- Fourth Quarter Highlights
- Net sales decreased 3 percent to $1,828 million
- Operating profit margin increased 280 basis points to 15.9
percent; adjusted operating profit margin increased 140 basis
points to 15.9 percent
- Earnings per share was $0.85 per share; adjusted earnings per
share grew 7 percent to $0.89 per share
- Repurchased 3.3 million shares for $268 million
- Full Year Highlights
- Net sales decreased 2 percent to $7,828 million
- Operating profit margin increased 50 basis points to 17.4
percent from 16.9 percent; adjusted operating profit margin
increased 70 basis points to 17.5 percent from 16.8 percent
- Earnings per share decreased 6 percent to $3.76 per share;
adjusted earnings per share increased 6 percent to $4.10 per share
from $3.86 per share
- Returned $1.0 billion to shareholders through dividends and
share repurchases
- Outlook for 2025 and Dividend Declaration
- Expect 2025 earnings per share in the range of $4.20 - $4.45
per share
- Estimates include the impact from recently enacted China
tariffs
- Board declared a quarterly dividend of $0.31 per share, a 7
percent increase, payable on March 10, 2025 to shareholders of
record on February 21, 2025
Masco Corporation (NYSE: MAS), one of the world’s leading
manufacturers of branded home improvement and building products,
reported its fourth quarter and full-year 2024 results.
2024 Fourth Quarter
Results
- On a reported basis, compared to the fourth quarter 2023:
- Net sales decreased 3 percent to $1,828 million; in local
currency and excluding divestitures, net sales increased 1 percent
- Plumbing Products’ net sales decreased 1 percent; in local
currency net sales decreased 1 percent
- Decorative Architectural Products’ net sales decreased 6
percent; in local currency and excluding divestitures, net sales
increased 5 percent
- In local currency, North American sales decreased 4 percent and
International sales increased 2 percent
- Gross margin was flat at 34.7 percent
- Operating profit increased 17 percent to $290 million from $247
million
- Operating margin increased 280 basis points to 15.9 percent
from 13.1 percent
- Net income was flat at $0.85 per share
- Compared to fourth quarter 2023, results for key financial
measures, as adjusted for certain items (see Exhibit A) and with a
normalized tax rate of 24.5 percent, were as follows:
- Gross margin decreased 30 basis points to 34.8 percent from
35.1 percent
- Operating profit increased 7 percent to $291 million from $272
million
- Operating margin increased 140 basis points to 15.9 percent
from 14.5 percent
- Net income increased 7 percent to $0.89 per share, compared to
$0.83 per share
- Liquidity at the end of the fourth quarter was $1,634 million
(including availability under our revolving credit facility)
2024 Full Year Results
- On a reported basis, compared to full year 2023:
- Net sales decreased 2 percent to $7,828 million; in local
currency and excluding acquisitions and divestitures, net sales
decreased 1 percent
- In local currency, North American sales decreased 2 percent and
international sales were flat
- Gross margin increased 60 basis points to 36.2 percent from
35.6 percent
- Operating profit increased 1 percent to $1,363 million from
$1,348 million
- Operating margin increased 50 basis points to 17.4 percent from
16.9 percent
- Net income decreased to $3.76 per share, compared to $4.02 per
share
- Compared to full year 2023, results for key financial measures,
as adjusted for certain items (see Exhibit A) and with a normalized
tax rate of 24.5 percent, were as follows:
- Gross margin increased 110 basis points to 36.3 percent from
35.2 percent
- Operating profit increased 3 percent to $1,372 million from
$1,336 million
- Operating margin increased 70 basis points to 17.5 percent from
16.8 percent
- Net income increased 6 percent to $4.10 per share, compared to
$3.86 per share
“We delivered another quarter of strong operating results,” said
Keith Allman, Masco’s President and Chief Executive Officer. “Our
fourth quarter adjusted operating profit margin expanded 140 basis
points, marking the seventh consecutive quarter of year-over-year
margin expansion, and our adjusted earnings per share grew by 7
percent. Additionally, we executed on our capital allocation
strategy by returning $331 million to shareholders in the quarter
through dividends and share repurchases.”
“For the full year 2024, we expanded adjusted operating margin
by 70 basis points to 17.5 percent through our focus on cost
savings initiatives and operational efficiencies,” continued
Allman. “With this strong execution, we delivered adjusted earnings
per share growth of 6 percent despite a challenging demand
environment. Our strong cash flow also enabled us to return $1.0
billion to shareholders through dividends and share
repurchases.”
“In 2025, we believe demand across the global repair and remodel
markets will be flat to down low single digits. We expect our sales
to be approximately flat to up low-single digits when adjusted for
divestitures and currency, as we expect to continue to outperform
the market in 2025,” said Allman. “Based on the market outlook, our
expected operating performance, and our capital deployment actions,
we anticipate full year adjusted earnings per share to be in the
range of $4.20 to $4.45 per share. With our industry leading repair
and remodel-oriented product portfolio, strong balance sheet, and
disciplined capital allocation, we believe Masco is well positioned
to continue to deliver long-term shareholder value.”
Dividend Declaration
Masco’s Board of Directors declared a quarterly dividend of
$0.31 per share, payable on March 10, 2025 to shareholders of
record on February 21, 2025.
About Masco
Headquartered in Livonia, Michigan, Masco Corporation is a
global leader in the design, manufacture and distribution of
branded home improvement and building products. Our portfolio of
industry-leading brands includes Behr® paint; Delta® and hansgrohe®
faucets, bath and shower fixtures; Liberty® branded decorative and
functional hardware; and HotSpring® spas. We leverage our powerful
brands across product categories, sales channels and geographies to
create value for our customers and shareholders. For more
information about Masco Corporation, visit www.masco.com.
The 2024 fourth quarter and full year supplemental material,
including a presentation in PDF format, is available on the
Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is
scheduled for Tuesday, February 11, 2025 at 8:00 a.m. ET.
Participants in the call are asked to register five to ten minutes
prior to the scheduled start time by dialing 800-549-8228 or
289-819-1520. Please use the conference identification number
48079.
The conference call will be webcast simultaneously and in its
entirety through the Company’s website. Shareholders, media
representatives and others interested in Masco may participate in
the webcast by registering through the Investor Relations section
on the Company’s website.
A replay of the call will be available on Masco’s website or by
phone by dialing 888-660-6264 or 289-819-1325. Please use the
playback passcode 48079#. The telephone replay will be available
approximately two hours after the end of the call and continue
through March 11, 2025.
Safe Harbor Statement
This press release contains statements that reflect our views
about our future performance and constitute “forward-looking
statements” under the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words such as
“outlook,” “believe,” “anticipate,” “appear,” “may,” “will,”
“should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,”
“forecast,” and similar references to future periods. Our views
about future performance involve risks and uncertainties that are
difficult to predict and, accordingly, our actual results may
differ materially from the results discussed in our forward-looking
statements. We caution you against relying on any of these
forward-looking statements.
Our future performance may be affected by the levels of
residential repair and remodel activity, and to a lesser extent,
new home construction, our ability to maintain our strong brands,
to develop innovative products and respond to changing consumer
purchasing practices and preferences, our ability to maintain our
public image and reputation, our ability to maintain our
competitive position in our industries, our reliance on key
customers, the cost and availability of materials, our dependence
on suppliers and service providers, extreme weather events and
changes in climate, risks associated with our international
operations and global strategies, our ability to achieve the
anticipated benefits of our strategic initiatives, our ability to
successfully execute our acquisition strategy and integrate
businesses that we have acquired and may in the future acquire, our
ability to attract, develop and retain a talented and diverse
workforce, risks associated with cybersecurity vulnerabilities,
threats and attacks and risks associated with our reliance on
information systems and technology. These and other factors are
discussed in detail in Item 1A. "Risk Factors" in our most recent
Annual Report on Form 10-K, as well as in our Quarterly Reports on
Form 10-Q and in other filings we make with the Securities and
Exchange Commission. Any forward-looking statement made by us
speaks only as of the date on which it was made. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible for us to predict all of them.
Unless required by law, we undertake no obligation to update
publicly any forward-looking statements as a result of new
information, future events or otherwise.
MASCO CORPORATION
Condensed Consolidated Statements of
Operations - Unaudited
For the Three Months and Years Ended
December 31, 2024 and 2023
(in millions, except per common
share data)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net sales
$
1,828
$
1,882
$
7,828
$
7,967
Cost of sales
1,192
1,228
4,997
5,131
Gross profit
635
653
2,831
2,836
Selling, general and administrative
expenses
346
391
1,468
1,473
Impairment charge for other intangible
assets
—
15
—
15
Operating profit
290
247
1,363
1,348
Other income (expense), net:
Interest expense
(24
)
(25
)
(99
)
(106
)
Other, net
(8
)
10
(103
)
(4
)
(32
)
(15
)
(202
)
(110
)
Income before income taxes
258
233
1,161
1,238
Income tax expense
65
32
287
278
Net income
193
200
874
960
Less: Net income attributable to
noncontrolling interest
11
9
52
52
Net income attributable to Masco
Corporation
$
182
$
191
$
822
$
908
Income per common share attributable to
Masco Corporation (diluted):
Net income
$
0.85
$
0.85
$
3.76
$
4.02
Average diluted common shares
outstanding
215
224
219
226
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three Months and Years Ended
December 31, 2024 and 2023
(dollars in
millions)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Gross Profit,
Selling, General and Administrative Expenses, and Operating Profit
Reconciliations
Net sales
$
1,828
$
1,882
$
7,828
$
7,967
Gross profit, as reported
$
635
$
653
$
2,831
$
2,836
Rationalization charges
1
7
7
9
Insurance settlement (1)
—
—
—
(40
)
Gross profit, as adjusted
$
636
$
660
$
2,838
$
2,805
Gross margin, as reported
34.7
%
34.7
%
36.2
%
35.6
%
Gross margin, as adjusted
34.8
%
35.1
%
36.3
%
35.2
%
Selling, general and administrative
expenses, as reported
$
346
$
391
$
1,468
$
1,473
Rationalization charges
—
3
2
4
Selling, general and administrative
expenses, as adjusted
$
345
$
388
$
1,466
$
1,469
Selling, general and administrative
expenses as a percent of net sales, as reported
18.9
%
20.8
%
18.8
%
18.5
%
Selling, general and administrative
expenses as a percent of net sales, as adjusted
18.9
%
20.6
%
18.7
%
18.4
%
Operating profit, as reported
$
290
$
247
$
1,363
$
1,348
Rationalization charges
1
10
9
13
Impairment charge for other intangible
assets
—
15
—
15
Insurance settlement (1)
—
—
—
(40
)
Operating profit, as adjusted
$
291
$
272
$
1,372
$
1,336
Operating margin, as reported
15.9
%
13.1
%
17.4
%
16.9
%
Operating margin, as adjusted
15.9
%
14.5
%
17.5
%
16.8
%
(1)
Represents income for the year ended
December 31, 2023 from the receipt of an insurance settlement
payment.
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Exhibit A: Reconciliations -
Unaudited
For the Three Months and Years Ended
December 31, 2024 and 2023
(in millions, except per common share
data)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Income Per Common
Share Reconciliations
Income before income taxes, as
reported
$
258
$
233
$
1,161
$
1,238
Rationalization charges
1
10
9
13
Impairment charge for other intangible
assets
—
15
—
15
Loss on sale of business (1)
8
—
88
—
Realized (gains) from private equity
funds
—
—
(1
)
(1
)
Loss from equity investments, net
—
—
—
1
Insurance settlement (2)
—
—
—
(40
)
Income before income taxes, as
adjusted
267
257
1,257
1,226
Tax at 24.5% rate
(65
)
(63
)
(308
)
(300
)
Less: Net income attributable to
noncontrolling interest
11
9
52
52
Net income, as adjusted
$
191
$
185
$
897
$
873
Net income per common share, as
adjusted
$
0.89
$
0.83
$
4.10
$
3.86
Average diluted common shares
outstanding
215
224
219
226
(1)
Represents the loss for the three months
and year ended December 31, 2024 from the sale of our Kichler
Lighting business.
(2)
Represents income for the year ended
December 31, 2023 from the receipt of an insurance settlement
payment.
Outlook for the Year Ended December 31,
2025
Year Ended December 31,
2025
Low End
High End
Income Per Common
Share Reconciliation
Net income per common share
$
4.20
$
4.45
Rationalization charges
—
—
Net income per common share, as
adjusted
$
4.20
$
4.45
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Condensed Consolidated Balance Sheets
and Other Financial Data - Unaudited
December 31, 2024 and 2023
(dollars in millions)
December 31, 2024
December 31, 2023
Balance Sheet
Assets
Current assets:
Cash and cash investments
$
634
$
634
Receivables
1,035
1,090
Inventories
938
1,022
Prepaid expenses and other
123
110
Total current assets
2,730
2,856
Property and equipment, net
1,116
1,121
Goodwill
597
604
Other intangible assets, net
220
377
Operating lease right-of-use assets
231
268
Other assets
123
139
Total assets
$
5,016
$
5,363
Liabilities
Current liabilities:
Accounts payable
$
789
$
840
Notes payable
3
3
Accrued liabilities
767
852
Total current liabilities
1,560
1,695
Long-term debt
2,945
2,945
Noncurrent operating lease liabilities
223
258
Other liabilities
342
349
Total liabilities
5,069
5,247
Redeemable noncontrolling interest
—
18
Equity
(53
)
98
Total liabilities and equity
$
5,016
$
5,363
As of December 31,
2024
2023
Other Financial Data
Working capital days
Receivable days
51
52
Inventory days
72
77
Payable days
70
70
Working capital
$
1,184
$
1,272
Working capital as a % of sales (LTM)
15.1
%
16.0
%
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Condensed Consolidated Statements of
Cash Flows and Other Financial Data - Unaudited
For the Years Ended December 31, 2024
and 2023
(dollars in millions)
Year Ended December
31,
2024
2023
Cash Flows From (For) Operating
Activities:
Cash provided by operating activities
$
1,205
$
1,172
Working capital changes
(130
)
241
Net cash from operating activities
1,075
1,413
Cash Flows From (For) Financing
Activities:
Purchase of Company common stock
(751
)
(353
)
Excise tax paid on the purchase of Company
common stock
(3
)
—
Cash dividends paid
(254
)
(257
)
Purchase of redeemable noncontrolling
interest
(15
)
—
Dividends paid to noncontrolling
interest
(37
)
(49
)
Proceeds from short-term borrowings
—
77
Payment of short-term borrowings
—
(77
)
Payment of term loan
—
(200
)
Proceeds from the exercise of stock
options
79
38
Employee withholding taxes paid on
stock-based compensation
(35
)
(29
)
Payment of debt
(3
)
(5
)
Net cash for financing activities
(1,017
)
(854
)
Cash Flows From (For) Investing
Activities:
Capital expenditures
(168
)
(243
)
Acquisition of business, net of cash
acquired
(4
)
(136
)
Proceeds from disposition of business, net
of cash disposed
126
—
Other, net
(4
)
(4
)
Net cash for investing activities
(50
)
(383
)
Effect of exchange rate changes on cash
and cash investments
(9
)
6
Cash and Cash Investments:
(Decrease) increase for the year
(1
)
182
At January 1
634
452
At December 31
$
634
$
634
As of December 31,
2024
2023
Liquidity
Cash and cash investments
$
634
$
634
Revolver availability
1,000
1,000
Total Liquidity
$
1,634
$
1,634
Historical information is available on our website.
Amounts may not add due to rounding.
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Years Ended
December 31, 2024 and 2023
(dollars in millions)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
Change
2024
2023
Change
Plumbing Products
Net sales
$
1,189
$
1,204
(1
)%
$
4,853
$
4,842
—
%
Operating profit, as reported
$
198
$
189
$
911
$
861
Operating margin, as reported
16.7
%
15.7
%
18.8
%
17.8
%
Rationalization charges
1
9
9
8
Accelerated depreciation related to
rationalization activity
—
1
—
1
Operating profit, as adjusted
200
198
920
870
Operating margin, as adjusted
16.8
%
16.4
%
19.0
%
18.0
%
Depreciation and amortization
28
30
107
106
EBITDA, as adjusted
$
228
$
228
$
1,027
$
976
Decorative Architectural
Products
Net sales
$
639
$
677
(6
)%
$
2,975
$
3,125
(5
)%
Operating profit, as reported
$
113
$
85
$
549
$
578
Operating margin, as reported
17.7
%
12.6
%
18.5
%
18.5
%
Rationalization charges
—
—
1
4
Impairment charge for other intangible
assets
—
15
—
15
Insurance settlement
—
—
—
(40
)
Operating profit, as adjusted
113
100
550
557
Operating margin, as adjusted
17.7
%
14.8
%
18.5
%
17.8
%
Depreciation and amortization
7
10
35
35
EBITDA, as adjusted
$
120
$
110
$
585
$
592
Total
Net sales
$
1,828
$
1,882
(3
)%
$
7,828
$
7,967
(2
)%
Operating profit, as reported -
segment
$
311
$
274
$
1,460
$
1,439
General corporate expense, net
(21
)
(26
)
(97
)
(91
)
Operating profit, as reported
290
247
1,363
1,348
Operating margin, as reported
15.9
%
13.1
%
17.4
%
16.9
%
Rationalization charges - segment
1
9
9
12
Accelerated depreciation related to
rationalization activity - segment
—
1
—
1
Impairment charge for other intangible
assets
—
15
—
15
Insurance settlement
—
—
—
(40
)
Operating profit, as adjusted
291
272
1,372
1,336
Operating margin, as adjusted
15.9
%
14.5
%
17.5
%
16.8
%
Depreciation and amortization -
segment
35
40
143
141
Depreciation and amortization - other
2
2
7
7
EBITDA, as adjusted
$
328
$
314
$
1,522
$
1,485
Historical information is available on our website.
Amounts may not add due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250211124198/en/
Investor Contact Robin
Zondervan Vice President, Investor Relations and FP&A
313.792.5500 robin_zondervan@mascohq.com
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