01—Abstract
Summary
Summary of the 10-Q filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation's first-quarter 2025 Form 10-Q reports net sales of $1,801 milliona, down six percent from $1,926 million in the first quarter of 2024.
Excluding divestitures and currency translation, net sales decreased three percent, driven mainly by lower sales volume in paints and other coating products and unfavorable sales mix in plumbing products. Operating profit was $286 millionb, down 10 percent from $318 million, and net income attributable to Masco Corporation was $186 million, or $0.87 per diluted share, compared with $215 million and $0.97 a year earlier. Gross margin rose slightly to 35.8 percent from 35.6 percent.
Cash flow was weaker in the period. Net cash used for operating activities was $158 millionc, compared with $94 million a year earlier, mainly due to working capital changes, including a $225 million increase in receivables. Cash and cash investments fell to $377 million from $634 million at year-end 2024.
Masco repurchased about 1.8 million shares for approximately $131 milliond and paid $66 million in dividends, partly offset by $131 million of net revolving credit borrowings. Long-term debt was unchanged at $2,945 million, and notes payable rose to $133 million from $3 million. Management stated that changing market conditions are reducing demand and that elevated commodity and input costs and tariffs, particularly those related to China, are expected to result in significantly higher costs, principally in the Plumbing Products segment.
The company said it is unable to fully estimate the impact of these conditions on its future financial condition. Total equity improved to a deficit of $6 million from a deficit of $53 million at year-end 2024.
02—Key points
Key Highlights
- Net sales were $1,801 million, down six percent from $1,926 million; excluding divestitures and currency translation, net sales fell three percent.
- Operating profit declined 10 percent to $286 million, with operating profit margin of 15.9 percent versus 16.5 percent.
- Diluted income per common share was $0.87, versus $0.97 in the first quarter of 2024.
- Net cash used for operating activities was $158 million, compared with $94 million a year earlier, primarily from working capital changes.
- Cash and cash investments decreased to $377 million from $634 million at December 31, 2024.
- Masco repurchased approximately 1.8 million shares for about $131 million; $766 million remained under the 2022 authorization at March 31, 2025.
- Management expects tariffs, particularly those related to China, to significantly raise costs, mainly in the Plumbing Products segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Masco kept $0.10.
- Revenue$1.80B100.0%
- Cost of revenue−$1.16B64.2%
- Gross profit$644.0M35.8%
- Operating costs−$358.0M19.9%
- Operating income$286.0M15.9%
- Interest, other & tax−$100.0M5.6%
- Net income$186.0M10.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 23, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.80B$1.93B | −6.5% |
| Cost of Revenue | $1.16B$1.24B | −6.8% |
| Gross Profit | $644.00M$685.00M | −6.0% |
| SG&A Expenses | $358.00M$367.00M | −2.5% |
| Operating Income | $286.00M$318.00M | −10.1% |
| Net Income | $186.00M$215.00M | −13.5% |
| EPS (Basic) | $0.87$0.97 | −10.3% |
| EPS (Diluted) | $0.87$0.97 | −10.3% |
| Shares Outstanding (Basic) | 212.00M221.00M | −4.1% |
| Shares Outstanding (Diluted) | 213.00M221.00M | −3.6% |
05—Questions
Frequently Asked Questions
How did Masco's sales and profitability perform in the first quarter of 2025?
Net sales were $1,801 million, down six percent from $1,926 million. Operating profit was $286 million, down 10 percent from $318 million, and net income attributable to Masco Corporation was $186 million, or $0.87 per diluted share, versus $215 million and $0.97 a year earlier.
What drove the decline in net sales?
The company attributed the decline primarily to lower sales volume, mostly in paints and other coating products, which reduced sales by three percent, and unfavorable sales mix in plumbing products, which reduced sales by one percent. These were partly offset by higher net selling prices in plumbing products, which increased sales by one percent. The divestiture of Kichler Lighting also reduced sales in the Decorative Architectural Products segment by eight percent.
How did Masco's cash position and cash flows change?
Cash and cash investments fell to $377 million from $634 million at December 31, 2024. Net cash used for operating activities was $158 million, primarily due to working capital changes. Financing activities used $72 million, mainly for $130 million of share repurchases and $66 million of dividends, partly offset by $131 million of net revolving credit borrowings.
What risks does management highlight for the business outlook?
Management said changing market conditions are leading to lower market demand and that it has experienced elevated commodity and other input costs and employee-related cost inflation. It expects recently announced tariffs, particularly those related to China, to result in significantly higher costs, principally in Plumbing Products. Management also said it is unable to fully estimate the impact of changing market conditions on its future financial condition.
What is the status of Masco's debt and credit facilities?
Long-term debt was $2,945 million at March 31, 2025, unchanged from year-end 2024. The company's $1.0 billion revolving credit agreement, which matures April 26, 2027, had $131 million borrowed at a weighted average interest rate of 5.554 percent. Masco stated it was in compliance with all covenants.
06—Continue