Overview Due to a dynamic geopolitical and macroeconomic environment, we are experiencing, and may continue to experience, lower market demand for our products. We have been experiencing, and may continue to experience, elevated commodity and other input costs, as well as employee-related cost inflation. Additionally, we have been experiencing, and may continue to experience, elevated costs, principally in our Plumbing Products segment, due to tariffs, particularly those related to China. We seek to mitigate the impact of elevated tariffs and other costs over time with pricing, cost savings initiatives, sourcing changes, and other activities. Consumer demand for our products, however, could further diminish if consumer confidence erodes and the price of our products and other consumer goods increases. In the first quarter of 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were unlawful. Subsequently, the U.S. Court of International Trade ordered U.S. Customs and Border Protection to refund IEEPA tariffs previously collected. During the second quarter of 2026, we began receiving refunds related to IEEPA tariffs. Additionally, as of June 30, 2026, we have recognized a receivable for tariff refunds not yet paid that are considered to be probable of collection and reasonably estimable. We plan to deliver above-market top- and bottom-line growth through a consumer driven strategy leveraging our industry-leading brands, expanded commercial capabilities, and enhanced operational excellence. We remain confident in the fundamentals of our business and long-term strategy. We believe that our strong financial position and cash flow generation, together with our investments in our industry-leading branded building products, our continued focus on innovation and customer service and disciplined capital allocation, will allow us to drive long-term growth and create value for our shareholders. From time to time, we take actions to drive efficiency in our business through the strategic rationalization of our businesses, including business consolidations, plant closures, headcount reductions and other cost savings initiatives. In the fourth quarter of 2025, we began implementing various restructuring actions to further streamline our business, reduce headcount, and optimize operations. In connection with these actions, we incurred approximately $12 million and $20 million in charges in the three and six months ended June 30, 2026, respectively, and we expect to incur approximately $50 million in charges during the full year of 2026. Additionally, in the first quarter of 2026, we began the implementation of an internal reorganization resulting in the integration of our Liberty Hardware (“Liberty”) business, a distributor of cabinet and other hardware and shower doors, into our Delta Faucet business. As a result of the integration, all segment information herein, including comparable prior periods, include Liberty in our Plumbing Products segment rather than our Decorative Architectural Products segment. SECOND QUARTER 2026 AND THE FIRST SIX MONTHS 2026 VERSUS SECOND QUARTER 2025 AND THE FIRST SIX MONTHS 2025 Consolidated Results of Operations We report our financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, we believe that certain non-GAAP financial measures used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. These non-GAAP financial measures should be considered in addition to, and not as an alternative for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Within the tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. The following discussion of consolidated results of operations refers to the three and six months ended June 30, 2026 compared to the same periods of 2025. 16 NET SALES Below is a summary of our net sales, in millions, for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Net sales, as reported $ 1,992 $ 2,051 (3) % $ 3,910 $ 3,852 2 % Currency translation (10) — (52) — Net sales, excluding the effect of currency translation $ 1,982 $ 2,051 (3) % $ 3,858 $ 3,852 — % Our net sales for the three months ended June 30, 2026, were $1,992 million, which decreased three percent compared to the three months ended June 30, 2025. Excluding the effect of currency translation, net sales decreased three percent, primarily due to lower North America sales volume, which decreased sales by five percent, partially offset by higher net selling prices across the entire company, which increased sales by one percent, and higher International sales volume, which increased sales by one percent. Our net sales for the six months ended June 30, 2026, were $3,910 million, which increased two percent compared to the six months ended June 30, 2025. Excluding the effect of currency translation, net sales were consistent with the comparative prior period, primarily due to higher net selling prices across the entire company, which increased sales by three percent, offset by lower North America sales volume, which decreased sales by three percent. RESULTS OF OPERATIONS Below is a summary of our results of operations for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Favorable / (Unfavorable) 2026 2025 Favorable / (Unfavorable) Net sales $ 1,992 $ 2,051 (3) % $ 3,910 $ 3,852 2 % Cost of sales (1,124) (1,278) 12 % (2,356) (2,435) 3 % Gross profit $ 868 $ 772 12 % $ 1,553 $ 1,416 10 % Gross margin 43.6 % 37.6 % 600 bps 39.7 % 36.8 % 290 bps Selling, general and administrative expenses $ (397) $ (361) (10) % $ (766) $ (719) (7) % Selling, general and administrative expenses as a percent of net sales (19.9) % (17.6) % (230) bps (19.6) % (18.7) % (90) bps Operating profit $ 470 $ 412 14 % $ 787 $ 698 13 % Operating profit margin 23.6 % 20.1 % 350 bps 20.1 % 18.1 % 200 bps 17 Three Months Ended June 30, 2026 Our gross profit for the three months ended June 30, 2026, was $868 million, an increase of 12 percent, and was positively impacted by lower tariff costs (inclusive of IEEPA tariff refunds), cost savings initiatives, and three percent due to higher net selling prices, partially offset by five percent due to lower sales volume, as well as higher commodity costs, an increase in other expenses, and unfavorable sales mix. Our selling, general and administrative expenses for the three months ended June 30, 2026, were $397 million, an increase of 10 percent, and were negatively impacted by six percent due to increased employee-related costs and one percent due to increased legal and professional fees, as well as an increase in other expenses. Our operating profit for the three months ended June 30, 2026, was $470 million, an increase of 14 percent, and was positively impacted by increased gross profit, partially offset by higher selling, general and administrative expenses. These results were inclusive of the net tariff benefit from IEEPA tariff refunds of approximately $95 million for the three months ended June 30, 2026, principally within the Plumbing Products segment. Six Months Ended June 30, 2026 Our gross profit for the six months ended June 30, 2026, was $1,553 million, an increase of 10 percent, and was positively impacted by eight percent due to higher net selling prices, as well as lower tariff costs (inclusive of IEEPA tariff refunds) and cost savings initiatives, partially offset by three percent due to lower sales volume, as well as higher commodity costs, an increase in other expenses, and unfavorable sales mix. Our selling, general and administrative expenses for the six months ended June 30, 2026, were $766 million, an increase of seven percent, and were negatively impacted by two percent due to increased employee-related costs, two percent due to unfavorable foreign currency translation, one percent due to increased legal and professional fees, as well as an increase in other expenses. Our operating profit for the six months ended June 30, 2026, was $787 million, an increase of 13 percent, and was positively impacted by increased gross profit, partially offset by higher selling, general and administrative expenses. These results were inclusive of the net tariff benefit from IEEPA tariff refunds of approximately $95 million for the six months ended June 30, 2026, principally within the Plumbing Products segment. OTHER INCOME (EXPENSE), NET Below is a summary of our other income (expense), net, in millions, for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Favorable / (Unfavorable) 2026 2025 Favorable / (Unfavorable) Interest expense $ (28) $ (26) (8) % $ (54) $ (52) (4) % Other, net (2) (7) 71 % (2) (14) 86 % Other income (expense), net $ (30) $ (33) 9 % $ (55) $ (66) 17 % 18 INCOME TAXES Below is a summary of our income tax expense, in millions, and our effective tax rate for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Favorable / (Unfavorable) 2026 2025 Favorable / (Unfavorable) Income tax expense $ (107) $ (95) (13)% $ (170) $ (150) (13)% Effective tax rate (24.3) % (25.1) % 80 bps (23.3) % (23.7) % 40 bps NET INCOME AND INCOME PER COMMON SHARE - ATTRIBUTABLE TO MASCO CORPORATION Below is a summary of our net income, in millions, and diluted income per common share for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Favorable / (Unfavorable) 2026 2025 Favorable / (Unfavorable) Net income $ 318 $ 270 18 % $ 531 $ 456 16 % Diluted income per common share $ 1.60 $ 1.28 25 % $ 2.64 $ 2.15 23 % Business Segment Results The following tables set forth our net sales and operating profit information by business segment, dollars in millions. Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change 2026 2025 2026 vs. 2025 2026 2025 2026 vs. 2025 Net Sales: Plumbing Products $ 1,337 $ 1,372 (3) % $ 2,700 $ 2,618 3 % Decorative Architectural Products 655 679 (4) % 1,209 1,234 (2) % Total $ 1,992 $ 2,051 (3) % $ 3,910 $ 3,852 2 % Three Months Ended June 30, Percent Change Six Months Ended June 30, Percent Change 2026 2025 2026 vs. 2025 2026 2025 2026 vs. 2025 Operating Profit: Plumbing Products $ 352 $ 285 24 % $ 595 $ 509 17 % Decorative Architectural Products 147 147 — % 251 236 6 % Total $ 499 $ 432 16 % $ 847 $ 745 14 % General corporate expense, net (29) (20) 45 % (60) (47) 28 % Total operating profit $ 470 $ 412 14 % $ 787 $ 698 13 % 19 The following discussion of business segment results refers to the three and six months ended June 30, 2026, compared to the same periods of 2025. Changes in operating profit in the following business segment results discussion exclude general corporate expense, net. BUSINESS SEGMENT RESULTS DISCUSSION Plumbing Products Sales Net sales in the Plumbing Products segment decreased three percent for the three months ended June 30, 2026, and net sales increased three percent for the six months ended June 30, 2026. In local currencies (including sales in currencies outside their respective functional currencies), net sales decreased three percent for the three months ended June 30, 2026, and increased one percent for the six months ended June 30, 2026. For the three months ended June 30, 2026, net sales decreased four percent due to lower North America sales volume, partially offset by one percent due to higher International sales volume and slightly higher net selling prices. For the six months ended June 30, 2026, net sales increased three percent due to higher net selling prices, partially offset by two percent due to lower North America sales volume. Operating Results Operating profit in the Plumbing Products segment for the three and six months ended June 30, 2026, was positively impacted by lower tariff costs (inclusive of IEEPA tariff refunds), cost savings initiatives, and higher net selling prices, partially offset by lower sales volume, higher commodity costs, unfavorable sales mix, increased employee-related costs, and an increase in other expenses. Decorative Architectural Products Sales Net sales in the Decorative Architectural Products segment decreased four percent and two percent for the three and six months ended June 30, 2026, respectively, primarily due to lower sales volume, partially offset by higher net selling prices. Operating Results Operating profit in the Decorative Architectural Products segment for the three and six months ended June 30, 2026, was positively impacted by higher net selling prices and cost savings initiatives, offset by lower sales volume and higher commodity costs. Liquidity and Capital Resources Overview of Capital Structure We had cash and cash investments of approximately $548 million and $647 million at June 30, 2026 and December 31, 2025, respectively. Our cash and cash investments consist of overnight interest bearing money market demand accounts and money market mutual funds containing government securities and treasury obligations. While we attempt to diversify these investments in a prudent manner to minimize risk, it is possible that future changes in the financial markets could affect the security or availability of these investments. Of the cash and cash investments we held at June 30, 2026 and December 31, 2025, $316 million and $306 million, respectively, was held in our foreign subsidiaries. If these funds were needed for our operations in the U.S., their repatriation into the U.S. would not result in significant additional U.S. income tax or foreign withholding tax, as we have recorded such taxes on substantially all undistributed foreign earnings, except for those that are legally restricted. 20 We believe that our present cash balance and cash flows from operations, and borrowing availability under our revolving credit agreement, are sufficient to fund our near-term working capital and other investment needs. We believe that our longer-term working capital and other general corporate requirements will be satisfied through cash flows from operations and, to the extent necessary, from bank borrowings and future financial market activities. However, due to the changing market conditions and its impact on our customers and suppliers, we are unable to fully estimate the extent of the impact that the changing market conditions may have on our future financial condition. Credit Agreement On March 20, 2026, we entered into a revolving credit agreement (the “2026 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of March 20, 2031. At our request (which may not be exercised more than two times), the maturity may be extended for an additional one-year period, in each case subject to customary terms and conditions, including the consent of lenders holding at least a majority of the commitments and outstanding credit exposure under the 2026 Credit Agreement at the time. Upon entry into the 2026 Credit Agreement, our credit agreement dated April 26, 2022, with an aggregate commitment of $1.0 billion, was terminated. Under the 2026 Credit Agreement, we may, at our option, request an increase in the aggregate commitment under the 2026 Credit Agreement of up to $500 million, subject to customary terms and conditions. See Note F to the condensed consolidated financial statements for additional information. The 2026 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. We were in compliance with all covenants and no borrowings were outstanding at June 30, 2026. Term Loan On April 21, 2026, we entered into a two year, up to $500 million senior unsecured delayed draw term loan due April 21, 2028 with a syndicate of lenders. The senior unsecured delayed draw term loan and commitments thereunder are subject to prepayment at our option and the loans will bear interest, at our option, at a rate per annum equal to (A) a U.S. dollar base rate, (B) the adjusted term SOFR rate, or (C) the adjusted daily simple SOFR rate, in each case, plus an applicable margin based upon our then-applicable corporate credit ratings. The various benchmarks are subject to applicable floors. The covenants are substantially the same as those in the 2026 Credit Agreement. We were in compliance with all covenants and $300 million was borrowed and outstanding at a weighted average interest rate of 4.499% at June 30, 2026. The borrowed funds were utilized to repurchase shares of our common stock. Other Liquidity and Capital Resource Activities As part of our ongoing efforts to improve our cash flow and related liquidity, we work with suppliers to optimize our terms and conditions, including extending payment terms. We also facilitate a voluntary supply chain finance program (the "program") to provide certain of our suppliers with the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The amounts confirmed as valid under the program and included in accounts payable were $39 million and $26 million at June 30, 2026 and December 31, 2025, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $19 million and $17 million at June 30, 2026 and December 31, 2025, respectively. All payments made under the program are recorded as a decrease in accounts payable and accrued liabilities, net, in our condensed consolidated statements of cash flows. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the program. We do not believe such risk would have a material impact on our working capital or cash flows, as substantially all of our payments are made outside of the program. 21 Share Repurchases Effective February 10, 2026, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise, replacing the previous Board of Directors authorization established in 2022. In May 2026, we entered into an accelerated share repurchase transaction whereby we agreed to repurchase a total of $300 million of our common stock with an initial delivery of approximately 3.3 million shares. This transaction was completed on July 27, 2026, at which time we received, at no additional cost, approximately 0.8 million additional shares of our common stock based on the volume weighted average stock price of our common stock over the term of the transaction, less a discount. In total, excluding the incremental shares we received in July 2026 from the accelerated share repurchase transaction, we repurchased and retired approximately 7.8 million shares of our common stock in the six months ended June 30, 2026 for approximately $596 million, inclusive of excise tax of $5 million. This included 0.4 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2026. At June 30, 2026, we had approximately $1.5 billion remaining under the 2026 authorization. Consistent with our long-term capital allocation strategy, outside of any potential acquisitions, we currently anticipate using approximately $1.0 billion of cash, including funds available under the term loan, for share repurchases in 2026. Cash Flows For the six months ended June 30, 2026, net cash provided by operations was $417 million, primarily driven by operating profit, inclusive of the net tariff benefit from IEEPA tariff refunds, partially offset by changes in working capital. For the six months ended June 30, 2026, net cash used for financing activities was $433 million, primarily due to $592 million for the repurchase and retirement of our common stock and $129 million for the payment of cash dividends, partially offset by $300 million of proceeds from the term loan. For the six months ended June 30, 2026, net cash used for investing activities was $78 million, primarily driven by $77 million of capital expenditures. 22 Cautionary Statement Concerning Forward-Looking Statements This Report contains statements that reflect our views about our future performance and constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "outlook," "believe," "anticipate," "appear," "may," "will," "should," "intend," "plan," "estimate," "expect," "assume," "seek," "forecast," and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tariffs, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise. 23 MASCO CORPORATION