Financial Performance - Net sales for the three months ended September 30, 2025, were $1,917 million, a decrease of 3% compared to $1,983 million in the same period of 2024[78][79] - For the nine months ended September 30, 2025, net sales were $5,769 million, down 4% from $6,000 million in the prior year[78][80] - Gross profit for the three months ended September 30, 2025, was $656 million, a decrease of 10% from $725 million in 2024, impacted by higher commodity and tariff costs[82][83] - Operating profit for the three months ended September 30, 2025, was $303 million, down 15% from $357 million in the same period of 2024[82][85] - Net income for the three months ended September 30, 2025, was $189 million, an increase of 13% compared to $167 million in the same period of 2024[93] - Diluted income per common share for the three months ended September 30, 2025, was $0.90, up 17% from $0.77 in 2024[93] Segment Performance - The Plumbing Products segment reported a 2% increase in net sales for both the three and nine months ended September 30, 2025, driven by higher net selling prices[95][97] - Decorative Architectural Products segment net sales decreased by 12% and 13% for the three and nine months ended September 30, 2025, respectively, primarily due to the divestiture of Kichler and lower sales volume[99] - Plumbing Products segment operating profit was negatively impacted by higher commodity and tariff costs, increased expenses, and lower sales volume, with cost savings initiatives partially offsetting these effects[98] - Operating profit in the Decorative Architectural Products segment was negatively impacted by lower sales volume and higher commodity costs, partially offset by cost savings initiatives[100] Expenses and Cash Flow - Selling, general and administrative expenses for the three months ended September 30, 2025, were $353 million, a decrease of 4% from $368 million in 2024[82][84] - Other income (expense), net for the three months ended September 30, 2025, was $(27) million, a favorable change of 75% compared to $(109) million in 2024[90] - For the nine months ended September 30, 2025, net cash provided by operations was $604 million, driven by operating profit and changes in deferred taxes[108] - Cash and cash investments were approximately $559 million as of September 30, 2025, down from $634 million at December 31, 2024[101] - Net cash used for financing activities was $592 million for the nine months ended September 30, 2025, primarily due to stock repurchases and cash dividends[109] Share Repurchase and Financing - The company repurchased approximately 5.1 million shares for about $357 million during the nine months ended September 30, 2025, with $542 million remaining under the share repurchase authorization[107] - The company anticipates using approximately $500 million of cash for share repurchases in 2025 as part of its long-term capital allocation strategy[107] - The company has a revolving credit agreement with an aggregate commitment of $1.0 billion, maturing on April 26, 2027, with the option to increase by an additional $500 million[103] - The company reported a decrease in accounts payable related to a supply chain finance program, with valid amounts confirmed at $32 million as of September 30, 2025[105] Tax and Other Financial Metrics - The effective tax rate for the three months ended September 30, 2025, was 28%, compared to 27% in the same period of 2024[92]

Financial Performance - Net sales decreased by 3% to $1,917 million, with a 2% decrease in local currency excluding divestitures[5] - Adjusted operating profit was $312 million, with an adjusted operating margin of 16.3%, down 190 basis points from the previous year[5] - Adjusted earnings per share decreased by 10% to $0.97, compared to $1.08 per share in the same quarter last year[5] - Operating profit decreased by 15% to $303 million from $357 million in the same quarter last year[5] - Gross margin decreased by 240 basis points to 34.2% from 36.6% in the prior year[5] - The company’s operating margin as reported decreased to 15.8% for the three months ended September 30, 2025, from 18.0% in 2024[26] - EBITDA, as adjusted, for the total company was $349 million for the three months ended September 30, 2025, compared to $397 million in 2024, reflecting a decrease of 12.1%[26] Shareholder Returns - The company returned $188 million to shareholders through dividends and share repurchases, including the repurchase of 1.8 million shares for $124 million[4] - The Board of Directors declared a quarterly dividend of $0.31 per share, payable on November 24, 2025[6] Sales Performance by Segment - Plumbing Products' net sales increased by 2%, while Decorative Architectural Products' net sales decreased by 12%[5] - Net sales for Plumbing Products segment rose by 2% to $1,247 million for the three months ended September 30, 2025, compared to $1,219 million in the same period of 2024[26] - Decorative Architectural Products segment experienced a 12% decline in net sales, dropping to $670 million for the three months ended September 30, 2025, from $764 million in 2024[26] Liquidity and Cash Flow - Liquidity at the end of the third quarter was $1,559 million, including availability under the revolving credit facility[5] - Total liquidity, including cash and cash investments, was $1,559 million as of September 30, 2025, down from $1,646 million in 2024[24] - Cash provided by operating activities totaled $896 million for the nine months ended September 30, 2025, down from $957 million in 2024, a decrease of 6.4%[24] - The company reported a net cash outflow for financing activities of $592 million for the nine months ended September 30, 2025, compared to $673 million in 2024[24] Future Outlook - For the full year 2025, the company expects adjusted earnings per share in the range of $3.90 to $3.95, revised from a previous expectation of $3.90 to $4.10[4] Working Capital - Working capital as a percentage of sales increased to 18.5% for the nine months ended September 30, 2025, compared to 16.4% in 2024[22] Total Assets - Total assets increased to $5,311 million as of September 30, 2025, up from $5,016 million at December 31, 2024, representing a 5.9% growth[22]

Core Insights - Masco Corporation (MAS) is set to report its third-quarter 2025 results on October 29, with expectations of adjusted earnings per share (EPS) at $1.02, reflecting a 5.6% decline from the previous year [1][3][9] Financial Performance - In the last reported quarter, Masco's adjusted earnings and net sales exceeded the Zacks Consensus Estimate by 20.4% and 2.3%, respectively, although the top line saw a year-over-year decline of 1.9% while the bottom line increased by 8.3% [1][2] - The consensus estimate for net sales in Q3 2025 is $1.94 billion, indicating a 2.3% decline from the prior year's figure of $1.98 billion [3][9] Segment Analysis - The Decorative Architectural Products segment, which contributed 36% of total net sales in Q2 2025, is expected to have faced challenges due to lower sales volume and the divestiture of the Kichler business, leading to a projected 12.8% decline in net sales to $666.6 million [4][7] - Conversely, the Plumbing Products segment, accounting for 64% of total net sales in Q2 2025, is anticipated to see a 3.2% year-over-year increase in net sales to $1.26 billion, supported by higher net selling prices [6][7] Geographic Performance - North American net sales, which made up 79.9% of total net sales in Q2 2025, are expected to decline by 4.6% year over year to $1.52 billion, while international net sales are projected to increase by 3.9% to $403.1 million [8] Margin Expectations - The company's bottom line is likely to decline year over year due to increased costs from tariffs and commodity inflation, with adjusted operating margins for Plumbing Products and Decorative Architectural Products expected to decrease by 180 basis points to 18.1% and 150 basis points to 16.6%, respectively [9][12] - Higher tariffs, input costs, and soft demand in the DIY paint category are anticipated to pressure Masco's margins [10][11] Earnings Prediction - The current model does not predict an earnings beat for Masco, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 [13]

Company Overview - Masco (MAS) is expected to report earnings for the quarter ended September 2025, with a consensus estimate of $1.02 per share, reflecting a year-over-year decline of 5.6% [3] - Revenues are anticipated to be $1.94 billion, down 2.3% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on October 29, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised 0.78% higher in the last 30 days, indicating a slight positive adjustment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Masco is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.22%, suggesting a bearish outlook from analysts [12] - Masco currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, Masco had an earnings surprise of +20.37%, posting $1.30 per share against an expectation of $1.08 [13] - Over the past four quarters, Masco has beaten consensus EPS estimates two times [14] Industry Comparison - Armstrong World Industries (AWI), a peer in the Zacks Building Products - Miscellaneous industry, is expected to report earnings of $1.99 per share, indicating a year-over-year increase of 9.9% [18] - AWI's revenues are projected to be $421.11 million, up 8.9% from the previous year, with a positive Earnings ESP of +0.63% [19][20]

Core Insights - Masco Corporation, based in Livonia, Michigan, specializes in designing, manufacturing, and distributing home improvement and building products, with a market capitalization of $14.1 billion [1] Earnings Expectations - The company is set to release its third-quarter earnings on October 29, with analysts expecting an adjusted profit of $1.02 per share, a decrease of 5.6% from $1.08 in the same quarter last year [2] - For the full fiscal year 2025, adjusted EPS is projected at $4.02, down nearly 2% from $4.10 in 2024, while a rebound of 8.5% to $4.36 per share is anticipated in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Masco's stock has declined by 20.5%, underperforming compared to the Industrial Select Sector SPDR Fund's 8.9% gains and the S&P 500 Index's 13.5% returns [4] - Following the release of better-than-expected Q2 results, Masco's stock rose by 3.7% and maintained positive momentum for three subsequent trading sessions, with net sales of $2.1 billion, down 1.9% year-over-year but 2.3% above expectations [5] Analyst Ratings - Analysts maintain a consensus "Moderate Buy" rating for Masco, with 21 analysts covering the stock, including seven "Strong Buys," 13 "Holds," and one "Moderate Sell" [6] - The mean price target for Masco is $74.88, indicating a potential upside of 10.1% from current price levels [6]

Following my coverage on Masco Corp. (NYSE: MAS ) in April, in which I recommended a hold rating as the consumer spending backdrop was getting worse, and to top it off, there were the headwindsI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with st ...

Core Insights - Masco Corporation (MAS) specializes in producing and marketing a wide range of branded home improvement and building products, including Behr paints and Delta faucets [1] - The company has a market capitalization of approximately $15.1 billion, positioning it firmly in the large-cap category [2] Stock Performance - MAS stock has experienced volatility, currently trading about 16.7% below its October 2024 peak of $86.70, but has recovered nearly 18.6% over the past three months, outperforming the ProShares Ultra Industrials ETF (UXI) which rose 14.2% [3][4] - Over the past 52 weeks, MAS stock has declined by 13.2%, with a slight year-to-date drop, while UXI has surged 20.7% in the same period [4] - Despite challenges, MAS shares have remained above their 50-day moving average of $70.86 and 200-day moving average of $70.10 since late August, indicating some level of investor confidence [5] Financial Performance - On July 31, MAS stock rose 3.7% following stronger-than-expected second-quarter fiscal 2025 results, with revenue reaching $2.05 billion, down 1.9% year-over-year but exceeding the forecast of $2 billion [6] - Adjusted EPS for the quarter was $1.30, beating the anticipated $1.08 and reflecting an 8.3% year-over-year increase [6] Future Outlook - Management has set ambitious plans for the second half of 2025, expecting full-year sales to align with the previous year when adjusted for divestitures and currency fluctuations [7] - The company projects adjusted EPS between $3.90 and $4.10 for the year [7] Competitive Landscape - MAS faces challenges in comparison to its rival, Armstrong World Industries, Inc. (AWI), which has achieved a remarkable 49.1% gain over the past 52 weeks and a year-to-date increase of 39.1%, highlighting MAS's relative underperformance in the sector [8]

Group 1 - Newmont Corporation (NEM) has seen a 14.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Simmons First National Corporation (SFNC) has experienced a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Vertiv Holdings Co (VRT) has recorded a 7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Dorman Products, Inc. (DORM) has seen an 11.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Masco Corporation (MAS) has also experienced an 11.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - Simmons First National Corporation (SFNC) has seen a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 4.2%, significantly higher than the industry average of 2.3% [1] - Newmont Corporation (NEM) has experienced a 14.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.2%, compared to the industry average of 0.0% [2] - Masco Corporation (MAS) has had an 11.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Core Insights - The U.S. housing market is experiencing a balance between affordability challenges and pent-up demand, with optimism emerging due to easing mortgage rates and potential Federal Reserve rate cuts [1][8] Builder Sentiment - Builder confidence in newly built single-family homes remained at 32 in September, unchanged from August, with future sales expectations rising to 45, the highest since March [2][8] - 39% of builders reported price reductions in September, the highest since the post-COVID period began, with an average reduction of 5% [3][8] Economic Factors - Inflation remains a concern, with the consumer price index rising 2.9% year-over-year in August, indicating ongoing price pressures [4] - The labor market showed weakness, adding only 22,000 jobs in August, with the unemployment rate increasing to 4.3% [5] - Mortgage rates have decreased to 6.35%, the lowest since mid-October 2024, potentially reopening opportunities for sidelined buyers [6][8] Industry Performance - The Zacks Building Products – Home Builders industry gained 29.5% over the past three months, outperforming the broader Zacks Construction sector and the S&P 500, both of which increased by 12.1% [10] - D.R. Horton (DHI) has seen a 41.6% increase in stock price over the past three months, with an upward revision of fiscal 2025 earnings estimates [14] - Toll Brothers (TOL) gained 34% in the same period, benefiting from potential confidence revival among high-income households [15] - Home Depot (HD), Lowe's (LOW), and Masco (MAS) have also posted significant gains, with respective increases of 21.4%, 28.3%, and 20.4% [16][17]