Masco Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 1 raised, 2 lowered. The quarter’s numbers.

Key takeaways

Net sales fell 3 percent: Net sales were $1,917 million against $1,983 million a year earlier. Excluding divestitures and currency, net sales fell 2 percent. Source
Adjusted EPS fell 10 percent: Adjusted diluted EPS was $0.97 against $1.08 a year earlier. Reported diluted EPS was $0.90 against $0.77. Source
Decorative sales fell 12 percent: Decorative Architectural Products net sales were $670 million against $764 million. Excluding divestitures and in local currency, they fell 6 percent. Source
Adjusted gross margin fell 210 basis points: Adjusted gross margin was 34.6 percent against 36.7 percent. Reported gross margin was 34.2 percent against 36.6 percent. Source
Adjusted EPS top end lowered: Full-year adjusted EPS is now $3.90 to $3.95, against a previous $3.90 to $4.10. The low end is unchanged. Source
Reported EPS range narrowed: Full-year reported diluted EPS is $3.84 to $3.89, against a previous $3.87 to $4.07. Source

“While the near-term market conditions remained a headwind to our business, our teams continued to focus on execution to grow share and drive long-term success”
Masco President and CEO, Jon Nudi

Guidance

Area	Period	Figure	Against last quarter
Adjusted diluted EPS, full year Source	Year ended December 31, 2025	$3.90 - $3.95	Lowered from $3.90 - $4.10
Diluted EPS (reported), full year Source	Year ended December 31, 2025	$3.84 - $3.89	Lowered from $3.87 - $4.07
Rationalization charges per share (reconciling item) Source	Year ended December 31, 2025	$0.04 at low end and high end	Raised from $0.01 at low end and high end

What changed from last quarter

Guidance lowered: Full-year EPS guidance was lowered. Adjusted EPS top end moved to $3.95 from $4.10. Reported EPS range moved to $3.84 to $3.89 from $3.87 to $4.07. Source
Guidance raised: The rationalization charges adjustment in the full-year EPS reconciliation rose to $0.04 per share from $0.01 per share. Source

Third quarter results

Net sales fell 3 percent: Net sales were $1,917 million against $1,983 million a year earlier. Excluding divestitures and currency, net sales fell 2 percent. Source
Adjusted EPS fell 10 percent: Adjusted diluted EPS was $0.97 against $1.08 a year earlier. Reported diluted EPS was $0.90 against $0.77. Source
Prior-year Kichler loss excluded: The prior-year quarter included an $81 million preliminary loss on the sale of Kichler Lighting. The adjusted figures exclude this loss. Source
Operating profit down 15 percent: Operating profit was $303 million against $357 million. Reported operating margin was 15.8 percent against 18.0 percent. Source

Segments and regions

Plumbing sales rose 2 percent: Plumbing Products net sales were $1,247 million against $1,219 million. In local currency they rose 1 percent. Source
Plumbing margin fell year on year: Plumbing reported operating margin was 15.7 percent against 19.7 percent. Adjusted margin was 16.4 percent against 19.9 percent. Source
Decorative sales fell 12 percent: Decorative Architectural Products net sales were $670 million against $764 million. Excluding divestitures and in local currency, they fell 6 percent. Source
Decorative margin rose to 19.1 percent: Decorative reported operating margin was 19.1 percent against 18.1 percent, on operating profit of $128 million against $138 million. Source
North America down, International flat: In local currency, North American sales decreased 6 percent. International sales were in line with the prior year. Source

“We remain committed to leveraging the strength of our industry leading brands, innovative product portfolio, and unmatched customer service, and we believe Masco is well positioned to continue to deliver long-term shareholder value.”
Masco President and CEO, Jon Nudi

Margins and costs

Adjusted gross margin fell 210 basis points: Adjusted gross margin was 34.6 percent against 36.7 percent. Reported gross margin was 34.2 percent against 36.6 percent. Source
SG&A ratio eased to 18.4 percent: Selling, general and administrative expenses were 18.4 percent of net sales on a reported basis, against 18.6 percent a year earlier. Source

Cash, working capital and liquidity

Operating cash flow lower year to date: Net cash from operating activities was $604 million for the nine months, against $668 million. Working capital changes were a $292 million outflow. Source
Working capital rose: Working capital was $1,408 million against $1,291 million. It was 18.5 percent of last-twelve-months sales, against 16.4 percent. Source
Receivable and inventory days rose: Receivable days were 53 against 50, and inventory days were 84 against 78. Payable days were 69 against 70. Source
Liquidity of $1,559 million: Total liquidity at quarter-end was $1,559 million, including revolver availability. Cash and cash investments were $559 million. Source
Capital spending with no deals: Capital expenditures were $109 million for the nine months, against $112 million. The company reported no business acquisitions or disposals in 2025 nine months. Source

“During the third quarter, we continued to navigate through a dynamic geopolitical and macroeconomic environment.”
Masco President and CEO, Jon Nudi

Capital returns and shares

$188 million returned to shareholders: Management said $188 million was returned to shareholders in the quarter through dividends and share repurchases. Source
Nine-month buybacks and dividends: Nine-month purchases of common stock were $354 million against $482 million. Cash dividends paid were $197 million against $191 million. Source
Average diluted shares fell: Average diluted common shares outstanding were 209 million in the quarter, against 218 million a year earlier. Source

Full-year EPS guidance

Adjusted EPS top end lowered: Full-year adjusted EPS is now $3.90 to $3.95, against a previous $3.90 to $4.10. The low end is unchanged. Source
Reported EPS range narrowed: Full-year reported diluted EPS is $3.84 to $3.89, against a previous $3.87 to $4.07. Source
Rationalization charge assumption higher: The full-year reconciliation shows rationalization charges of $0.04 per share at both ends, against $0.01 in the second-quarter release. Source
Repair and remodel market view: The second-quarter release expected global repair and remodel sales down low-single digits for 2025. The third-quarter release does not restate this view.

Strategy and management commentary

Execution aimed at share growth: Management said its teams kept focus on execution to grow share while near-term market conditions weighed on the business. Source
Brands, portfolio and service emphasized: Management cited industry-leading brands, an innovative product portfolio and unmatched customer service as the base for long-term shareholder value. Source
Dynamic environment described: Management said the company navigated a dynamic geopolitical and macroeconomic environment during the quarter. Source

Coming up, as management said on 29 October 2025

Quarterly dividend payment: The Board declared a $0.31 per share quarterly dividend, payable November 24, 2025, to holders of record on November 7, 2025. Source

Risks management discussed

Demand: Management identified near-term market conditions as a headwind to the business in the quarter. Source
External: Management cited a dynamic geopolitical and macroeconomic environment as the backdrop to the quarter. Source

Earlier plans management reported on

Not stated: The second-quarter release said management expected sales generally in line with the prior year and to continue to outperform the market in 2025. The third-quarter release does not restate this.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

MASCO CORPORATION REPORTS THIRD QUARTER 2025 RESULTS

Highlights

Net sales decreased 3 percent to $1,917 million; in local currency and excluding divestitures, net sales decreased 2 percent
Operating profit margin decreased 220 basis points to 15.8 percent; adjusted operating profit margin decreased 190 basis points to 16.3 percent
Earnings per share was $0.90; adjusted earnings per share decreased 10 percent to $0.97
Repurchased 1.8 million shares for $124 million
Expect 2025 earnings per share in the range of $3.84 - $3.89 per share, and on an adjusted basis, $3.90 - $3.95 per share

LIVONIA, Mich. (October 29, 2025) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter 2025 results.

2025 Third Quarter Results

On a reported basis, compared to the third quarter 2024:
Net sales decreased 3 percent to $1,917 million; in local currency and excluding divestitures, net sales decreased 2 percent
Plumbing Products’ net sales increased 2 percent; in local currency net sales increased 1 percent
Decorative Architectural Products’ net sales decreased 12 percent; in local currency and excluding divestitures, net sales decreased 6 percent
In local currency, North American sales decreased 6 percent and International sales were in line with prior year
Gross margin decreased 240 basis points to 34.2 percent from 36.6 percent
Operating profit decreased 15 percent to $303 million from $357 million
Operating margin decreased 220 basis points to 15.8 percent from 18.0 percent
Net income increased 17 percent to $0.90 per share, compared to $0.77 per share
Compared to third quarter 2024, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows:
Gross margin decreased 210 basis points to 34.6 percent from 36.7 percent
Operating profit decreased 13 percent to $312 million from $360 million
Operating margin decreased 190 basis points to 16.3 percent from 18.2 percent
Net income decreased 10 percent to $0.97 per share, compared to $1.08 per share
Liquidity at the end of the third quarter was $1,559 million (including availability under our revolving credit facility)

“During the third quarter, we continued to navigate through a dynamic geopolitical and macroeconomic environment. While the near-term market conditions remained a headwind to our business, our teams continued to focus on execution to grow share and drive long-term success,” said Masco President and CEO, Jon Nudi. “We delivered adjusted operating profit of $312 million and adjusted earnings per share of $0.97 during the quarter. Additionally, our capital allocation strategy enabled us to return $188 million to shareholders through dividends and share repurchases.”

“For the full year, we now anticipate our 2025 adjusted earnings per share to be in the range of $3.90 to $3.95, compared to our previous expectation of $3.90 to $4.10,” continued Nudi. “We remain committed to leveraging the strength of our industry leading brands, innovative product portfolio, and unmatched customer service, and we believe Masco is well positioned to continue to deliver long-term shareholder value.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.31 per share, payable on November 24, 2025 to shareholders of record on November 7, 2025.

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower fixtures; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The 2025 third quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.

Conference Call Details

A conference call regarding items contained in this release is scheduled for Wednesday, October 29, 2025 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-549-8228 or 289-819-1520. Please use the conference identification number 16464.

The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.

A replay of the call will be available on Masco’s website or by phone by dialing 888-660-6264 or 289-819-1325. Please use the playback passcode 16464#. The telephone replay will be available approximately two hours after the end of the call and continue through November 29, 2025.

Safe Harbor Statement

This press release 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 our Quarterly Reports on Form 10-Q and 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.

MASCO CORPORATION

Condensed Consolidated Statements of Operations - Unaudited

For the Three and Nine Months Ended September 30, 2025 and 2024

(in millions, except per common share data)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Net sales	$1,917	$1,983	$5,769	$6,000
Cost of sales	1,261	1,258	3,696	3,805
Gross profit	656	725	2,073	2,195
Selling, general and administrative expenses	353	368	1,072	1,123
Operating profit	303	357	1,001	1,073
Other income (expense), net:
Interest expense	(25)	(25)	(77)	(75)
Other, net	(2)	(85)	(16)	(95)
	(27)	(109)	(93)	(170)
Income before income taxes	276	248	908	903
Income tax expense	76	68	226	222
Net income	200	180	682	681
Less: Net income attributable to noncontrolling interest	11	13	36	41
Net income attributable to Masco Corporation	$189	$167	$645	$640
Income per common share attributable to Masco Corporation (diluted):
Net income	$0.90	$0.77	$3.06	$2.91
Average diluted common shares outstanding	209	218	211	220

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2025 and 2024

(dollars in millions)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations
Net sales	$1,917	$1,983	$5,769	$6,000
Gross profit, as reported	$656	$725	$2,073	$2,195
Rationalization charges	7	2	10	6
Gross profit, as adjusted	$663	$727	$2,082	$2,202
Gross margin, as reported	34.2%	36.6%	35.9%	36.6%
Gross margin, as adjusted	34.6%	36.7%	36.1%	36.7%
Selling, general and administrative expenses, as reported	$353	$368	$1,072	$1,123
Rationalization charges	2	-	3	1
Selling, general and administrative expenses, as adjusted	$352	$368	$1,069	$1,121
Selling, general and administrative expenses as a percent of net sales, as reported	18.4%	18.6%	18.6%	18.7%
Selling, general and administrative expenses as a percent of net sales, as adjusted	18.4%	18.6%	18.5%	18.7%
Operating profit, as reported	$303	$357	$1,001	$1,073
Rationalization charges	8	2	12	8
Operating profit, as adjusted	$312	$360	$1,013	$1,081
Operating margin, as reported	15.8%	18.0%	17.4%	17.9%
Operating margin, as adjusted	16.3%	18.2%	17.6%	18.0%

MASCO CORPORATION

Exhibit A: Reconciliations - Unaudited

For the Three and Nine Months Ended September 30, 2025 and 2024

(in millions, except per common share data)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Income Per Common Share Reconciliations
Income before income taxes, as reported	$276	$248	$908	$903
Rationalization charges	8	2	12	8
Loss on sale of business (1)	-	81	-	81
Realized (gains) losses from private equity funds, net	-	(1)	5	(1)
Income before income taxes, as adjusted	284	330	925	990
Tax at 24.5% rate	(70)	(81)	(227)	(243)
Less: Net income attributable to noncontrolling interest	11	13	36	41
Net income, as adjusted	$204	$236	$662	$706
Net income per common share, as adjusted	$0.97	$1.08	$3.14	$3.21
Average diluted common shares outstanding	209	218	211	220

(1) Represents the preliminary loss for the three and nine months ended September 30, 2024 from the sale of our Kichler Lighting business.

Outlook for the Year Ended December 31, 2025

	Year Ended December 31, 2025
	Low End	High End
Income Per Common Share Reconciliation
Net income per common share	$3.84	$3.89
Rationalization charges	0.04	0.04
Realized losses from private equity funds, net	0.02	0.02
Net income per common share, as adjusted	$3.90	$3.95

MASCO CORPORATION

Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited

September 30, 2025 and December 31, 2024

(dollars in millions)

	September 30, 2025	December 31, 2024
Balance Sheet
Assets
Current assets:
Cash and cash investments	$559	$634
Receivables	1,181	1,035
Inventories	1,069	938
Prepaid expenses and other	150	123
Total current assets	2,959	2,730
Property and equipment, net	1,181	1,116
Goodwill	622	597
Other intangible assets, net	213	220
Operating lease right-of-use assets	239	231
Other assets	98	123
Total assets	$5,311	$5,016
Liabilities
Current liabilities:
Accounts payable	$842	$789
Notes payable	2	3
Accrued liabilities	732	767
Total current liabilities	1,576	1,560
Long-term debt	2,945	2,945
Noncurrent operating lease liabilities	226	223
Other liabilities	396	342
Total liabilities	5,143	5,069
Equity	168	(53)
Total liabilities and equity	$5,311	$5,016

	As of September 30,
	2025	2024
Other Financial Data
Working capital days
Receivable days	53	50
Inventory days	84	78
Payable days	69	70
Working capital	$1,408	$1,291
Working capital as a % of sales (LTM)	18.5%	16.4%

MASCO CORPORATION

Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited

For the Nine Months Ended September 30, 2025 and 2024

(dollars in millions)

	Nine Months Ended September 30,
	2025	2024
Cash Flows From (For) Operating Activities:
Cash provided by operating activities	$896	$957
Working capital changes	(292)	(288)
Net cash from operating activities	604	668
Cash Flows From (For) Financing Activities:
Purchase of Company common stock	(354)	(482)
Excise tax paid on the purchase of Company common stock	(6)	-
Cash dividends paid	(197)	(191)
Purchase of redeemable noncontrolling interest	-	(15)
Dividends paid to noncontrolling interest	(30)	(25)
Proceeds from the exercise of stock options	6	76
Employee withholding taxes paid on stock-based compensation	(10)	(34)
Decrease in debt, net	(1)	(2)
Net cash for financing activities	(592)	(673)
Cash Flows From (For) Investing Activities:
Capital expenditures	(109)	(112)
Acquisition of business	-	(4)
Proceeds from disposition of business, net of cash disposed	-	131
Other, net	(2)	(3)
Net cash (for) from investing activities	(111)	12
Effect of exchange rate changes on cash and cash investments	23	5
Cash and Cash Investments:
(Decrease) increase for the period	(75)	12
At January 1	634	634
At September 30	$559	$646

	As of September 30,
	2025	2024
Liquidity
Cash and cash investments	$559	$646
Revolver availability	1,000	1,000
Total Liquidity	$1,559	$1,646

MASCO CORPORATION

Segment Data - Unaudited

For the Three and Nine Months Ended September 30, 2025 and 2024

(dollars in millions)

	Three Months Ended September 30,			Nine Months Ended September 30,
	2025	2024	Change	2025	2024	Change
Plumbing Products
Net sales	$1,247	$1,219	2%	$3,744	$3,665	2%
Operating profit, as reported	$196	$240		$688	$713
Operating margin, as reported	15.7%	19.7%		18.4%	19.5%
Rationalization charges	8	2		11	7
Operating profit, as adjusted	204	242		700	720
Operating margin, as adjusted	16.4%	19.9%		18.7%	19.6%
Depreciation and amortization	29	26		81	80
EBITDA, as adjusted	$232	$269		$780	$799
Decorative Architectural Products
Net sales	$670	$764	(12)%	$2,025	$2,336	(13)%
Operating profit, as reported	$128	$138		$381	$436
Operating margin, as reported	19.1%	18.1%		18.8%	18.7%
Rationalization charges	1	-		1	1
Operating profit, as adjusted	128	138		381	437
Operating margin, as adjusted	19.1%	18.1%		18.8%	18.7%
Depreciation and amortization	8	9		22	28
EBITDA, as adjusted	$136	$147		$404	$465
Total
Net sales	$1,917	$1,983	(3)%	$5,769	$6,000	(4)%
Operating profit, as reported - segment	$324	$378		$1,068	$1,149
General corporate expense, net	(20)	(21)		(68)	(76)
Operating profit, as reported	303	357		1,001	1,073
Operating margin, as reported	15.8%	18.0%		17.4%	17.9%
Rationalization charges - segment	8	2		12	8
Operating profit, as adjusted	312	360		1,013	1,081
Operating margin, as adjusted	16.3%	18.2%		17.6%	18.0%
Depreciation and amortization - segment	36	36		103	108
Depreciation and amortization - other	2	2		6	5
EBITDA, as adjusted	$349	$397		$1,121	$1,194

Contacts
Robin Zondervan
Vice President, Investor Relations and FP&A
313.792.5500
MascoInvestorRelations@mascohq.com