Masco Q1 Earnings & Sales Miss, Adjusted Operating Margin Falls Y/Y

Company Performance - Masco Corporation (MAS) reported adjusted earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents by 5.4%, and down from 93 cents in the prior-year quarter [4] - Net sales were $1.8 billion, falling short of the consensus mark of $1.84 billion by 1.9% and declining 6% year over year; excluding divestitures, net sales decreased 3% in local currency [4] - The adjusted operating margin contracted 60 basis points year over year to 18.5%, with adjusted EBITDA at $245 million compared to $255 million in the prior-year quarter [7] Segment Analysis - Plumbing Products segment net sales declined 1% year over year to $1.18 billion, with North American sales up 2% and international sales flat in local currency [6] - Decorative Architectural Products segment reported sales of $617 million, down 16% from the prior-year period; total paint sales decreased in mid-single digits, while PRO paint sales increased in the mid-single digits [8] Financial Position - As of March 31, 2025, Masco had total liquidity of $1.246 billion, down from $1.31 billion a year earlier, with cash and cash investments of $377 million and long-term debt of $2.95 billion [13] - The company repurchased 1.8 million shares for about $130 million and returned $66 million to shareholders in dividends during the reported period [13] Market Environment - The disappointing performance is attributed to a challenging macroeconomic and geopolitical environment, including new tariffs; Masco is implementing pricing adjustments and cost-saving initiatives to address rising cost pressures [2] - Management has refrained from providing full-year 2025 financial guidance due to ongoing uncertainty regarding external developments affecting industry demand and pricing dynamics [3]