Masco Corporation Reports Strong Second Quarter 2025 Results and Restores Full-Year Guidance
Masco Corporation a global leader in the design, manufacture, and distribution of branded home improvement and building products, has announced its financial results for the second quarter ended June 30, 2025. The company delivered solid performance in key financial metrics and demonstrated continued operational discipline, despite ongoing geopolitical and macroeconomic uncertainties.
Second Quarter 2025 Financial Highlights
In the second quarter of 2025, Masco reported net sales of $2.05 billion, reflecting a 2% decrease compared to the same period in 2024. However, when adjusting for local currency fluctuations and the impact of divestitures, net sales remained consistent with the prior year, indicating underlying market stability in Masco’s core business segments.
Segment Performance:
- Plumbing Products saw a 5% increase in reported net sales. When adjusted for local currency, the segment recorded a 4% increase, showcasing strong demand for the company’s leading plumbing brands across both residential and commercial markets.
- Decorative Architectural Products, on the other hand, experienced a 12% decline in reported net sales. Excluding divestitures and in local currency, the decline was a more modest 4%, driven by softness in certain retail channels and market normalization following prior elevated demand.
Geographic Trends:
Masco’s North American sales fell by 3% in local currency, while international sales increased by 1%, reflecting regional disparities and the company’s ability to navigate market conditions outside the U.S. with greater resilience.
Profitability and Margins
Despite a modest decline in overall sales, Masco delivered notable improvements in profitability metrics:
- Gross margin improved slightly by 10 basis points to 37.6%, up from 37.5% in Q2 2024. On an adjusted basis, the gross margin was 37.7%, reflecting improvements in product mix and operational efficiencies.
- Operating profit rose 4% year-over-year to $412 million, compared to $397 million in the prior year. On an adjusted basis, operating profit was $413 million, with the operating margin expanding to 20.1%, a 100-basis-point increase.
- Net income per diluted share increased by 9% to $1.28, up from $1.17 a year ago. On an adjusted basis, net income rose 8% to $1.30 per share, highlighting effective cost management and capital deployment.
Strong Liquidity Position
Masco ended the quarter with a robust liquidity position totaling $1.344 billion, which includes availability under the company’s revolving credit facility. This strong balance sheet provides Masco with the financial flexibility to continue executing its capital allocation strategy and navigate market challenges.
CEO Commentary and Strategic Outlook
“During the first half of this year, we demonstrated our ability to successfully navigate a dynamic geopolitical and macroeconomic environment through our focused execution,” said Jon Nudi, President and Chief Executive Officer of Masco. “Our second quarter results were strong as we expanded adjusted operating profit margin by 100 basis points to 20.1 percent, and we grew adjusted earnings per share by 8 percent to $1.30.”
Nudi emphasized the company’s disciplined capital allocation strategy, which led to the return of $167 million to shareholders in the second quarter through dividends and share repurchases. This approach underscores Masco’s long-term commitment to shareholder value and financial prudence.
Looking ahead, Nudi acknowledged that near-term market conditions remain uncertain, particularly within the global housing and remodeling sectors. Nevertheless, he expressed confidence in the company’s ability to continue delivering results through strategic execution.
“Therefore, we are restoring our financial guidance for 2025,” he added.
Full-Year 2025 Guidance Restored
Based on current market dynamics and the company’s strong first-half performance, Masco expects that sales across the global repair and remodel markets will decline by low-single digits in 2025. However, when adjusted for the effects of currency and divestitures, Masco anticipates its full-year sales to be roughly in line with 2024, outperforming broader market expectations.
The company also projects that its full-year adjusted earnings per share (EPS) will range between $3.90 and $4.10, reaffirming confidence in both its operational agility and long-term growth trajectory.
“With our industry-leading brands, innovative product portfolio, and strong customer service, as well as our disciplined capital allocation, we believe Masco is well-positioned to continue to deliver long-term shareholder value,” Nudi concluded.
Dividend Declaration
In conjunction with the quarterly results, Masco’s Board of Directors declared a quarterly dividend of $0.31 per share, payable on August 25, 2025, to shareholders of record as of August 8, 2025. This consistent dividend payout reflects the company’s ongoing commitment to returning capital to shareholders while investing in long-term strategic initiatives.
