01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Masco Corporation's third-quarter 2025 10-Q reports net sales of $1,917 milliona for the three months ended September 30, 2025, down from $1,983 million a year earlier, and net sales of $5,769 million for the nine months, down from $6,000 million.
Management attributes the decline mainly to lower sales volume across the company, partially offset by higher net selling prices in Plumbing Products. Operating profit was $303 millionb for the quarter versus $357 million in the prior-year quarter, and gross margin was 34.2% versus 36.6%, with the filing citing higher commodity and tariff costs, particularly related to China, as pressures on costs. Net income attributable to Masco Corporation was $189 million for the quarter, up from $167 million, and diluted income per share was $0.90 versus $0.77; the prior-year quarter included an $81 million preliminary loss on the Kichler Lighting divestiture within other, net.
Balance sheet and cash flow data show cash and cash investments of $559 millionc at September 30, 2025, long-term debt of $2,945 million, and total equity of $168 million, compared with a deficit of $53 million at December 31, 2024. Net cash from operating activities was $604 million for the nine months, versus $668 million a year earlier. Masco repurchased $354 million of common stock and paid $197 million in cash dividends during the nine months, and management anticipates about $500 million of share repurchases in 2025 outside of any acquisitions.
The revolving credit agreement of $1.0 billiond remained undrawn at quarter end, and the company reported compliance with its financial covenants. Management states that lower market demand, elevated commodity and input costs, employee-related cost inflation, and tariffs are continuing pressures, and that consumer demand could diminish further if confidence erodes. The Decorative Architectural Products segment saw net sales decline 12% in the quarter, largely due to the Kichler divestiture and lower volume, while Plumbing Products net sales rose 2%.
02—Key points
Key Highlights
- Net sales of $1,917 million for Q3 2025, down 3% from $1,983 million; nine-month net sales of $5,769 million, down 4% from $6,000 million.
- Operating profit of $303 million in Q3 2025 versus $357 million; gross margin of 34.2% compared with 36.6%.
- Net income attributable to Masco Corporation rose to $189 million in Q3 2025 from $167 million, and diluted EPS was $0.90 versus $0.77.
- Plumbing Products net sales increased 2% in Q3 2025 to $1,247 million, while Decorative Architectural Products net sales decreased 12% to $670 million.
- Net cash from operating activities was $604 million for the nine months, and capital expenditures were $109 million.
- Share repurchases of $354 million and cash dividends of $197 million paid in the nine months; approximately $542 million remained under the 2022 repurchase authorization at September 30, 2025.
- The $1.0 billion revolving credit agreement was undrawn at September 30, 2025, and the company was in compliance with all covenants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Masco kept $0.10.
- Revenue$1.92B100.0%
- Cost of revenue−$1.26B65.8%
- Gross profit$656.0M34.2%
- Operating costs−$353.0M18.4%
- Operating income$303.0M15.8%
- Interest, other & tax−$114.0M5.9%
- Net income$189.0M9.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.92B$1.98B | −3.3% |
| Cost of Revenue | $1.26B$1.26B | +0.2% |
| Gross Profit | $656.00M$725.00M | −9.5% |
| SG&A Expenses | $353.00M$368.00M | −4.1% |
| Operating Income | $303.00M$357.00M | −15.1% |
| Net Income | $189.00M$167.00M | +13.2% |
| EPS (Basic) | $0.91$0.77 | +18.2% |
| EPS (Diluted) | $0.90$0.77 | +16.9% |
| Shares Outstanding (Basic) | 209.00M217.00M | −3.7% |
| Shares Outstanding (Diluted) | 209.00M218.00M | −4.1% |
05—Questions
Frequently Asked Questions
What drove the decline in net sales for the third quarter of 2025?
The filing attributes the 3% decline in net sales to lower sales volume across the entire company, which decreased sales by four percent, partially offset by higher net selling prices of plumbing products, which increased sales by two percent, excluding divestitures and currency translation. The Kichler Lighting divestiture also reduced Decorative Architectural Products sales.
Why did gross margin decline in the third quarter?
Gross margin fell to 34.2% from 36.6%. The filing cites higher commodity and tariff costs, an increase in other expenses including inventory-related reserves, lower sales volume, and the Kichler divestiture, partially offset by higher net selling prices and cost savings initiatives.
How much is Masco returning to shareholders and what is planned for 2025?
During the nine months ended September 30, 2025, Masco repurchased and retired approximately 5.1 million shares for about $357 million, including excise tax, and paid cash dividends of $0.93 per share totaling $197 million. The company anticipates using approximately $500 million of cash for share repurchases in 2025, outside of any potential acquisitions.
What is the company's debt and liquidity position?
Long-term debt was $2,945 million at September 30, 2025, unchanged from December 31, 2024. Cash and cash investments were $559 million, and the $1.0 billion 2022 Credit Agreement, which matures April 26, 2027, had no borrowings outstanding. Management believes present cash, operating cash flows and borrowing availability are sufficient to fund near-term needs.
What risks does management highlight for the business outlook?
Management cites lower market demand, elevated commodity and other input costs, employee-related cost inflation, and significantly higher costs from recently announced and enacted tariffs, particularly related to China, principally in the Plumbing Products segment. It also notes that consumer demand could diminish further if consumer confidence erodes or product prices rise. The filing states there have been no material changes to the risk factors in the 2024 Form 10-K.
06—Continue