Masco (MAS) FY 2025 Annual General Meeting May 09, 2025 08:30 AM ET Speaker0 Good morning, and welcome to Masco's twenty twenty five Annual Meeting of Stockholders. I would like to introduce Ms. Lisa Payne, Masco's Chair of the Board. Speaker1 Thank you, and good morning. I'm pleased to welcome you to Masco's Annual Meeting. At today's meeting, we'll address six matters for stockholder consideration and respond to any questions about these matters in accordance with the meeting's rules of conduct that have ...

Following my coverage on Masco Corp. ( MAS ) in Feb ’24, in which I recommended a buy rating as I expected FY24 to be a good macro year that should drive demand recovery, thisI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term gro ...

Masco Corporation MAS reported weaker-than-expected earnings for its first quarter on Wednesday.The company posted quarterly earnings of 87 cents per share which missed the analyst consensus estimate of 92 cents per share. The company reported quarterly sales of $1.80 billion which missed the analyst consensus estimate of $1.84 billion.The company did not provide FY25 guidance due to tariff and macroeconomic uncertainty.“During the first quarter, we delivered solid adjusted operating profit margin of 16.0 p ...

Safe Harbor Statement This presentation 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 an ...

Financial Data and Key Metrics Changes - In Q1 2025, the company's top line decreased by 6%, with a 3% decrease when excluding the divestiture of Kichler and unfavorable currency impacts [20][30] - Gross margins increased by 20 basis points to 35.9%, while operating profit was $288 million, resulting in an operating profit margin of 16% [20][32] - Earnings per share for the quarter was $0.87 [20][32] Business Line Data and Key Metrics Changes - Plumbing sales increased by 1% in local currency, with North American plumbing sales also up by 1%, driven by higher volumes in the spa and sauna business [21][33] - Decorative Architectural segment sales decreased by 16%, or 8% excluding the Kichler divestiture, with overall paint sales down high single digits [22][36] - Operating profit for the plumbing segment was $219 million, with an operating margin of 18.5%, while the Decorative Architectural segment had an operating profit of $96 million and an operating margin of 15.6% [22][23] Market Data and Key Metrics Changes - International plumbing sales were flat in local currency, with growth in Europe offset by softness in other markets, particularly China [21][34] - The company noted ongoing demand pressure in the DIY paint market due to a dampened macroeconomic environment, while pro paint sales were up mid-single digits [24][56] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through pricing actions, cost savings initiatives, and changes to its sourcing footprint [11][42] - The management emphasized the importance of maintaining core strengths, including market-leading brands and innovative product portfolios, amidst geopolitical and macroeconomic changes [15][26] - The company plans to invest approximately $175 million in capital expenditures and return $196 million to shareholders through dividends and share repurchases [39] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of tariffs on demand trends and decided not to provide full-year financial guidance for 2025 [12][25] - The company anticipates a potential softening of demand in the near term but remains confident in its ability to navigate challenges due to its experienced teams and strategic initiatives [15][26] - Management highlighted the resilience of the repair and remodel industry and the strength of its product portfolio [26][41] Other Important Information - The company is undergoing a leadership transition, with Keith Allman retiring and John Nooty appointed as the new President and CEO [8][10] - The company has successfully reduced its tariff import exposure to China by approximately 45% since 2018 [110] Q&A Session Summary Question: Top-line trends and April performance - Management noted strong performance in e-commerce and international plumbing, with some softening in the retail channel and DIY paint market [52][54] Question: Mitigation efforts on tariffs - Management confirmed that pricing and cost reduction are the primary mitigation actions, with ongoing efforts to adjust sourcing [61][62] Question: DIY paint market performance - Management indicated that the DIY paint market is experiencing softness due to consumer price sensitivity and a demographic shift towards professional painting services [75][76] Question: New build channel strategy - Management clarified that the focus remains on repair and remodel, with selective engagement in new builds based on value and innovation [96] Question: Brand performance across different segments - Management reported strong performance in e-commerce and international plumbing, with some pressure in retail and DIY paint areas [101][102] Question: Sourcing strategy and tariff impacts - Management discussed ongoing efforts to diversify sourcing and reduce exposure to China, while monitoring market conditions closely [110][114]

Company Performance - Masco Corporation (MAS) reported adjusted earnings per share (EPS) of 87 cents, missing the Zacks Consensus Estimate of 92 cents by 5.4%, and down from 93 cents in the prior-year quarter [4] - Net sales were $1.8 billion, falling short of the consensus mark of $1.84 billion by 1.9% and declining 6% year over year; excluding divestitures, net sales decreased 3% in local currency [4] - The adjusted operating margin contracted 60 basis points year over year to 18.5%, with adjusted EBITDA at $245 million compared to $255 million in the prior-year quarter [7] Segment Analysis - Plumbing Products segment net sales declined 1% year over year to $1.18 billion, with North American sales up 2% and international sales flat in local currency [6] - Decorative Architectural Products segment reported sales of $617 million, down 16% from the prior-year period; total paint sales decreased in mid-single digits, while PRO paint sales increased in the mid-single digits [8] Financial Position - As of March 31, 2025, Masco had total liquidity of $1.246 billion, down from $1.31 billion a year earlier, with cash and cash investments of $377 million and long-term debt of $2.95 billion [13] - The company repurchased 1.8 million shares for about $130 million and returned $66 million to shareholders in dividends during the reported period [13] Market Environment - The disappointing performance is attributed to a challenging macroeconomic and geopolitical environment, including new tariffs; Masco is implementing pricing adjustments and cost-saving initiatives to address rising cost pressures [2] - Management has refrained from providing full-year 2025 financial guidance due to ongoing uncertainty regarding external developments affecting industry demand and pricing dynamics [3]

Masco (MAS) reported $1.8 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 6.5%. EPS of $0.87 for the same period compares to $0.93 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.84 billion, representing a surprise of -1.91%. The company delivered an EPS surprise of -5.43%, with the consensus EPS estimate being $0.92.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...

Masco (MAS) came out with quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.43%. A quarter ago, it was expected that this maker of Behr paint, Delta faucets and other building products would post earnings of $0.88 per share when it actually produced earnings of $0.89, delivering a surprise of 1.14 ...

Core Viewpoint - Masco Corporation is expected to report a decline in both adjusted earnings per share and net sales for the first quarter of 2025, primarily due to lower demand in key product segments and ongoing inflationary pressures [1][2][6]. Financial Performance - The adjusted earnings per share (EPS) estimate remains unchanged at 92 cents, reflecting a 1.1% decline from the previous year's EPS of 93 cents [2]. - The consensus estimate for net sales is projected at $1.84 billion, indicating a 4.7% decrease from $1.93 billion in the same quarter last year [2]. Segment Performance - The Plumbing Products segment, which constituted 65% of total net sales in Q4 2024, is expected to see a 1.9% year-over-year decline in net sales to $1.17 billion [4]. - The Decorative Architectural Products segment, accounting for 35% of total net sales in Q4 2024, is anticipated to experience an 8% decline year-over-year to $675.3 million [4]. Geographic Performance - Net sales in North America, which represented 79.2% of total net sales in Q4 2024, are expected to decline by 3.8% year-over-year to $1.47 billion [5]. - International net sales, making up 20.8% of total net sales in Q4 2024, are projected to decrease by 5.7% year-over-year to $377.2 million [5]. Cost and Economic Factors - The company's bottom line is likely to be adversely affected by high costs, unfavorable sales mix, increased marketing and employee-related expenses, and persistent inflationary pressures [6]. - Despite implementing strategic cost-saving initiatives, commodity cost inflation continues to pose challenges [6]. Earnings Prediction - The current model does not predict an earnings beat for Masco, as it has an Earnings ESP of -0.82% and a Zacks Rank of 4 (Sell) [7].

Core Viewpoint - The market anticipates a year-over-year decline in Masco's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - Masco is expected to report quarterly earnings of $0.92 per share, reflecting a -1.1% change year-over-year, and revenues are projected at $1.84 billion, down 4.7% from the previous year [3]. - The consensus EPS estimate has been revised 1.36% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Masco is lower than the consensus estimate, resulting in an Earnings ESP of -0.82% [10][11]. - A negative Earnings ESP reading, combined with a Zacks Rank of 4, complicates the prediction of an earnings beat for Masco [11]. Historical Performance - In the last reported quarter, Masco was expected to post earnings of $0.88 per share but delivered $0.89, resulting in a surprise of +1.14% [12]. - Over the past four quarters, Masco has beaten consensus EPS estimates three times [13]. Conclusion - Masco does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].