Masco Corporation Reports Fourth Quarter and Full-Year 2025 Results
Masco Corporation (NYSE: MAS), a leading global manufacturer of branded home improvement and building products, today announced its financial results for the fourth quarter and full-year 2025. The company continues to navigate a complex macroeconomic and geopolitical environment while executing strategic initiatives to enhance shareholder value and streamline operations.
2025 Fourth Quarter Financial Performance
Masco’s fourth quarter of 2025 reflected mixed results across its business segments. On a reported basis, net sales for the quarter decreased 2% year-over-year to $1,793 million, while in local currency, sales declined 3%.
Segment Performance
- Plumbing Products: Net sales increased 5% compared to Q4 2024. On a local currency basis, sales rose 3%, reflecting strong demand in core plumbing categories.
- Decorative Architectural Products: Net sales decreased 15%, reflecting ongoing challenges in the segment.
Geographically, North American sales decreased 5% in local currency, while international sales rose 1%.
Profitability
- Gross Margin: Decreased 80 basis points to 33.9% from 34.7% in the prior-year quarter.
- Operating Profit: Fell 14% to $248 million, with an operating margin of 13.8%, down 210 basis points from 15.9% in Q4 2024.
- Net Income: Declined 6% to $0.80 per share from $0.85 per share.
On an adjusted basis, Masco reported slightly different results reflecting normalized tax rates and certain adjustments:
- Adjusted Gross Margin: 33.7%, down 110 basis points from 34.8%.
- Adjusted Operating Profit: $259 million, an 11% decrease from $291 million.
- Adjusted Operating Margin: 14.4%, down 150 basis points from 15.9%.
- Adjusted Earnings per Share: $0.82, an 8% decline from $0.89 per share.
Liquidity at the end of the fourth quarter stood at $1,647 million, including availability under Masco’s revolving credit facility, providing the company with flexibility for operational and strategic initiatives.
Full-Year 2025 Financial Results
For the full year 2025, Masco reported net sales of $7,562 million, a 3% decrease compared to 2024. When adjusting for currency fluctuations and divestitures, net sales declined 2%.
Segment Performance
- Plumbing Products: Sales increased 3%, or 2% in local currency, reflecting strong performance in core product categories.
- Decorative Architectural Products: Sales decreased 14%, or 8% in local currency excluding divestitures, continuing the segment’s soft performance.
From a regional perspective, North American sales decreased 5% in local currency, while international sales increased slightly by 1%.
Profitability
- Gross Margin: Fell 80 basis points to 35.4% from 36.2% in 2024.
- Operating Profit: $1,248 million, an 8% decline from $1,363 million, with an operating margin of 16.5%, down 90 basis points.
- Net Income: Increased slightly by 3% to $3.86 per share from $3.76 per share.
Adjusted results for the full year reflected similar trends:
- Adjusted Gross Margin: 35.5%, down 80 basis points.
- Adjusted Operating Profit: $1,272 million, a 7% decrease from $1,372 million.
- Adjusted Operating Margin: 16.8%, down 70 basis points.
- Adjusted Earnings per Share: $3.96, a 3% decline from $4.10 per share.
Executive Commentary
Jon Nudi, Masco’s President and CEO, commented on the results, stating, “Overall, our fourth quarter operating results were largely in line with our expectations, as we continued to navigate through a dynamic geopolitical and macroeconomic environment. We delivered adjusted operating profit of $259 million and adjusted earnings per share of $0.82 during the quarter. Additionally, our capital allocation strategy enabled us to return $281 million to shareholders in the quarter through dividends and share repurchases.”
Nudi added, “For the full year 2025, we delivered solid adjusted operating profit margins of 16.8% and adjusted earnings per share of $3.96, returning $832 million to shareholders through dividends and share repurchases. We are taking decisive actions to further position our business for long-term growth and shareholder value.”
Strategic Initiatives and Restructuring
Masco has recently taken several steps to streamline operations, optimize costs, and strengthen its corporate structure:
- Executive Committee Formation: Masco established an Executive Committee with dual corporate and business unit representation to leverage enterprise-wide capabilities and accelerate execution.
- Restructuring Actions: The company initiated restructuring measures in Q4 2025 to streamline operations and reduce headcount, incurring approximately $18 million in charges during the quarter. An additional $50 million in charges is expected in 2026. These initiatives are projected to generate significant savings, enabling reinvestment into growth initiatives and margin expansion.
Additionally, Masco announced a strategic integration of Liberty Hardware into Delta Faucet Company, aligning the company’s consumer-driven strategy. Liberty Hardware, previously part of Decorative Architectural Products, will now be included in the Plumbing Products segment, allowing Masco to better leverage brand strength and operational scale.
2026 Outlook
Looking ahead, Masco expects flat to low-single-digit sales growth in 2026 across global repair and remodel markets, continuing to outperform the broader market. Adjusted earnings per share are projected to range between $4.10 and $4.30, supported by strong brands, a consumer-focused product portfolio, disciplined capital allocation, and a robust balance sheet.
Dividend Declaration and Share Repurchase Program
Masco’s Board of Directors declared a quarterly dividend of $0.32 per share, payable on March 9, 2026, to shareholders of record on February 20, 2026. In addition, the Board approved a new $2.0 billion share repurchase program, effective February 10, 2026, replacing the existing authorization.
Jon Nudi emphasized, “Our dividend and share repurchase program are central to our capital allocation strategy, designed to return value to shareholders. The new $2.0 billion repurchase program underscores our resilient business model, strong financial position, and the Board’s confidence in our future performance.”
Conclusion
Masco Corporation ended 2025 with a solid financial position, delivering adjusted operating margins of 16.8% and adjusted EPS of $3.96. Despite modest declines in certain segments, the company maintained strong liquidity, executed strategic restructuring initiatives, and returned significant capital to shareholders. With ongoing operational improvements, strategic brand integrations, and disciplined capital allocation, Masco is well-positioned to deliver sustained growth and long-term shareholder value in 2026 and beyond.
SOURCE LINK: https://www.businesswire.com/
