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Masco Corporation Reports Fourth Quarter and 2024 Year-End Results

1. Masco's Q4 2024 net sales fell 3%, while local sales rose 1%. 2. Operating profit increased 17% to $290 million, showing strong efficiency. 3. Leading brands contributed to a stable operating margin of 15.9%. 4. 2025 outlook predicts flat to low-single-digit sales growth amid demand challenges. 5. Dividends of $0.31 per share reaffirm company's shareholder return commitment.

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$76.60502/12 02:01 PM EDTLatest Updated
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Why Neutral?

Mixed financial results reflect resilience but showcase ongoing challenges. Past performance indicates stability during downturns.

How important is it?

Relevant financial metrics provide insight for investors. Stable dividends signal confidence but mixed sales impact market sentiment.

Why Short Term?

Immediate results impact MAS price; long-term performance affected by market conditions. Stocks often react to quarterly reports.

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NYSE: MAS
LIVONIA, Mich.--(BUSINESS WIRE)--Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its fourth quarter and full-year 2024 results. 2024 Fourth Quarter Results On a reported basis, compared to the fourth quarter 2023: Net sales decreased 3 percent to $1,828 million; in local currency and excluding divestitures, net sales increased 1 percent Plumbing Products’ net sales decreased 1 percent; in local currency net sales decreased 1 percent Decorative Architectural Products’ net sales decreased 6 percent; in local currency and excluding divestitures, net sales increased 5 percent In local currency, North American sales decreased 4 percent and International sales increased 2 percent Gross margin was flat at 34.7 percent Operating profit increased 17 percent to $290 million from $247 million Operating margin increased 280 basis points to 15.9 percent from 13.1 percent Net income was flat at $0.85 per share Compared to fourth quarter 2023, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows: Gross margin decreased 30 basis points to 34.8 percent from 35.1 percent Operating profit increased 7 percent to $291 million from $272 million Operating margin increased 140 basis points to 15.9 percent from 14.5 percent Net income increased 7 percent to $0.89 per share, compared to $0.83 per share Liquidity at the end of the fourth quarter was $1,634 million (including availability under our revolving credit facility) 2024 Full Year Results On a reported basis, compared to full year 2023: Net sales decreased 2 percent to $7,828 million; in local currency and excluding acquisitions and divestitures, net sales decreased 1 percent In local currency, North American sales decreased 2 percent and international sales were flat Gross margin increased 60 basis points to 36.2 percent from 35.6 percent Operating profit increased 1 percent to $1,363 million from $1,348 million Operating margin increased 50 basis points to 17.4 percent from 16.9 percent Net income decreased to $3.76 per share, compared to $4.02 per share Compared to full year 2023, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows: Gross margin increased 110 basis points to 36.3 percent from 35.2 percent Operating profit increased 3 percent to $1,372 million from $1,336 million Operating margin increased 70 basis points to 17.5 percent from 16.8 percent Net income increased 6 percent to $4.10 per share, compared to $3.86 per share “We delivered another quarter of strong operating results,” said Keith Allman, Masco’s President and Chief Executive Officer. “Our fourth quarter adjusted operating profit margin expanded 140 basis points, marking the seventh consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 7 percent. Additionally, we executed on our capital allocation strategy by returning $331 million to shareholders in the quarter through dividends and share repurchases.” “For the full year 2024, we expanded adjusted operating margin by 70 basis points to 17.5 percent through our focus on cost savings initiatives and operational efficiencies,” continued Allman. “With this strong execution, we delivered adjusted earnings per share growth of 6 percent despite a challenging demand environment. Our strong cash flow also enabled us to return $1.0 billion to shareholders through dividends and share repurchases.” “In 2025, we believe demand across the global repair and remodel markets will be flat to down low single digits. We expect our sales to be approximately flat to up low-single digits when adjusted for divestitures and currency, as we expect to continue to outperform the market in 2025,” said Allman. “Based on the market outlook, our expected operating performance, and our capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.20 to $4.45 per share. With our industry leading repair and remodel-oriented product portfolio, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to continue to deliver long-term shareholder value.” Dividend Declaration Masco’s Board of Directors declared a quarterly dividend of $0.31 per share, payable on March 10, 2025 to shareholders of record on February 21, 2025. About Masco Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and hansgrohe® faucets, bath and shower fixtures; Liberty® branded decorative and functional hardware; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com. The 2024 fourth quarter and full year supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com. Conference Call Details A conference call regarding items contained in this release is scheduled for Tuesday, February 11, 2025 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-549-8228 or 289-819-1520. Please use the conference identification number 48079. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website. A replay of the call will be available on Masco’s website or by phone by dialing 888-660-6264 or 289-819-1325. Please use the playback passcode 48079#. The telephone replay will be available approximately two hours after the end of the call and continue through March 11, 2025. Safe Harbor Statement This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise. MASCO CORPORATION Condensed Consolidated Statements of Operations - Unaudited For the Three Months and Years Ended December 31, 2024 and 2023 (in millions, except per common share data)   Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net sales $ 1,828 $ 1,882 $ 7,828 $ 7,967 Cost of sales 1,192 1,228 4,997 5,131 Gross profit 635 653 2,831 2,836 Selling, general and administrative expenses 346 391 1,468 1,473 Impairment charge for other intangible assets — 15 — 15 Operating profit 290 247 1,363 1,348 Other income (expense), net: Interest expense (24 ) (25 ) (99 ) (106 ) Other, net (8 ) 10 (103 ) (4 ) (32 ) (15 ) (202 ) (110 ) Income before income taxes 258 233 1,161 1,238 Income tax expense 65 32 287 278 Net income 193 200 874 960 Less: Net income attributable to noncontrolling interest 11 9 52 52 Net income attributable to Masco Corporation $ 182 $ 191 $ 822 $ 908 Income per common share attributable to Masco Corporation (diluted): Net income $ 0.85 $ 0.85 $ 3.76 $ 4.02 Average diluted common shares outstanding 215 224 219 226 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three Months and Years Ended December 31, 2024 and 2023 (dollars in millions)   Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations Net sales $ 1,828 $ 1,882 $ 7,828 $ 7,967 Gross profit, as reported $ 635 $ 653 $ 2,831 $ 2,836 Rationalization charges 1 7 7 9 Insurance settlement (1) — — — (40 ) Gross profit, as adjusted $ 636 $ 660 $ 2,838 $ 2,805 Gross margin, as reported 34.7 % 34.7 % 36.2 % 35.6 % Gross margin, as adjusted 34.8 % 35.1 % 36.3 % 35.2 % Selling, general and administrative expenses, as reported $ 346 $ 391 $ 1,468 $ 1,473 Rationalization charges — 3 2 4 Selling, general and administrative expenses, as adjusted $ 345 $ 388 $ 1,466 $ 1,469 Selling, general and administrative expenses as a percent of net sales, as reported 18.9 % 20.8 % 18.8 % 18.5 % Selling, general and administrative expenses as a percent of net sales, as adjusted 18.9 % 20.6 % 18.7 % 18.4 % Operating profit, as reported $ 290 $ 247 $ 1,363 $ 1,348 Rationalization charges 1 10 9 13 Impairment charge for other intangible assets — 15 — 15 Insurance settlement (1) — — — (40 ) Operating profit, as adjusted $ 291 $ 272 $ 1,372 $ 1,336 Operating margin, as reported 15.9 % 13.1 % 17.4 % 16.9 % Operating margin, as adjusted 15.9 % 14.5 % 17.5 % 16.8 % (1) Represents income for the year ended December 31, 2023 from the receipt of an insurance settlement payment. Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three Months and Years Ended December 31, 2024 and 2023 (in millions, except per common share data)   Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Income Per Common Share Reconciliations Income before income taxes, as reported $ 258 $ 233 $ 1,161 $ 1,238 Rationalization charges 1 10 9 13 Impairment charge for other intangible assets — 15 — 15 Loss on sale of business (1) 8 — 88 — Realized (gains) from private equity funds — — (1 ) (1 ) Loss from equity investments, net — — — 1 Insurance settlement (2) — — — (40 ) Income before income taxes, as adjusted 267 257 1,257 1,226 Tax at 24.5% rate (65 ) (63 ) (308 ) (300 ) Less: Net income attributable to noncontrolling interest 11 9 52 52 Net income, as adjusted $ 191 $ 185 $ 897 $ 873 Net income per common share, as adjusted $ 0.89 $ 0.83 $ 4.10 $ 3.86 Average diluted common shares outstanding 215 224 219 226 (1) Represents the loss for the three months and year ended December 31, 2024 from the sale of our Kichler Lighting business. (2) Represents income for the year ended December 31, 2023 from the receipt of an insurance settlement payment. Outlook for the Year Ended December 31, 2025   Year Ended December 31, 2025 Low End High End Income Per Common Share Reconciliation Net income per common share $ 4.20 $ 4.45 Rationalization charges — — Net income per common share, as adjusted $ 4.20 $ 4.45 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited December 31, 2024 and 2023 (dollars in millions)   December 31, 2024 December 31, 2023 Balance Sheet Assets Current assets: Cash and cash investments $ 634 $ 634 Receivables 1,035 1,090 Inventories 938 1,022 Prepaid expenses and other 123 110 Total current assets 2,730 2,856 Property and equipment, net 1,116 1,121 Goodwill 597 604 Other intangible assets, net 220 377 Operating lease right-of-use assets 231 268 Other assets 123 139 Total assets $ 5,016 $ 5,363 Liabilities Current liabilities: Accounts payable $ 789 $ 840 Notes payable 3 3 Accrued liabilities 767 852 Total current liabilities 1,560 1,695 Long-term debt 2,945 2,945 Noncurrent operating lease liabilities 223 258 Other liabilities 342 349 Total liabilities 5,069 5,247 Redeemable noncontrolling interest — 18 Equity (53 ) 98 Total liabilities and equity $ 5,016 $ 5,363 As of December 31, 2024 2023 Other Financial Data Working capital days Receivable days 51 52 Inventory days 72 77 Payable days 70 70 Working capital $ 1,184 $ 1,272 Working capital as a % of sales (LTM) 15.1 % 16.0 % Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited For the Years Ended December 31, 2024 and 2023 (dollars in millions)   Year Ended December 31, 2024 2023 Cash Flows From (For) Operating Activities: Cash provided by operating activities $ 1,205 $ 1,172 Working capital changes (130 ) 241 Net cash from operating activities 1,075 1,413 Cash Flows From (For) Financing Activities: Purchase of Company common stock (751 ) (353 ) Excise tax paid on the purchase of Company common stock (3 ) — Cash dividends paid (254 ) (257 ) Purchase of redeemable noncontrolling interest (15 ) — Dividends paid to noncontrolling interest (37 ) (49 ) Proceeds from short-term borrowings — 77 Payment of short-term borrowings — (77 ) Payment of term loan — (200 ) Proceeds from the exercise of stock options 79 38 Employee withholding taxes paid on stock-based compensation (35 ) (29 ) Payment of debt (3 ) (5 ) Net cash for financing activities (1,017 ) (854 ) Cash Flows From (For) Investing Activities: Capital expenditures (168 ) (243 ) Acquisition of business, net of cash acquired (4 ) (136 ) Proceeds from disposition of business, net of cash disposed 126 — Other, net (4 ) (4 ) Net cash for investing activities (50 ) (383 ) Effect of exchange rate changes on cash and cash investments (9 ) 6 Cash and Cash Investments: (Decrease) increase for the year (1 ) 182 At January 1 634 452 At December 31 $ 634 $ 634 As of December 31, 2024 2023 Liquidity Cash and cash investments $ 634 $ 634 Revolver availability 1,000 1,000 Total Liquidity $ 1,634 $ 1,634 Historical information is available on our website. Amounts may not add due to rounding. MASCO CORPORATION Segment Data - Unaudited For the Three Months and Years Ended December 31, 2024 and 2023 (dollars in millions)   Three Months Ended December 31, Year Ended December 31, 2024 2023 Change 2024 2023 Change Plumbing Products Net sales $ 1,189 $ 1,204 (1 )% $ 4,853 $ 4,842 — % Operating profit, as reported $ 198 $ 189 $ 911 $ 861 Operating margin, as reported 16.7 % 15.7 % 18.8 % 17.8 % Rationalization charges 1 9 9 8 Accelerated depreciation related to rationalization activity — 1 — 1 Operating profit, as adjusted 200 198 920 870 Operating margin, as adjusted 16.8 % 16.4 % 19.0 % 18.0 % Depreciation and amortization 28 30 107 106 EBITDA, as adjusted $ 228 $ 228 $ 1,027 $ 976 Decorative Architectural Products Net sales $ 639 $ 677 (6 )% $ 2,975 $ 3,125 (5 )% Operating profit, as reported $ 113 $ 85 $ 549 $ 578 Operating margin, as reported 17.7 % 12.6 % 18.5 % 18.5 % Rationalization charges — — 1 4 Impairment charge for other intangible assets — 15 — 15 Insurance settlement — — — (40 ) Operating profit, as adjusted 113 100 550 557 Operating margin, as adjusted 17.7 % 14.8 % 18.5 % 17.8 % Depreciation and amortization 7 10 35 35 EBITDA, as adjusted $ 120 $ 110 $ 585 $ 592 Total Net sales $ 1,828 $ 1,882 (3 )% $ 7,828 $ 7,967 (2 )% Operating profit, as reported - segment $ 311 $ 274 $ 1,460 $ 1,439 General corporate expense, net (21 ) (26 ) (97 ) (91 ) Operating profit, as reported 290 247 1,363 1,348 Operating margin, as reported 15.9 % 13.1 % 17.4 % 16.9 % Rationalization charges - segment 1 9 9 12 Accelerated depreciation related to rationalization activity - segment — 1 — 1 Impairment charge for other intangible assets — 15 — 15 Insurance settlement — — — (40 ) Operating profit, as adjusted 291 272 1,372 1,336 Operating margin, as adjusted 15.9 % 14.5 % 17.5 % 16.8 % Depreciation and amortization - segment 35 40 143 141 Depreciation and amortization - other 2 2 7 7 EBITDA, as adjusted $ 328 $ 314 $ 1,522 $ 1,485 Historical information is available on our website. Amounts may not add due to rounding.

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