[Performance Highlights and Management Commentary](index=1&type=section&id=Performance%20Highlights%20and%20Management%20Commentary) 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](index=4&type=chunk) - Management anticipates that sales in the global repair and remodel markets will be down by **low-single digits** for the full year 2025[4](index=4&type=chunk) 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](index=1&type=section&id=Financial%20Outlook%20for%202025) 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](index=4&type=chunk) 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](index=1&type=section&id=Capital%20Allocation) 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](index=4&type=chunk) - The company repurchased **1.6 million shares** of its common stock for **$101 million** in Q2 2025[5](index=5&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.31 per share**, payable on August 25, 2025[6](index=6&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) 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](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) 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](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) 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](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Segment%20Performance) 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](index=8&type=section&id=Plumbing%20Products) 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](index=8&type=section&id=Decorative%20Architectural%20Products) 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)](index=4&type=section&id=Non-GAAP%20Reconciliations%20%28Exhibit%20A%29) 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](index=2&type=section&id=Corporate%20and%20Shareholder%20Information) 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](index=7&type=chunk) - An earnings conference call is scheduled for Thursday, July 31, 2025, at 8:00 a.m. ET to discuss the results[8](index=8&type=chunk) - 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](index=11&type=chunk)[12](index=12&type=chunk)

Core Viewpoint - Analysts project that Masco (MAS) will report quarterly earnings of $1.08 per share, reflecting a 10% decline year over year, with revenues expected to reach $2 billion, down 4.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 3.4% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics - Analysts estimate 'Net Sales- Plumbing Products' to be $1.26 billion, representing a 0.5% increase year over year [5]. - The consensus for 'Net Sales- Decorative Architectural Products' is $744.34 million, indicating an 11.2% decline year over year [5]. - Expected 'Operating profit, as adjusted- Plumbing Products' is projected at $225.09 million, down from $249.00 million in the same quarter last year [6]. - Analysts forecast 'Operating profit, as adjusted- Decorative Architectural Products' at $145.41 million, compared to $174.00 million in the previous year [6]. - The projected 'Operating profit, as reported- Decorative Architectural Products' is $140.29 million, down from $174.00 million year over year [7]. - 'Operating profit, as reported- Plumbing Products' is expected to be $223.34 million, compared to $247.00 million in the same quarter last year [7]. Stock Performance - Over the past month, Masco shares have returned -0.7%, while the Zacks S&P 500 composite has changed by +3.4% [7]. - Masco holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [7].

Core Insights - Behr Paint Company has announced Hidden Gem (N430-6A) as its 2026 Colour of the Year, described as a smoky jade that balances grounding and energizing qualities [1][2] - The colour reflects a growing consumer desire for unconventional colours that evoke wonder in everyday spaces, with 78% of Canadians believing that paint colours can impact confidence [2][9] Product and Market Positioning - Hidden Gem is part of the BEHR® 2026 Colour Trends Palette, which includes a variety of trend-forward colours emphasizing warmth, comfort, and playfulness [4] - The palette features grounding earth tones, deep jewel tones, and relaxed pastels, catering to diverse styles from traditional to modern [4] Consumer Engagement and Promotions - Behr Paint is running a promotional contest offering a chance to win $50,000 USD for customers who purchase any BEHR® product and follow the brand on social media [5] - The company emphasizes the versatility of Hidden Gem, suitable for various applications from residential to commercial spaces [3][6] Company Background - Founded in 1947, Behr Paint Company is a leading manufacturer of paints and related products in North America, known for its commitment to quality and innovation [8][10] - The company operates under the BEHR®, KILZ®, and WHIZZ® brands, serving both DIYers and professional contractors [8]

Core Insights - Behr Paint Company has announced "Hidden Gem" (N430-6A) as the 2026 Color of the Year, described as a smoky jade that balances grounding and energizing qualities [1][2] - The color reflects a growing consumer desire for unconventional colors that evoke a sense of wonder in everyday spaces, with 82% of Americans believing that paint colors can impact confidence [2][9] Company Overview - Behr Paint Company is one of the largest manufacturers of architectural paints and stains in the U.S. and Canada, offering a wide range of products for both professionals and DIY users [10] - The company is a subsidiary of Masco Corporation, listed on NYSE under the ticker MAS [10] Product Offering - "Hidden Gem" is part of the BEHR® 2026 Color Trends Palette, which includes a variety of colors that emphasize warmth, comfort, and playfulness, featuring earth tones, jewel tones, and pastels [4] - BEHR® products, including the 2026 Color of the Year, are available in several lines such as BEHR DYNASTY®, BEHR MARQUEE®, BEHR ULTRA®, and BEHR PREMIUM PLUS®, sold at The Home Depot [6] Marketing and Consumer Engagement - To promote the 2026 Color of the Year, Behr Paint is running a sweepstakes offering a chance to win $50,000 for customers who purchase any BEHR® product [5] - Research indicates that more than half of Americans find a room painted with Hidden Gem captivating (58%), and two-thirds believe it would create a unique and peaceful environment [9]

Core Viewpoint - Masco Corporation is expected to report its second-quarter 2025 results on July 31, with anticipated declines in both adjusted earnings and net sales compared to the previous year, influenced by various segment performances and external cost pressures [1][2][7]. Financial Performance - In the last reported quarter, Masco's adjusted earnings and net sales missed the Zacks Consensus Estimate by 5.4% and 1.9%, respectively, with year-over-year declines of 6.5% and 6% [1]. - The Zacks Consensus Estimate for adjusted EPS has increased to $1.08 from $1.07 over the past 30 days, indicating a 10% decline from the year-ago EPS of $1.20. The consensus estimate for net sales is pegged at $2 billion, reflecting a 4.1% decline from the prior-year quarter's figure of $2.09 billion [2]. Sales Trends - The top line is expected to decline year over year due to reduced contributions from the Decorative Architectural Products segment, which accounted for 34.3% of total net sales in Q1 2025, impacted by lower sales volume and the divestiture of the Kichler business [3]. - The Plumbing Products segment, which accounted for 65.8% of total net sales in Q1 2025, is anticipated to support the top line with higher net selling prices, despite an unfavorable sales mix [4]. Segment Performance - The Plumbing Products segment's net sales are expected to increase by 1.3% year over year to $1.27 billion, while the Decorative Architectural Products segment's net sales are projected to decline by 12% year over year to $737.4 million [5]. - Geographically, net sales in North America are expected to decline by 5.7% year over year to $1.6 billion, while international net sales are anticipated to increase by 2.5% year over year to $406.9 million [6]. Margin Analysis - The company's bottom line is likely to decline year over year due to a higher cost structure and adverse impacts from tariffs, including incremental China tariffs and increased annual expenses from tariffs on steel and aluminum [7]. - Higher commodity costs, increased marketing costs, and an unfavorable sales mix from the Plumbing Products segment are expected to contribute to the decline in the bottom line [9]. Earnings Expectations - Masco has a positive Earnings ESP of +2.61%, indicating a potential earnings beat despite soft volume and rising input costs [8][10]. - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [11].

Core Viewpoint - The market anticipates a year-over-year decline in Masco's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Masco is expected to report quarterly earnings of $1.08 per share, reflecting a 10% decrease year-over-year, with revenues projected at $2 billion, down 4.1% from the previous year [3]. - The consensus EPS estimate has been revised 3.43% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Masco has a positive Earnings ESP of +2.61%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a potential earnings beat [12]. Historical Performance - In the last reported quarter, Masco was expected to post earnings of $0.92 per share but delivered $0.87, resulting in a surprise of -5.43% [13]. - Over the past four quarters, Masco has beaten consensus EPS estimates twice [14]. Industry Context - Armstrong World Industries, a peer in the Zacks Building Products - Miscellaneous industry, is expected to report earnings of $1.75 per share, reflecting an 8% year-over-year increase, with revenues projected at $403.73 million, up 10.6% [18]. - Armstrong's consensus EPS estimate has been revised 0.9% lower in the last 30 days, but a higher Most Accurate Estimate results in an Earnings ESP of +1.71%, suggesting a likely earnings beat [19][20].

Core Insights - Behr Paint Company has announced a collaboration with REMAX Canada to support DIY home improvement and real estate decisions for Canadians [1][2] - The partnership emphasizes the concept of DIYconomics, promoting financially responsible home updates through the use of BEHR paint and resources [2] Company Collaboration - The collaboration leverages the REMAX Media Network to provide content and resources aimed at empowering homeowners [4] - Both brands are recognized as BrandSpark Most Trusted® in their categories, enhancing consumer confidence in their offerings [1] Consumer Insights - A survey by REMAX Canada revealed that 27% of active buyers and sellers consider a freshly painted home important, with 28% willing to paint before listing or purchasing [3] - 20% of Canadians plan to remodel or significantly upgrade their homes, indicating a strong interest in home improvement [3] Marketing Initiatives - A national digital contest will be launched on REMAX.ca, offering a DIY prize pack valued at $2,000 CAD, including BEHR paint and a personal colour consultation [5] - The collaboration aims to provide budget-friendly tips and expert insights to homeowners looking to enhance their spaces [5] Tools and Resources - Behr offers tools like ColourSmart to help consumers visualize and coordinate paint colors in their spaces [4] - Curated colour palettes, including the BEHR Designer Collection, are available to assist consumers in making informed choices [4] Market Trends - A REMAX renovation study found that 56% of Canadians believe minor updates, such as refreshing paint, provide the best return on investment [5] - The collaboration targets cost-conscious Millennials and Gen Z homeowners who are looking to personalize their spaces and boost home value [3]

Core Insights - Behr Paint Company has partnered with Google Cloud to develop an AI-powered tool named ChatHUE™ to assist consumers in selecting paint colors, addressing a significant challenge in home improvement projects [1][2][3] Company Overview - Behr Paint Company, founded in 1947, is a major manufacturer of paints and related products in North America, known for its commitment to quality and innovation [5] - Google Cloud provides a comprehensive suite of AI and cloud services, supporting organizations in their digital transformation efforts [6] Consumer Insights - Over 40% of consumers find color selection to be the most challenging aspect of their painting projects, with a similar percentage indicating that indecision prevents them from starting projects [2] - The partnership aims to simplify the color selection process, transforming it from a daunting task into an engaging experience for consumers [3][4] Technological Innovation - The ChatHUE™ tool leverages Behr's proprietary color data and Google Cloud's AI capabilities, including Gemini and Vertex AI, to offer personalized color recommendations [1][3] - Behr conducted extensive testing and real-world pilots to ensure the effectiveness of the AI tool before its launch [3] Strategic Goals - Behr aims to enhance creativity and provide smart solutions for homeowners through innovative technology, reinforcing its position as a leader in the paint industry [4]

Core Viewpoint - Masco's shares have increased by approximately 4% since the last earnings report, but this performance is below that of the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - The consensus estimate for Masco has decreased by 13.51% over the past month, indicating a downward trend in estimates [2] - The overall outlook for Masco suggests a below-average return in the coming months, supported by a Zacks Rank of 4 (Sell) [4] Group 2: VGM Scores - Masco has received a subpar Growth Score of D, along with the same grade for momentum, indicating weak performance in these areas [3] - The stock also holds a D grade for value, placing it in the bottom 40% of this investment strategy, resulting in an aggregate VGM Score of D [3]

Core Insights - Kornit Digital Ltd. has entered a strategic partnership with MAS Holdings to enhance sustainable fashion production through on-demand digital technologies [1][2] - The collaboration aims to address inefficiencies in the fashion supply chain, focusing on reducing overproduction and waste while improving profitability for brands [3][4] Company Overview - Kornit Digital is a leader in sustainable, on-demand digital fashion and textile production technologies, providing end-to-end solutions including digital printing systems and fulfillment services [6] - MAS Holdings is recognized as the largest apparel technology company in South Asia, known for its collaborations with major brands like Nike and Victoria's Secret [2] Strategic Agreement Benefits - The partnership will enable brands to optimize inventory levels and respond quickly to market demands, thus minimizing waste and maximizing full-price sell-through [3][4] - MAS ACME USA will leverage end-to-end supply chain data diagnostics to enhance manufacturing strategies and increase profits by aligning production with accurate demand forecasts [5][9] Industry Impact - The agreement is positioned as a solution to the urgent need for change in the fashion industry, which is characterized by inefficiencies and a complex supply chain [4] - The collaboration promotes onshore production flexibility, allowing for agile responses to market trends and reducing long lead times associated with traditional supply chains [8][9] Future Outlook - The partnership is expected to transform the fashion industry into a more efficient and responsible production model, ultimately leading to sustainable growth and improved working capital efficiency [8][9]