01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation reported second-quarter 2025 net sales of $2,051 milliona, down two percent from $2,091 million in the prior-year quarter.
Excluding divestitures and currency translation, net sales were flat, supported by higher net selling prices of plumbing products, partly offset by lower paint and coatings volume. Operating profit rose four percent to $412 millionb, and net income attributable to Masco Corporation increased to $270 million, with diluted income per share of $1.28 versus $1.17. For the six months, net sales were $3,852 million, down four percent, and diluted income per share was $2.15, compared with $2.14.
The Decorative Architectural Products segment was the main drag, with net sales down 12 percent in the quarter, largely due to the Kichler Lighting divestiture and lower volume. Cash flow and liquidity weakened in the first half. Net cash from operating activities was $148 millionc, versus $252 million a year earlier, primarily reflecting working capital changes, including higher receivables and inventories.
Cash and cash investments were $390 milliond at June 30, 2025, down from $634 million at December 31, 2024. Masco repurchased shares for $231 million in the six months, paid $132 million in cash dividends, and expects to use at least $450 million for share repurchases in 2025. Management stated that it expects recently enacted and announced tariffs, particularly those related to China, to result in significantly higher costs, mainly in the Plumbing Products segment, and that consumer demand could weaken further.
Total equity improved to $150 million at June 30, 2025, from a deficit of $53 million at year-end 2024. The company was in compliance with its credit agreement covenants, with $46 million borrowed at June 30, 2025, which was repaid after the quarter end. Management reported no material changes to risk factors from its 2024 Form 10-K.
02—Key points
Key Highlights
- Q2 2025 net sales were $2,051 million, down two percent; excluding divestitures and currency translation, sales were flat, driven by a two percent increase from higher plumbing selling prices.
- Q2 2025 operating profit rose four percent to $412 million, with operating profit margin of 20.1 percent versus 19.0 percent, and net income attributable to Masco was $270 million.
- Diluted income per common share was $1.28 for Q2 2025, up nine percent from $1.17, while six-month diluted income per share was $2.15 versus $2.14.
- Decorative Architectural Products net sales fell 12 percent in Q2 and 14 percent for the six months, with the Kichler divestiture reducing sales by eight percent in both periods.
- Operating cash flow fell to $148 million for the six months from $252 million, and cash and cash investments declined to $390 million from $634 million.
- Masco repurchased $231 million of stock in the first half, has $666 million remaining under its 2022 authorization, and expects at least $450 million of 2025 share repurchases.
- Management expects tariffs, particularly those related to China, to significantly increase costs, principally in the Plumbing Products segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Masco kept $0.13.
- Revenue$2.05B100.0%
- Cost of revenue−$1.28B62.4%
- Gross profit$772.0M37.6%
- Operating costs−$360.0M17.6%
- Operating income$412.0M20.1%
- Interest, other & tax−$142.0M6.9%
- Net income$270.0M13.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.05B$2.09B | −1.9% |
| Cost of Revenue | $1.28B$1.31B | −2.1% |
| Gross Profit | $772.00M$785.00M | −1.7% |
| SG&A Expenses | $361.00M$388.00M | −7.0% |
| Operating Income | $412.00M$397.00M | +3.8% |
| Net Income | $270.00M$258.00M | +4.7% |
| EPS (Basic) | $1.29$1.18 | +9.3% |
| EPS (Diluted) | $1.28$1.17 | +9.4% |
| Shares Outstanding (Basic) | 210.00M219.00M | −4.1% |
| Shares Outstanding (Diluted) | 211.00M220.00M | −4.1% |
05—Questions
Frequently Asked Questions
How did Masco perform in the second quarter of 2025?
Net sales were $2,051 million, down two percent from $2,091 million. Operating profit increased four percent to $412 million, and net income attributable to Masco was $270 million, or $1.28 per diluted share, compared with $1.17 a year earlier.
What drove the change in net sales?
Excluding divestitures and currency translation, net sales were flat in the quarter. Higher net selling prices of plumbing products added two percent, offset by lower sales volume of paints and other coating products, which reduced sales by one percent. The Kichler Lighting divestiture also reduced sales, and the Decorative Architectural Products segment's net sales fell 12 percent in the quarter.
How is Masco managing its cash and capital allocation?
Net cash from operating activities was $148 million for the six months, and cash and cash investments were $390 million at June 30, 2025. Masco repurchased $231 million of common stock and paid $132 million in cash dividends in the period. It expects to use at least $450 million for share repurchases in 2025 outside of any acquisitions, and it had $666 million remaining under its 2022 repurchase authorization.
What are the main risks identified in the filing?
Management expects recently enacted and announced tariffs, particularly those related to China, to significantly increase costs, mainly in the Plumbing Products segment, and says it seeks to offset these with pricing, cost savings, and sourcing changes. It also noted that consumer demand could diminish if confidence erodes or prices rise, and it reported lower market demand and elevated commodity and labor cost inflation.
Does the filing mention any significant events after the quarter ended?
The $46 million revolving credit borrowing outstanding at June 30, 2025 was entirely repaid after the quarter end. The One Big Beautiful Bill Act was enacted on July 4, 2025, and Masco is still evaluating its implications but does not currently expect a material effect on its effective tax rate.
06—Continue