Masco (MAS) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $2,051 million, down 2% year-over-year, but flat excluding divestitures and currency impacts; six-month sales were $3,852 million, down 4% year-over-year, mainly due to lower Decorative Architectural Products sales and the Kichler Lighting divestiture.

• Adjusted EPS grew 8% to $1.30 per share; reported EPS was $1.28.

• Operating profit for Q2 2025 increased 4% to $412 million (reported) and $413 million (adjusted), with margin up 100 bps to 20.1%.

• CEO transition occurred in July 2025, with Jon Nudi succeeding Keith Allman, who retired and received a severance agreement.

• The company focused on profitable top-line growth, innovation, and digital capabilities, while navigating macroeconomic and geopolitical challenges including tariffs and soft DIY demand.

Financial highlights

• Gross margin increased 10 bps to 37.6% (reported) and 37.7% (adjusted) year-over-year.

• SG&A as a percent of sales improved 90 bps to 17.6%; SG&A expenses for Q2 2025 decreased 7% to $361 million.

• Cash and cash investments were $390 million at June 30, 2025; total liquidity at quarter-end was $1,344 million.

• Net cash from operating activities for the first six months was $148 million.

• Working capital as a percentage of sales was 20.1%, expected to decline to 17.5% by year end.

Outlook and guidance

• Full-year 2025 adjusted EPS expected in the range of $3.90–$4.10; reported EPS guidance is $3.87–$4.07.

• Sales for 2025 expected to be roughly flat year-over-year, excluding divestitures and currency.

• Operating margin for 2025 anticipated at approximately 17%, with Plumbing at ~18.5% and Decorative Architectural at ~18%.

• Plumbing sales expected to be up low single digits; Decorative Architectural sales to decrease low double digits.

• At least $450 million in cash is anticipated to be used for share repurchases or acquisitions in 2025.