Masco(MAS) - 2025 Q2 - Quarterly Results

Performance Highlights and Management Commentary Masco reported strong Q2 2025 results, expanding adjusted operating profit margin and growing adjusted EPS, leading to restored full-year guidance - CEO Jon Nudi highlighted the company's focused execution, leading to strong results including margin expansion and an 8% growth in adjusted EPS[4] - Management anticipates that sales in the global repair and remodel markets will be down by low-single digits for the full year 2025[4] Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,051M | $2,091M | -2% | | Net Sales (Local Currency, ex-divestitures) | In line with prior year | - | - | | Operating Profit Margin | 20.1% | 19.0% | +110 bps | | Adjusted Operating Profit Margin | 20.1% | 19.1% | +100 bps | | Earnings Per Share (EPS) | $1.28 | $1.17 | +9% | | Adjusted EPS | $1.30 | $1.20 | +8% | Financial Outlook for 2025 Masco restored its full-year 2025 financial guidance, anticipating sales in line with the prior year and providing an adjusted EPS range - The company restored its financial guidance for 2025, signaling confidence in its ability to execute its strategic priorities for the remainder of the year[4] Full Year 2025 Earnings Per Share Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Net Income per Common Share (Reported) | $3.87 | $4.07 | | Net Income per Common Share (Adjusted) | $3.90 | $4.10 | Capital Allocation Masco returned $167 million to shareholders in Q2 2025 through share repurchases and a declared quarterly dividend - A total of $167 million was returned to shareholders during the second quarter of 2025 through dividends and share repurchases[4] - The company repurchased 1.6 million shares of its common stock for $101 million in Q2 2025[5] - The Board of Directors declared a quarterly dividend of $0.31 per share, payable on August 25, 2025[6] Financial Statements The unaudited financial statements detail Masco's Q2 2025 performance, showing increased net income, total assets, and positive net cash from operating activities Condensed Consolidated Statements of Operations Consolidated Statements of Operations (in millions, except per share data) | 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 Attributable to Masco | $270 | $258 | $456 | $473 | | Diluted EPS | $1.28 | $1.17 | $2.15 | $2.14 | Condensed Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash investments | $390 | $634 | | Total current assets | $2,925 | $2,730 | | Total assets | $5,288 | $5,016 | | Long-term debt | $2,945 | $2,945 | | Total liabilities | $5,138 | $5,069 | | Total equity | $150 | $(53) | Condensed Consolidated Statements of Cash Flows Six Months Ended June 30 Cash Flow Highlights (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 for the period | $(243) | $(236) | Segment Performance Segment performance was mixed in Q2, with Plumbing Products showing sales growth and margin expansion, while Decorative Architectural Products experienced a sales decline Plumbing Products Plumbing Products Q2 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,312M | $1,253M | +5% | | Adjusted Operating Profit | $276M | $249M | +10.8% | | Adjusted Operating Margin | 21.0% | 19.9% | +110 bps | Decorative Architectural Products Decorative Architectural Products Q2 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $738M | $838M | -12% | | Adjusted Operating Profit | $157M | $174M | -9.8% | | Adjusted Operating Margin | 21.3% | 20.8% | +50 bps | Non-GAAP Reconciliations (Exhibit A) This section provides reconciliations from reported GAAP figures to adjusted non-GAAP figures for key metrics, primarily due to minor rationalization charges Q2 2025 Profit and Margin Reconciliation (in millions) | Metric | As Reported | Adjustments | As Adjusted | | :--- | :--- | :--- | :--- | | Gross Profit | $772 | $1 | $774 | | Operating Profit | $412 | $2 | $413 | | Operating Margin | 20.1% | - | 20.1% | Q2 2025 Income Per Common Share Reconciliation | Metric | Value | | :--- | :--- | | Income before income taxes, as reported | $378M | | Rationalization charges | $2M | | Income before income taxes, as adjusted | $380M | | Net income, as adjusted | $274M | | Net income per common share, as adjusted | $1.30 | Corporate and Shareholder Information This section provides an overview of Masco Corporation, details for the earnings conference call, and a safe harbor statement regarding forward-looking statements - Masco Corporation is a global leader in the design, manufacture, and distribution of branded home improvement and building products, including brands like Behr®, Delta®, and HotSpring®[7] - An earnings conference call is scheduled for Thursday, July 31, 2025, at 8:00 a.m. ET to discuss the results[8] - The press release includes a "Safe Harbor Statement" cautioning that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[11][12]