Masco (MAS) Q4 2025 earnings summary

Executive summary

• Achieved key milestones in 2025 despite challenging macroeconomic and geopolitical conditions, including market share gains in plumbing and wellness, brand recognition, and innovation, with expansion into new categories and strong customer partnerships.

• Strategic partnership with The Home Depot led to awards and expanded Pro paint market share by 200 basis points since 2019.

• Introduced innovative products and expanded into new categories, gaining market share through strong brands and customer service.

• Restructuring actions in Q4 2025 incurred $18M in charges, with $50M more expected in 2026; executive committee formed to drive operational efficiency and growth.

• Fourth quarter 2025 net sales declined 2% year-over-year to $1,793 million; full year net sales fell 3% to $7,562 million, or 2% excluding divestitures and in local currency.

Financial highlights

• Q4 2025 net sales decreased 2% (3% in local currency); operating profit was $259M with a 14.4% margin; adjusted EPS was $0.82.

• Full year 2025 net sales decreased 3% (2% excluding currency/divestiture); operating profit $1.3B, margin 16.8%; adjusted EPS $3.96; ROIC 41%.

• Returned $832M to shareholders via dividends and share repurchases; free cash flow exceeded $850M with nearly 100% conversion.

• Repurchased 8.5 million shares for $571 million in 2025.

• Liquidity at year-end was $1.6B, including revolver availability.

Outlook and guidance

• 2026 adjusted EPS expected in the range of $4.10–$4.30; reported EPS guidance is $3.91–$4.11.

• Sales in global repair and remodel markets expected to be flat; company sales expected flat to low-single digit growth adjusted for currency.

• Operating margin projected to expand to ~17%; plumbing margins expected at ~18%, decorative architectural at ~19%.

• $600M in free cash flow targeted for share repurchases or acquisitions; $1.28/share dividend (+3%).

• Integration of Liberty Hardware into Delta Faucet Company reflected in segment reporting.