 2%, or 3% in local currency, primarily due to lower volumes. Operating profit was $259 million, and operating profit margin was 14.4%. Earnings per share for the quarter was $0.82 per share. Turning to our segments, plumbing product sales increased 3% in local currency. North American sales increased 4%, driven by favorable pricing. Delta Faucet again delivered strong performance, particularly in the trade and e-commerce channels. International plumbing sales increased 1% in local currency, driven by Germany, partially offset by the weaker market in China. Operating profit for the segment was $240 million. Operating margin was 16.3% and included the impact of higher tariff and commodity costs. Now, turning to our decorative architectural segment, sales decreased 15% in the quarter. Overall, paint sales decreased double digits due to lower volume, including the impact on the favorable inventory timing in Q4 of 2024 and the impact related to the customer transition of our primer and applicator business in Q4 of 2025. Excluding these impacts, overall paint sales decreased mid-single digits. DIY paint sales decreased high single digits, and Pro paint sales grew low single digits. Operating profit for the segment was $76 million, and operating margin was 13.9%.... Please turn to slide 7 as we review our full year performance. Despite a dynamic geopolitical and macroeconomic environment for most of the year, we delivered solid profitability and remained disciplined on capital allocation. Net sales decreased 3%, or 2% excluding the impacts of currency and the divestiture of Kichler. Operating profit was $1.3 billion, and operating profit margin was 16.8%. Earnings per share for the year was $3.96 per share. We delivered a return on invested capital of 41%. Our strong cash flow allowed us to return $832 million to shareholders through dividends and share repurchases. Near the end of 2025, we began taking decisive actions to further position our business for long-term value creation. We established an executive committee with dual corporate and business unit representation to fully leverage our enterprise strengths, which will enable us to continue to deliver strong execution and accelerate growth moving forward. We also began implementing various restructuring actions to a greater extent than in the past, to further streamline our business, reduce headcount, and optimize operations. We incurred approximately $18 million in charges related to these actions in the fourth quarter of 2025, and we expect to incur approximately $50 million in additional charges in 2026. We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion. As we move into 2026, we're announcing the integration of Liberty Hardware and the Delta Faucet Company. With over half of Liberty sales branded Delta and a complementary product portfolio, this realignment enhances our consumer-driven strategy to leverage our brands, capabilities, and scale across our organization. As a result of this integration, Liberty Hardware, which was previously reported in the decorative architectural products segment, will be reported within our plumbing products segment moving forward. Turning to our expectations for 2026, we believe sales across the global repair and remodel markets will be roughly flat. This includes an expectation that both our North American and international markets, in aggregate, will also be roughly flat. Our expectation for our own sales in 2026 is to be flat to up low single digits. This estimate includes our expectation that we will continue to outperform the market in 2026. We expect margin expansion in 2026, driven by continued mitigation of higher tariff and commodity costs, cost savings resulting from our restructuring actions, and ongoing operational efficiencies across our business. We expect plumbing margins, inclusive of the Liberty Hardware business integration, to be approximately 18% and decorative margins to be approximately 19%, resulting in a Masco operating margin of approximately 17%. Turning to capital allocation, our strategy remains consistent. First, reinvest in our business to accelerate growth and market share gains. Second, maintain a strong investment-grade balance sheet. Third, target a 30% dividend payout ratio. And fourth, deploy our remaining available free cash flow, which we expect to be approximately $600 million in 2026, towards share repurchases or value-accretive acquisitions. I am pleased to share that our Board approved a 3% increase to our dividend for 2026, raising our annual dividend to $1.28 per share and marking our 13th consecutive annual dividend increase. Additionally, our Board authorized a new $2 billion share repurchase program, underscoring Masco's resilient business model and strong financial position, and the Board's confidence in our future performance. Our M&A strategy remains consistent. We continue to selectively pursue opportunities with strong strategic fit and attractive returns, focusing on bolt-on acquisitions with our plumbing, wellness, and coatings businesses. Based on our expected operating performance and capital deployment strategy, we anticipate earnings per share for 2026 to be in the range of $4.10-$4.30 per share. While the housing market remains pressured in the near term, we are confident that the fundamentals supporting mid- to long-term home improvement demand are quite strong. U.S. homeowner equity levels are at a record high, up more than 80% since 2019, providing greater capacity for home renovation projects. Homes continue to age, with more than 55% of U.S. homes now over 40 years old, an age that typically requires an elevated repair and remodel spending. Additionally, a large cohort of homes built in the early 2000s is now entering the prime remodeling age of 20-40 years. Significant pent-up demand for larger renovation projects continues to build. As consumer sentiment improves, interest rates decline, and existing home turnover increases, we expect this pent-up demand to become a tailwind for our business. With these strong fundamentals and the actions we are taking to optimize the business, we believe we are well positioned to deliver above-market top and bottom-line growth. We plan to achieve this through our consumer-driven strategy that leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We look forward to discussing this strategy and our long-term goals in greater detail at our upcoming Investor Day on Wednesday, May thirteenth, in New York City. Please save the date, and we look forward to seeing you there. Now I'll turn the call over to Rick to go over our fourth quarter and full-year results and 2026 outlook in more detail. Rick? Thank you, John, and good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items. Turning to Slide 9, sales in the fourth quarter decreased 2%, or 3%, excluding the favorable impact of currency. In local currency, North American sales decreased 5% and international sales increased 1%. Gross margin was 33.7% in the quarter. SG&A in the quarter was 19.3%, and in dollars was in line with the prior year. Operating profit was $259 million in the quarter, and our margin was 14.4%. Operating profit was impacted by lower volume and higher tariff and commodity costs, partially offset by pricing actions and cost savings initiatives. Our EPS was $0.82 per share in the quarter. Turning to the full year of 2025, sales decreased 3% over the prior year, or 2% excluding the impact of our divestiture and favorable currency. Our divestiture of Kichler in the third quarter of 2024 resulted in a decrease in sales of 2% year-over-year for the full year of 2025, while currency represented a 1% increase in sales. In local currency, North American sales decreased 5%, or 2% excluding our divestiture, and international sales increased 1%. Gross margin was 35.5% and was impacted by higher tariff and commodity costs. SG&A, as a percent of sales, was in line with the prior year at 18.7%. Operating profit was approximately $1.3 billion, and operating margin was 16.8%. Lastly, our EPS for the full year was $3.96 per share. Turning to Slide 10, plumbing sales increased 5% in the fourth quarter, or 3% excluding the favorable impact of currency. This growth was largely driven by pricing, which increased sales by 5%, partially offset by lower volume. In local currency, North American plumbing sales increased 4% in the quarter. This performance was primarily driven by solid growth in our Delta Faucet and Watkins Wellness businesses. In local currency, international plumbing sales increased 1% in the quarter. Hansgrohe grew in many of its European markets, including its key market of Germany. This growth was partially offset by the ongoing challenging market dynamics in China. Segment operating profit in the fourth quarter increased 2% to $204 million, and operating margin was 16.3%. Operating profit was driven by cost savings initiatives and pricing actions, partially offset by higher tariff and commodity costs and lower volume. Turning to the full year of 2025, plumbing sales increased 3% or 2%, excluding the favorable impact of currency. Favorable pricing contributed 3%, partially offset by lower volume, which decreased sales by 1%. In local currency, North American plumbing sales increased 3%, and international plumbing sales increased 1%. Full year operating profit was $904 million, and operating margin was 18.1%. Turning to Slide 11, decorative architectural sales decreased 15% in the fourth quarter. In the quarter, total paint sales decreased double digits due to lower volume. Volume was impacted by the favorable inventory timing in Q4 of 2024, as well as the impact related to the customer transition of our primer and applicator business in Q4 2025. Excluding these impacts, overall paint sales decreased mid-single digits, with Pro paint sales growing low single digits and DIY paint sales decreasing high single digits in line with our full year performance. Operating profit in the fourth quarter was $76 million, primarily impacted by lower volume and significantly higher tariff and glass anti-dumping duty costs at our Liberty Hardware business, partially offset by cost savings initiatives. We continue to take proactive actions to mitigate the impact of tariff and duties and have announced the integration of the Liberty business into Delta Faucet Company. We believe this integration will provide a significant opportunity to further optimize the operations and improve the profitability of Liberty as we leverage the capabilities and scale of the combined business. Operating profit margin was 13.9% in the segment. Turning to the full year of 2025, sales decreased 14%, driven by our Kichler divestiture and lower volume, which decreased sales by 6% and 8%, respectively. Excluding the impact of the prior year inventory timing benefit, Pro paint sales were up low single digits, and DIY paint sales were down high single digits for the year. Full year operating profit was $457 million, and operating margin was 17.8%. Turning to Slide 12, our balance sheet remains strong, with gross debt to EBITDA at 2.1 times at year-end. We ended the year with $1.6 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 16.7% of sales at quarter end. Working capital was impacted by tariff-related dynamics, including higher material costs and pricing, which resulted in increased working capital balances in 2025. We anticipate working capital as a percent of sales will be approximately 16.5% in 2026. Our free cash flow for the year was over $850 million, a bit stronger than anticipated, driven by disciplined cost and working capital management, achieving free cash flow conversion of nearly 100%. Given our strong cash performance, we were able to return $832 million to shareholders through dividends and share repurchases, including the repurchase of $217 million in stock in the fourth quarter and the repurchase of $571 million for the full year. Now, let's turn to Slide 13 and review our outlook for 2026. The guidance that is being provided today reflects the integration of Liberty Hardware into Delta Faucet Company.... Therefore, Liberty's results will now be included in the plumbing product segment versus previously being included in the decorative architectural segment. For comparison purposes, we have recast our segments in 2025 by quarter to reflect this change. This information can be found in the appendix of our earnings deck on our website. Our guidance also includes the impact of currently enacted tariffs in effect in February, inclusive of the 10% reduction in China tariffs that went into effect after our third quarter earnings call. As a result of this tariff reduction, as well as proactive and ongoing changes to our sourcing footprint, we now estimate that the total annualized cost impact from tariffs to be approximately $200 million before mitigation, down from an annualized $270 million as of our third quarter earnings call. Of the $200 million annualized cost impact, approximately $80 million is related to the current 20% China tariffs, and the remaining approximately $120 million is driven by a combination of the various tariffs on countries other than China, the 50% tariffs on steel, aluminum, and copper, and the glass anti-dumping duties. We anticipate the full $200 million will impact 2026. This is up from the in-year impact in 2025 of approximately $150 million, largely due to the timing of tariffs as they were implemented throughout 2025. Our teams continue to actively work to further mitigate these costs and recover the cost and margin impact through a combination of levers. These include cost reductions, continued efforts to change our sourcing footprint, and pricing where necessary. We anticipate that these mitigation actions will offset the direct cost impact of the currently enacted tariffs in 2026. To provide an update on our China exposure, in 2026, we expect to import approximately $400 million from China that is subject to the reciprocal tariffs, down from our 2025 exposure of $450 million. Based on our continued efforts, we anticipate that our China exposure will be less than $300 million as we exit 2026. This represents a greater than 60% reduction from our peak exposure in 2018. From a segment perspective, with a shift of Liberty Hardware to the plumbing product segment, nearly all of our tariff exposure and impact reside in this segment. Now, turning to our expected financial performance for 2026. For Masco overall, we expect 2026 sales to be flat to up low single digits and operating margin to expand to approximately 17%, up from 16.8% in 2025. Our 2026 sales guide reflects an assumption that the global repair and remodel markets in aggregate will be roughly flat. As we think about the cadence for the year, excluding the impact of currency, we expect sales to be roughly flat to slightly up in both the first and second half of the year. We expect SG&A as a % of sales to be in line with 2025 as we continue to invest in our business for future growth, while also maintaining cost discipline. Also, as it relates to operating margins, given the timing of tariff impacts, which largely impacted our results in the second half of last year, we anticipate total Masco margin contraction in the first half of the year, with expansion expected in the second half as we lap the tariff impact and as our mitigation actions continue to take hold. In our plumbing segment, we expect 2026 full year sales to be up low single digits. We anticipate the full year plumbing margin will be approximately 18%, up from a comparable 2025 margin of 17.6%. Margin expansion will primarily be driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. In our decorative architectural segment, we expect 2026 sales to be roughly flat with the prior year. We expect our Pro paint business will increase mid-single digits, and our DIY paint business will decrease mid-single digits. We anticipate the full year decorative architectural margin to be approximately 19%, relatively in line with a comparable 2025 margin of 18.9%, with a continued focus on cost savings initiatives. With regards to capital allocation, we expect to reinvest approximately $190 million through capital expenditures to pay a dividend of $1.28 per share, up 3% from our 2025 dividend, and to deploy approximately $600 million toward share repurchases or acquisitions in 2026. Finally, as John mentioned earlier, our 2026 EPS estimate is $4.10-$4.30 per share. This assumes a 202 million average diluted share count for the year and a 24.5% effective tax rate, which is consistent with our 2025 effective tax rate. Additional financial assumptions for 2026 can be found on slide 16 of our earnings deck. With that, I'd like to open up the call for questions. Operator? Thank you. We will now begin the question and answer session. In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session. To ask a question, please press star, then the number 1 on your telephone keypad. To withdraw your question, please press star, then the number 2. One moment, please, while we assemble the queue... Your first question comes from Matthew Bouley of Barclays. Please go ahead. Good morning, everyone. Thank you for taking the questions. Maybe just one common question we're getting from investors now is around commodity inflation and specifically copper. So maybe just a quick question there around how you're embedding that into your guidance for plumbing margin expansion in 2026, and maybe the sort of timing of that commodity impact. Thank you. Sure, Matt, it's Rick. Good morning. So with regards to commodity inflation, as I'm sure you've been seeing, particularly with copper, we saw that really tick up later part of last year, and really the first part of this year. We're monitoring it very closely. It's obviously a volatile dynamic. With regards to inflation, we saw in our plumbing segment, mid-single-digit inflation in Q4, so we're seeing some of that pull through, and we're expecting mid-single-digit inflation in our guide for plumbing in the calendar 2026. So it's something that we've contemplated. Admittedly, it is volatile, and there's risk and upside, depending on how things play out. As a reminder, with regards to how you think about commodities flowing through to our P&L, it's usually about a six-month lag in terms of when you see the commodity costs in the market, before it hits our P&L. So that's why you're seeing it kind of later in Q4 in 2025 and in 2026. So that delay is. And so to the extent that there's movement one way or the other, you can envision that lag would stay true. Okay. Perfect. Thank you for that, Rick. Second one, pricing in plumbing. I think I heard you say 5% in the fourth quarter, and correct me if I'm wrong, but I think that would suggest price was probably above that in North America, assuming it was below that level in the international business. And so given that level of price, can you speak a little bit about what you're expecting to kind of flow through in the first half of 2026? Any kind of early reads on your initial January pricing actions in that segment? And if you're expecting that to contribute additional price on top of what you've already got, and kind of how that would flow through the first half and second half. Thank you. Yeah. Hi, Matt. It's, it's John. Maybe I'll start and then turn it over to Rick to get into the flow for 2026. You know, I would say, really pleased with the way that our plumbing team has handled, you know, a lot of challenges in 2025. Obviously, between tariffs and commodities, they were faced with a lot and really took action and really used to save some sophisticated tools to take precise pricing and really across all of our channels. And the good news is, we continued to grow share through that time period. As we've taken smart pricing, we believe we're well positioned in the market. And again, I'll let Rick talk a little bit about the flow and how that will happen. But again, really pleased with the way that we're navigating this environment. Yeah, Matt, with regards to your specific question, you heard correctly that pricing and plumbing was a 5% benefit in Q4. It's fair to assume that international wasn't as significant. I'll leave it at that. As it pertains to 2026, we've indicated that we would expect mid-single-digit pricing for plumbing in the calendar year. From a case perspective, we won't get into the details, but suffice it to say that we started to implement mitigation actions, as John alluded to, really, as tariffs started to take hold across cost, sourcing, and pricing, really mid-year last year. So you can imagine, as we lap that activity in 2026, you'll see some moderation with regards to year-over-year comparison. But for the full year, you can expect a mid-single-digit pricing benefit. Okay. Thank you both. Good luck, guys. Thanks, Matt. Thank you. Your next question comes from Anthony Pettinari of Citi. Please go ahead. Good morning. Just pivoting from plumbing to DA, I'm wondering if you could, you know, talk about assumptions for price cost in 2026, any commodity cost trends that you'd call out, and any pricing actions that you can talk about? Yeah, absolutely. This is John. As we look at, as we look at DAP, we are seeing some upward pressure on cost. As you likely know, we have a unique relationship with our large exclusive big box retailer and have a price cost mechanism in place. So not gonna comment on prospective pricing or even our conversations with our retail partner, but given the costs that we're seeing, you know, those conversations are beginning. We'll come back in future quarters and let you know where we shake out in that space. Okay. Okay. And then in terms of DIY, I think you've guided down mid-single digits. You know, are there any kind of big picture thoughts you can share in terms of the volume pressure in that business? And you know, how much of it might just be a sort of a secular shift from DIY to Pro, so maybe you know, demand is not being destroyed, it's just being kind of shifted between the channels? Just kind of as you look back at the last three, four years, can you give us some context and how that informs your expectations for 2026? Yeah, absolutely. So this is John. It's certainly been dynamic for sure. We do know that existing home sales correlate highly with DIY paint, and it makes sense. When you go to sell a home, you tend to paint it, and when you buy it, you tend to paint it again to put your own mark and style into the home. So as existing home sales were at 3- or 4-decade near lows, and then in 2025, it was challenging, and we saw that obviously in, in the previous years as well. As we look forward, we know that we have a strong DIY brand, one of the-- one of the share leaders. We have amazing quality at great value, and we think we can actually tell our story better just to make sure that, you know, we get our continued growth share in the DIY market. The space that we're, you know, very excited about is the Pro market. When you look at that, that segment, it's the biggest single segment Masco competes in. It's over $10 billion, and it's grown nicely, really over the short, medium, and long term. And we have a relatively small share. We have less than a 10% share. Really proud that we gained 200 basis points of share since 2019. But we are squarely focused on growing that at a differential rate. And the good news is The Home Depot, our retail partner, is very, very squarely focused on the Pro as well. So we're working to take friction out of the experience for the Pro. Things like order online and pickup in store, which is available now. Order online and have it delivered to the job site, which we can do now. The Home Depot is trialing some trade credit, which we think will make a real difference. And then we can continue to increase the number of both outside and inside sales reps we have focused on the Pro. So regardless of where the market goes, we like our ability to play both in DIY, where we're very strong today, and then we think there's a tremendous amount of upside in Pro, and we'll continue to invest in that space, and again, very aligned with, with our retail partner, in that initiative. Okay, that's helpful. I'll turn it over. Thank you. Next question comes from Stephen Kim of Evercore ISI. Please go ahead. Yeah, thanks a lot, guys. Appreciate all the color so far. I guess, in your guide for fiscal 26, can you give a sense for what your expectations are for existing home sales, and just anything else relevant coming out of the housing market, specifically, in your outlook? Hey, Steven, good morning. So we've got pretty modest expectations with regards to some of the macro drivers. From an overall R&R perspective, we're assuming both in terms of the U.S. market in which we play, as well as international, roughly flat. And that's contemplating volume down and pricing up, kind of offsetting one another. From an industry perspective, we, Masco, expect to outperform that and be flat to slightly up or up low single digits. In terms of some of the other macro factors, existing home sales, new home builds, et cetera, pretty modest expectations, nothing significant differently from what we've seen in the last couple of years. If you did see an inflection upwards in existing home sales beyond your expectations, would you be expecting that you would see that more on the pricing side? Or do you anticipate that there would be certain other sort of subcategories that would particularly benefit or see it first? Yeah, Stephen, that's a tricky one to answer. I think from a standpoint, I think pricing, as we've taken price with regards to mitigating both tariff and commodity costs, that's largely in place. Obviously, we continue to monitor the market. I think from an overall variability standpoint, I would presume volume would be the biggest dynamic, both in terms of upside opportunity as in terms of risk. I mean, we look at, you know, I gave you the assumptions with regards to the overall R&R industry. Within that, we look at plumbing as an opportunity for us, particularly in terms of how we're competing in the market. In Q4, for example, we gained sales across the e-commerce, trade, and retail channels, so we're seeing really good momentum in that regard, and we're going to continue to drive our performance, kind of relative to the market overall. Yeah, Steven, I might just add that, obviously, existing home sales are important. I've mentioned how important that is to, to our paint business. You know, beyond though, that we, we, you know, are 90% repair and remodel, and, and I think big picture, believe that there's a lot of opportunity once the market frees up. And you look at, I mentioned in the prepared remarks that home equity levels are at record highs, up 80% since 2019. Interest rates are heading in the right direction. I think the combination of some, additional cuts to interest rates and then, and, and importantly, improved consumer confidence, we think that's gonna be really the driver to, to turn the market. So, whether that happens in 2020 or 2026 or not, we'll see. But again, we think that those are the key things that'll be needed for us to get back to historical growth rates across our categories. Okay, great. Thanks very much, guys. Thank you. Your next question comes from Michael Rehaut of J.P. Morgan. Please go ahead. Hi. Yeah, good morning. Thanks for taking my questions. Wanted to hit on the restructuring actions contemplated for 2026. I assume part of that is with regards to moving Liberty over and integrating that. I just wanted to get a sense for, you know, what the dollar benefit you anticipate from those restructuring actions in 2026, and how much of that might be reinvested in the company? 'Cause I heard you say, you know, fund growth initiatives versus, you know, just a fall to the bottom line, so to speak. Yes, so maybe I'll start and Rick can add on as well. You know, obviously, with markets that aren't growing historical rates, you know, we want to take action and make sure that we have the cost structure that's needed for today and into the future. So the actions are broad. So again, Liberty would obviously be a part of it, something that we pointed out. But we're really looking across our organization just to make sure we have the right footprint in terms of manufacturing base, make sure that we're leveraging our scale where it makes sense. And the idea is to take those dollars, you know, drop some of them to the bottom line as we've guided. Again, we want to grow margins in 2026 and into the future. Importantly, we want to free up differential amount of dollars that we can reinvest back into creating capabilities. We won't go into a lot of detail today, but at our main Investor Day, we'll really detail the capabilities that we're building to not only help us drive to the bottom line, so things like leveraging our scale with shared services and global purchasing, but importantly, creating capabilities that will drive our top line even faster. So things like e-commerce and digital marketing, brand building, and consumer insights, and then finally really accelerating innovation. So again, I'll let Rick touch a little bit on the dimensions of this year and into the future. But just know that this is an area that we'll continue to focus on. We're gonna continue to drive hard from a cost standpoint, just because we do want to keep growing our margins and keep investing in our capabilities as well. Yeah, Mike, with regards to restructuring and timing, so as you—as we indicated in our prepared remarks, we took a charge of about $18 million in Q4 of 2025, and we expect about $50 million of charges here in 2026. So we've embarked on restructuring actions, and we were highlighting this for a couple of reasons. One is because it's more significant than Masco has done in the recent past in terms of the extent of restructuring, all for the reasons that John mentioned in terms of the overall market dynamics, volume, et cetera. In terms of the... and it's broad-based in nature. I would say in terms of benefits, those restructuring actions are gonna take hold as we move through 2026. They're contemplated within our guidance, and we do have some margin expansion contemplated in our guidance for 2026. The full benefit will be realized as we get into 2027 and 2028. As John indicated, we'll provide more visibility in terms of our margin expectations as we get into our discussion at Investor Day in May. Okay. I appreciate that. I guess secondly, just to follow up on the earlier question around raw materials and where copper prices are today. You said, obviously, that, you know, your 2026 guide contemplates or reflects, you know, that you're aware of what's going on in the markets. Just, you know, a little - just for a little clarity's sake, does that imply that, you know, if copper prices today - if copper prices of today were to hold, that would be, in effect, a neutral impact on, let's say, the second half of the year because there is a lag? Or would there need to be some additional adjustments taken to make sure that you can, you know, achieve the guidance that you've laid out? Yeah, Mike, without giving you a specific figure in terms of what we've pegged our plan at, what I can say is we have contemplated elevated copper prices. We haven't contemplated copper prices at the levels that they've reached in the recent past, like above $6 per pound from a COMEX perspective. But that's something that we continue to monitor. We do have, as I mentioned earlier to Matt's question, a bit of a delay with regards to when it impacts our P&L. So it does give us the opportunity to respond, whether it's through further cost actions or pricing, to mitigate those impacts. And so that's something that we continue to monitor, and we've demonstrated the ability to offset these types of headwinds in the past. And so it may not be one for one from a timing perspective, and there might be both risk and upside relative to our, to the copper assumption. But we do, we do monitor very closely, and we do take action accordingly. Yeah. I would just say, Mike, look, it's one of many risks and opportunities that we continue to look at. So I, I would say we feel good about where the call is today. If, if it moves materially, we'll, we'll take actions to make sure we mitigate it. Great. Thanks so much. Your next call comes from Susan Maklari of Goldman Sachs. Please go ahead. Thank you. Good morning, everyone. Good morning. Good morning. Building on your recent comments to Mike's questions, can you talk a bit about the executive committee that you formed there, some of the initiatives that you're gonna be really focused on as you think about driving that growth, and anything specific that we should be focused on for 2026 as it relates to that? Yeah, Sue, this is John. I'm happy to take that question. I'm excited about the new executive committee, and really, it was designed to do two things. One, allow us to get closer to the business. As we all know, the world's moving faster than ever before, including our consumers and customers, and we wanted to bring our four big BU leaders onto the senior team of the company. That's the first time we've done that at Masco. Their businesses make up more than 80% of our total business. And we meet at least weekly. We talk about what's working, what's not, where there's challenges, and we're flowing resources to those challenges more quickly than we have in the past. And again, just being really in touch with the business is what we're shooting for. In addition to that, Behr is now reporting directly to me, as, you know, they deal with our largest customer. I think that helps with decision-making. It helps me be really in tune with what's happening on that important business, as well as with our most important and largest customer as well. In addition to that, the goal is to leverage our scale better. Masco has a long history of driving a lot of success. We've done that in a very decentralized way. What I would say is, I don't plan to centralize this company. That's not the goal at all, but the goal is to really leverage our scale where it makes sense. And to do that, we need to make sure that we do it in a smarter way. So as we build these strategies to leverage our scale, having the business unit leaders be a part of the strategy of development, and then obviously, the execution as we go to market and deploy these capabilities, things that I talked about, like digital marketing, e-commerce, and brand building, and consumer insights, and innovation. Having them to be a part of the development, I think, is really important. So our goal is to keep doing what we've done historically from a margin standpoint, keep driving margins, but probably grow a bit more quickly on the top line and bring in this growth mindset to Behr, is what we're trying to do as an executive committee. ... Yeah. Okay, that, that's great color. And then turning to the cash flow side of the business, you guided for working capital to come down a bit, 16.5% of sales this year. Can you talk about the path of getting there, further potential upside to that as, as conditions perhaps normalize? And then how we should be thinking about what that means for overall cash generation and the uses of that cash? Sure, Sue, it's Rick. So with regards to working capital, as you may recall, and I believe I mentioned this in my prepared remarks as well, 2025 working capital was adversely impacted by the tariff dynamic. And what I mean by that is a couple of folds. One is, as cost bled into our inventory and as pricing bled into our receivables, that inflated our working capital ratios. Also, from a payment timing perspective, tariffs are due on shorter payment terms than our regular vendor payables, and so that shortened our payable days as well. And so those impacts took hold in 2025 and were adverse impact in terms of our working capital dynamics. In 2026, we expect more of a return to normalization. There'll be some residual implications, of course, for the tariffs, but 16.5% is more where we've run historically. And so that's more of a normalization, I would call it, with regards to our working capital. From an overall cash, cash allocation perspective, our capital allocation framework, as you know, has not changed, and we're consistently deploying capital as we've done in the past. And that's, number one, first and foremost, investing in the business. And we guided to an expectation of approximately $190 million of capital expenditures in 2026. Second is an investment-grade credit rating, which we have securely in place, you know. Third is a relevant dividend, and as John and I both mentioned, we got support from the board to increase our dividend 3% to $1.28 per share for 2026. And then all available cash that we don't deploy to capital investments or to the dividend are available for share buybacks or M&A activity. And we indicated our expectation is that number would be about $600 million for 2026. Okay. Thanks for the color, and good luck with the quarter. Great. Thanks, Sue. Thanks, Sue. Your next question comes from John Lovallo of UBS. Please go ahead. Good morning, guys. Thanks for taking my questions as well here. The first one, just on Liberty Hardware. It looks like the operating margin was kind of mid- to high single digits in 2025, and I'm sure that was impacted by tariffs, but that compares to sort of 16%-17% in 2024. So I guess the question is, you know, what are your expectations for Liberty Hardware margin embedded in the plumbing outlook? And can you remind us why this business is still considered core? Sure, John, it's Rick. So we typically do not comment on individual business unit performance, but obviously, with the shift of Liberty Hardware from our decorative architectural segment to our plumbing segment, it creates a bit more visibility. And as you noted, our, our margins were adversely impacted in 2025. And that's really, I would say, primarily driven by a couple things. The volumes were a bit challenged, but really even more than that, from a profit margin perspective, we, we were hit significantly by tariff and the glass anti-dumping duties. And just as a reminder, the glass anti-dumping duties impact our shower door sourcing, and that was at a rate of 323%. So needless to say, the team has been proactively working to mitigate and change our sourcing footprint to address that duty impact, and we're making good progress on that, and that will be something that we mitigate over the course of 2026. As it pertains to Liberty overall, Liberty is a core part of our business. As John noted in his comments, over half of the sales of Liberty are branded Delta. There's a great product complement, portfolio complement that Liberty possesses in terms of kitchen and bath hardware and shower doors, that we're really excited will be even more successful with regard-when we integrate it into Delta in 2026. Got it. And then on the paint sales side, I think you guys talked about paint being down 15%, but you called out a couple sort of one-time item, items, if you will, the inventory timing and the customer transition of primer and applicator businesses. Can you just help sort of break out the impact of each of those two factors in that number? Sure, John. So you're right. We identified a couple of items that provided a bit of impact in Q4. What I would say is not new news is the inventory channel build in Q4 2024 that we experienced, and we had flagged as a favorable impact in Q4 2024 and an unfavorable comparison as we look at Q4 2025. That had about a mid-single-digit impact in terms of our volume and sales for the business on a year-over-year basis. And then with regards to the transition of the primer and applicator business from one of our customers, that had about a single-digit impact in terms of sales in the quarter. So we thought it was appropriate to adjust those out as it pertains to providing a more representative picture of our performance during the quarter. Our performance during the quarter, quite frankly, when you strip out some of those impacts, is in line with what we saw through the course of the calendar year 2025, which was down high single digits in terms of DIY and up low single digits in terms of Pro. We expect, as John have articulated, an improvement in that trend rate as we move into 2026 in terms of overall paint sales being roughly flat year-over-year, with DIY down mid-single digits and Pro up mid-single digits. Got it. Thank you, guys. Sure, John. Thanks, John. Your next question comes from Sam Reid of Wells Fargo. Please go ahead. ... Thanks, everyone. I just wanted to circle back on the mid-single-digit plumbing pricing for 2026. If you could just disaggregate in your outlook between wholesale and retail channel pricing, would just love some perspective on how potentially those retail conversations are going, and also just how you might be managing price gaps that might be evolving between wholesale and retail and plumbing. Sam, this is John. I'll take a crack at this. So, you know, I would say, in terms of pricing and plumbing, we feel good about where we are today, and the conversations we have with customers are being, you know, constructive. As you can imagine, customers don't love pricing no matter the environment, so we always have to give good justification for it, and we're working through that as we speak right now. We won't get into, you know, channel by channel. It's just not something that we really guide to, but I can tell you that we're putting some good discipline in place in terms of our strategic revenue management approach, and that means just having strategies by channel, making sure that we have, you know, a good idea of price elasticity and where we stand versus our competitors. I think at the end of the day, what you really want to do is keep growing your business while you take price. Clearly, we're doing that. We're growing nicely. We're growing share in the category. Part of that is just being competitive, which we believe we are, and it's also about building your brands and about innovating. So we feel good about where we are from a, you know, pricing standpoint for sure, but more importantly, just a business standpoint, particularly on our plumbing business in North America. Our Delta team, I think, did a fantastic job in 2025, navigating an incredible number of headwinds, and we really like where we stand today. That helps. And maybe switching gears to paint. I believe in the prepared remarks, one of you mentioned, job site delivery as being a lever for the paint business. Would you love to understand how widespread job site delivery is today, perhaps the runway, and then any color on who's paying for some of the outside, trade representatives? Is that being split with Home Depot, or are you bearing those costs on the paint business? Thanks. Yeah, absolutely. So in terms of order online and deliver the job site, it's something that's expanding. We started in our big markets where there's density of stores, 'cause we, in many cases, set up micro distribution sites that help with that distribution. So we think that there's plenty of runway left there. I won't give you a percentage, but but again, I think it's early to mid-innings on that ability to take the friction out of the system for pros. So, more to come there. And the second part of the question was? Just on the economics of your outside- Oh, yeah. Representatives. Yeah, I would say again, without getting into a whole lot of detail, I would say it's a true partnership, one that goes back 43 years with the Home Depot. And, in terms of how we get after this, it's some of it's joint, some of it's, you know, we invest. I would say it really depends on the initiative, but, and we like this business a lot. We're not talking about, you know, certainly, we're not talking about 2026 and what we have to do to bend the curve. Importantly, we're talking much longer in terms of the horizon, what kind of investments we need to make ourselves, what kind of investments we're gonna make jointly, to really grow this business into the future. And I've been incredibly impressed with the relationship that's developed over obviously a long period, and importantly, just the candor back and forth in terms of what's working, what's not. And I have a lot of confidence that we're gonna get to a better place on paint, starting in 2026, and then really accelerate from there. And you know, the last thing I would mention is we made you know, some leadership changes at Behr over the course of the last few months as well, and really pleased with the focus and the attention on what's happening at that BU at this point. So, I'll leave it at that. Thanks. Thanks, Sam. Thanks, guys. Your next question comes from Trevor Allinson of Wolfe Research. Please go ahead. Good morning. Thank you for taking my questions. Another question on Dec Arch here. Margins came in a little weaker than what you're expecting in the quarter. Was that primarily volume related or drove the weaker margins? And then, just given the lower starting point, as we exit 2025, how should we think about the cadence of Dec Arch margins throughout the year in 2026? Yeah, Trevor, it's Rick. So in terms of the operating profit margin implications in Q4, it was impacted by really a couple factors. One is volume. And as we articulated, there were a couple of impacts that we highlighted in Q4. Obviously, the Q4 2024 higher inventory in our channel, and then the customer transition in Q4 2025, and then just the overall market dynamics. So volume, for a number of reasons, was impacted. And then in 2025, is just as a reminder, Liberty Hardware is still part of that segment, and that was adversely impacted, as we talked about, by significant tariff in the 323% glass anti-dumping duties. And so that weighed heavily with regards to operating profit margins. Now, we've been taking price, and we've been doing mitigating actions, but those take time to take hold, and so there's an implication there in the near term as it pertains to the operating profit margin. As we roll into 2026, obviously, you have to take into account the fact that we are shifting Liberty from our decorative architectural segment to our plumbing segment. We provided a breakdown from a quarterly cadence for 2025 on a recast basis in the appendix of our earnings deck, so I'd refer you to that, and we can certainly address questions as a follow-up. But I would say that would help, I think, provide visibility in terms of our cadence, for our recast segment for decorative architectural, at least in 2025. Outside of the impacts that we just highlighted for Q4 in particular, I would say there's nothing that I would note at this point for 2026. ... Okay, okay, makes sense. Thank you for that. And then you talked about your expectations overall for the market in 2026. Can you talk about how you think Watkins performs relative to your overall plumbing portfolio this year? And then can you remind us roughly the size of that business as you exit 2025? Thanks. Yeah, I'll take a crack at that. So, you know, we typically don't break out the use within a segment. So, but what I would say is, you know, we really like the space that Watkins plays. Wellness is very much on trend, obviously, from a consumer standpoint. You look at the categories at play, spas and hot tubs only have 5%-6% penetration in North America. We're the share leader. We have two of the major, you know, premium brands on the space in Caldera and Hot Spring. And then saunas are kind of a phenomenon right now. It's only 1% household penetration. If you look at pop culture at all, it's amazing how much people are talking about saunas and the benefits that come with them. So, look, it's been a bit of a mixed market over the last few years. They're bigger ticket purchases. We're exiting the year with momentum from 2025, and we feel good about our opportunities to grow, and, you know, at least in line with the plumbing segment in 2026, and probably grow even faster as we look forward, just given how much upside there is and how much on trend our products are. Thank you for all the color. Good luck moving forward. Thank you. Thanks, Trevor. Thanks, Trevor. Next question is from Mike Dahl of RBC Capital Markets. Please go ahead. Morning. Thanks for taking my questions. First one, just to drill down into the plumbing guidance one more time. I think if you're up low single digits with mid-single digit price, so you're implying volumes down low singles. I think you ended up the year with volumes kind of closer to flat in plumbing. So can you just kind of dive into that a little bit more in terms of changes in your volume expectations versus what you've seen in recent trends in plumbing? Sure, Mike, it's Rick. And in your dissection of our 2026 guide is accurate. So we are guiding in terms of our plumbing volumes to be down low single digits. That are partially offsetting the mid-single-digit pricing, we expect overall plumbing sales to be up low single digits in 2026. As we looked back on 2025 in terms of our performance, we saw some of that pricing take hold in the latter part of the year, but from a volume perspective, we were down, depending on the period, 1%-2%, from an overall plumbing volume standpoint. So effectively, we're seeing more of a continuation from a volume perspective in that same zip code. Obviously, we're investing in many areas to, as John articulated, to grow the business. So we are cautiously optimistic that we can improve upon that, particularly as we move going forward, and really set ourselves up to capitalize on our growth initiatives and to capitalize when the industry does return to growth, both from a volume and a price perspective. Okay, got it. That's helpful, Rick. And then, I guess somewhat similar, but shifting to Delta, you know, volumes were really down all year. They've been down for a couple of years, and even adjusting for the one-timers. So in terms of just the level of confidence or conviction getting to flat for this year, when it doesn't sound like you're assuming anything heroic from existing home sales, just give us a little more insight into what you've seen in recent trends or the conversations you've had that give you that confidence that we'll improve back to flat. Yeah. This is, this is John, Mike. I mean, I think, I think 2025 had a lot of challenging comps, you know, with the inventory build at the end of 2024, the exclusivity on primer and applicators. So the comps certainly become more favorable, so that's one thing that's real. I would say in addition to that, I think focusing on what we can control. And from our side, we can focus on building our brand and really communicating the message that we've got the best quality and the best value in the category. I think particularly in this environment, the value messaging is something that can be compelling, so we're going to step that up. I can also tell you that we are very aligned with The Home Depot in terms of our strategies and really making sure that we get every bit of growth we can out of 2026. So as we talked, we don't think the market's going to necessarily spring back to historical growth levels in 2026, but we feel good that we're gonna execute at a high level and certainly see, you know, some better trends just because the comps are a bit easier for us in 2026 as well. Got it. Okay. Thanks, John. Thank you. Your last question today comes from Phil Ng of Jefferies. Please go ahead. Hey, guys. Thanks for squeezing me in. John, I think you mentioned on your Pro paint business with your partnership with The Home Depot, perhaps you're doing a trial on trade credits. Any more color on that? Is that going to be pretty broad-based, and we could see an uplift this year, or is that more of a 2027 opportunity? And with that partner growing in that Pro side of things more broadly, do you see that as an opportunity this year? Yeah, I guess what I would say is, we do believe that trade credit is an important unlock with the Pro customer. And at the same time, I would say, you know, this initiative is really being driven by The Home Depot, and I don't want to speak for them, so I know they're... We'll be talking more about this. They have talked about trade credit in the past, and I think they believe it's a big unlock as well. So I'll let them comment on just how widespread this is, but I know that for a fact that they believe it's meaningful and something that they're very committed to growing over time. Okay, gotcha. And then you commented about some of the momentum you saw in plumbing in 2025 with share gains, ... I think it was on the e-comm side in, in retail. Anything to flag when we look at the 2026? Any new placement in either of those channels or the wholesale channel as well on the, on the plumbing side? Yeah. So I would say, you know, we obviously have good visibility into particularly our retail sets and our plans for the year, and we feel like we're gonna have a really nice year in North America at retail. We've had a really incredible momentum in e-commerce over a longer arc of time, particularly led by our Delta business. You know, growing nicely and above certainly our overall average, and we feel good about the plans we have in place there as well. And look, at the end of the day, our wholesale channel remains very, very important for us, and we've got deep relationships that go back many years. So, you know, as we've talked about this new executive committee getting closer to the business, I can tell you, we review all of these key, you know, indicators on a, on a weekly basis and feel really good about the plans we have in place from a, from a plumbing standpoint. So I feel very good that we're gonna have another nice year from a share standpoint in, in North America. And Hansgrohe, I mean, we had nice strength as well in some challenged markets, particularly in China, and believe we have plans in place to turn that. The last thing I would hit on North America, the area that's really growing the fastest is the upper premium and luxury segment of, of the category. We have great brands with Brizo and Newport Brass and Axor, and those are our fastest growing brands, whether it's in the United States or outside the US. They tend to be our highest margin brands, and we really like that space. In the US alone, it's over $100 million or over $1 billion in terms of a segment. So we like the momentum on our plumbing business, both in North America and around the world. Okay. Thank you. Appreciate the call. Thank you. At this time, I will now turn the call back over to Robin Zondervan. Please continue. We'd like to thank all of you for joining us on the call this morning and for your interest in Masco. That concludes today's call. Have a wonderful day! Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker 7: Good morning, ladies and gentlemen. Welcome to Masco Corporation's fourth quarter and full year 2025 conference call. My name is Danny, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. To ask a question, please press star, then the number one on your telephone keypad. To withdraw your question, please press star, then the number two. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP&A. You may begin. Good morning, ladies and gentlemen. good morning ladies and gentlemen Welcome to Masco Corporation's fourth quarter and full year 2025 conference call. welcome to masco corporation's fourth quarter and full year 2025 conference call My name is Danny, and I will be your operator for today's call. my name is danny and i will be your operator for today's call As a reminder, today's conference call is being recorded for replay purposes. as a reminder today's conference call is being recorded for replay purposes To ask a question, please press star, then the number one on your telephone keypad. to ask a question please press star then the number one on your telephone keypad To withdraw your question, please press star, then the number two. to withdraw your question please press star then the number two I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP&A. i will now turn the call over to robin zondervan vice president investor relations and fp&a You may begin. you may begin

Speaker 10: Thank you, operator, and good morning, everyone. Welcome to Masco Corporation's 2025 fourth quarter and full year conference call. With me today are John Nuti, President and CEO of Masco, and Rick Westenberg, Masco's Vice President and Chief Financial Officer. Our fourth quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions. Please limit yourself to one question with one follow-up. If we can't take your question now, please call me directly at 313-792-5500. Our statements today will include our views about our future performance, which constitute forward-looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. Thank you, operator, and good morning, everyone. thank you operator and good morning everyone Welcome to Masco Corporation's 2025 fourth quarter and full year conference call. welcome to masco corporation's 2025 fourth quarter and full year conference call With me today are John Nuti, President and CEO of Masco, and Rick Westenberg, Masco's Vice President and Chief Financial Officer. with me today are john nuti president and ceo of masco and rick westenberg masco's vice president and chief financial officer Our fourth quarter earnings release and the presentation slides are available on our website under Investor Relations. our fourth quarter earnings release and the presentation slides are available on our website under investor relations Following our remarks, we will open the call for analyst questions. following our remarks we will open the call for analyst questions Please limit yourself to one question with one follow-up. please limit yourself to one question with one follow-up If we can't take your question now, please call me directly at 313-792-5500. if we can't take your question now please call me directly at 313-792-5500 Our statements today will include our views about our future performance, which constitute forward-looking statements. our statements today will include our views about our future performance which constitute forward-looking statements These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. these statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K that we filed with the Securities and Exchange Commission. Our statements will also include non-GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to John. We've described these risks and uncertainties in our risk factors and other disclosures in our Form 10-K that we filed with the Securities and Exchange Commission. we've described these risks and uncertainties in our risk factors and other disclosures in our form 10-k that we filed with the securities and exchange commission Our statements will also include non-GAAP financial metrics. our statements will also include non-gaap financial metrics Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. our references to operating profit and earnings per share will be as adjusted unless otherwise noted We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. we reconcile these adjusted metrics to gaap in our earnings release and presentation slides which are available on our website under investor relations With that, I will now turn the call over to John. with that i will now turn the call over to john

Speaker 3: Thank you, Robin. Good morning, everyone, and thank you for joining us. Please turn to slide 5. I want to start today by highlighting some of our key accomplishments from 2025, which we achieved while navigating a dynamic and challenging environment. Following that, I'll turn to our financial results for 2025 and share our expectations for 2026. Starting with our plumbing product segment, we continue to demonstrate our market leadership even as we work to mitigate the impacts of higher tariff costs. Delta Faucet was awarded The Home Depot Kitchen and Bath Partner of the Year. This award recognized the strength of our brand, customer service, and innovation. Delta also continued to achieve notable market share gains in the e-commerce channel, driven by our industry-leading capabilities that deliver solutions for consumers. Thank you, Robin. thank you robin Good morning, everyone, and thank you for joining us. good morning everyone and thank you for joining us Please turn to slide 5. please turn to slide 5 I want to start today by highlighting some of our key accomplishments from 2025, which we achieved while navigating a dynamic and challenging environment. i want to start today by highlighting some of our key accomplishments from 2025 which we achieved while navigating a dynamic and challenging environment Following that, I'll turn to our financial results for 2025 and share our expectations for 2026. following that i'll turn to our financial results for 2025 and share our expectations for 2026 Starting with our plumbing product segment, we continue to demonstrate our market leadership even as we work to mitigate the impacts of higher tariff costs. starting with our plumbing product segment we continue to demonstrate our market leadership even as we work to mitigate the impacts of higher tariff costs Delta Faucet was awarded The Home Depot Kitchen and Bath Partner of the Year. delta faucet was awarded the home depot kitchen and bath partner of the year This award recognized the strength of our brand, customer service, and innovation. this award recognized the strength of our brand customer service and innovation Delta also continued to achieve notable market share gains in the e-commerce channel, driven by our industry-leading capabilities that deliver solutions for consumers. delta also continued to achieve notable market share gains in the e-commerce channel driven by our industry-leading capabilities that deliver solutions for consumers At Hansgrohe, we continue to be a global leader, gaining additional market share through premium products with industry-leading designs. Hansgrohe also continues to demonstrate leadership and commitment to sustainability, having recently received multiple awards for corporate strategy and production initiatives at the German Sustainability Projects 2025 award ceremony. At Watkins Wellness, our integration of Sauna360 into our existing dealer network has generated double-digit sales growth in a market with ongoing opportunities for increased household penetration. We also introduced our cold plunge products, further expanding our presence in the consumer wellness market. In our decorative architectural segment, the strength of our brands continued to resonate with our customers. Behr was once again rated number one in interior paint, number one in exterior paint, and number one in exterior stain in a third-party study, demonstrating the exceptional quality and strength of our leading Behr brand. At Hansgrohe, we continue to be a global leader, gaining additional market share through premium products with industry-leading designs. at hansgrohe we continue to be a global leader gaining additional market share through premium products with industry-leading designs Hansgrohe also continues to demonstrate leadership and commitment to sustainability, having recently received multiple awards for corporate strategy and production initiatives at the German Sustainability Projects 2025 award ceremony. hansgrohe also continues to demonstrate leadership and commitment to sustainability having recently received multiple awards for corporate strategy and production initiatives at the german sustainability projects 2025 award ceremony At Watkins Wellness, our integration of Sauna360 into our existing dealer network has generated double-digit sales growth in a market with ongoing opportunities for increased household penetration. at watkins wellness our integration of sauna360 into our existing dealer network has generated double-digit sales growth in a market with ongoing opportunities for increased household penetration We also introduced our cold plunge products, further expanding our presence in the consumer wellness market. we also introduced our cold plunge products further expanding our presence in the consumer wellness market In our decorative architectural segment, the strength of our brands continued to resonate with our customers. in our decorative architectural segment the strength of our brands continued to resonate with our customers Behr was once again rated number one in interior paint, number one in exterior paint, and number one in exterior stain in a third-party study, demonstrating the exceptional quality and strength of our leading Behr brand. behr was once again rated number one in interior paint number one in exterior paint and number one in exterior stain in a third-party study demonstrating the exceptional quality and strength of our leading behr brand Our continued strategic alignment and partnership with The Home Depot led to our recognition as Supplier of the Year for the paint department in the United States and Canada, and Interconnected Partner of the Year in Mexico. Our annual Pro sales are approximately $950 million, and our share of the Pro paint market has grown over 200 basis points since 2019. We've continued building capabilities to enhance the buying experience for our Pro customers, including expanded delivery options, loyalty programs, and a growing sales force, which allow us to further capitalize on the sizable growth opportunity in the Pro paint market. I want to thank all of our employees for their resilience, commitment, and leadership, which made these accomplishments possible. Now, onto our results. Please turn to slide six. Our continued strategic alignment and partnership with The Home Depot led to our recognition as Supplier of the Year for the paint department in the United States and Canada, and Interconnected Partner of the Year in Mexico. our continued strategic alignment and partnership with the home depot led to our recognition as supplier of the year for the paint department in the united states and canada and interconnected partner of the year in mexico Our annual Pro sales are approximately $950 million, and our share of the Pro paint market has grown over 200 basis points since 2019. our annual pro sales are approximately $950 million and our share of the pro paint market has grown over 200 basis points since 2019 We've continued building capabilities to enhance the buying experience for our Pro customers, including expanded delivery options, loyalty programs, and a growing sales force, which allow us to further capitalize on the sizable growth opportunity in the Pro paint market. we've continued building capabilities to enhance the buying experience for our pro customers including expanded delivery options loyalty programs and a growing sales force which allow us to further capitalize on the sizable growth opportunity in the pro paint market I want to thank all of our employees for their resilience, commitment, and leadership, which made these accomplishments possible. i want to thank all of our employees for their resilience commitment and leadership which made these accomplishments possible Now, onto our results. now onto our results Please turn to slide six. please turn to slide six Beginning with our fourth quarter, results overall were largely in line with our expectations as we continue to navigate a dynamic geopolitical and macroeconomic environment. Net sales decreased 2%, or 3% in local currency, primarily due to lower volumes. Operating profit was $259 million, and operating profit margin was 14.4%. Earnings per share for the quarter was $0.82 per share. Turning to our segments, plumbing product sales increased 3% in local currency. North American sales increased 4%, driven by favorable pricing. Delta Faucet again delivered strong performance, particularly in the trade and e-commerce channels. International plumbing sales increased 1% in local currency, driven by Germany, partially offset by the weaker market in China. Operating profit for the segment was $240 million. Beginning with our fourth quarter, results overall were largely in line with our expectations as we continue to navigate a dynamic geopolitical and macroeconomic environment. beginning with our fourth quarter results overall were largely in line with our expectations as we continue to navigate a dynamic geopolitical and macroeconomic environment Net sales decreased 2%, or 3% in local currency, primarily due to lower volumes. net sales decreased 2% or 3% in local currency primarily due to lower volumes Operating profit was $259 million, and operating profit margin was 14.4%. operating profit was $259 million and operating profit margin was 14.4% Earnings per share for the quarter was $0.82 per share. earnings per share for the quarter was $0.82 per share Turning to our segments, plumbing product sales increased 3% in local currency. turning to our segments plumbing product sales increased 3% in local currency North American sales increased 4%, driven by favorable pricing. north american sales increased 4% driven by favorable pricing Delta Faucet again delivered strong performance, particularly in the trade and e-commerce channels. delta faucet again delivered strong performance particularly in the trade and e-commerce channels International plumbing sales increased 1% in local currency, driven by Germany, partially offset by the weaker market in China. international plumbing sales increased 1% in local currency driven by germany partially offset by the weaker market in china Operating profit for the segment was $240 million. operating profit for the segment was $240 million Operating margin was 16.3% and included the impact of higher tariff and commodity costs. Now, turning to our decorative architectural segment, sales decreased 15% in the quarter. Overall, paint sales decreased double digits due to lower volume, including the impact on the favorable inventory timing in Q4 of 2024 and the impact related to the customer transition of our primer and applicator business in Q4 of 2025. Excluding these impacts, overall paint sales decreased mid-single digits. DIY paint sales decreased high single digits, and Pro paint sales grew low single digits. Operating profit for the segment was $76 million, and operating margin was 13.9%.... Please turn to slide 7 as we review our full year performance. Despite a dynamic geopolitical and macroeconomic environment for most of the year, we delivered solid profitability and remained disciplined on capital allocation. Operating margin was 16.3% and included the impact of higher tariff and commodity costs. operating margin was 16.3% and included the impact of higher tariff and commodity costs Now, turning to our decorative architectural segment, sales decreased 15% in the quarter. now turning to our decorative architectural segment sales decreased 15% in the quarter Overall, paint sales decreased double digits due to lower volume, including the impact on the favorable inventory timing in Q4 of 2024 and the impact related to the customer transition of our primer and applicator business in Q4 of 2025. overall paint sales decreased double digits due to lower volume including the impact on the favorable inventory timing in q4 of 2024 and the impact related to the customer transition of our primer and applicator business in q4 of 2025 Excluding these impacts, overall paint sales decreased mid-single digits. excluding these impacts overall paint sales decreased mid-single digits DIY paint sales decreased high single digits, and Pro paint sales grew low single digits. diy paint sales decreased high single digits and pro paint sales grew low single digits Operating profit for the segment was $76 million, and operating margin was 13.9%.... operating profit for the segment was $76 million and operating margin was 13.9% Please turn to slide 7 as we review our full year performance. please turn to slide 7 as we review our full year performance Despite a dynamic geopolitical and macroeconomic environment for most of the year, we delivered solid profitability and remained disciplined on capital allocation. despite a dynamic geopolitical and macroeconomic environment for most of the year we delivered solid profitability and remained disciplined on capital allocation Net sales decreased 3%, or 2% excluding the impacts of currency and the divestiture of Kichler. Operating profit was $1.3 billion, and operating profit margin was 16.8%. Earnings per share for the year was $3.96 per share. We delivered a return on invested capital of 41%. Our strong cash flow allowed us to return $832 million to shareholders through dividends and share repurchases. Near the end of 2025, we began taking decisive actions to further position our business for long-term value creation. We established an executive committee with dual corporate and business unit representation to fully leverage our enterprise strengths, which will enable us to continue to deliver strong execution and accelerate growth moving forward. Net sales decreased 3%, or 2% excluding the impacts of currency and the divestiture of Kichler. net sales decreased 3% or 2% excluding the impacts of currency and the divestiture of kichler Operating profit was $1.3 billion, and operating profit margin was 16.8%. operating profit was $1.3 billion and operating profit margin was 16.8% Earnings per share for the year was $3.96 per share. earnings per share for the year was $3.96 per share We delivered a return on invested capital of 41%. we delivered a return on invested capital of 41% Our strong cash flow allowed us to return $832 million to shareholders through dividends and share repurchases. our strong cash flow allowed us to return $832 million to shareholders through dividends and share repurchases Near the end of 2025, we began taking decisive actions to further position our business for long-term value creation. near the end of 2025 we began taking decisive actions to further position our business for long-term value creation We established an executive committee with dual corporate and business unit representation to fully leverage our enterprise strengths, which will enable us to continue to deliver strong execution and accelerate growth moving forward. we established an executive committee with dual corporate and business unit representation to fully leverage our enterprise strengths which will enable us to continue to deliver strong execution and accelerate growth moving forward We also began implementing various restructuring actions to a greater extent than in the past, to further streamline our business, reduce headcount, and optimize operations. We incurred approximately $18 million in charges related to these actions in the fourth quarter of 2025, and we expect to incur approximately $50 million in additional charges in 2026. We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion. As we move into 2026, we're announcing the integration of Liberty Hardware and the Delta Faucet Company. With over half of Liberty sales branded Delta and a complementary product portfolio, this realignment enhances our consumer-driven strategy to leverage our brands, capabilities, and scale across our organization. We also began implementing various restructuring actions to a greater extent than in the past, to further streamline our business, reduce headcount, and optimize operations. we also began implementing various restructuring actions to a greater extent than in the past to further streamline our business reduce headcount and optimize operations We incurred approximately $18 million in charges related to these actions in the fourth quarter of 2025, and we expect to incur approximately $50 million in additional charges in 2026. we incurred approximately $18 million in charges related to these actions in the fourth quarter of 2025 and we expect to incur approximately $50 million in additional charges in 2026 We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion. we anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion As we move into 2026, we're announcing the integration of Liberty Hardware and the Delta Faucet Company. as we move into 2026 we're announcing the integration of liberty hardware and the delta faucet company With over half of Liberty sales branded Delta and a complementary product portfolio, this realignment enhances our consumer-driven strategy to leverage our brands, capabilities, and scale across our organization. with over half of liberty sales branded delta and a complementary product portfolio this realignment enhances our consumer-driven strategy to leverage our brands capabilities and scale across our organization As a result of this integration, Liberty Hardware, which was previously reported in the decorative architectural products segment, will be reported within our plumbing products segment moving forward. Turning to our expectations for 2026, we believe sales across the global repair and remodel markets will be roughly flat. This includes an expectation that both our North American and international markets, in aggregate, will also be roughly flat. Our expectation for our own sales in 2026 is to be flat to up low single digits. This estimate includes our expectation that we will continue to outperform the market in 2026. We expect margin expansion in 2026, driven by continued mitigation of higher tariff and commodity costs, cost savings resulting from our restructuring actions, and ongoing operational efficiencies across our business. As a result of this integration, Liberty Hardware, which was previously reported in the decorative architectural products segment, will be reported within our plumbing products segment moving forward. as a result of this integration liberty hardware which was previously reported in the decorative architectural products segment will be reported within our plumbing products segment moving forward Turning to our expectations for 2026, we believe sales across the global repair and remodel markets will be roughly flat. turning to our expectations for 2026 we believe sales across the global repair and remodel markets will be roughly flat This includes an expectation that both our North American and international markets, in aggregate, will also be roughly flat. this includes an expectation that both our north american and international markets in aggregate will also be roughly flat Our expectation for our own sales in 2026 is to be flat to up low single digits. our expectation for our own sales in 2026 is to be flat to up low single digits This estimate includes our expectation that we will continue to outperform the market in 2026. this estimate includes our expectation that we will continue to outperform the market in 2026 We expect margin expansion in 2026, driven by continued mitigation of higher tariff and commodity costs, cost savings resulting from our restructuring actions, and ongoing operational efficiencies across our business. we expect margin expansion in 2026 driven by continued mitigation of higher tariff and commodity costs cost savings resulting from our restructuring actions and ongoing operational efficiencies across our business We expect plumbing margins, inclusive of the Liberty Hardware business integration, to be approximately 18% and decorative margins to be approximately 19%, resulting in a Masco operating margin of approximately 17%. Turning to capital allocation, our strategy remains consistent. First, reinvest in our business to accelerate growth and market share gains. Second, maintain a strong investment-grade balance sheet. Third, target a 30% dividend payout ratio. And fourth, deploy our remaining available free cash flow, which we expect to be approximately $600 million in 2026, towards share repurchases or value-accretive acquisitions. I am pleased to share that our Board approved a 3% increase to our dividend for 2026, raising our annual dividend to $1.28 per share and marking our 13th consecutive annual dividend increase. We expect plumbing margins, inclusive of the Liberty Hardware business integration, to be approximately 18% and decorative margins to be approximately 19%, resulting in a Masco operating margin of approximately 17%. we expect plumbing margins inclusive of the liberty hardware business integration to be approximately 18% and decorative margins to be approximately 19% resulting in a masco operating margin of approximately 17% Turning to capital allocation, our strategy remains consistent. turning to capital allocation our strategy remains consistent First, reinvest in our business to accelerate growth and market share gains. first reinvest in our business to accelerate growth and market share gains Second, maintain a strong investment-grade balance sheet. second maintain a strong investment-grade balance sheet Third, target a 30% dividend payout ratio. third target a 30% dividend payout ratio And fourth, deploy our remaining available free cash flow, which we expect to be approximately $600 million in 2026, towards share repurchases or value-accretive acquisitions. and fourth deploy our remaining available free cash flow which we expect to be approximately $600 million in 2026 towards share repurchases or value-accretive acquisitions I am pleased to share that our Board approved a 3% increase to our dividend for 2026, raising our annual dividend to $1.28 per share and marking our 13th consecutive annual dividend increase. i am pleased to share that our board approved a 3% increase to our dividend for 2026 raising our annual dividend to $1.28 per share and marking our 13th consecutive annual dividend increase Additionally, our Board authorized a new $2 billion share repurchase program, underscoring Masco's resilient business model and strong financial position, and the Board's confidence in our future performance. Our M&A strategy remains consistent. We continue to selectively pursue opportunities with strong strategic fit and attractive returns, focusing on bolt-on acquisitions with our plumbing, wellness, and coatings businesses. Based on our expected operating performance and capital deployment strategy, we anticipate earnings per share for 2026 to be in the range of $4.10-$4.30 per share. While the housing market remains pressured in the near term, we are confident that the fundamentals supporting mid- to long-term home improvement demand are quite strong. U.S. homeowner equity levels are at a record high, up more than 80% since 2019, providing greater capacity for home renovation projects. Additionally, our Board authorized a new $2 billion share repurchase program, underscoring Masco's resilient business model and strong financial position, and the Board's confidence in our future performance. additionally our board authorized a new $2 billion share repurchase program underscoring masco's resilient business model and strong financial position and the board's confidence in our future performance Our M&A strategy remains consistent. our m&a strategy remains consistent We continue to selectively pursue opportunities with strong strategic fit and attractive returns, focusing on bolt-on acquisitions with our plumbing, wellness, and coatings businesses. we continue to selectively pursue opportunities with strong strategic fit and attractive returns focusing on bolt-on acquisitions with our plumbing wellness and coatings businesses Based on our expected operating performance and capital deployment strategy, we anticipate earnings per share for 2026 to be in the range of $4.10-$4.30 per share. based on our expected operating performance and capital deployment strategy we anticipate earnings per share for 2026 to be in the range of $4.10-$4.30 per share While the housing market remains pressured in the near term, we are confident that the fundamentals supporting mid- to long-term home improvement demand are quite strong. while the housing market remains pressured in the near term we are confident that the fundamentals supporting mid- to long-term home improvement demand are quite strong U.S. homeowner equity levels are at a record high, up more than 80% since 2019, providing greater capacity for home renovation projects. u.s homeowner equity levels are at a record high up more than 80% since 2019 providing greater capacity for home renovation projects Homes continue to age, with more than 55% of U.S. homes now over 40 years old, an age that typically requires an elevated repair and remodel spending. Additionally, a large cohort of homes built in the early 2000s is now entering the prime remodeling age of 20-40 years. Significant pent-up demand for larger renovation projects continues to build. As consumer sentiment improves, interest rates decline, and existing home turnover increases, we expect this pent-up demand to become a tailwind for our business. With these strong fundamentals and the actions we are taking to optimize the business, we believe we are well positioned to deliver above-market top and bottom-line growth. We plan to achieve this through our consumer-driven strategy that leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. Homes continue to age, with more than 55% of U.S. homes now over 40 years old, an age that typically requires an elevated repair and remodel spending. homes continue to age with more than 55% of u.s homes now over 40 years old an age that typically requires an elevated repair and remodel spending Additionally, a large cohort of homes built in the early 2000s is now entering the prime remodeling age of 20-40 years. additionally a large cohort of homes built in the early 2000s is now entering the prime remodeling age of 20-40 years Significant pent-up demand for larger renovation projects continues to build. significant pent-up demand for larger renovation projects continues to build As consumer sentiment improves, interest rates decline, and existing home turnover increases, we expect this pent-up demand to become a tailwind for our business. as consumer sentiment improves interest rates decline and existing home turnover increases we expect this pent-up demand to become a tailwind for our business With these strong fundamentals and the actions we are taking to optimize the business, we believe we are well positioned to deliver above-market top and bottom-line growth. with these strong fundamentals and the actions we are taking to optimize the business we believe we are well positioned to deliver above-market top and bottom-line growth We plan to achieve this through our consumer-driven strategy that leverages our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. we plan to achieve this through our consumer-driven strategy that leverages our industry-leading brands expanded commercial capabilities and enhanced operational excellence We look forward to discussing this strategy and our long-term goals in greater detail at our upcoming Investor Day on Wednesday, May thirteenth, in New York City. Please save the date, and we look forward to seeing you there. Now I'll turn the call over to Rick to go over our fourth quarter and full-year results and 2026 outlook in more detail. Rick? We look forward to discussing this strategy and our long-term goals in greater detail at our upcoming Investor Day on Wednesday, May thirteenth, in New York City. we look forward to discussing this strategy and our long-term goals in greater detail at our upcoming investor day on wednesday may thirteenth in new york city Please save the date, and we look forward to seeing you there. please save the date and we look forward to seeing you there Now I'll turn the call over to Rick to go over our fourth quarter and full-year results and 2026 outlook in more detail. now i'll turn the call over to rick to go over our fourth quarter and full-year results and 2026 outlook in more detail Rick? rick

Speaker 9: Thank you, John, and good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items. Turning to Slide 9, sales in the fourth quarter decreased 2%, or 3%, excluding the favorable impact of currency. In local currency, North American sales decreased 5% and international sales increased 1%. Gross margin was 33.7% in the quarter. SG&A in the quarter was 19.3%, and in dollars was in line with the prior year. Operating profit was $259 million in the quarter, and our margin was 14.4%. Operating profit was impacted by lower volume and higher tariff and commodity costs, partially offset by pricing actions and cost savings initiatives. Our EPS was $0.82 per share in the quarter. Thank you, John, and good morning, everyone. thank you john and good morning everyone Thank you for joining. thank you for joining As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other one-time items. as robin mentioned my comments today will focus on adjusted performance excluding the impact of rationalization charges and other one-time items Turning to Slide 9, sales in the fourth quarter decreased 2%, or 3%, excluding the favorable impact of currency. turning to slide 9 sales in the fourth quarter decreased 2% or 3% excluding the favorable impact of currency In local currency, North American sales decreased 5% and international sales increased 1%. in local currency north american sales decreased 5% and international sales increased 1% Gross margin was 33.7% in the quarter. gross margin was 33.7% in the quarter SG&A in the quarter was 19.3%, and in dollars was in line with the prior year. sg&a in the quarter was 19.3% and in dollars was in line with the prior year Operating profit was $259 million in the quarter, and our margin was 14.4%. operating profit was $259 million in the quarter and our margin was 14.4% Operating profit was impacted by lower volume and higher tariff and commodity costs, partially offset by pricing actions and cost savings initiatives. operating profit was impacted by lower volume and higher tariff and commodity costs partially offset by pricing actions and cost savings initiatives Our EPS was $0.82 per share in the quarter. our eps was $0.82 per share in the quarter Turning to the full year of 2025, sales decreased 3% over the prior year, or 2% excluding the impact of our divestiture and favorable currency. Our divestiture of Kichler in the third quarter of 2024 resulted in a decrease in sales of 2% year-over-year for the full year of 2025, while currency represented a 1% increase in sales. In local currency, North American sales decreased 5%, or 2% excluding our divestiture, and international sales increased 1%. Gross margin was 35.5% and was impacted by higher tariff and commodity costs. SG&A, as a percent of sales, was in line with the prior year at 18.7%. Operating profit was approximately $1.3 billion, and operating margin was 16.8%. Turning to the full year of 2025, sales decreased 3% over the prior year, or 2% excluding the impact of our divestiture and favorable currency. turning to the full year of 2025 sales decreased 3% over the prior year or 2% excluding the impact of our divestiture and favorable currency Our divestiture of Kichler in the third quarter of 2024 resulted in a decrease in sales of 2% year-over-year for the full year of 2025, while currency represented a 1% increase in sales. our divestiture of kichler in the third quarter of 2024 resulted in a decrease in sales of 2% year-over-year for the full year of 2025 while currency represented a 1% increase in sales In local currency, North American sales decreased 5%, or 2% excluding our divestiture, and international sales increased 1%. in local currency north american sales decreased 5% or 2% excluding our divestiture and international sales increased 1% Gross margin was 35.5% and was impacted by higher tariff and commodity costs. gross margin was 35.5% and was impacted by higher tariff and commodity costs SG&A, as a percent of sales, was in line with the prior year at 18.7%. sg&a as a percent of sales was in line with the prior year at 18.7% Operating profit was approximately $1.3 billion, and operating margin was 16.8%. operating profit was approximately $1.3 billion and operating margin was 16.8% Lastly, our EPS for the full year was $3.96 per share. Turning to Slide 10, plumbing sales increased 5% in the fourth quarter, or 3% excluding the favorable impact of currency. This growth was largely driven by pricing, which increased sales by 5%, partially offset by lower volume. In local currency, North American plumbing sales increased 4% in the quarter. This performance was primarily driven by solid growth in our Delta Faucet and Watkins Wellness businesses. In local currency, international plumbing sales increased 1% in the quarter. Hansgrohe grew in many of its European markets, including its key market of Germany. This growth was partially offset by the ongoing challenging market dynamics in China. Segment operating profit in the fourth quarter increased 2% to $204 million, and operating margin was 16.3%. Lastly, our EPS for the full year was $3.96 per share. lastly our eps for the full year was $3.96 per share Turning to Slide 10, plumbing sales increased 5% in the fourth quarter, or 3% excluding the favorable impact of currency. turning to slide 10 plumbing sales increased 5% in the fourth quarter or 3% excluding the favorable impact of currency This growth was largely driven by pricing, which increased sales by 5%, partially offset by lower volume. this growth was largely driven by pricing which increased sales by 5% partially offset by lower volume In local currency, North American plumbing sales increased 4% in the quarter. in local currency north american plumbing sales increased 4% in the quarter This performance was primarily driven by solid growth in our Delta Faucet and Watkins Wellness businesses. this performance was primarily driven by solid growth in our delta faucet and watkins wellness businesses In local currency, international plumbing sales increased 1% in the quarter. in local currency international plumbing sales increased 1% in the quarter Hansgrohe grew in many of its European markets, including its key market of Germany. hansgrohe grew in many of its european markets including its key market of germany This growth was partially offset by the ongoing challenging market dynamics in China. this growth was partially offset by the ongoing challenging market dynamics in china Segment operating profit in the fourth quarter increased 2% to $204 million, and operating margin was 16.3%. segment operating profit in the fourth quarter increased 2% to $204 million and operating margin was 16.3% Operating profit was driven by cost savings initiatives and pricing actions, partially offset by higher tariff and commodity costs and lower volume. Turning to the full year of 2025, plumbing sales increased 3% or 2%, excluding the favorable impact of currency. Favorable pricing contributed 3%, partially offset by lower volume, which decreased sales by 1%. In local currency, North American plumbing sales increased 3%, and international plumbing sales increased 1%. Full year operating profit was $904 million, and operating margin was 18.1%. Turning to Slide 11, decorative architectural sales decreased 15% in the fourth quarter. In the quarter, total paint sales decreased double digits due to lower volume. Operating profit was driven by cost savings initiatives and pricing actions, partially offset by higher tariff and commodity costs and lower volume. operating profit was driven by cost savings initiatives and pricing actions partially offset by higher tariff and commodity costs and lower volume Turning to the full year of 2025, plumbing sales increased 3% or 2%, excluding the favorable impact of currency. turning to the full year of 2025 plumbing sales increased 3% or 2% excluding the favorable impact of currency Favorable pricing contributed 3%, partially offset by lower volume, which decreased sales by 1%. favorable pricing contributed 3% partially offset by lower volume which decreased sales by 1% In local currency, North American plumbing sales increased 3%, and international plumbing sales increased 1%. in local currency north american plumbing sales increased 3% and international plumbing sales increased 1% Full year operating profit was $904 million, and operating margin was 18.1%. full year operating profit was $904 million and operating margin was 18.1% Turning to Slide 11, decorative architectural sales decreased 15% in the fourth quarter. turning to slide 11 decorative architectural sales decreased 15% in the fourth quarter In the quarter, total paint sales decreased double digits due to lower volume. in the quarter total paint sales decreased double digits due to lower volume Volume was impacted by the favorable inventory timing in Q4 of 2024, as well as the impact related to the customer transition of our primer and applicator business in Q4 2025. Excluding these impacts, overall paint sales decreased mid-single digits, with Pro paint sales growing low single digits and DIY paint sales decreasing high single digits in line with our full year performance. Operating profit in the fourth quarter was $76 million, primarily impacted by lower volume and significantly higher tariff and glass anti-dumping duty costs at our Liberty Hardware business, partially offset by cost savings initiatives. We continue to take proactive actions to mitigate the impact of tariff and duties and have announced the integration of the Liberty business into Delta Faucet Company. Volume was impacted by the favorable inventory timing in Q4 of 2024, as well as the impact related to the customer transition of our primer and applicator business in Q4 2025. volume was impacted by the favorable inventory timing in q4 of 2024 as well as the impact related to the customer transition of our primer and applicator business in q4 2025 Excluding these impacts, overall paint sales decreased mid-single digits, with Pro paint sales growing low single digits and DIY paint sales decreasing high single digits in line with our full year performance. excluding these impacts overall paint sales decreased mid-single digits with pro paint sales growing low single digits and diy paint sales decreasing high single digits in line with our full year performance Operating profit in the fourth quarter was $76 million, primarily impacted by lower volume and significantly higher tariff and glass anti-dumping duty costs at our Liberty Hardware business, partially offset by cost savings initiatives. operating profit in the fourth quarter was $76 million primarily impacted by lower volume and significantly higher tariff and glass anti-dumping duty costs at our liberty hardware business partially offset by cost savings initiatives We continue to take proactive actions to mitigate the impact of tariff and duties and have announced the integration of the Liberty business into Delta Faucet Company. we continue to take proactive actions to mitigate the impact of tariff and duties and have announced the integration of the liberty business into delta faucet company We believe this integration will provide a significant opportunity to further optimize the operations and improve the profitability of Liberty as we leverage the capabilities and scale of the combined business. Operating profit margin was 13.9% in the segment. Turning to the full year of 2025, sales decreased 14%, driven by our Kichler divestiture and lower volume, which decreased sales by 6% and 8%, respectively. Excluding the impact of the prior year inventory timing benefit, Pro paint sales were up low single digits, and DIY paint sales were down high single digits for the year. Full year operating profit was $457 million, and operating margin was 17.8%. Turning to Slide 12, our balance sheet remains strong, with gross debt to EBITDA at 2.1 times at year-end. We believe this integration will provide a significant opportunity to further optimize the operations and improve the profitability of Liberty as we leverage the capabilities and scale of the combined business. we believe this integration will provide a significant opportunity to further optimize the operations and improve the profitability of liberty as we leverage the capabilities and scale of the combined business Operating profit margin was 13.9% in the segment. operating profit margin was 13.9% in the segment Turning to the full year of 2025, sales decreased 14%, driven by our Kichler divestiture and lower volume, which decreased sales by 6% and 8%, respectively. turning to the full year of 2025 sales decreased 14% driven by our kichler divestiture and lower volume which decreased sales by 6% and 8% respectively Excluding the impact of the prior year inventory timing benefit, Pro paint sales were up low single digits, and DIY paint sales were down high single digits for the year. excluding the impact of the prior year inventory timing benefit pro paint sales were up low single digits and diy paint sales were down high single digits for the year Full year operating profit was $457 million, and operating margin was 17.8%. full year operating profit was $457 million and operating margin was 17.8% Turning to Slide 12, our balance sheet remains strong, with gross debt to EBITDA at 2.1 times at year-end. turning to slide 12 our balance sheet remains strong with gross debt to ebitda at 2.1 times at year-end We ended the year with $1.6 billion of liquidity, including cash and availability under our revolving credit facility. Working capital was 16.7% of sales at quarter end. Working capital was impacted by tariff-related dynamics, including higher material costs and pricing, which resulted in increased working capital balances in 2025. We anticipate working capital as a percent of sales will be approximately 16.5% in 2026. Our free cash flow for the year was over $850 million, a bit stronger than anticipated, driven by disciplined cost and working capital management, achieving free cash flow conversion of nearly 100%. We ended the year with $1.6 billion of liquidity, including cash and availability under our revolving credit facility. we ended the year with $1.6 billion of liquidity including cash and availability under our revolving credit facility Working capital was 16.7% of sales at quarter end. working capital was 16.7% of sales at quarter end Working capital was impacted by tariff-related dynamics, including higher material costs and pricing, which resulted in increased working capital balances in 2025. working capital was impacted by tariff-related dynamics including higher material costs and pricing which resulted in increased working capital balances in 2025 We anticipate working capital as a percent of sales will be approximately 16.5% in 2026. we anticipate working capital as a percent of sales will be approximately 16.5% in 2026 Our free cash flow for the year was over $850 million, a bit stronger than anticipated, driven by disciplined cost and working capital management, achieving free cash flow conversion of nearly 100%. our free cash flow for the year was over $850 million a bit stronger than anticipated driven by disciplined cost and working capital management achieving free cash flow conversion of nearly 100% Given our strong cash performance, we were able to return $832 million to shareholders through dividends and share repurchases, including the repurchase of $217 million in stock in the fourth quarter and the repurchase of $571 million for the full year. Now, let's turn to Slide 13 and review our outlook for 2026. The guidance that is being provided today reflects the integration of Liberty Hardware into Delta Faucet Company.... Therefore, Liberty's results will now be included in the plumbing product segment versus previously being included in the decorative architectural segment. For comparison purposes, we have recast our segments in 2025 by quarter to reflect this change. This information can be found in the appendix of our earnings deck on our website. Given our strong cash performance, we were able to return $832 million to shareholders through dividends and share repurchases, including the repurchase of $217 million in stock in the fourth quarter and the repurchase of $571 million for the full year. given our strong cash performance we were able to return $832 million to shareholders through dividends and share repurchases including the repurchase of $217 million in stock in the fourth quarter and the repurchase of $571 million for the full year Now, let's turn to Slide 13 and review our outlook for 2026. now let's turn to slide 13 and review our outlook for 2026 The guidance that is being provided today reflects the integration of Liberty Hardware into Delta Faucet Company.... the guidance that is being provided today reflects the integration of liberty hardware into delta faucet company Therefore, Liberty's results will now be included in the plumbing product segment versus previously being included in the decorative architectural segment. therefore liberty's results will now be included in the plumbing product segment versus previously being included in the decorative architectural segment For comparison purposes, we have recast our segments in 2025 by quarter to reflect this change. for comparison purposes we have recast our segments in 2025 by quarter to reflect this change This information can be found in the appendix of our earnings deck on our website. this information can be found in the appendix of our earnings deck on our website Our guidance also includes the impact of currently enacted tariffs in effect in February, inclusive of the 10% reduction in China tariffs that went into effect after our third quarter earnings call. As a result of this tariff reduction, as well as proactive and ongoing changes to our sourcing footprint, we now estimate that the total annualized cost impact from tariffs to be approximately $200 million before mitigation, down from an annualized $270 million as of our third quarter earnings call. Of the $200 million annualized cost impact, approximately $80 million is related to the current 20% China tariffs, and the remaining approximately $120 million is driven by a combination of the various tariffs on countries other than China, the 50% tariffs on steel, aluminum, and copper, and the glass anti-dumping duties. Our guidance also includes the impact of currently enacted tariffs in effect in February, inclusive of the 10% reduction in China tariffs that went into effect after our third quarter earnings call. our guidance also includes the impact of currently enacted tariffs in effect in february inclusive of the 10% reduction in china tariffs that went into effect after our third quarter earnings call As a result of this tariff reduction, as well as proactive and ongoing changes to our sourcing footprint, we now estimate that the total annualized cost impact from tariffs to be approximately $200 million before mitigation, down from an annualized $270 million as of our third quarter earnings call. as a result of this tariff reduction as well as proactive and ongoing changes to our sourcing footprint we now estimate that the total annualized cost impact from tariffs to be approximately $200 million before mitigation down from an annualized $270 million as of our third quarter earnings call Of the $200 million annualized cost impact, approximately $80 million is related to the current 20% China tariffs, and the remaining approximately $120 million is driven by a combination of the various tariffs on countries other than China, the 50% tariffs on steel, aluminum, and copper, and the glass anti-dumping duties. of the $200 million annualized cost impact approximately $80 million is related to the current 20% china tariffs and the remaining approximately $120 million is driven by a combination of the various tariffs on countries other than china the 50% tariffs on steel aluminum and copper and the glass anti-dumping duties We anticipate the full $200 million will impact 2026. This is up from the in-year impact in 2025 of approximately $150 million, largely due to the timing of tariffs as they were implemented throughout 2025. Our teams continue to actively work to further mitigate these costs and recover the cost and margin impact through a combination of levers. These include cost reductions, continued efforts to change our sourcing footprint, and pricing where necessary. We anticipate that these mitigation actions will offset the direct cost impact of the currently enacted tariffs in 2026. To provide an update on our China exposure, in 2026, we expect to import approximately $400 million from China that is subject to the reciprocal tariffs, down from our 2025 exposure of $450 million. We anticipate the full $200 million will impact 2026. we anticipate the full $200 million will impact 2026 This is up from the in-year impact in 2025 of approximately $150 million, largely due to the timing of tariffs as they were implemented throughout 2025. this is up from the in-year impact in 2025 of approximately $150 million largely due to the timing of tariffs as they were implemented throughout 2025 Our teams continue to actively work to further mitigate these costs and recover the cost and margin impact through a combination of levers. our teams continue to actively work to further mitigate these costs and recover the cost and margin impact through a combination of levers These include cost reductions, continued efforts to change our sourcing footprint, and pricing where necessary. these include cost reductions continued efforts to change our sourcing footprint and pricing where necessary We anticipate that these mitigation actions will offset the direct cost impact of the currently enacted tariffs in 2026. we anticipate that these mitigation actions will offset the direct cost impact of the currently enacted tariffs in 2026 To provide an update on our China exposure, in 2026, we expect to import approximately $400 million from China that is subject to the reciprocal tariffs, down from our 2025 exposure of $450 million. to provide an update on our china exposure in 2026 we expect to import approximately $400 million from china that is subject to the reciprocal tariffs down from our 2025 exposure of $450 million Based on our continued efforts, we anticipate that our China exposure will be less than $300 million as we exit 2026. This represents a greater than 60% reduction from our peak exposure in 2018. From a segment perspective, with a shift of Liberty Hardware to the plumbing product segment, nearly all of our tariff exposure and impact reside in this segment. Now, turning to our expected financial performance for 2026. For Masco overall, we expect 2026 sales to be flat to up low single digits and operating margin to expand to approximately 17%, up from 16.8% in 2025. Our 2026 sales guide reflects an assumption that the global repair and remodel markets in aggregate will be roughly flat. Based on our continued efforts, we anticipate that our China exposure will be less than $300 million as we exit 2026. based on our continued efforts we anticipate that our china exposure will be less than $300 million as we exit 2026 This represents a greater than 60% reduction from our peak exposure in 2018. this represents a greater than 60% reduction from our peak exposure in 2018 From a segment perspective, with a shift of Liberty Hardware to the plumbing product segment, nearly all of our tariff exposure and impact reside in this segment. from a segment perspective with a shift of liberty hardware to the plumbing product segment nearly all of our tariff exposure and impact reside in this segment Now, turning to our expected financial performance for 2026. now turning to our expected financial performance for 2026 For Masco overall, we expect 2026 sales to be flat to up low single digits and operating margin to expand to approximately 17%, up from 16.8% in 2025. for masco overall we expect 2026 sales to be flat to up low single digits and operating margin to expand to approximately 17% up from 16.8% in 2025 Our 2026 sales guide reflects an assumption that the global repair and remodel markets in aggregate will be roughly flat. our 2026 sales guide reflects an assumption that the global repair and remodel markets in aggregate will be roughly flat As we think about the cadence for the year, excluding the impact of currency, we expect sales to be roughly flat to slightly up in both the first and second half of the year. We expect SG&A as a % of sales to be in line with 2025 as we continue to invest in our business for future growth, while also maintaining cost discipline. Also, as it relates to operating margins, given the timing of tariff impacts, which largely impacted our results in the second half of last year, we anticipate total Masco margin contraction in the first half of the year, with expansion expected in the second half as we lap the tariff impact and as our mitigation actions continue to take hold. In our plumbing segment, we expect 2026 full year sales to be up low single digits. As we think about the cadence for the year, excluding the impact of currency, we expect sales to be roughly flat to slightly up in both the first and second half of the year. as we think about the cadence for the year excluding the impact of currency we expect sales to be roughly flat to slightly up in both the first and second half of the year We expect SG&A as a % of sales to be in line with 2025 as we continue to invest in our business for future growth, while also maintaining cost discipline. we expect sg&a as a % of sales to be in line with 2025 as we continue to invest in our business for future growth while also maintaining cost discipline Also, as it relates to operating margins, given the timing of tariff impacts, which largely impacted our results in the second half of last year, we anticipate total Masco margin contraction in the first half of the year, with expansion expected in the second half as we lap the tariff impact and as our mitigation actions continue to take hold. also as it relates to operating margins given the timing of tariff impacts which largely impacted our results in the second half of last year we anticipate total masco margin contraction in the first half of the year with expansion expected in the second half as we lap the tariff impact and as our mitigation actions continue to take hold In our plumbing segment, we expect 2026 full year sales to be up low single digits. in our plumbing segment we expect 2026 full year sales to be up low single digits We anticipate the full year plumbing margin will be approximately 18%, up from a comparable 2025 margin of 17.6%. Margin expansion will primarily be driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. In our decorative architectural segment, we expect 2026 sales to be roughly flat with the prior year. We expect our Pro paint business will increase mid-single digits, and our DIY paint business will decrease mid-single digits. We anticipate the full year decorative architectural margin to be approximately 19%, relatively in line with a comparable 2025 margin of 18.9%, with a continued focus on cost savings initiatives. We anticipate the full year plumbing margin will be approximately 18%, up from a comparable 2025 margin of 17.6%. we anticipate the full year plumbing margin will be approximately 18% up from a comparable 2025 margin of 17.6% Margin expansion will primarily be driven by pricing discipline, operational efficiencies, and continued cost savings initiatives. margin expansion will primarily be driven by pricing discipline operational efficiencies and continued cost savings initiatives In our decorative architectural segment, we expect 2026 sales to be roughly flat with the prior year. in our decorative architectural segment we expect 2026 sales to be roughly flat with the prior year We expect our Pro paint business will increase mid-single digits, and our DIY paint business will decrease mid-single digits. we expect our pro paint business will increase mid-single digits and our diy paint business will decrease mid-single digits We anticipate the full year decorative architectural margin to be approximately 19%, relatively in line with a comparable 2025 margin of 18.9%, with a continued focus on cost savings initiatives. we anticipate the full year decorative architectural margin to be approximately 19% relatively in line with a comparable 2025 margin of 18.9% with a continued focus on cost savings initiatives With regards to capital allocation, we expect to reinvest approximately $190 million through capital expenditures to pay a dividend of $1.28 per share, up 3% from our 2025 dividend, and to deploy approximately $600 million toward share repurchases or acquisitions in 2026. Finally, as John mentioned earlier, our 2026 EPS estimate is $4.10-$4.30 per share. This assumes a 202 million average diluted share count for the year and a 24.5% effective tax rate, which is consistent with our 2025 effective tax rate. Additional financial assumptions for 2026 can be found on slide 16 of our earnings deck. With that, I'd like to open up the call for questions. Operator? With regards to capital allocation, we expect to reinvest approximately $190 million through capital expenditures to pay a dividend of $1.28 per share, up 3% from our 2025 dividend, and to deploy approximately $600 million toward share repurchases or acquisitions in 2026. with regards to capital allocation we expect to reinvest approximately $190 million through capital expenditures to pay a dividend of $1.28 per share up 3% from our 2025 dividend and to deploy approximately $600 million toward share repurchases or acquisitions in 2026 Finally, as John mentioned earlier, our 2026 EPS estimate is $4.10-$4.30 per share. finally as john mentioned earlier our 2026 eps estimate is $4.10-$4.30 per share This assumes a 202 million average diluted share count for the year and a 24.5% effective tax rate, which is consistent with our 2025 effective tax rate. this assumes a 202 million average diluted share count for the year and a 24.5% effective tax rate which is consistent with our 2025 effective tax rate Additional financial assumptions for 2026 can be found on slide 16 of our earnings deck. additional financial assumptions for 2026 can be found on slide 16 of our earnings deck With that, I'd like to open up the call for questions. with that i'd like to open up the call for questions Operator? operator

Speaker 7: Thank you. We will now begin the question and answer session. In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session. To ask a question, please press star, then the number 1 on your telephone keypad. To withdraw your question, please press star, then the number 2. One moment, please, while we assemble the queue... Your first question comes from Matthew Bouley of Barclays. Please go ahead. Thank you. thank you We will now begin the question and answer session. we will now begin the question and answer session In order to ensure that everyone has a chance to participate, we would like to request that you limit yourself to asking one question and one follow-up question during the Q&A session. in order to ensure that everyone has a chance to participate we would like to request that you limit yourself to asking one question and one follow-up question during the q&a session To ask a question, please press star, then the number 1 on your telephone keypad. to ask a question please press star then the number 1 on your telephone keypad To withdraw your question, please press star, then the number 2. to withdraw your question please press star then the number 2 One moment, please, while we assemble the queue... one moment please while we assemble the queue Your first question comes from Matthew Bouley of Barclays. your first question comes from matthew bouley of barclays Please go ahead. please go ahead

Speaker 4: Good morning, everyone. Thank you for taking the questions. Maybe just one common question we're getting from investors now is around commodity inflation and specifically copper. So maybe just a quick question there around how you're embedding that into your guidance for plumbing margin expansion in 2026, and maybe the sort of timing of that commodity impact. Thank you. Good morning, everyone. good morning everyone Thank you for taking the questions. thank you for taking the questions Maybe just one common question we're getting from investors now is around commodity inflation and specifically copper. maybe just one common question we're getting from investors now is around commodity inflation and specifically copper So maybe just a quick question there around how you're embedding that into your guidance for plumbing margin expansion in 2026, and maybe the sort of timing of that commodity impact. so maybe just a quick question there around how you're embedding that into your guidance for plumbing margin expansion in 2026 and maybe the sort of timing of that commodity impact Thank you. thank you

Speaker 9: Sure, Matt, it's Rick. Good morning. So with regards to commodity inflation, as I'm sure you've been seeing, particularly with copper, we saw that really tick up later part of last year, and really the first part of this year. We're monitoring it very closely. It's obviously a volatile dynamic. With regards to inflation, we saw in our plumbing segment, mid-single-digit inflation in Q4, so we're seeing some of that pull through, and we're expecting mid-single-digit inflation in our guide for plumbing in the calendar 2026. So it's something that we've contemplated. Admittedly, it is volatile, and there's risk and upside, depending on how things play out. Sure, Matt, it's Rick. sure matt it's rick Good morning. good morning So with regards to commodity inflation, as I'm sure you've been seeing, particularly with copper, we saw that really tick up later part of last year, and really the first part of this year. so with regards to commodity inflation as i'm sure you've been seeing particularly with copper we saw that really tick up later part of last year and really the first part of this year We're monitoring it very closely. we're monitoring it very closely It's obviously a volatile dynamic. it's obviously a volatile dynamic With regards to inflation, we saw in our plumbing segment, mid-single-digit inflation in Q4, so we're seeing some of that pull through, and we're expecting mid-single-digit inflation in our guide for plumbing in the calendar 2026. with regards to inflation we saw in our plumbing segment mid-single-digit inflation in q4 so we're seeing some of that pull through and we're expecting mid-single-digit inflation in our guide for plumbing in the calendar 2026 So it's something that we've contemplated. so it's something that we've contemplated Admittedly, it is volatile, and there's risk and upside, depending on how things play out. admittedly it is volatile and there's risk and upside depending on how things play out As a reminder, with regards to how you think about commodities flowing through to our P&L, it's usually about a six-month lag in terms of when you see the commodity costs in the market, before it hits our P&L. So that's why you're seeing it kind of later in Q4 in 2025 and in 2026. So that delay is. And so to the extent that there's movement one way or the other, you can envision that lag would stay true. As a reminder, with regards to how you think about commodities flowing through to our P&L, it's usually about a six-month lag in terms of when you see the commodity costs in the market, before it hits our P&L. as a reminder with regards to how you think about commodities flowing through to our p&l it's usually about a six-month lag in terms of when you see the commodity costs in the market before it hits our p&l So that's why you're seeing it kind of later in Q4 in 2025 and in 2026. so that's why you're seeing it kind of later in q4 in 2025 and in 2026 So that delay is. so that delay is And so to the extent that there's movement one way or the other, you can envision that lag would stay true. and so to the extent that there's movement one way or the other you can envision that lag would stay true

Speaker 4: Okay. Perfect. Thank you for that, Rick. Second one, pricing in plumbing. I think I heard you say 5% in the fourth quarter, and correct me if I'm wrong, but I think that would suggest price was probably above that in North America, assuming it was below that level in the international business. And so given that level of price, can you speak a little bit about what you're expecting to kind of flow through in the first half of 2026? Any kind of early reads on your initial January pricing actions in that segment? And if you're expecting that to contribute additional price on top of what you've already got, and kind of how that would flow through the first half and second half. Thank you. Okay. okay Perfect. perfect Thank you for that, Rick. thank you for that rick Second one, pricing in plumbing. second one pricing in plumbing I think I heard you say 5% in the fourth quarter, and correct me if I'm wrong, but I think that would suggest price was probably above that in North America, assuming it was below that level in the international business. i think i heard you say 5% in the fourth quarter and correct me if i'm wrong but i think that would suggest price was probably above that in north america assuming it was below that level in the international business And so given that level of price, can you speak a little bit about what you're expecting to kind of flow through in the first half of 2026? and so given that level of price can you speak a little bit about what you're expecting to kind of flow through in the first half of 2026 Any kind of early reads on your initial January pricing actions in that segment? any kind of early reads on your initial january pricing actions in that segment And if you're expecting that to contribute additional price on top of what you've already got, and kind of how that would flow through the first half and second half. and if you're expecting that to contribute additional price on top of what you've already got and kind of how that would flow through the first half and second half Thank you. thank you

Speaker 3: Yeah. Hi, Matt. It's, it's John. Maybe I'll start and then turn it over to Rick to get into the flow for 2026. You know, I would say, really pleased with the way that our plumbing team has handled, you know, a lot of challenges in 2025. Obviously, between tariffs and commodities, they were faced with a lot and really took action and really used to save some sophisticated tools to take precise pricing and really across all of our channels. And the good news is, we continued to grow share through that time period. As we've taken smart pricing, we believe we're well positioned in the market. And again, I'll let Rick talk a little bit about the flow and how that will happen. Yeah. yeah Hi, Matt. hi matt It's, it's John. it's it's john Maybe I'll start and then turn it over to Rick to get into the flow for 2026. maybe i'll start and then turn it over to rick to get into the flow for 2026 You know, I would say, really pleased with the way that our plumbing team has handled, you know, a lot of challenges in 2025. you know i would say really pleased with the way that our plumbing team has handled you know a lot of challenges in 2025 Obviously, between tariffs and commodities, they were faced with a lot and really took action and really used to save some sophisticated tools to take precise pricing and really across all of our channels. obviously between tariffs and commodities they were faced with a lot and really took action and really used to save some sophisticated tools to take precise pricing and really across all of our channels And the good news is, we continued to grow share through that time period. and the good news is we continued to grow share through that time period As we've taken smart pricing, we believe we're well positioned in the market. as we've taken smart pricing we believe we're well positioned in the market And again, I'll let Rick talk a little bit about the flow and how that will happen. and again i'll let rick talk a little bit about the flow and how that will happen But again, really pleased with the way that we're navigating this environment. But again, really pleased with the way that we're navigating this environment. but again really pleased with the way that we're navigating this environment

Speaker 9: Yeah, Matt, with regards to your specific question, you heard correctly that pricing and plumbing was a 5% benefit in Q4. It's fair to assume that international wasn't as significant. I'll leave it at that. As it pertains to 2026, we've indicated that we would expect mid-single-digit pricing for plumbing in the calendar year. From a case perspective, we won't get into the details, but suffice it to say that we started to implement mitigation actions, as John alluded to, really, as tariffs started to take hold across cost, sourcing, and pricing, really mid-year last year. So you can imagine, as we lap that activity in 2026, you'll see some moderation with regards to year-over-year comparison. But for the full year, you can expect a mid-single-digit pricing benefit. Yeah, Matt, with regards to your specific question, you heard correctly that pricing and plumbing was a 5% benefit in Q4. yeah matt with regards to your specific question you heard correctly that pricing and plumbing was a 5% benefit in q4 It's fair to assume that international wasn't as significant. it's fair to assume that international wasn't as significant I'll leave it at that. i'll leave it at that As it pertains to 2026, we've indicated that we would expect mid-single-digit pricing for plumbing in the calendar year. as it pertains to 2026 we've indicated that we would expect mid-single-digit pricing for plumbing in the calendar year From a case perspective, we won't get into the details, but suffice it to say that we started to implement mitigation actions, as John alluded to, really, as tariffs started to take hold across cost, sourcing, and pricing, really mid-year last year. from a case perspective we won't get into the details but suffice it to say that we started to implement mitigation actions as john alluded to really as tariffs started to take hold across cost sourcing and pricing really mid-year last year So you can imagine, as we lap that activity in 2026, you'll see some moderation with regards to year-over-year comparison. so you can imagine as we lap that activity in 2026 you'll see some moderation with regards to year-over-year comparison But for the full year, you can expect a mid-single-digit pricing benefit. but for the full year you can expect a mid-single-digit pricing benefit

Speaker 4: Okay. Thank you both. Good luck, guys. Okay. okay Thank you both. thank you both Good luck, guys. good luck guys

Speaker 3: Thanks, Matt. Thanks, Matt. thanks matt

Speaker 9: Thank you. Thank you. thank you

Speaker 7: Your next question comes from Anthony Pettinari of Citi. Please go ahead. Your next question comes from Anthony Pettinari of Citi. your next question comes from anthony pettinari of citi Please go ahead. please go ahead

Speaker 1: Good morning. Just pivoting from plumbing to DA, I'm wondering if you could, you know, talk about assumptions for price cost in 2026, any commodity cost trends that you'd call out, and any pricing actions that you can talk about? Good morning. good morning Just pivoting from plumbing to DA, I'm wondering if you could, you know, talk about assumptions for price cost in 2026, any commodity cost trends that you'd call out, and any pricing actions that you can talk about? just pivoting from plumbing to da i'm wondering if you could you know talk about assumptions for price cost in 2026 any commodity cost trends that you'd call out and any pricing actions that you can talk about

Speaker 3: Yeah, absolutely. This is John. As we look at, as we look at DAP, we are seeing some upward pressure on cost. As you likely know, we have a unique relationship with our large exclusive big box retailer and have a price cost mechanism in place. So not gonna comment on prospective pricing or even our conversations with our retail partner, but given the costs that we're seeing, you know, those conversations are beginning. We'll come back in future quarters and let you know where we shake out in that space. Yeah, absolutely. yeah absolutely This is John. this is john As we look at, as we look at DAP, we are seeing some upward pressure on cost. as we look at as we look at dap we are seeing some upward pressure on cost As you likely know, we have a unique relationship with our large exclusive big box retailer and have a price cost mechanism in place. as you likely know we have a unique relationship with our large exclusive big box retailer and have a price cost mechanism in place So not gonna comment on prospective pricing or even our conversations with our retail partner, but given the costs that we're seeing, you know, those conversations are beginning. so not gonna comment on prospective pricing or even our conversations with our retail partner but given the costs that we're seeing you know those conversations are beginning We'll come back in future quarters and let you know where we shake out in that space. we'll come back in future quarters and let you know where we shake out in that space

Speaker 1: Okay. Okay. And then in terms of DIY, I think you've guided down mid-single digits. You know, are there any kind of big picture thoughts you can share in terms of the volume pressure in that business? And you know, how much of it might just be a sort of a secular shift from DIY to Pro, so maybe you know, demand is not being destroyed, it's just being kind of shifted between the channels? Just kind of as you look back at the last three, four years, can you give us some context and how that informs your expectations for 2026? Okay. okay Okay. okay And then in terms of DIY, I think you've guided down mid-single digits. and then in terms of diy i think you've guided down mid-single digits You know, are there any kind of big picture thoughts you can share in terms of the volume pressure in that business? you know are there any kind of big picture thoughts you can share in terms of the volume pressure in that business And you know, how much of it might just be a sort of a secular shift from DIY to Pro, so maybe you know, demand is not being destroyed, it's just being kind of shifted between the channels? and you know how much of it might just be a sort of a secular shift from diy to pro so maybe you know demand is not being destroyed it's just being kind of shifted between the channels Just kind of as you look back at the last three, four years, can you give us some context and how that informs your expectations for 2026? just kind of as you look back at the last three four years can you give us some context and how that informs your expectations for 2026

Speaker 3: Yeah, absolutely. So this is John. It's certainly been dynamic for sure. We do know that existing home sales correlate highly with DIY paint, and it makes sense. When you go to sell a home, you tend to paint it, and when you buy it, you tend to paint it again to put your own mark and style into the home. So as existing home sales were at 3- or 4-decade near lows, and then in 2025, it was challenging, and we saw that obviously in, in the previous years as well. As we look forward, we know that we have a strong DIY brand, one of the-- one of the share leaders. Yeah, absolutely. yeah absolutely So this is John. so this is john It's certainly been dynamic for sure. it's certainly been dynamic for sure We do know that existing home sales correlate highly with DIY paint, and it makes sense. we do know that existing home sales correlate highly with diy paint and it makes sense When you go to sell a home, you tend to paint it, and when you buy it, you tend to paint it again to put your own mark and style into the home. when you go to sell a home you tend to paint it and when you buy it you tend to paint it again to put your own mark and style into the home So as existing home sales were at 3- or 4-decade near lows, and then in 2025, it was challenging, and we saw that obviously in, in the previous years as well. so as existing home sales were at 3- or 4-decade near lows and then in 2025 it was challenging and we saw that obviously in in the previous years as well As we look forward, we know that we have a strong DIY brand, one of the-- one of the share leaders. as we look forward we know that we have a strong diy brand one of the-- one of the share leaders We have amazing quality at great value, and we think we can actually tell our story better just to make sure that, you know, we get our continued growth share in the DIY market. The space that we're, you know, very excited about is the Pro market. When you look at that, that segment, it's the biggest single segment Masco competes in. It's over $10 billion, and it's grown nicely, really over the short, medium, and long term. And we have a relatively small share. We have less than a 10% share. Really proud that we gained 200 basis points of share since 2019. But we are squarely focused on growing that at a differential rate. And the good news is The Home Depot, our retail partner, is very, very squarely focused on the Pro as well. We have amazing quality at great value, and we think we can actually tell our story better just to make sure that, you know, we get our continued growth share in the DIY market. we have amazing quality at great value and we think we can actually tell our story better just to make sure that you know we get our continued growth share in the diy market The space that we're, you know, very excited about is the Pro market. the space that we're you know very excited about is the pro market When you look at that, that segment, it's the biggest single segment Masco competes in. when you look at that that segment it's the biggest single segment masco competes in It's over $10 billion, and it's grown nicely, really over the short, medium, and long term. it's over $10 billion and it's grown nicely really over the short medium and long term And we have a relatively small share. and we have a relatively small share We have less than a 10% share. we have less than a 10% share Really proud that we gained 200 basis points of share since 2019. really proud that we gained 200 basis points of share since 2019 But we are squarely focused on growing that at a differential rate. but we are squarely focused on growing that at a differential rate And the good news is The Home Depot, our retail partner, is very, very squarely focused on the Pro as well. and the good news is the home depot our retail partner is very very squarely focused on the pro as well So we're working to take friction out of the experience for the Pro. Things like order online and pickup in store, which is available now. Order online and have it delivered to the job site, which we can do now. The Home Depot is trialing some trade credit, which we think will make a real difference. And then we can continue to increase the number of both outside and inside sales reps we have focused on the Pro. So regardless of where the market goes, we like our ability to play both in DIY, where we're very strong today, and then we think there's a tremendous amount of upside in Pro, and we'll continue to invest in that space, and again, very aligned with, with our retail partner, in that initiative. So we're working to take friction out of the experience for the Pro. so we're working to take friction out of the experience for the pro Things like order online and pickup in store, which is available now. things like order online and pickup in store which is available now Order online and have it delivered to the job site, which we can do now. order online and have it delivered to the job site which we can do now The Home Depot is trialing some trade credit, which we think will make a real difference. the home depot is trialing some trade credit which we think will make a real difference And then we can continue to increase the number of both outside and inside sales reps we have focused on the Pro. and then we can continue to increase the number of both outside and inside sales reps we have focused on the pro So regardless of where the market goes, we like our ability to play both in DIY, where we're very strong today, and then we think there's a tremendous amount of upside in Pro, and we'll continue to invest in that space, and again, very aligned with, with our retail partner, in that initiative. so regardless of where the market goes we like our ability to play both in diy where we're very strong today and then we think there's a tremendous amount of upside in pro and we'll continue to invest in that space and again very aligned with with our retail partner in that initiative

Speaker 1: Okay, that's helpful. I'll turn it over. Okay, that's helpful. okay that's helpful I'll turn it over. i'll turn it over

Speaker 3: Thank you. Thank you. thank you

Speaker 7: Next question comes from Stephen Kim of Evercore ISI. Please go ahead. Next question comes from Stephen Kim of Evercore ISI. next question comes from stephen kim of evercore isi Please go ahead. please go ahead

Speaker 12: Yeah, thanks a lot, guys. Appreciate all the color so far. I guess, in your guide for fiscal 26, can you give a sense for what your expectations are for existing home sales, and just anything else relevant coming out of the housing market, specifically, in your outlook? Yeah, thanks a lot, guys. yeah thanks a lot guys Appreciate all the color so far. appreciate all the color so far I guess, in your guide for fiscal 26, can you give a sense for what your expectations are for existing home sales, and just anything else relevant coming out of the housing market, specifically, in your outlook? i guess in your guide for fiscal 26 can you give a sense for what your expectations are for existing home sales and just anything else relevant coming out of the housing market specifically in your outlook

Speaker 9: Hey, Steven, good morning. So we've got pretty modest expectations with regards to some of the macro drivers. From an overall R&R perspective, we're assuming both in terms of the U.S. market in which we play, as well as international, roughly flat. And that's contemplating volume down and pricing up, kind of offsetting one another. From an industry perspective, we, Masco, expect to outperform that and be flat to slightly up or up low single digits. In terms of some of the other macro factors, existing home sales, new home builds, et cetera, pretty modest expectations, nothing significant differently from what we've seen in the last couple of years. Hey, Steven, good morning. hey steven good morning So we've got pretty modest expectations with regards to some of the macro drivers. so we've got pretty modest expectations with regards to some of the macro drivers From an overall R&R perspective, we're assuming both in terms of the U.S. market in which we play, as well as international, roughly flat. from an overall r&r perspective we're assuming both in terms of the u.s market in which we play as well as international roughly flat And that's contemplating volume down and pricing up, kind of offsetting one another. and that's contemplating volume down and pricing up kind of offsetting one another From an industry perspective, we, Masco, expect to outperform that and be flat to slightly up or up low single digits. from an industry perspective we masco expect to outperform that and be flat to slightly up or up low single digits In terms of some of the other macro factors, existing home sales, new home builds, et cetera, pretty modest expectations, nothing significant differently from what we've seen in the last couple of years. in terms of some of the other macro factors existing home sales new home builds et cetera pretty modest expectations nothing significant differently from what we've seen in the last couple of years

Speaker 12: If you did see an inflection upwards in existing home sales beyond your expectations, would you be expecting that you would see that more on the pricing side? Or do you anticipate that there would be certain other sort of subcategories that would particularly benefit or see it first? If you did see an inflection upwards in existing home sales beyond your expectations, would you be expecting that you would see that more on the pricing side? if you did see an inflection upwards in existing home sales beyond your expectations would you be expecting that you would see that more on the pricing side Or do you anticipate that there would be certain other sort of subcategories that would particularly benefit or see it first? or do you anticipate that there would be certain other sort of subcategories that would particularly benefit or see it first

Speaker 9: Yeah, Stephen, that's a tricky one to answer. I think from a standpoint, I think pricing, as we've taken price with regards to mitigating both tariff and commodity costs, that's largely in place. Obviously, we continue to monitor the market. I think from an overall variability standpoint, I would presume volume would be the biggest dynamic, both in terms of upside opportunity as in terms of risk. I mean, we look at, you know, I gave you the assumptions with regards to the overall R&R industry. Within that, we look at plumbing as an opportunity for us, particularly in terms of how we're competing in the market. Yeah, Stephen, that's a tricky one to answer. yeah stephen that's a tricky one to answer I think from a standpoint, I think pricing, as we've taken price with regards to mitigating both tariff and commodity costs, that's largely in place. i think from a standpoint i think pricing as we've taken price with regards to mitigating both tariff and commodity costs that's largely in place Obviously, we continue to monitor the market. obviously we continue to monitor the market I think from an overall variability standpoint, I would presume volume would be the biggest dynamic, both in terms of upside opportunity as in terms of risk. i think from an overall variability standpoint i would presume volume would be the biggest dynamic both in terms of upside opportunity as in terms of risk I mean, we look at, you know, I gave you the assumptions with regards to the overall R&R industry. i mean we look at you know i gave you the assumptions with regards to the overall r&r industry Within that, we look at plumbing as an opportunity for us, particularly in terms of how we're competing in the market. within that we look at plumbing as an opportunity for us particularly in terms of how we're competing in the market In Q4, for example, we gained sales across the e-commerce, trade, and retail channels, so we're seeing really good momentum in that regard, and we're going to continue to drive our performance, kind of relative to the market overall. In Q4, for example, we gained sales across the e-commerce, trade, and retail channels, so we're seeing really good momentum in that regard, and we're going to continue to drive our performance, kind of relative to the market overall. in q4 for example we gained sales across the e-commerce trade and retail channels so we're seeing really good momentum in that regard and we're going to continue to drive our performance kind of relative to the market overall

Speaker 3: Yeah, Steven, I might just add that, obviously, existing home sales are important. I've mentioned how important that is to, to our paint business. You know, beyond though, that we, we, you know, are 90% repair and remodel, and, and I think big picture, believe that there's a lot of opportunity once the market frees up. And you look at, I mentioned in the prepared remarks that home equity levels are at record highs, up 80% since 2019. Interest rates are heading in the right direction. I think the combination of some, additional cuts to interest rates and then, and, and importantly, improved consumer confidence, we think that's gonna be really the driver to, to turn the market. So, whether that happens in 2020 or 2026 or not, we'll see. Yeah, Steven, I might just add that, obviously, existing home sales are important. yeah steven i might just add that obviously existing home sales are important I've mentioned how important that is to, to our paint business. i've mentioned how important that is to to our paint business You know, beyond though, that we, we, you know, are 90% repair and remodel, and, and I think big picture, believe that there's a lot of opportunity once the market frees up. you know beyond though that we we you know are 90% repair and remodel and and i think big picture believe that there's a lot of opportunity once the market frees up And you look at, I mentioned in the prepared remarks that home equity levels are at record highs, up 80% since 2019. and you look at i mentioned in the prepared remarks that home equity levels are at record highs up 80% since 2019 Interest rates are heading in the right direction. interest rates are heading in the right direction I think the combination of some, additional cuts to interest rates and then, and, and importantly, improved consumer confidence, we think that's gonna be really the driver to, to turn the market. i think the combination of some additional cuts to interest rates and then and and importantly improved consumer confidence we think that's gonna be really the driver to to turn the market So, whether that happens in 2020 or 2026 or not, we'll see. so whether that happens in 2020 or 2026 or not we'll see But again, we think that those are the key things that'll be needed for us to get back to historical growth rates across our categories. But again, we think that those are the key things that'll be needed for us to get back to historical growth rates across our categories. but again we think that those are the key things that'll be needed for us to get back to historical growth rates across our categories

Speaker 12: Okay, great. Thanks very much, guys. Okay, great. okay great Thanks very much, guys. thanks very much guys

Speaker 3: Thank you. Thank you. thank you

Speaker 7: Your next question comes from Michael Rehaut of J.P. Morgan. Please go ahead. Your next question comes from Michael Rehaut of J.P. your next question comes from michael rehaut of j.p Morgan. morgan Please go ahead. please go ahead

Speaker 6: Hi. Yeah, good morning. Thanks for taking my questions. Wanted to hit on the restructuring actions contemplated for 2026. I assume part of that is with regards to moving Liberty over and integrating that. I just wanted to get a sense for, you know, what the dollar benefit you anticipate from those restructuring actions in 2026, and how much of that might be reinvested in the company? 'Cause I heard you say, you know, fund growth initiatives versus, you know, just a fall to the bottom line, so to speak. Hi. hi Yeah, good morning. yeah good morning Thanks for taking my questions. thanks for taking my questions Wanted to hit on the restructuring actions contemplated for 2026. wanted to hit on the restructuring actions contemplated for 2026 I assume part of that is with regards to moving Liberty over and integrating that. i assume part of that is with regards to moving liberty over and integrating that I just wanted to get a sense for, you know, what the dollar benefit you anticipate from those restructuring actions in 2026, and how much of that might be reinvested in the company? 'Cause I heard you say, you know, fund growth initiatives versus, you know, just a fall to the bottom line, so to speak. i just wanted to get a sense for you know what the dollar benefit you anticipate from those restructuring actions in 2026 and how much of that might be reinvested in the company 'cause i heard you say you know fund growth initiatives versus you know just a fall to the bottom line so to speak

Speaker 3: Yes, so maybe I'll start and Rick can add on as well. You know, obviously, with markets that aren't growing historical rates, you know, we want to take action and make sure that we have the cost structure that's needed for today and into the future. So the actions are broad. So again, Liberty would obviously be a part of it, something that we pointed out. But we're really looking across our organization just to make sure we have the right footprint in terms of manufacturing base, make sure that we're leveraging our scale where it makes sense. And the idea is to take those dollars, you know, drop some of them to the bottom line as we've guided. Again, we want to grow margins in 2026 and into the future. Yes, so maybe I'll start and Rick can add on as well. yes so maybe i'll start and rick can add on as well You know, obviously, with markets that aren't growing historical rates, you know, we want to take action and make sure that we have the cost structure that's needed for today and into the future. you know obviously with markets that aren't growing historical rates you know we want to take action and make sure that we have the cost structure that's needed for today and into the future So the actions are broad. so the actions are broad So again, Liberty would obviously be a part of it, something that we pointed out. so again liberty would obviously be a part of it something that we pointed out But we're really looking across our organization just to make sure we have the right footprint in terms of manufacturing base, make sure that we're leveraging our scale where it makes sense. but we're really looking across our organization just to make sure we have the right footprint in terms of manufacturing base make sure that we're leveraging our scale where it makes sense And the idea is to take those dollars, you know, drop some of them to the bottom line as we've guided. and the idea is to take those dollars you know drop some of them to the bottom line as we've guided Again, we want to grow margins in 2026 and into the future. again we want to grow margins in 2026 and into the future Importantly, we want to free up differential amount of dollars that we can reinvest back into creating capabilities. We won't go into a lot of detail today, but at our main Investor Day, we'll really detail the capabilities that we're building to not only help us drive to the bottom line, so things like leveraging our scale with shared services and global purchasing, but importantly, creating capabilities that will drive our top line even faster. So things like e-commerce and digital marketing, brand building, and consumer insights, and then finally really accelerating innovation. So again, I'll let Rick touch a little bit on the dimensions of this year and into the future. But just know that this is an area that we'll continue to focus on. Importantly, we want to free up differential amount of dollars that we can reinvest back into creating capabilities. importantly we want to free up differential amount of dollars that we can reinvest back into creating capabilities We won't go into a lot of detail today, but at our main Investor Day, we'll really detail the capabilities that we're building to not only help us drive to the bottom line, so things like leveraging our scale with shared services and global purchasing, but importantly, creating capabilities that will drive our top line even faster. we won't go into a lot of detail today but at our main investor day we'll really detail the capabilities that we're building to not only help us drive to the bottom line so things like leveraging our scale with shared services and global purchasing but importantly creating capabilities that will drive our top line even faster So things like e-commerce and digital marketing, brand building, and consumer insights, and then finally really accelerating innovation. so things like e-commerce and digital marketing brand building and consumer insights and then finally really accelerating innovation So again, I'll let Rick touch a little bit on the dimensions of this year and into the future. so again i'll let rick touch a little bit on the dimensions of this year and into the future But just know that this is an area that we'll continue to focus on. but just know that this is an area that we'll continue to focus on We're gonna continue to drive hard from a cost standpoint, just because we do want to keep growing our margins and keep investing in our capabilities as well. We're gonna continue to drive hard from a cost standpoint, just because we do want to keep growing our margins and keep investing in our capabilities as well. we're gonna continue to drive hard from a cost standpoint just because we do want to keep growing our margins and keep investing in our capabilities as well

Speaker 9: Yeah, Mike, with regards to restructuring and timing, so as you—as we indicated in our prepared remarks, we took a charge of about $18 million in Q4 of 2025, and we expect about $50 million of charges here in 2026. So we've embarked on restructuring actions, and we were highlighting this for a couple of reasons. One is because it's more significant than Masco has done in the recent past in terms of the extent of restructuring, all for the reasons that John mentioned in terms of the overall market dynamics, volume, et cetera. In terms of the... and it's broad-based in nature. I would say in terms of benefits, those restructuring actions are gonna take hold as we move through 2026. They're contemplated within our guidance, and we do have some margin expansion contemplated in our guidance for 2026. Yeah, Mike, with regards to restructuring and timing, so as you—as we indicated in our prepared remarks, we took a charge of about $18 million in Q4 of 2025, and we expect about $50 million of charges here in 2026. yeah mike with regards to restructuring and timing so as you—as we indicated in our prepared remarks we took a charge of about $18 million in q4 of 2025 and we expect about $50 million of charges here in 2026 So we've embarked on restructuring actions, and we were highlighting this for a couple of reasons. so we've embarked on restructuring actions and we were highlighting this for a couple of reasons One is because it's more significant than Masco has done in the recent past in terms of the extent of restructuring, all for the reasons that John mentioned in terms of the overall market dynamics, volume, et cetera. one is because it's more significant than masco has done in the recent past in terms of the extent of restructuring all for the reasons that john mentioned in terms of the overall market dynamics volume et cetera In terms of the... and it's broad-based in nature. in terms of the and it's broad-based in nature I would say in terms of benefits, those restructuring actions are gonna take hold as we move through 2026. i would say in terms of benefits those restructuring actions are gonna take hold as we move through 2026 They're contemplated within our guidance, and we do have some margin expansion contemplated in our guidance for 2026. they're contemplated within our guidance and we do have some margin expansion contemplated in our guidance for 2026 The full benefit will be realized as we get into 2027 and 2028. As John indicated, we'll provide more visibility in terms of our margin expectations as we get into our discussion at Investor Day in May. The full benefit will be realized as we get into 2027 and 2028. the full benefit will be realized as we get into 2027 and 2028 As John indicated, we'll provide more visibility in terms of our margin expectations as we get into our discussion at Investor Day in May. as john indicated we'll provide more visibility in terms of our margin expectations as we get into our discussion at investor day in may

Speaker 6: Okay. I appreciate that. I guess secondly, just to follow up on the earlier question around raw materials and where copper prices are today. You said, obviously, that, you know, your 2026 guide contemplates or reflects, you know, that you're aware of what's going on in the markets. Just, you know, a little - just for a little clarity's sake, does that imply that, you know, if copper prices today - if copper prices of today were to hold, that would be, in effect, a neutral impact on, let's say, the second half of the year because there is a lag? Or would there need to be some additional adjustments taken to make sure that you can, you know, achieve the guidance that you've laid out? Okay. okay I appreciate that. i appreciate that I guess secondly, just to follow up on the earlier question around raw materials and where copper prices are today. i guess secondly just to follow up on the earlier question around raw materials and where copper prices are today You said, obviously, that, you know, your 2026 guide contemplates or reflects, you know, that you're aware of what's going on in the markets. you said obviously that you know your 2026 guide contemplates or reflects you know that you're aware of what's going on in the markets Just, you know, a little - just for a little clarity's sake, does that imply that, you know, if copper prices today - if copper prices of today were to hold, that would be, in effect, a neutral impact on, let's say, the second half of the year because there is a lag? just you know a little - just for a little clarity's sake does that imply that you know if copper prices today - if copper prices of today were to hold that would be in effect a neutral impact on let's say the second half of the year because there is a lag Or would there need to be some additional adjustments taken to make sure that you can, you know, achieve the guidance that you've laid out? or would there need to be some additional adjustments taken to make sure that you can you know achieve the guidance that you've laid out

Speaker 9: Yeah, Mike, without giving you a specific figure in terms of what we've pegged our plan at, what I can say is we have contemplated elevated copper prices. We haven't contemplated copper prices at the levels that they've reached in the recent past, like above $6 per pound from a COMEX perspective. But that's something that we continue to monitor. We do have, as I mentioned earlier to Matt's question, a bit of a delay with regards to when it impacts our P&L. So it does give us the opportunity to respond, whether it's through further cost actions or pricing, to mitigate those impacts. And so that's something that we continue to monitor, and we've demonstrated the ability to offset these types of headwinds in the past. Yeah, Mike, without giving you a specific figure in terms of what we've pegged our plan at, what I can say is we have contemplated elevated copper prices. yeah mike without giving you a specific figure in terms of what we've pegged our plan at what i can say is we have contemplated elevated copper prices We haven't contemplated copper prices at the levels that they've reached in the recent past, like above $6 per pound from a COMEX perspective. we haven't contemplated copper prices at the levels that they've reached in the recent past like above $6 per pound from a comex perspective But that's something that we continue to monitor. but that's something that we continue to monitor We do have, as I mentioned earlier to Matt's question, a bit of a delay with regards to when it impacts our P&L. we do have as i mentioned earlier to matt's question a bit of a delay with regards to when it impacts our p&l So it does give us the opportunity to respond, whether it's through further cost actions or pricing, to mitigate those impacts. so it does give us the opportunity to respond whether it's through further cost actions or pricing to mitigate those impacts And so that's something that we continue to monitor, and we've demonstrated the ability to offset these types of headwinds in the past. and so that's something that we continue to monitor and we've demonstrated the ability to offset these types of headwinds in the past And so it may not be one for one from a timing perspective, and there might be both risk and upside relative to our, to the copper assumption. But we do, we do monitor very closely, and we do take action accordingly. And so it may not be one for one from a timing perspective, and there might be both risk and upside relative to our, to the copper assumption. and so it may not be one for one from a timing perspective and there might be both risk and upside relative to our to the copper assumption But we do, we do monitor very closely, and we do take action accordingly. but we do we do monitor very closely and we do take action accordingly

Speaker 3: Yeah. I would just say, Mike, look, it's one of many risks and opportunities that we continue to look at. So I, I would say we feel good about where the call is today. If, if it moves materially, we'll, we'll take actions to make sure we mitigate it. Yeah. yeah I would just say, Mike, look, it's one of many risks and opportunities that we continue to look at. i would just say mike look it's one of many risks and opportunities that we continue to look at So I, I would say we feel good about where the call is today. so i i would say we feel good about where the call is today If, if it moves materially, we'll, we'll take actions to make sure we mitigate it. if if it moves materially we'll we'll take actions to make sure we mitigate it

Speaker 6: Great. Thanks so much. Great. great Thanks so much. thanks so much

Speaker 7: Your next call comes from Susan Maklari of Goldman Sachs. Please go ahead. Your next call comes from Susan Maklari of Goldman Sachs. your next call comes from susan maklari of goldman sachs Please go ahead. please go ahead

Speaker 13: Thank you. Good morning, everyone. Thank you. thank you Good morning, everyone. good morning everyone

Speaker 3: Good morning. Good morning. good morning

Speaker 13: Good morning. Building on your recent comments to Mike's questions, can you talk a bit about the executive committee that you formed there, some of the initiatives that you're gonna be really focused on as you think about driving that growth, and anything specific that we should be focused on for 2026 as it relates to that? Good morning. good morning Building on your recent comments to Mike's questions, can you talk a bit about the executive committee that you formed there, some of the initiatives that you're gonna be really focused on as you think about driving that growth, and anything specific that we should be focused on for 2026 as it relates to that? building on your recent comments to mike's questions can you talk a bit about the executive committee that you formed there some of the initiatives that you're gonna be really focused on as you think about driving that growth and anything specific that we should be focused on for 2026 as it relates to that

Speaker 3: Yeah, Sue, this is John. I'm happy to take that question. I'm excited about the new executive committee, and really, it was designed to do two things. One, allow us to get closer to the business. As we all know, the world's moving faster than ever before, including our consumers and customers, and we wanted to bring our four big BU leaders onto the senior team of the company. That's the first time we've done that at Masco. Their businesses make up more than 80% of our total business. And we meet at least weekly. We talk about what's working, what's not, where there's challenges, and we're flowing resources to those challenges more quickly than we have in the past. And again, just being really in touch with the business is what we're shooting for. Yeah, Sue, this is John. yeah sue this is john I'm happy to take that question. i'm happy to take that question I'm excited about the new executive committee, and really, it was designed to do two things. i'm excited about the new executive committee and really it was designed to do two things One, allow us to get closer to the business. one allow us to get closer to the business As we all know, the world's moving faster than ever before, including our consumers and customers, and we wanted to bring our four big BU leaders onto the senior team of the company. as we all know the world's moving faster than ever before including our consumers and customers and we wanted to bring our four big bu leaders onto the senior team of the company That's the first time we've done that at Masco. that's the first time we've done that at masco Their businesses make up more than 80% of our total business. their businesses make up more than 80% of our total business And we meet at least weekly. and we meet at least weekly We talk about what's working, what's not, where there's challenges, and we're flowing resources to those challenges more quickly than we have in the past. we talk about what's working what's not where there's challenges and we're flowing resources to those challenges more quickly than we have in the past And again, just being really in touch with the business is what we're shooting for. and again just being really in touch with the business is what we're shooting for In addition to that, Behr is now reporting directly to me, as, you know, they deal with our largest customer. I think that helps with decision-making. It helps me be really in tune with what's happening on that important business, as well as with our most important and largest customer as well. In addition to that, the goal is to leverage our scale better. Masco has a long history of driving a lot of success. We've done that in a very decentralized way. What I would say is, I don't plan to centralize this company. That's not the goal at all, but the goal is to really leverage our scale where it makes sense. And to do that, we need to make sure that we do it in a smarter way. In addition to that, Behr is now reporting directly to me, as, you know, they deal with our largest customer. in addition to that behr is now reporting directly to me as you know they deal with our largest customer I think that helps with decision-making. i think that helps with decision-making It helps me be really in tune with what's happening on that important business, as well as with our most important and largest customer as well. it helps me be really in tune with what's happening on that important business as well as with our most important and largest customer as well In addition to that, the goal is to leverage our scale better. in addition to that the goal is to leverage our scale better Masco has a long history of driving a lot of success. masco has a long history of driving a lot of success We've done that in a very decentralized way. we've done that in a very decentralized way What I would say is, I don't plan to centralize this company. what i would say is i don't plan to centralize this company That's not the goal at all, but the goal is to really leverage our scale where it makes sense. that's not the goal at all but the goal is to really leverage our scale where it makes sense And to do that, we need to make sure that we do it in a smarter way. and to do that we need to make sure that we do it in a smarter way So as we build these strategies to leverage our scale, having the business unit leaders be a part of the strategy of development, and then obviously, the execution as we go to market and deploy these capabilities, things that I talked about, like digital marketing, e-commerce, and brand building, and consumer insights, and innovation. Having them to be a part of the development, I think, is really important. So our goal is to keep doing what we've done historically from a margin standpoint, keep driving margins, but probably grow a bit more quickly on the top line and bring in this growth mindset to Behr, is what we're trying to do as an executive committee. So as we build these strategies to leverage our scale, having the business unit leaders be a part of the strategy of development, and then obviously, the execution as we go to market and deploy these capabilities, things that I talked about, like digital marketing, e-commerce, and brand building, and consumer insights, and innovation. so as we build these strategies to leverage our scale having the business unit leaders be a part of the strategy of development and then obviously the execution as we go to market and deploy these capabilities things that i talked about like digital marketing e-commerce and brand building and consumer insights and innovation Having them to be a part of the development, I think, is really important. having them to be a part of the development i think is really important So our goal is to keep doing what we've done historically from a margin standpoint, keep driving margins, but probably grow a bit more quickly on the top line and bring in this growth mindset to Behr, is what we're trying to do as an executive committee. so our goal is to keep doing what we've done historically from a margin standpoint keep driving margins but probably grow a bit more quickly on the top line and bring in this growth mindset to behr is what we're trying to do as an executive committee

Speaker 13: ... Yeah. Okay, that, that's great color. And then turning to the cash flow side of the business, you guided for working capital to come down a bit, 16.5% of sales this year. Can you talk about the path of getting there, further potential upside to that as, as conditions perhaps normalize? And then how we should be thinking about what that means for overall cash generation and the uses of that cash? ... Yeah. yeah Okay, that, that's great color. okay that that's great color And then turning to the cash flow side of the business, you guided for working capital to come down a bit, 16.5% of sales this year. and then turning to the cash flow side of the business you guided for working capital to come down a bit 16.5% of sales this year Can you talk about the path of getting there, further potential upside to that as, as conditions perhaps normalize? can you talk about the path of getting there further potential upside to that as as conditions perhaps normalize And then how we should be thinking about what that means for overall cash generation and the uses of that cash? and then how we should be thinking about what that means for overall cash generation and the uses of that cash

Speaker 9: Sure, Sue, it's Rick. So with regards to working capital, as you may recall, and I believe I mentioned this in my prepared remarks as well, 2025 working capital was adversely impacted by the tariff dynamic. And what I mean by that is a couple of folds. One is, as cost bled into our inventory and as pricing bled into our receivables, that inflated our working capital ratios. Also, from a payment timing perspective, tariffs are due on shorter payment terms than our regular vendor payables, and so that shortened our payable days as well. And so those impacts took hold in 2025 and were adverse impact in terms of our working capital dynamics. In 2026, we expect more of a return to normalization. Sure, Sue, it's Rick. sure sue it's rick So with regards to working capital, as you may recall, and I believe I mentioned this in my prepared remarks as well, 2025 working capital was adversely impacted by the tariff dynamic. so with regards to working capital as you may recall and i believe i mentioned this in my prepared remarks as well 2025 working capital was adversely impacted by the tariff dynamic And what I mean by that is a couple of folds. and what i mean by that is a couple of folds One is, as cost bled into our inventory and as pricing bled into our receivables, that inflated our working capital ratios. one is as cost bled into our inventory and as pricing bled into our receivables that inflated our working capital ratios Also, from a payment timing perspective, tariffs are due on shorter payment terms than our regular vendor payables, and so that shortened our payable days as well. also from a payment timing perspective tariffs are due on shorter payment terms than our regular vendor payables and so that shortened our payable days as well And so those impacts took hold in 2025 and were adverse impact in terms of our working capital dynamics. and so those impacts took hold in 2025 and were adverse impact in terms of our working capital dynamics In 2026, we expect more of a return to normalization. in 2026 we expect more of a return to normalization There'll be some residual implications, of course, for the tariffs, but 16.5% is more where we've run historically. And so that's more of a normalization, I would call it, with regards to our working capital. From an overall cash, cash allocation perspective, our capital allocation framework, as you know, has not changed, and we're consistently deploying capital as we've done in the past. And that's, number one, first and foremost, investing in the business. And we guided to an expectation of approximately $190 million of capital expenditures in 2026. Second is an investment-grade credit rating, which we have securely in place, you know. There'll be some residual implications, of course, for the tariffs, but 16.5% is more where we've run historically. there'll be some residual implications of course for the tariffs but 16.5% is more where we've run historically And so that's more of a normalization, I would call it, with regards to our working capital. and so that's more of a normalization i would call it with regards to our working capital From an overall cash, cash allocation perspective, our capital allocation framework, as you know, has not changed, and we're consistently deploying capital as we've done in the past. from an overall cash cash allocation perspective our capital allocation framework as you know has not changed and we're consistently deploying capital as we've done in the past And that's, number one, first and foremost, investing in the business. and that's number one first and foremost investing in the business And we guided to an expectation of approximately $190 million of capital expenditures in 2026. and we guided to an expectation of approximately $190 million of capital expenditures in 2026 Second is an investment-grade credit rating, which we have securely in place, you know. second is an investment-grade credit rating which we have securely in place you know Third is a relevant dividend, and as John and I both mentioned, we got support from the board to increase our dividend 3% to $1.28 per share for 2026. And then all available cash that we don't deploy to capital investments or to the dividend are available for share buybacks or M&A activity. And we indicated our expectation is that number would be about $600 million for 2026. Third is a relevant dividend, and as John and I both mentioned, we got support from the board to increase our dividend 3% to $1.28 per share for 2026. third is a relevant dividend and as john and i both mentioned we got support from the board to increase our dividend 3% to $1.28 per share for 2026 And then all available cash that we don't deploy to capital investments or to the dividend are available for share buybacks or M&A activity. and then all available cash that we don't deploy to capital investments or to the dividend are available for share buybacks or m&a activity And we indicated our expectation is that number would be about $600 million for 2026. and we indicated our expectation is that number would be about $600 million for 2026

Speaker 13: Okay. Thanks for the color, and good luck with the quarter. Okay. okay Thanks for the color, and good luck with the quarter. thanks for the color and good luck with the quarter

Speaker 9: Great. Thanks, Sue. Great. great Thanks, Sue. thanks sue

Speaker 3: Thanks, Sue. Thanks, Sue. thanks sue

Speaker 7: Your next question comes from John Lovallo of UBS. Please go ahead. Your next question comes from John Lovallo of UBS. your next question comes from john lovallo of ubs Please go ahead. please go ahead

Speaker 2: Good morning, guys. Thanks for taking my questions as well here. The first one, just on Liberty Hardware. It looks like the operating margin was kind of mid- to high single digits in 2025, and I'm sure that was impacted by tariffs, but that compares to sort of 16%-17% in 2024. So I guess the question is, you know, what are your expectations for Liberty Hardware margin embedded in the plumbing outlook? And can you remind us why this business is still considered core? Good morning, guys. good morning guys Thanks for taking my questions as well here. thanks for taking my questions as well here The first one, just on Liberty Hardware. the first one just on liberty hardware It looks like the operating margin was kind of mid- to high single digits in 2025, and I'm sure that was impacted by tariffs, but that compares to sort of 16%-17% in 2024. it looks like the operating margin was kind of mid- to high single digits in 2025 and i'm sure that was impacted by tariffs but that compares to sort of 16%-17% in 2024 So I guess the question is, you know, what are your expectations for Liberty Hardware margin embedded in the plumbing outlook? so i guess the question is you know what are your expectations for liberty hardware margin embedded in the plumbing outlook And can you remind us why this business is still considered core? and can you remind us why this business is still considered core

Speaker 9: Sure, John, it's Rick. So we typically do not comment on individual business unit performance, but obviously, with the shift of Liberty Hardware from our decorative architectural segment to our plumbing segment, it creates a bit more visibility. And as you noted, our, our margins were adversely impacted in 2025. And that's really, I would say, primarily driven by a couple things. The volumes were a bit challenged, but really even more than that, from a profit margin perspective, we, we were hit significantly by tariff and the glass anti-dumping duties. And just as a reminder, the glass anti-dumping duties impact our shower door sourcing, and that was at a rate of 323%. Sure, John, it's Rick. sure john it's rick So we typically do not comment on individual business unit performance, but obviously, with the shift of Liberty Hardware from our decorative architectural segment to our plumbing segment, it creates a bit more visibility. so we typically do not comment on individual business unit performance but obviously with the shift of liberty hardware from our decorative architectural segment to our plumbing segment it creates a bit more visibility And as you noted, our, our margins were adversely impacted in 2025. and as you noted our our margins were adversely impacted in 2025 And that's really, I would say, primarily driven by a couple things. and that's really i would say primarily driven by a couple things The volumes were a bit challenged, but really even more than that, from a profit margin perspective, we, we were hit significantly by tariff and the glass anti-dumping duties. the volumes were a bit challenged but really even more than that from a profit margin perspective we we were hit significantly by tariff and the glass anti-dumping duties And just as a reminder, the glass anti-dumping duties impact our shower door sourcing, and that was at a rate of 323%. and just as a reminder the glass anti-dumping duties impact our shower door sourcing and that was at a rate of 323% So needless to say, the team has been proactively working to mitigate and change our sourcing footprint to address that duty impact, and we're making good progress on that, and that will be something that we mitigate over the course of 2026. As it pertains to Liberty overall, Liberty is a core part of our business. As John noted in his comments, over half of the sales of Liberty are branded Delta. There's a great product complement, portfolio complement that Liberty possesses in terms of kitchen and bath hardware and shower doors, that we're really excited will be even more successful with regard-when we integrate it into Delta in 2026. So needless to say, the team has been proactively working to mitigate and change our sourcing footprint to address that duty impact, and we're making good progress on that, and that will be something that we mitigate over the course of 2026. so needless to say the team has been proactively working to mitigate and change our sourcing footprint to address that duty impact and we're making good progress on that and that will be something that we mitigate over the course of 2026 As it pertains to Liberty overall, Liberty is a core part of our business. as it pertains to liberty overall liberty is a core part of our business As John noted in his comments, over half of the sales of Liberty are branded Delta. as john noted in his comments over half of the sales of liberty are branded delta There's a great product complement, portfolio complement that Liberty possesses in terms of kitchen and bath hardware and shower doors, that we're really excited will be even more successful with regard-when we integrate it into Delta in 2026. there's a great product complement portfolio complement that liberty possesses in terms of kitchen and bath hardware and shower doors that we're really excited will be even more successful with regard-when we integrate it into delta in 2026

Speaker 2: Got it. And then on the paint sales side, I think you guys talked about paint being down 15%, but you called out a couple sort of one-time item, items, if you will, the inventory timing and the customer transition of primer and applicator businesses. Can you just help sort of break out the impact of each of those two factors in that number? Got it. got it And then on the paint sales side, I think you guys talked about paint being down 15%, but you called out a couple sort of one-time item, items, if you will, the inventory timing and the customer transition of primer and applicator businesses. and then on the paint sales side i think you guys talked about paint being down 15% but you called out a couple sort of one-time item items if you will the inventory timing and the customer transition of primer and applicator businesses Can you just help sort of break out the impact of each of those two factors in that number? can you just help sort of break out the impact of each of those two factors in that number

Speaker 9: Sure, John. So you're right. We identified a couple of items that provided a bit of impact in Q4. What I would say is not new news is the inventory channel build in Q4 2024 that we experienced, and we had flagged as a favorable impact in Q4 2024 and an unfavorable comparison as we look at Q4 2025. That had about a mid-single-digit impact in terms of our volume and sales for the business on a year-over-year basis. And then with regards to the transition of the primer and applicator business from one of our customers, that had about a single-digit impact in terms of sales in the quarter. So we thought it was appropriate to adjust those out as it pertains to providing a more representative picture of our performance during the quarter. Sure, John. sure john So you're right. so you're right We identified a couple of items that provided a bit of impact in Q4. we identified a couple of items that provided a bit of impact in q4 What I would say is not new news is the inventory channel build in Q4 2024 that we experienced, and we had flagged as a favorable impact in Q4 2024 and an unfavorable comparison as we look at Q4 2025. what i would say is not new news is the inventory channel build in q4 2024 that we experienced and we had flagged as a favorable impact in q4 2024 and an unfavorable comparison as we look at q4 2025 That had about a mid-single-digit impact in terms of our volume and sales for the business on a year-over-year basis. that had about a mid-single-digit impact in terms of our volume and sales for the business on a year-over-year basis And then with regards to the transition of the primer and applicator business from one of our customers, that had about a single-digit impact in terms of sales in the quarter. and then with regards to the transition of the primer and applicator business from one of our customers that had about a single-digit impact in terms of sales in the quarter So we thought it was appropriate to adjust those out as it pertains to providing a more representative picture of our performance during the quarter. so we thought it was appropriate to adjust those out as it pertains to providing a more representative picture of our performance during the quarter Our performance during the quarter, quite frankly, when you strip out some of those impacts, is in line with what we saw through the course of the calendar year 2025, which was down high single digits in terms of DIY and up low single digits in terms of Pro. We expect, as John have articulated, an improvement in that trend rate as we move into 2026 in terms of overall paint sales being roughly flat year-over-year, with DIY down mid-single digits and Pro up mid-single digits. Our performance during the quarter, quite frankly, when you strip out some of those impacts, is in line with what we saw through the course of the calendar year 2025, which was down high single digits in terms of DIY and up low single digits in terms of Pro. our performance during the quarter quite frankly when you strip out some of those impacts is in line with what we saw through the course of the calendar year 2025 which was down high single digits in terms of diy and up low single digits in terms of pro We expect, as John have articulated, an improvement in that trend rate as we move into 2026 in terms of overall paint sales being roughly flat year-over-year, with DIY down mid-single digits and Pro up mid-single digits. we expect as john have articulated an improvement in that trend rate as we move into 2026 in terms of overall paint sales being roughly flat year-over-year with diy down mid-single digits and pro up mid-single digits

Speaker 2: Got it. Thank you, guys. Got it. got it Thank you, guys. thank you guys

Speaker 9: Sure, John. Sure, John. sure john

Speaker 3: Thanks, John. Thanks, John. thanks john

Speaker 7: Your next question comes from Sam Reid of Wells Fargo. Please go ahead. Your next question comes from Sam Reid of Wells Fargo. your next question comes from sam reid of wells fargo Please go ahead. please go ahead

Speaker 11: ... Thanks, everyone. I just wanted to circle back on the mid-single-digit plumbing pricing for 2026. If you could just disaggregate in your outlook between wholesale and retail channel pricing, would just love some perspective on how potentially those retail conversations are going, and also just how you might be managing price gaps that might be evolving between wholesale and retail and plumbing. ... Thanks, everyone. thanks everyone I just wanted to circle back on the mid-single-digit plumbing pricing for 2026. i just wanted to circle back on the mid-single-digit plumbing pricing for 2026 If you could just disaggregate in your outlook between wholesale and retail channel pricing, would just love some perspective on how potentially those retail conversations are going, and also just how you might be managing price gaps that might be evolving between wholesale and retail and plumbing. if you could just disaggregate in your outlook between wholesale and retail channel pricing would just love some perspective on how potentially those retail conversations are going and also just how you might be managing price gaps that might be evolving between wholesale and retail and plumbing

Speaker 3: Sam, this is John. I'll take a crack at this. So, you know, I would say, in terms of pricing and plumbing, we feel good about where we are today, and the conversations we have with customers are being, you know, constructive. As you can imagine, customers don't love pricing no matter the environment, so we always have to give good justification for it, and we're working through that as we speak right now. We won't get into, you know, channel by channel. Sam, this is John. sam this is john I'll take a crack at this. i'll take a crack at this So, you know, I would say, in terms of pricing and plumbing, we feel good about where we are today, and the conversations we have with customers are being, you know, constructive. so you know i would say in terms of pricing and plumbing we feel good about where we are today and the conversations we have with customers are being you know constructive As you can imagine, customers don't love pricing no matter the environment, so we always have to give good justification for it, and we're working through that as we speak right now. as you can imagine customers don't love pricing no matter the environment so we always have to give good justification for it and we're working through that as we speak right now We won't get into, you know, channel by channel. we won't get into you know channel by channel It's just not something that we really guide to, but I can tell you that we're putting some good discipline in place in terms of our strategic revenue management approach, and that means just having strategies by channel, making sure that we have, you know, a good idea of price elasticity and where we stand versus our competitors. I think at the end of the day, what you really want to do is keep growing your business while you take price. Clearly, we're doing that. We're growing nicely. We're growing share in the category. Part of that is just being competitive, which we believe we are, and it's also about building your brands and about innovating. It's just not something that we really guide to, but I can tell you that we're putting some good discipline in place in terms of our strategic revenue management approach, and that means just having strategies by channel, making sure that we have, you know, a good idea of price elasticity and where we stand versus our competitors. it's just not something that we really guide to but i can tell you that we're putting some good discipline in place in terms of our strategic revenue management approach and that means just having strategies by channel making sure that we have you know a good idea of price elasticity and where we stand versus our competitors I think at the end of the day, what you really want to do is keep growing your business while you take price. i think at the end of the day what you really want to do is keep growing your business while you take price Clearly, we're doing that. clearly we're doing that We're growing nicely. we're growing nicely We're growing share in the category. we're growing share in the category Part of that is just being competitive, which we believe we are, and it's also about building your brands and about innovating. part of that is just being competitive which we believe we are and it's also about building your brands and about innovating So we feel good about where we are from a, you know, pricing standpoint for sure, but more importantly, just a business standpoint, particularly on our plumbing business in North America. Our Delta team, I think, did a fantastic job in 2025, navigating an incredible number of headwinds, and we really like where we stand today. So we feel good about where we are from a, you know, pricing standpoint for sure, but more importantly, just a business standpoint, particularly on our plumbing business in North America. so we feel good about where we are from a you know pricing standpoint for sure but more importantly just a business standpoint particularly on our plumbing business in north america Our Delta team, I think, did a fantastic job in 2025, navigating an incredible number of headwinds, and we really like where we stand today. our delta team i think did a fantastic job in 2025 navigating an incredible number of headwinds and we really like where we stand today

Speaker 11: That helps. And maybe switching gears to paint. I believe in the prepared remarks, one of you mentioned, job site delivery as being a lever for the paint business. Would you love to understand how widespread job site delivery is today, perhaps the runway, and then any color on who's paying for some of the outside, trade representatives? Is that being split with Home Depot, or are you bearing those costs on the paint business? Thanks. That helps. that helps And maybe switching gears to paint. and maybe switching gears to paint I believe in the prepared remarks, one of you mentioned, job site delivery as being a lever for the paint business. i believe in the prepared remarks one of you mentioned job site delivery as being a lever for the paint business Would you love to understand how widespread job site delivery is today, perhaps the runway, and then any color on who's paying for some of the outside, trade representatives? would you love to understand how widespread job site delivery is today perhaps the runway and then any color on who's paying for some of the outside trade representatives Is that being split with Home Depot, or are you bearing those costs on the paint business? is that being split with home depot or are you bearing those costs on the paint business Thanks. thanks

Speaker 3: Yeah, absolutely. So in terms of order online and deliver the job site, it's something that's expanding. We started in our big markets where there's density of stores, 'cause we, in many cases, set up micro distribution sites that help with that distribution. So we think that there's plenty of runway left there. I won't give you a percentage, but but again, I think it's early to mid-innings on that ability to take the friction out of the system for pros. So, more to come there. And the second part of the question was? Yeah, absolutely. yeah absolutely So in terms of order online and deliver the job site, it's something that's expanding. so in terms of order online and deliver the job site it's something that's expanding We started in our big markets where there's density of stores, 'cause we, in many cases, set up micro distribution sites that help with that distribution. we started in our big markets where there's density of stores 'cause we in many cases set up micro distribution sites that help with that distribution So we think that there's plenty of runway left there. so we think that there's plenty of runway left there I won't give you a percentage, but but again, I think it's early to mid-innings on that ability to take the friction out of the system for pros. i won't give you a percentage but but again i think it's early to mid-innings on that ability to take the friction out of the system for pros So, more to come there. so more to come there And the second part of the question was? and the second part of the question was

Speaker 11: Just on the economics of your outside- Just on the economics of your outside- just on the economics of your outside-

Speaker 3: Oh, yeah. Oh, yeah. oh yeah

Speaker 11: Representatives. Representatives. representatives

Speaker 3: Yeah, I would say again, without getting into a whole lot of detail, I would say it's a true partnership, one that goes back 43 years with the Home Depot. And, in terms of how we get after this, it's some of it's joint, some of it's, you know, we invest. I would say it really depends on the initiative, but, and we like this business a lot. We're not talking about, you know, certainly, we're not talking about 2026 and what we have to do to bend the curve. Importantly, we're talking much longer in terms of the horizon, what kind of investments we need to make ourselves, what kind of investments we're gonna make jointly, to really grow this business into the future. Yeah, I would say again, without getting into a whole lot of detail, I would say it's a true partnership, one that goes back 43 years with the Home Depot. yeah i would say again without getting into a whole lot of detail i would say it's a true partnership one that goes back 43 years with the home depot And, in terms of how we get after this, it's some of it's joint, some of it's, you know, we invest. and in terms of how we get after this it's some of it's joint some of it's you know we invest I would say it really depends on the initiative, but, and we like this business a lot. i would say it really depends on the initiative but and we like this business a lot We're not talking about, you know, certainly, we're not talking about 2026 and what we have to do to bend the curve. we're not talking about you know certainly we're not talking about 2026 and what we have to do to bend the curve Importantly, we're talking much longer in terms of the horizon, what kind of investments we need to make ourselves, what kind of investments we're gonna make jointly, to really grow this business into the future. importantly we're talking much longer in terms of the horizon what kind of investments we need to make ourselves what kind of investments we're gonna make jointly to really grow this business into the future And I've been incredibly impressed with the relationship that's developed over obviously a long period, and importantly, just the candor back and forth in terms of what's working, what's not. And I have a lot of confidence that we're gonna get to a better place on paint, starting in 2026, and then really accelerate from there. And you know, the last thing I would mention is we made you know, some leadership changes at Behr over the course of the last few months as well, and really pleased with the focus and the attention on what's happening at that BU at this point. So, I'll leave it at that. Thanks. Thanks, Sam. And I've been incredibly impressed with the relationship that's developed over obviously a long period, and importantly, just the candor back and forth in terms of what's working, what's not. and i've been incredibly impressed with the relationship that's developed over obviously a long period and importantly just the candor back and forth in terms of what's working what's not And I have a lot of confidence that we're gonna get to a better place on paint, starting in 2026, and then really accelerate from there. and i have a lot of confidence that we're gonna get to a better place on paint starting in 2026 and then really accelerate from there And you know, the last thing I would mention is we made you know, some leadership changes at Behr over the course of the last few months as well, and really pleased with the focus and the attention on what's happening at that BU at this point. and you know the last thing i would mention is we made you know some leadership changes at behr over the course of the last few months as well and really pleased with the focus and the attention on what's happening at that bu at this point So, I'll leave it at that. so i'll leave it at that Thanks. thanks Thanks, Sam. thanks sam

Speaker 11: Thanks, guys. Thanks, guys. thanks guys

Speaker 7: Your next question comes from Trevor Allinson of Wolfe Research. Please go ahead. Your next question comes from Trevor Allinson of Wolfe Research. your next question comes from trevor allinson of wolfe research Please go ahead. please go ahead

Speaker 14: Good morning. Thank you for taking my questions. Another question on Dec Arch here. Margins came in a little weaker than what you're expecting in the quarter. Was that primarily volume related or drove the weaker margins? And then, just given the lower starting point, as we exit 2025, how should we think about the cadence of Dec Arch margins throughout the year in 2026? Good morning. good morning Thank you for taking my questions. thank you for taking my questions Another question on Dec Arch here. another question on dec arch here Margins came in a little weaker than what you're expecting in the quarter. margins came in a little weaker than what you're expecting in the quarter Was that primarily volume related or drove the weaker margins? was that primarily volume related or drove the weaker margins And then, just given the lower starting point, as we exit 2025, how should we think about the cadence of Dec Arch margins throughout the year in 2026? and then just given the lower starting point as we exit 2025 how should we think about the cadence of dec arch margins throughout the year in 2026

Speaker 9: Yeah, Trevor, it's Rick. So in terms of the operating profit margin implications in Q4, it was impacted by really a couple factors. One is volume. And as we articulated, there were a couple of impacts that we highlighted in Q4. Obviously, the Q4 2024 higher inventory in our channel, and then the customer transition in Q4 2025, and then just the overall market dynamics. So volume, for a number of reasons, was impacted. And then in 2025, is just as a reminder, Liberty Hardware is still part of that segment, and that was adversely impacted, as we talked about, by significant tariff in the 323% glass anti-dumping duties. And so that weighed heavily with regards to operating profit margins. Yeah, Trevor, it's Rick. yeah trevor it's rick So in terms of the operating profit margin implications in Q4, it was impacted by really a couple factors. so in terms of the operating profit margin implications in q4 it was impacted by really a couple factors One is volume. one is volume And as we articulated, there were a couple of impacts that we highlighted in Q4. and as we articulated there were a couple of impacts that we highlighted in q4 Obviously, the Q4 2024 higher inventory in our channel, and then the customer transition in Q4 2025, and then just the overall market dynamics. obviously the q4 2024 higher inventory in our channel and then the customer transition in q4 2025 and then just the overall market dynamics So volume, for a number of reasons, was impacted. so volume for a number of reasons was impacted And then in 2025, is just as a reminder, Liberty Hardware is still part of that segment, and that was adversely impacted, as we talked about, by significant tariff in the 323% glass anti-dumping duties. and then in 2025 is just as a reminder liberty hardware is still part of that segment and that was adversely impacted as we talked about by significant tariff in the 323% glass anti-dumping duties And so that weighed heavily with regards to operating profit margins. and so that weighed heavily with regards to operating profit margins Now, we've been taking price, and we've been doing mitigating actions, but those take time to take hold, and so there's an implication there in the near term as it pertains to the operating profit margin. As we roll into 2026, obviously, you have to take into account the fact that we are shifting Liberty from our decorative architectural segment to our plumbing segment. We provided a breakdown from a quarterly cadence for 2025 on a recast basis in the appendix of our earnings deck, so I'd refer you to that, and we can certainly address questions as a follow-up. But I would say that would help, I think, provide visibility in terms of our cadence, for our recast segment for decorative architectural, at least in 2025. Now, we've been taking price, and we've been doing mitigating actions, but those take time to take hold, and so there's an implication there in the near term as it pertains to the operating profit margin. now we've been taking price and we've been doing mitigating actions but those take time to take hold and so there's an implication there in the near term as it pertains to the operating profit margin As we roll into 2026, obviously, you have to take into account the fact that we are shifting Liberty from our decorative architectural segment to our plumbing segment. as we roll into 2026 obviously you have to take into account the fact that we are shifting liberty from our decorative architectural segment to our plumbing segment We provided a breakdown from a quarterly cadence for 2025 on a recast basis in the appendix of our earnings deck, so I'd refer you to that, and we can certainly address questions as a follow-up. we provided a breakdown from a quarterly cadence for 2025 on a recast basis in the appendix of our earnings deck so i'd refer you to that and we can certainly address questions as a follow-up But I would say that would help, I think, provide visibility in terms of our cadence, for our recast segment for decorative architectural, at least in 2025. but i would say that would help i think provide visibility in terms of our cadence for our recast segment for decorative architectural at least in 2025 Outside of the impacts that we just highlighted for Q4 in particular, I would say there's nothing that I would note at this point for 2026. Outside of the impacts that we just highlighted for Q4 in particular, I would say there's nothing that I would note at this point for 2026. outside of the impacts that we just highlighted for q4 in particular i would say there's nothing that i would note at this point for 2026

Speaker 14: ... Okay, okay, makes sense. Thank you for that. And then you talked about your expectations overall for the market in 2026. Can you talk about how you think Watkins performs relative to your overall plumbing portfolio this year? And then can you remind us roughly the size of that business as you exit 2025? Thanks. ... Okay, okay, makes sense. okay okay makes sense Thank you for that. thank you for that And then you talked about your expectations overall for the market in 2026. and then you talked about your expectations overall for the market in 2026 Can you talk about how you think Watkins performs relative to your overall plumbing portfolio this year? can you talk about how you think watkins performs relative to your overall plumbing portfolio this year And then can you remind us roughly the size of that business as you exit 2025? and then can you remind us roughly the size of that business as you exit 2025 Thanks. thanks

Speaker 3: Yeah, I'll take a crack at that. So, you know, we typically don't break out the use within a segment. So, but what I would say is, you know, we really like the space that Watkins plays. Wellness is very much on trend, obviously, from a consumer standpoint. You look at the categories at play, spas and hot tubs only have 5%-6% penetration in North America. We're the share leader. We have two of the major, you know, premium brands on the space in Caldera and Hot Spring. And then saunas are kind of a phenomenon right now. It's only 1% household penetration. Yeah, I'll take a crack at that. yeah i'll take a crack at that So, you know, we typically don't break out the use within a segment. so you know we typically don't break out the use within a segment So, but what I would say is, you know, we really like the space that Watkins plays. so but what i would say is you know we really like the space that watkins plays Wellness is very much on trend, obviously, from a consumer standpoint. wellness is very much on trend obviously from a consumer standpoint You look at the categories at play, spas and hot tubs only have 5%-6% penetration in North America. you look at the categories at play spas and hot tubs only have 5%-6% penetration in north america We're the share leader. we're the share leader We have two of the major, you know, premium brands on the space in Caldera and Hot Spring . we have two of the major you know premium brands on the space in caldera and hot spring And then saunas are kind of a phenomenon right now. and then saunas are kind of a phenomenon right now It's only 1% household penetration. it's only 1% household penetration If you look at pop culture at all, it's amazing how much people are talking about saunas and the benefits that come with them. So, look, it's been a bit of a mixed market over the last few years. They're bigger ticket purchases. We're exiting the year with momentum from 2025, and we feel good about our opportunities to grow, and, you know, at least in line with the plumbing segment in 2026, and probably grow even faster as we look forward, just given how much upside there is and how much on trend our products are. If you look at pop culture at all, it's amazing how much people are talking about saunas and the benefits that come with them. if you look at pop culture at all it's amazing how much people are talking about saunas and the benefits that come with them So, look, it's been a bit of a mixed market over the last few years. so look it's been a bit of a mixed market over the last few years They're bigger ticket purchases. they're bigger ticket purchases We're exiting the year with momentum from 2025, and we feel good about our opportunities to grow, and, you know, at least in line with the plumbing segment in 2026, and probably grow even faster as we look forward, just given how much upside there is and how much on trend our products are. we're exiting the year with momentum from 2025 and we feel good about our opportunities to grow and you know at least in line with the plumbing segment in 2026 and probably grow even faster as we look forward just given how much upside there is and how much on trend our products are

Speaker 14: Thank you for all the color. Good luck moving forward. Thank you for all the color. thank you for all the color Good luck moving forward. good luck moving forward

Speaker 3: Thank you. Thank you. thank you

Speaker 9: Thanks, Trevor. Thanks, Trevor. thanks trevor

Speaker 3: Thanks, Trevor. Thanks, Trevor. thanks trevor

Speaker 7: Next question is from Mike Dahl of RBC Capital Markets. Please go ahead. Next question is from Mike Dahl of RBC Capital Markets. next question is from mike dahl of rbc capital markets Please go ahead. please go ahead

Speaker 5: Morning. Thanks for taking my questions. First one, just to drill down into the plumbing guidance one more time. I think if you're up low single digits with mid-single digit price, so you're implying volumes down low singles. I think you ended up the year with volumes kind of closer to flat in plumbing. So can you just kind of dive into that a little bit more in terms of changes in your volume expectations versus what you've seen in recent trends in plumbing? Morning. morning Thanks for taking my questions. thanks for taking my questions First one, just to drill down into the plumbing guidance one more time. first one just to drill down into the plumbing guidance one more time I think if you're up low single digits with mid-single digit price, so you're implying volumes down low singles. i think if you're up low single digits with mid-single digit price so you're implying volumes down low singles I think you ended up the year with volumes kind of closer to flat in plumbing. i think you ended up the year with volumes kind of closer to flat in plumbing So can you just kind of dive into that a little bit more in terms of changes in your volume expectations versus what you've seen in recent trends in plumbing? so can you just kind of dive into that a little bit more in terms of changes in your volume expectations versus what you've seen in recent trends in plumbing

Speaker 9: Sure, Mike, it's Rick. And in your dissection of our 2026 guide is accurate. So we are guiding in terms of our plumbing volumes to be down low single digits. That are partially offsetting the mid-single-digit pricing, we expect overall plumbing sales to be up low single digits in 2026. As we looked back on 2025 in terms of our performance, we saw some of that pricing take hold in the latter part of the year, but from a volume perspective, we were down, depending on the period, 1%-2%, from an overall plumbing volume standpoint. So effectively, we're seeing more of a continuation from a volume perspective in that same zip code. Obviously, we're investing in many areas to, as John articulated, to grow the business. Sure, Mike, it's Rick. sure mike it's rick And in your dissection of our 2026 guide is accurate. and in your dissection of our 2026 guide is accurate So we are guiding in terms of our plumbing volumes to be down low single digits. so we are guiding in terms of our plumbing volumes to be down low single digits That are partially offsetting the mid-single-digit pricing, we expect overall plumbing sales to be up low single digits in 2026. that are partially offsetting the mid-single-digit pricing we expect overall plumbing sales to be up low single digits in 2026 As we looked back on 2025 in terms of our performance, we saw some of that pricing take hold in the latter part of the year, but from a volume perspective, we were down, depending on the period, 1%-2%, from an overall plumbing volume standpoint. as we looked back on 2025 in terms of our performance we saw some of that pricing take hold in the latter part of the year but from a volume perspective we were down depending on the period 1%-2% from an overall plumbing volume standpoint So effectively, we're seeing more of a continuation from a volume perspective in that same zip code. so effectively we're seeing more of a continuation from a volume perspective in that same zip code Obviously, we're investing in many areas to, as John articulated, to grow the business. obviously we're investing in many areas to as john articulated to grow the business So we are cautiously optimistic that we can improve upon that, particularly as we move going forward, and really set ourselves up to capitalize on our growth initiatives and to capitalize when the industry does return to growth, both from a volume and a price perspective. So we are cautiously optimistic that we can improve upon that, particularly as we move going forward, and really set ourselves up to capitalize on our growth initiatives and to capitalize when the industry does return to growth, both from a volume and a price perspective. so we are cautiously optimistic that we can improve upon that particularly as we move going forward and really set ourselves up to capitalize on our growth initiatives and to capitalize when the industry does return to growth both from a volume and a price perspective

Speaker 5: Okay, got it. That's helpful, Rick. And then, I guess somewhat similar, but shifting to Delta, you know, volumes were really down all year. They've been down for a couple of years, and even adjusting for the one-timers. So in terms of just the level of confidence or conviction getting to flat for this year, when it doesn't sound like you're assuming anything heroic from existing home sales, just give us a little more insight into what you've seen in recent trends or the conversations you've had that give you that confidence that we'll improve back to flat. Okay, got it. okay got it That's helpful, Rick. that's helpful rick And then, I guess somewhat similar, but shifting to Delta, you know, volumes were really down all year. and then i guess somewhat similar but shifting to delta you know volumes were really down all year They've been down for a couple of years, and even adjusting for the one-timers. they've been down for a couple of years and even adjusting for the one-timers So in terms of just the level of confidence or conviction getting to flat for this year, when it doesn't sound like you're assuming anything heroic from existing home sales, just give us a little more insight into what you've seen in recent trends or the conversations you've had that give you that confidence that we'll improve back to flat. so in terms of just the level of confidence or conviction getting to flat for this year when it doesn't sound like you're assuming anything heroic from existing home sales just give us a little more insight into what you've seen in recent trends or the conversations you've had that give you that confidence that we'll improve back to flat

Speaker 3: Yeah. This is, this is John, Mike. I mean, I think, I think 2025 had a lot of challenging comps, you know, with the inventory build at the end of 2024, the exclusivity on primer and applicators. So the comps certainly become more favorable, so that's one thing that's real. I would say in addition to that, I think focusing on what we can control. And from our side, we can focus on building our brand and really communicating the message that we've got the best quality and the best value in the category. I think particularly in this environment, the value messaging is something that can be compelling, so we're going to step that up. Yeah. yeah This is, this is John, Mike. this is this is john mike I mean, I think, I think 2025 had a lot of challenging comps, you know, with the inventory build at the end of 2024, the exclusivity on primer and applicators. i mean i think i think 2025 had a lot of challenging comps you know with the inventory build at the end of 2024 the exclusivity on primer and applicators So the comps certainly become more favorable, so that's one thing that's real. so the comps certainly become more favorable so that's one thing that's real I would say in addition to that, I think focusing on what we can control. i would say in addition to that i think focusing on what we can control And from our side, we can focus on building our brand and really communicating the message that we've got the best quality and the best value in the category. and from our side we can focus on building our brand and really communicating the message that we've got the best quality and the best value in the category I think particularly in this environment, the value messaging is something that can be compelling, so we're going to step that up. i think particularly in this environment the value messaging is something that can be compelling so we're going to step that up I can also tell you that we are very aligned with The Home Depot in terms of our strategies and really making sure that we get every bit of growth we can out of 2026. So as we talked, we don't think the market's going to necessarily spring back to historical growth levels in 2026, but we feel good that we're gonna execute at a high level and certainly see, you know, some better trends just because the comps are a bit easier for us in 2026 as well. I can also tell you that we are very aligned with The Home Depot in terms of our strategies and really making sure that we get every bit of growth we can out of 2026. i can also tell you that we are very aligned with the home depot in terms of our strategies and really making sure that we get every bit of growth we can out of 2026 So as we talked, we don't think the market's going to necessarily spring back to historical growth levels in 2026, but we feel good that we're gonna execute at a high level and certainly see, you know, some better trends just because the comps are a bit easier for us in 2026 as well. so as we talked we don't think the market's going to necessarily spring back to historical growth levels in 2026 but we feel good that we're gonna execute at a high level and certainly see you know some better trends just because the comps are a bit easier for us in 2026 as well

Speaker 5: Got it. Okay. Thanks, John. Got it. got it Okay. okay Thanks, John. thanks john

Speaker 3: Thank you. Thank you. thank you

Speaker 7: Your last question today comes from Phil Ng of Jefferies. Please go ahead. Your last question today comes from Phil Ng of Jefferies. your last question today comes from phil ng of jefferies Please go ahead. please go ahead

Speaker 8: Hey, guys. Thanks for squeezing me in. John, I think you mentioned on your Pro paint business with your partnership with The Home Depot, perhaps you're doing a trial on trade credits. Any more color on that? Is that going to be pretty broad-based, and we could see an uplift this year, or is that more of a 2027 opportunity? And with that partner growing in that Pro side of things more broadly, do you see that as an opportunity this year? Hey, guys. hey guys Thanks for squeezing me in. thanks for squeezing me in John, I think you mentioned on your Pro paint business with your partnership with The Home Depot, perhaps you're doing a trial on trade credits. john i think you mentioned on your pro paint business with your partnership with the home depot perhaps you're doing a trial on trade credits Any more color on that? any more color on that Is that going to be pretty broad-based, and we could see an uplift this year, or is that more of a 2027 opportunity? is that going to be pretty broad-based and we could see an uplift this year or is that more of a 2027 opportunity And with that partner growing in that Pro side of things more broadly, do you see that as an opportunity this year? and with that partner growing in that pro side of things more broadly do you see that as an opportunity this year

Speaker 3: Yeah, I guess what I would say is, we do believe that trade credit is an important unlock with the Pro customer. And at the same time, I would say, you know, this initiative is really being driven by The Home Depot, and I don't want to speak for them, so I know they're... We'll be talking more about this. They have talked about trade credit in the past, and I think they believe it's a big unlock as well. So I'll let them comment on just how widespread this is, but I know that for a fact that they believe it's meaningful and something that they're very committed to growing over time. Yeah, I guess what I would say is, we do believe that trade credit is an important unlock with the Pro customer. yeah i guess what i would say is we do believe that trade credit is an important unlock with the pro customer And at the same time, I would say, you know, this initiative is really being driven by The Home Depot, and I don't want to speak for them, so I know they're... and at the same time i would say you know this initiative is really being driven by the home depot and i don't want to speak for them so i know they're We'll be talking more about this. we'll be talking more about this They have talked about trade credit in the past, and I think they believe it's a big unlock as well. they have talked about trade credit in the past and i think they believe it's a big unlock as well So I'll let them comment on just how widespread this is, but I know that for a fact that they believe it's meaningful and something that they're very committed to growing over time. so i'll let them comment on just how widespread this is but i know that for a fact that they believe it's meaningful and something that they're very committed to growing over time

Speaker 8: Okay, gotcha. And then you commented about some of the momentum you saw in plumbing in 2025 with share gains, Okay, gotcha. okay gotcha And then you commented about some of the momentum you saw in plumbing in 2025 with share gains, and then you commented about some of the momentum you saw in plumbing in 2025 with share gains ... I think it was on the e-comm side in, in retail. Anything to flag when we look at the 2026? Any new placement in either of those channels or the wholesale channel as well on the, on the plumbing side? ... I think it was on the e-comm side in, in retail. i think it was on the e-comm side in in retail Anything to flag when we look at the 2026? anything to flag when we look at the 2026 Any new placement in either of those channels or the wholesale channel as well on the, on the plumbing side? any new placement in either of those channels or the wholesale channel as well on the on the plumbing side

Speaker 3: Yeah. So I would say, you know, we obviously have good visibility into particularly our retail sets and our plans for the year, and we feel like we're gonna have a really nice year in North America at retail. We've had a really incredible momentum in e-commerce over a longer arc of time, particularly led by our Delta business. You know, growing nicely and above certainly our overall average, and we feel good about the plans we have in place there as well. And look, at the end of the day, our wholesale channel remains very, very important for us, and we've got deep relationships that go back many years. Yeah. yeah So I would say, you know, we obviously have good visibility into particularly our retail sets and our plans for the year, and we feel like we're gonna have a really nice year in North America at retail. so i would say you know we obviously have good visibility into particularly our retail sets and our plans for the year and we feel like we're gonna have a really nice year in north america at retail We've had a really incredible momentum in e-commerce over a longer arc of time, particularly led by our Delta business. we've had a really incredible momentum in e-commerce over a longer arc of time particularly led by our delta business You know, growing nicely and above certainly our overall average, and we feel good about the plans we have in place there as well. you know growing nicely and above certainly our overall average and we feel good about the plans we have in place there as well And look, at the end of the day, our wholesale channel remains very, very important for us, and we've got deep relationships that go back many years. and look at the end of the day our wholesale channel remains very very important for us and we've got deep relationships that go back many years So, you know, as we've talked about this new executive committee getting closer to the business, I can tell you, we review all of these key, you know, indicators on a, on a weekly basis and feel really good about the plans we have in place from a, from a plumbing standpoint. So I feel very good that we're gonna have another nice year from a share standpoint in, in North America. And Hansgrohe, I mean, we had nice strength as well in some challenged markets, particularly in China, and believe we have plans in place to turn that. The last thing I would hit on North America, the area that's really growing the fastest is the upper premium and luxury segment of, of the category. So, you know, as we've talked about this new executive committee getting closer to the business, I can tell you, we review all of these key, you know, indicators on a, on a weekly basis and feel really good about the plans we have in place from a, from a plumbing standpoint. so you know as we've talked about this new executive committee getting closer to the business i can tell you we review all of these key you know indicators on a on a weekly basis and feel really good about the plans we have in place from a from a plumbing standpoint So I feel very good that we're gonna have another nice year from a share standpoint in, in North America. so i feel very good that we're gonna have another nice year from a share standpoint in in north america And Hansgrohe, I mean, we had nice strength as well in some challenged markets, particularly in China, and believe we have plans in place to turn that. and hansgrohe i mean we had nice strength as well in some challenged markets particularly in china and believe we have plans in place to turn that The last thing I would hit on North America, the area that's really growing the fastest is the upper premium and luxury segment of, of the category. the last thing i would hit on north america the area that's really growing the fastest is the upper premium and luxury segment of of the category We have great brands with Brizo and Newport Brass and Axor, and those are our fastest growing brands, whether it's in the United States or outside the US. They tend to be our highest margin brands, and we really like that space. In the US alone, it's over $100 million or over $1 billion in terms of a segment. So we like the momentum on our plumbing business, both in North America and around the world. We have great brands with Brizo and Newport Brass and Axor, and those are our fastest growing brands, whether it's in the United States or outside the US. we have great brands with brizo and newport brass and axor and those are our fastest growing brands whether it's in the united states or outside the us They tend to be our highest margin brands, and we really like that space. they tend to be our highest margin brands and we really like that space In the US alone, it's over $100 million or over $1 billion in terms of a segment. in the us alone it's over $100 million or over $1 billion in terms of a segment So we like the momentum on our plumbing business, both in North America and around the world. so we like the momentum on our plumbing business both in north america and around the world

Speaker 8: Okay. Thank you. Appreciate the call. Okay. okay Thank you. thank you Appreciate the call. appreciate the call

Speaker 3: Thank you. Thank you. thank you

Speaker 7: At this time, I will now turn the call back over to Robin Zondervan. Please continue. At this time, I will now turn the call back over to Robin Zondervan. at this time i will now turn the call back over to robin zondervan Please continue. please continue

Speaker 10: We'd like to thank all of you for joining us on the call this morning and for your interest in Masco. That concludes today's call. Have a wonderful day! We'd like to thank all of you for joining us on the call this morning and for your interest in Masco. we'd like to thank all of you for joining us on the call this morning and for your interest in masco That concludes today's call. that concludes today's call Have a wonderful day! have a wonderful day

Speaker 7: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect. Ladies and gentlemen, that concludes today's conference call. ladies and gentlemen that concludes today's conference call Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect