01—Abstract
Summary
Summary of the 10-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation and its subsidiaries, a global designer, manufacturer and distributor of branded home improvement and building products (including BEHR paint, DELTA and HANSGROHE faucets, LIBERTY hardware and HOT SPRING spas), reported 2024 net sales of $7,828 milliona, down two percent from $7,967 million in 2023.
Gross margin rose to 36.2 percent from 35.6 percent, and operating profit was $1,363 millionb, up one percent. Net income attributable to Masco Corporation was $822 million, down nine percent, and diluted income per share was $3.76 versus $4.02, down six percent. The Decorative Architectural Products segment's sales fell five percent, largely due to the third-quarter 2024 divestiture of Kichler Lighting, which produced an $88 million loss, while Plumbing Products sales were flat and its operating profit rose six percent.
Cash from operating activities was $1,075 millionc, down from $1,413 million. Masco repurchased and retired 10.0 million shares for approximately $757 million, paid $254 million in cash dividends, and declared a first-quarter 2025 quarterly dividend of $0.31 per share, with the intention to raise the annual dividend seven percent to $1.24. The company expects to use approximately $600 million for share repurchases in 2025, outside of any acquisitions.
Total debt as a percent of total capitalization was 102 percent at year-end 2024, compared with 97 percent a year earlier, and total equity was negative $53 milliond. The Home Depot accounted for approximately 38 percent of consolidated net sales, and management reported effective internal control over financial reporting as of December 31, 2024.
02—Key points
Key Highlights
- Net sales of $7,828 million declined two percent, with gross margin improving to 36.2 percent from 35.6 percent.
- Net income attributable to Masco Corporation fell nine percent to $822 million; diluted EPS was $3.76 versus $4.02.
- Plumbing Products net sales were flat at $4,853 million, and segment operating profit rose six percent to $911 million.
- Decorative Architectural Products net sales decreased five percent to $2,975 million, reflecting the Kichler divestiture, lower net selling prices and lower builders' hardware volume.
- Operating cash flow was $1,075 million, down from $1,413 million; capital expenditures were $168 million.
- Masco repurchased 10.0 million shares for about $757 million and paid $254 million in dividends; $896 million remained under the 2022 repurchase authorization.
- Total debt as a percent of total capitalization rose to 102 percent from 97 percent, and total equity was a deficit of $53 million at December 31, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Masco kept $0.11.
- Revenue$7.83B100.0%
- Cost of revenue−$5.00B63.8%
- Gross profit$2.83B36.2%
- Operating costs−$1.47B18.8%
- Operating income$1.36B17.4%
- Interest, other & tax−$541.0M6.9%
- Net income$822.0M10.5%
Where FY2024 revenue went
$7.83B- Cost of revenue: $5.00B, 64% of revenue
- SG&A: $1.47B, 19% of revenue
- Net income: $822.0M, 11% of revenue
- Interest, other & tax: $541.0M, 6.9% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 11, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.83B$7.97B | −1.7% |
| Cost of Revenue | $5.00B$5.13B | −2.6% |
| Gross Profit | $2.83B$2.84B | −0.2% |
| SG&A Expenses | $1.47B$1.47B | −0.3% |
| Operating Income | $1.36B$1.35B | +1.1% |
| Net Income | $822.00M$908.00M | −9.5% |
| EPS (Basic) | $3.77$4.03 | −6.5% |
| EPS (Diluted) | $3.76$4.02 | −6.5% |
| Shares Outstanding (Basic) | 218.00M225.00M | −3.1% |
| Shares Outstanding (Diluted) | 219.00M226.00M | −3.1% |
05—Questions
Frequently Asked Questions
How concentrated are Masco's sales with a single customer?
Net sales to The Home Depot were $3.0 billion, approximately 38 percent of consolidated net sales in 2024. The filing states that the loss of this business would have a material adverse impact, and the BEHR brand grants The Home Depot exclusivity in the North American retail channel.
Why did net income decline in 2024 even though operating profit increased?
Operating profit rose one percent to $1,363 million, but other income (expense), net worsened to $202 million of expense from $110 million. The main driver was an $88 million loss on the sale of Kichler Lighting, and income tax expense rose to $287 million with an effective tax rate of 25 percent versus 22 percent.
What are Masco's capital return plans for 2025?
The Board declared a first-quarter 2025 quarterly dividend of $0.31 per share, with the intention to increase the annual dividend seven percent to $1.24 per share. Outside of potential acquisitions, the company anticipates using approximately $600 million of cash for share repurchases in 2025.
How is Masco's balance sheet leverage and liquidity positioned?
Cash and cash investments were $634 million at both year-end 2024 and 2023, and long-term debt was $2,945 million. Total debt as a percent of total capitalization was 102 percent, and the company was in compliance with its 2022 Credit Agreement covenants with no borrowings outstanding. The $1.0 billion revolving credit facility matures in April 2027.
What key risks does the filing highlight for investors?
The filing highlights dependence on residential repair and remodeling activity, volatility in raw material costs such as brass, copper, resins and titanium dioxide, tariffs and duties on imported products, currency exposure, customer concentration, and competition from private label brands and low-cost foreign manufacturers.
06—Continue