Masco (MAS) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Financial performance and business overview

• Generated nearly $8 billion in 2024 revenue and $1.4 billion in adjusted operating profit, with a 17.5% margin, up 70 bps from 2023 and 200 bps from 2022.

• Achieved over $900 million in cash flow in 2024, with a 96% cash flow conversion rate and modest capital intensity.

• Operates 45 manufacturing facilities globally, with 29 in the U.S., and 21 U.S. distribution centers.

• Business is organized into two segments: plumbing products and decorative architectural products, with 90% of sales in the repair and remodel (R&R) segment.

• Portfolio repositioned to focus on low-ticket, value-add brands for more consistent performance through cycles.

Segment performance and channel mix

• Plumbing products generated just under $5 billion in 2024 revenue, with 19% operating profit margin, up 100 bps from 2023.

• Key plumbing brands include Delta (North America), Hansgrohe (International), and Watkins Wellness (spa/sauna).

• Plumbing segment revenue: 50% wholesale, 19% retail, 11% specialty dealer, 18% e-commerce, with Delta leading in e-commerce.

• Decorative architectural products generated $3 billion in 2024 revenue, with 18.5% margin, up 70 bps from 2023.

• Behr paint (85-90% of segment sales) is sold exclusively through Home Depot, with pro paint business growing over 70% since 2020.

Innovation, diversification, and growth strategy

• Product innovation tracked by a Vitality Index, targeting 25% of revenue from products launched in the last three years.

• Brands cover a good-better-best price ladder, with recent consolidation of Newport Brass into Delta to strengthen luxury offerings.

• 80% of sales are in North America, 20% international, mainly via Hansgrohe.

• Channel mix: about one-third wholesale, just under half retail, specialty dealer and e-commerce are growing.

• R&R industry expected to grow 1-2% above GDP, driven by home price appreciation, aging housing stock, and millennial household formation.