Masco(MAS) - 2025 Q3 - Quarterly Results

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]