Core Insights - Masco Corporation (MAS) reported strong second-quarter 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates, leading to a 10% increase in shares during pre-market trading [1] - The company's performance was attributed to effective management amid a dynamic geopolitical and macroeconomic environment, as stated by President and CEO Jon Nudi [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $1.30, surpassing the Zacks Consensus Estimate of $1.08, and up from $1.20 in the same quarter last year [2] - Net sales reached $2,051 million, exceeding the consensus mark of $2,004 million, although this represented a 1.9% decline from the prior year [2] - Excluding divestitures, net sales remained flat year over year [2] Regional Sales Analysis - North American net sales decreased by 3% in local currency compared to the previous year [3] - International net sales increased by 1% year over year in local currency [3] Segment Performance - Plumbing Products segment saw a 5% year-over-year increase in net sales to $1.31 billion, with adjusted EBITDA rising to $303 million from $276 million in the prior year [4] - Decorative Architectural Products segment reported sales of $738 million, down 12% from the previous year, with adjusted EBITDA decreasing to $165 million from $184 million [5] Margin Analysis - Adjusted gross margin expanded by 10 basis points to 37.7% [6] - Adjusted selling, general and administrative expenses as a percentage of net sales decreased by 90 basis points to 17.6% [6] - Adjusted operating margin increased by 100 basis points year-over-year to 20.1%, with adjusted EBITDA for the quarter at $449 million, up from $437 million last year [6] Liquidity and Shareholder Returns - As of June 30, 2025, Masco had total liquidity of $1.34 billion, including cash and cash investments of $390 million [7] - The company repurchased 1.6 million shares for approximately $101 million during the reported period [8] - A quarterly dividend of $0.31 per share has been announced, scheduled for payment on August 25, 2025 [8]

Company Performance - Masco reported quarterly earnings of $1.3 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, and up from $1.2 per share a year ago [1] - The earnings surprise for the quarter was +20.37%, while the previous quarter saw a surprise of -5.43% with actual earnings of $0.87 per share against an expectation of $0.92 [2] - The company posted revenues of $2.05 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.32%, but down from $2.09 billion year-over-year [3] Future Outlook - The sustainability of Masco's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [4] - Current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $1.95 billion, and for the current fiscal year, it is $3.58 on revenues of $7.61 billion [8] - The estimate revisions trend for Masco was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Building Products - Miscellaneous industry, to which Masco belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Masco (MAS) Q2 2025 Earnings Call July 31, 2025 08:00 AM ET Company ParticipantsRobin Zondervan - Vice President, IR - FP&AJonathon Nudi - CEO, President & DirectorRichard Westenberg - VP, CFO & TreasurerStephen Kim - Senior MDMichael Rehaut - Executive DirectorSam Reid - Executive Director - Equity Research, Home Builders & Building ProductsTrevor Allinson - Director - Equity ResearchMaggie Grady Miller - VP - Equity ResearchConference Call ParticipantsJohn Lovallo - AnalystAnthony Pettinari - Research Ana ...

Masco (MAS) Q2 2025 Earnings Call July 31, 2025 08:00 AM ET Speaker0morning, ladies and gentlemen. Welcome to the Masco Corporation Second Quarter twenty twenty five Conference Call. My name is Marissa, and I will be your operator for today's call. As a reminder, today's conference call is being recorded for replay purposes. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP and A.You may begin.Speaker1Thank you, operator, and good morning, everyone. Welcome to Masco ...

Second Quarter 2025 Earnings Presentation July 31, 2025 Safe Harbor Statement This presentation 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 peri ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Masco Corporation's unaudited condensed consolidated financial statements as of June 30, 2025, and for the three and six-month periods then ended, including Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, Shareholders' Equity, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5,288 million** by June 30, 2025, from **$5,016 million** at year-end 2024, with total equity shifting from a **$53 million deficit** to a **$150 million positive balance** Condensed Consolidated Balance Sheet Highlights (in Millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,925 | $2,730 | | **Total Assets** | $5,288 | $5,016 | | **Total Current Liabilities** | $1,609 | $1,560 | | **Total Liabilities** | $5,138 | $5,069 | | **Total Equity** | $150 | $(53) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net sales decreased 1.9% to **$2,051 million**, while operating profit rose 3.8% to **$412 million**, and net income attributable to Masco increased to **$270 million** or **$1.28 diluted EPS** Statement of Operations Summary (in Millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,051 | $2,091 | $3,852 | $4,017 | | **Gross Profit** | $772 | $785 | $1,416 | $1,470 | | **Operating Profit** | $412 | $397 | $698 | $715 | | **Net Income (to Masco)** | $270 | $258 | $456 | $473 | | **Diluted EPS** | $1.28 | $1.17 | $2.15 | $2.14 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Total comprehensive income attributable to Masco Corporation significantly increased to **$332 million** in Q2 2025 from **$249 million** in Q2 2024, primarily due to a **$77 million positive currency translation adjustment** Comprehensive Income (Loss) Attributable to Masco (in Millions) | Component | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $270 | $258 | $456 | $473 | | **Other Comprehensive Income (Loss)** | $61 | $(9) | $88 | $(27) | | **Total Comprehensive Income** | $332 | $249 | $544 | $446 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for H1 2025 decreased to **$148 million** from **$252 million** in H1 2024, while cash and cash investments decreased by **$243 million** to **$390 million** at period end Cash Flow Summary for Six Months Ended June 30 (in Millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $148 | $252 | | **Net Cash for Financing Activities** | $(344) | $(404) | | **Net Cash for Investing Activities** | $(70) | $(80) | | **Decrease in Cash** | $(243) | $(236) | | **Cash at End of Period** | $390 | $398 | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total equity improved from a **$53 million deficit** at year-end 2024 to a **$150 million positive balance** by June 30, 2025, driven by **$594 million in comprehensive income** - Shareholders' equity turned positive to **$150 million** at June 30, 2025, from a deficit of **$53 million** at the start of the year, driven by total comprehensive income of **$594 million**, partially offset by share repurchases and dividends[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the Q3 2024 Kichler Lighting divestiture, segment revenue trends, debt structure, **$233 million** in H1 2025 share repurchases, and an increased quarterly dividend - In Q3 2024, the company sold its Kichler Lighting business, previously part of the Decorative Architectural Products segment, with results not presented as discontinued operations[39](index=39&type=chunk) Net Sales by Segment (YTD 2025 vs YTD 2024, in Millions) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Plumbing Products | $2,497 | $2,445 | | Decorative Architectural Products | $1,355 | $1,572 | | **Total** | **$3,852** | **$4,017** | - During the six months ended June 30, 2025, the company repurchased approximately **3.4 million shares** for **$233 million**, with approximately **$666 million** remaining under the 2022 share repurchase authorization[64](index=64&type=chunk) - The company declared and paid cash dividends of **$0.62 per common share** for the six months ended June 30, 2025, an increase from **$0.58** for the same period in 2024[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance amid lower demand and cost inflation, noting a 2% Q2 2025 net sales decline but a 4% operating profit increase driven by cost management and pricing actions [Overview and Results of Operations](index=20&type=section&id=Overview%20and%20Results%20of%20Operations) Q2 2025 consolidated net sales decreased 2% to **$2,051 million**, but operating profit increased 4% to **$412 million**, with operating margin improving **110 basis points** to **20.1%** due to lower SG&A and pricing - The company faces lower market demand, elevated commodity and input costs, and anticipates significantly higher costs from recently-enacted tariffs, primarily in the Plumbing Products segment[70](index=70&type=chunk) Consolidated Results of Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2,051M | $2,091M | (2)% | | **Gross Margin** | 37.6% | 37.5% | +10 bps | | **Operating Profit** | $412M | $397M | +4% | | **Operating Margin** | 20.1% | 19.0% | +110 bps | - The Q2 2025 operating profit increase was driven by a **7% decrease** in SG&A expenses, attributed to the Kichler divestiture and lower employee-related costs[81](index=81&type=chunk) [Business Segment Results](index=23&type=section&id=Business%20Segment%20Results) Q2 2025 Plumbing Products net sales grew **5%** to **$1,312 million** with operating profit up **11%** to **$275 million**, while Decorative Architectural Products sales fell **12%** to **$738 million** with operating profit down **10%** to **$157 million** Segment Performance - Q2 2025 vs Q2 2024 (in Millions) | Segment | Net Sales | % Change | Operating Profit | % Change | | :--- | :--- | :--- | :--- | :--- | | **Plumbing Products** | $1,312 | +5% | $275 | +11% | | **Decorative Architectural** | $738 | (12)% | $157 | (10)% | - Plumbing Products sales growth was driven by a **3% increase** from higher net selling prices for the three months ended June 30, 2025[92](index=92&type=chunk) - Decorative Architectural Products sales decline was primarily due to the Kichler business divestiture, which decreased sales by **8%** for the quarter[94](index=94&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a solid liquidity position with **$390 million** cash at Q2 2025, **$148 million** net cash from operations in H1, and access to a **$1.0 billion** credit facility, repurchasing **$233 million** in stock - The company held cash and cash investments of **$390 million** at June 30, 2025, with **$276 million** held in foreign subsidiaries[96](index=96&type=chunk) - The company was in compliance with all covenants for its **$1.0 billion** credit agreement, with a **$46 million** quarter-end borrowing subsequently repaid[99](index=99&type=chunk) - In H1 2025, the company repurchased **$233 million** of its common stock and anticipates using at least **$450 million** for share repurchases in the full year 2025[101](index=101&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=26&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) Forward-looking statements are subject to risks including residential market dependency, brand strength, supply chain and material costs, tariffs, and cybersecurity threats, which could cause actual results to differ materially - Future performance may be affected by levels of residential repair and remodel activity, new home construction, brand strength, material costs, tariffs, and cybersecurity risks[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Company's Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[110](index=110&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect internal controls[111](index=111&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation but believes the likelihood of a material adverse effect from these proceedings is remote, with details referenced in Note L - The company is involved in ordinary course litigation but believes the likelihood of a material adverse effect from these matters is remote[67](index=67&type=chunk)[115](index=115&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since the last Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the company's risk factors since the last Annual Report on Form 10-K[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,604,278 shares** at an average price of **$62.65** during Q2 2025, with approximately **$666 million** remaining for future repurchases under authorization Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid | Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | **Total for Q2** | 1,604,278 | $62.65 | $665,830,484 | [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 or other non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No officers or directors adopted or terminated Rule 10b5-1 or other trading arrangements during Q2 2025[118](index=118&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive agreements, CEO/CFO certifications, and financial statements in Inline XBRL format - Exhibits filed with the report include executive agreements, CEO/CFO certifications, and XBRL data files[122](index=122&type=chunk) [Signature](index=30&type=section&id=Signature)

Exhibit 99 MASCO CORPORATION REPORTS SECOND QUARTER 2025 RESULTS Highlights LIVONIA, Mich. (July 31, 2025) - Masco Corporation (NYSE: MAS), one of the world's leading manufacturers of branded home improvement and building products, reported its second quarter 2025 results. 2025 Second Quarter Results "During the first half of this year, we demonstrated our ability to successfully navigate a dynamic geopolitical and macroeconomic environment through our focused execution," said Masco President and CEO, Jon N ...

Core Viewpoint - Analysts project that Masco (MAS) will report quarterly earnings of $1.08 per share, reflecting a 10% decline year over year, with revenues expected to reach $2 billion, down 4.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 3.4% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics - Analysts estimate 'Net Sales- Plumbing Products' to be $1.26 billion, representing a 0.5% increase year over year [5]. - The consensus for 'Net Sales- Decorative Architectural Products' is $744.34 million, indicating an 11.2% decline year over year [5]. - Expected 'Operating profit, as adjusted- Plumbing Products' is projected at $225.09 million, down from $249.00 million in the same quarter last year [6]. - Analysts forecast 'Operating profit, as adjusted- Decorative Architectural Products' at $145.41 million, compared to $174.00 million in the previous year [6]. - The projected 'Operating profit, as reported- Decorative Architectural Products' is $140.29 million, down from $174.00 million year over year [7]. - 'Operating profit, as reported- Plumbing Products' is expected to be $223.34 million, compared to $247.00 million in the same quarter last year [7]. Stock Performance - Over the past month, Masco shares have returned -0.7%, while the Zacks S&P 500 composite has changed by +3.4% [7]. - Masco holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [7].

Core Viewpoint - Masco Corporation is expected to report its second-quarter 2025 results on July 31, with anticipated declines in both adjusted earnings and net sales compared to the previous year, influenced by various segment performances and external cost pressures [1][2][7]. Financial Performance - In the last reported quarter, Masco's adjusted earnings and net sales missed the Zacks Consensus Estimate by 5.4% and 1.9%, respectively, with year-over-year declines of 6.5% and 6% [1]. - The Zacks Consensus Estimate for adjusted EPS has increased to $1.08 from $1.07 over the past 30 days, indicating a 10% decline from the year-ago EPS of $1.20. The consensus estimate for net sales is pegged at $2 billion, reflecting a 4.1% decline from the prior-year quarter's figure of $2.09 billion [2]. Sales Trends - The top line is expected to decline year over year due to reduced contributions from the Decorative Architectural Products segment, which accounted for 34.3% of total net sales in Q1 2025, impacted by lower sales volume and the divestiture of the Kichler business [3]. - The Plumbing Products segment, which accounted for 65.8% of total net sales in Q1 2025, is anticipated to support the top line with higher net selling prices, despite an unfavorable sales mix [4]. Segment Performance - The Plumbing Products segment's net sales are expected to increase by 1.3% year over year to $1.27 billion, while the Decorative Architectural Products segment's net sales are projected to decline by 12% year over year to $737.4 million [5]. - Geographically, net sales in North America are expected to decline by 5.7% year over year to $1.6 billion, while international net sales are anticipated to increase by 2.5% year over year to $406.9 million [6]. Margin Analysis - The company's bottom line is likely to decline year over year due to a higher cost structure and adverse impacts from tariffs, including incremental China tariffs and increased annual expenses from tariffs on steel and aluminum [7]. - Higher commodity costs, increased marketing costs, and an unfavorable sales mix from the Plumbing Products segment are expected to contribute to the decline in the bottom line [9]. Earnings Expectations - Masco has a positive Earnings ESP of +2.61%, indicating a potential earnings beat despite soft volume and rising input costs [8][10]. - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [11].

The market expects Masco (MAS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expect ...