01—Abstract
Summary
Summary of the 10-K filed February 10, 2026. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation (MAS) reported 2025 net sales of $7,562 milliona, down three percent from $7,828 million in 2024, with lower sales volume partially offset by higher net selling prices of plumbing products.
Gross margin declined to 35.4 percent from 36.2 percent, and operating profit fell eight percent to $1,248 millionb, with an operating profit margin of 16.5 percent versus 17.4 percent. Net income attributable to Masco Corporation was $810 million, and diluted income per common share rose to $3.86 from $3.76, reflecting the lower share count after buybacks. Net cash from operating activities was $1,022 million, and capital expenditures were $156 million.
The Decorative Architectural Products segment was the main drag, with net sales down 14 percent to $2,570 million and operating profit down 19 percent to $443 millionc, driven by lower volume and the divestiture of Kichler Lighting. Plumbing Products net sales rose three percent to $4,992 million, but operating profit slipped two percent to $895 million under higher commodity and tariff costs. The Home Depot accounted for approximately 38 percent of consolidated net sales in 2025, and the company flagged ongoing tariff, commodity and lower-demand pressures.
For capital allocation, the Board authorized a new $2.0 billiond share repurchase program on February 10, 2026, replacing the 2022 program, and the company expects to use approximately $600 million for repurchases in 2026 outside of any acquisitions. The quarterly dividend was raised to $0.32 per share, with the intention to increase the annual dividend three percent to $1.28. Total debt as a percent of total capitalization was 97 percent at year-end, and the company had no borrowings outstanding under its $1.0 billion revolving credit agreement.
02—Key points
Key Highlights
- Net sales fell three percent to $7,562 million; excluding divestitures and currency translation, sales decreased two percent, with lower volume offset by higher plumbing selling prices.
- Operating profit declined eight percent to $1,248 million; operating profit margin was 16.5 percent versus 17.4 percent in 2024.
- Decorative Architectural Products net sales decreased 14 percent to $2,570 million, primarily due to lower volume and the Kichler divestiture, while its operating profit fell 19 percent.
- Plumbing Products net sales increased three percent to $4,992 million, though operating profit fell two percent to $895 million on higher commodity and tariff costs.
- Diluted income per share rose to $3.86 from $3.76 on net income attributable to Masco of $810 million, versus $822 million in 2024.
- The Board authorized a new $2.0 billion share repurchase program effective February 10, 2026, and the company anticipates about $600 million of repurchases in 2026.
- The Home Depot represented approximately 38 percent of 2025 consolidated net sales, a concentration risk highlighted in the filing.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Masco kept $0.11.
- Revenue$7.56B100.0%
- Cost of revenue−$4.88B64.6%
- Gross profit$2.68B35.4%
- Operating costs−$1.43B18.9%
- Operating income$1.25B16.5%
- Interest, other & tax−$438.0M5.8%
- Net income$810.0M10.7%
Where FY2025 revenue went
$7.56B- Cost of revenue: $4.88B, 65% of revenue
- SG&A: $1.43B, 19% of revenue
- Net income: $810.0M, 11% of revenue
- Interest, other & tax: $438.0M, 5.8% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 10, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $7.56B$7.83B | −3.4% |
| Cost of Revenue | $4.88B$5.00B | −2.3% |
| Gross Profit | $2.68B$2.83B | −5.4% |
| SG&A Expenses | $1.43B$1.47B | −2.9% |
| Operating Income | $1.25B$1.36B | −8.4% |
| Net Income | $810.00M$822.00M | −1.5% |
| EPS (Basic) | $3.87$3.77 | +2.7% |
| EPS (Diluted) | $3.86$3.76 | +2.7% |
| Shares Outstanding (Basic) | 209.00M218.00M | −4.1% |
| Shares Outstanding (Diluted) | 210.00M219.00M | −4.1% |
05—Questions
Frequently Asked Questions
How did Masco perform financially in 2025?
Net sales were $7,562 million, down three percent from $7,828 million. Gross profit fell five percent to $2,679 million, operating profit fell eight percent to $1,248 million, and net income attributable to Masco was $810 million compared with $822 million in 2024.
Why did the Decorative Architectural Products segment decline?
Segment net sales decreased 14 percent to $2,570 million, primarily due to lower sales volume, which reduced net sales by eight percent, and the divestiture of Kichler, which reduced net sales by six percent. Operating profit was also hurt by higher commodity and tariff costs, partly offset by cost savings and lower marketing costs.
What is Masco's capital return plan?
In 2025 the company repurchased and retired 8.5 million shares for about $576 million and paid $261 million in cash dividends. On February 10, 2026, the Board authorized a new $2.0 billion repurchase program, and the company anticipates using about $600 million for repurchases in 2026 outside of any acquisitions. The quarterly dividend is $0.32 per share, with an intention to lift the annual dividend three percent to $1.28.
What are the main risks flagged for investors?
The filing highlights dependence on residential repair and remodeling activity, higher costs from tariffs and commodities such as brass, copper, resins and titanium dioxide, and pricing pressure from private label and low-cost competitors. Customer concentration is significant, with The Home Depot at about 38 percent of net sales and an exclusivity arrangement for the BEHR brand.
How is Masco's balance sheet and liquidity position?
Cash and cash investments were $647 million at year-end 2025, and long-term debt was $2,945 million. Total debt as a percent of total capitalization was 97 percent, down from 102 percent. No borrowings were outstanding under the $1.0 billion revolving credit agreement, and the company stated it was in compliance with its covenants.
06—Continue