Masco(US:MAS)2025-10-29 11:04Financial 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]