[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Masco Corporation's unaudited condensed consolidated financial statements as of June 30, 2025, and for the three and six-month periods then ended, including Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, Shareholders' Equity, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5,288 million** by June 30, 2025, from **$5,016 million** at year-end 2024, with total equity shifting from a **$53 million deficit** to a **$150 million positive balance** Condensed Consolidated Balance Sheet Highlights (in Millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,925 | $2,730 | | **Total Assets** | $5,288 | $5,016 | | **Total Current Liabilities** | $1,609 | $1,560 | | **Total Liabilities** | $5,138 | $5,069 | | **Total Equity** | $150 | $(53) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net sales decreased 1.9% to **$2,051 million**, while operating profit rose 3.8% to **$412 million**, and net income attributable to Masco increased to **$270 million** or **$1.28 diluted EPS** Statement of Operations Summary (in Millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,051 | $2,091 | $3,852 | $4,017 | | **Gross Profit** | $772 | $785 | $1,416 | $1,470 | | **Operating Profit** | $412 | $397 | $698 | $715 | | **Net Income (to Masco)** | $270 | $258 | $456 | $473 | | **Diluted EPS** | $1.28 | $1.17 | $2.15 | $2.14 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Total comprehensive income attributable to Masco Corporation significantly increased to **$332 million** in Q2 2025 from **$249 million** in Q2 2024, primarily due to a **$77 million positive currency translation adjustment** Comprehensive Income (Loss) Attributable to Masco (in Millions) | Component | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $270 | $258 | $456 | $473 | | **Other Comprehensive Income (Loss)** | $61 | $(9) | $88 | $(27) | | **Total Comprehensive Income** | $332 | $249 | $544 | $446 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for H1 2025 decreased to **$148 million** from **$252 million** in H1 2024, while cash and cash investments decreased by **$243 million** to **$390 million** at period end Cash Flow Summary for Six Months Ended June 30 (in Millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $148 | $252 | | **Net Cash for Financing Activities** | $(344) | $(404) | | **Net Cash for Investing Activities** | $(70) | $(80) | | **Decrease in Cash** | $(243) | $(236) | | **Cash at End of Period** | $390 | $398 | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total equity improved from a **$53 million deficit** at year-end 2024 to a **$150 million positive balance** by June 30, 2025, driven by **$594 million in comprehensive income** - Shareholders' equity turned positive to **$150 million** at June 30, 2025, from a deficit of **$53 million** at the start of the year, driven by total comprehensive income of **$594 million**, partially offset by share repurchases and dividends[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the Q3 2024 Kichler Lighting divestiture, segment revenue trends, debt structure, **$233 million** in H1 2025 share repurchases, and an increased quarterly dividend - In Q3 2024, the company sold its Kichler Lighting business, previously part of the Decorative Architectural Products segment, with results not presented as discontinued operations[39](index=39&type=chunk) Net Sales by Segment (YTD 2025 vs YTD 2024, in Millions) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Plumbing Products | $2,497 | $2,445 | | Decorative Architectural Products | $1,355 | $1,572 | | **Total** | **$3,852** | **$4,017** | - During the six months ended June 30, 2025, the company repurchased approximately **3.4 million shares** for **$233 million**, with approximately **$666 million** remaining under the 2022 share repurchase authorization[64](index=64&type=chunk) - The company declared and paid cash dividends of **$0.62 per common share** for the six months ended June 30, 2025, an increase from **$0.58** for the same period in 2024[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance amid lower demand and cost inflation, noting a 2% Q2 2025 net sales decline but a 4% operating profit increase driven by cost management and pricing actions [Overview and Results of Operations](index=20&type=section&id=Overview%20and%20Results%20of%20Operations) Q2 2025 consolidated net sales decreased 2% to **$2,051 million**, but operating profit increased 4% to **$412 million**, with operating margin improving **110 basis points** to **20.1%** due to lower SG&A and pricing - The company faces lower market demand, elevated commodity and input costs, and anticipates significantly higher costs from recently-enacted tariffs, primarily in the Plumbing Products segment[70](index=70&type=chunk) Consolidated Results of Operations (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2,051M | $2,091M | (2)% | | **Gross Margin** | 37.6% | 37.5% | +10 bps | | **Operating Profit** | $412M | $397M | +4% | | **Operating Margin** | 20.1% | 19.0% | +110 bps | - The Q2 2025 operating profit increase was driven by a **7% decrease** in SG&A expenses, attributed to the Kichler divestiture and lower employee-related costs[81](index=81&type=chunk) [Business Segment Results](index=23&type=section&id=Business%20Segment%20Results) Q2 2025 Plumbing Products net sales grew **5%** to **$1,312 million** with operating profit up **11%** to **$275 million**, while Decorative Architectural Products sales fell **12%** to **$738 million** with operating profit down **10%** to **$157 million** Segment Performance - Q2 2025 vs Q2 2024 (in Millions) | Segment | Net Sales | % Change | Operating Profit | % Change | | :--- | :--- | :--- | :--- | :--- | | **Plumbing Products** | $1,312 | +5% | $275 | +11% | | **Decorative Architectural** | $738 | (12)% | $157 | (10)% | - Plumbing Products sales growth was driven by a **3% increase** from higher net selling prices for the three months ended June 30, 2025[92](index=92&type=chunk) - Decorative Architectural Products sales decline was primarily due to the Kichler business divestiture, which decreased sales by **8%** for the quarter[94](index=94&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a solid liquidity position with **$390 million** cash at Q2 2025, **$148 million** net cash from operations in H1, and access to a **$1.0 billion** credit facility, repurchasing **$233 million** in stock - The company held cash and cash investments of **$390 million** at June 30, 2025, with **$276 million** held in foreign subsidiaries[96](index=96&type=chunk) - The company was in compliance with all covenants for its **$1.0 billion** credit agreement, with a **$46 million** quarter-end borrowing subsequently repaid[99](index=99&type=chunk) - In H1 2025, the company repurchased **$233 million** of its common stock and anticipates using at least **$450 million** for share repurchases in the full year 2025[101](index=101&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=26&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) Forward-looking statements are subject to risks including residential market dependency, brand strength, supply chain and material costs, tariffs, and cybersecurity threats, which could cause actual results to differ materially - Future performance may be affected by levels of residential repair and remodel activity, new home construction, brand strength, material costs, tariffs, and cybersecurity risks[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Company's Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[110](index=110&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect internal controls[111](index=111&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation but believes the likelihood of a material adverse effect from these proceedings is remote, with details referenced in Note L - The company is involved in ordinary course litigation but believes the likelihood of a material adverse effect from these matters is remote[67](index=67&type=chunk)[115](index=115&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since the last Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the company's risk factors since the last Annual Report on Form 10-K[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,604,278 shares** at an average price of **$62.65** during Q2 2025, with approximately **$666 million** remaining for future repurchases under authorization Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid | Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | **Total for Q2** | 1,604,278 | $62.65 | $665,830,484 | [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 or other non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No officers or directors adopted or terminated Rule 10b5-1 or other trading arrangements during Q2 2025[118](index=118&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive agreements, CEO/CFO certifications, and financial statements in Inline XBRL format - Exhibits filed with the report include executive agreements, CEO/CFO certifications, and XBRL data files[122](index=122&type=chunk) [Signature](index=30&type=section&id=Signature)

[Performance Highlights and Management Commentary](index=1&type=section&id=Performance%20Highlights%20and%20Management%20Commentary) Masco reported strong Q2 2025 results, expanding adjusted operating profit margin and growing adjusted EPS, leading to restored full-year guidance - CEO Jon Nudi highlighted the company's focused execution, leading to strong results including margin expansion and an **8% growth in adjusted EPS**[4](index=4&type=chunk) - Management anticipates that sales in the global repair and remodel markets will be down by **low-single digits** for the full year 2025[4](index=4&type=chunk) Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,051M | $2,091M | -2% | | Net Sales (Local Currency, ex-divestitures) | In line with prior year | - | - | | Operating Profit Margin | 20.1% | 19.0% | +110 bps | | Adjusted Operating Profit Margin | 20.1% | 19.1% | +100 bps | | Earnings Per Share (EPS) | $1.28 | $1.17 | +9% | | Adjusted EPS | $1.30 | $1.20 | +8% | [Financial Outlook for 2025](index=1&type=section&id=Financial%20Outlook%20for%202025) Masco restored its full-year 2025 financial guidance, anticipating sales in line with the prior year and providing an adjusted EPS range - The company restored its financial guidance for 2025, signaling confidence in its ability to execute its strategic priorities for the remainder of the year[4](index=4&type=chunk) Full Year 2025 Earnings Per Share Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Net Income per Common Share (Reported) | $3.87 | $4.07 | | Net Income per Common Share (Adjusted) | $3.90 | $4.10 | [Capital Allocation](index=1&type=section&id=Capital%20Allocation) Masco returned $167 million to shareholders in Q2 2025 through share repurchases and a declared quarterly dividend - A total of **$167 million** was returned to shareholders during the second quarter of 2025 through dividends and share repurchases[4](index=4&type=chunk) - The company repurchased **1.6 million shares** of its common stock for **$101 million** in Q2 2025[5](index=5&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.31 per share**, payable on August 25, 2025[6](index=6&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The unaudited financial statements detail Masco's Q2 2025 performance, showing increased net income, total assets, and positive net cash from operating activities [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $2,051 | $2,091 | $3,852 | $4,017 | | Gross Profit | $772 | $785 | $1,416 | $1,470 | | Operating Profit | $412 | $397 | $698 | $715 | | Net Income Attributable to Masco | $270 | $258 | $456 | $473 | | Diluted EPS | $1.28 | $1.17 | $2.15 | $2.14 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash investments | $390 | $634 | | Total current assets | $2,925 | $2,730 | | Total assets | $5,288 | $5,016 | | Long-term debt | $2,945 | $2,945 | | Total liabilities | $5,138 | $5,069 | | Total equity | $150 | $(53) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Highlights (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $148 | $252 | | Net cash for financing activities | $(344) | $(404) | | Net cash for investing activities | $(70) | $(80) | | Decrease in cash for the period | $(243) | $(236) | [Segment Performance](index=8&type=section&id=Segment%20Performance) Segment performance was mixed in Q2, with Plumbing Products showing sales growth and margin expansion, while Decorative Architectural Products experienced a sales decline [Plumbing Products](index=8&type=section&id=Plumbing%20Products) Plumbing Products Q2 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,312M | $1,253M | +5% | | Adjusted Operating Profit | $276M | $249M | +10.8% | | Adjusted Operating Margin | 21.0% | 19.9% | +110 bps | [Decorative Architectural Products](index=8&type=section&id=Decorative%20Architectural%20Products) Decorative Architectural Products Q2 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $738M | $838M | -12% | | Adjusted Operating Profit | $157M | $174M | -9.8% | | Adjusted Operating Margin | 21.3% | 20.8% | +50 bps | [Non-GAAP Reconciliations (Exhibit A)](index=4&type=section&id=Non-GAAP%20Reconciliations%20%28Exhibit%20A%29) This section provides reconciliations from reported GAAP figures to adjusted non-GAAP figures for key metrics, primarily due to minor rationalization charges Q2 2025 Profit and Margin Reconciliation (in millions) | Metric | As Reported | Adjustments | As Adjusted | | :--- | :--- | :--- | :--- | | Gross Profit | $772 | $1 | $774 | | Operating Profit | $412 | $2 | $413 | | Operating Margin | 20.1% | - | 20.1% | Q2 2025 Income Per Common Share Reconciliation | Metric | Value | | :--- | :--- | | Income before income taxes, as reported | $378M | | Rationalization charges | $2M | | Income before income taxes, as adjusted | $380M | | Net income, as adjusted | $274M | | Net income per common share, as adjusted | $1.30 | [Corporate and Shareholder Information](index=2&type=section&id=Corporate%20and%20Shareholder%20Information) This section provides an overview of Masco Corporation, details for the earnings conference call, and a safe harbor statement regarding forward-looking statements - Masco Corporation is a global leader in the design, manufacture, and distribution of branded home improvement and building products, including brands like Behr®, Delta®, and HotSpring®[7](index=7&type=chunk) - An earnings conference call is scheduled for Thursday, July 31, 2025, at 8:00 a.m. ET to discuss the results[8](index=8&type=chunk) - The press release includes a "Safe Harbor Statement" cautioning that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[11](index=11&type=chunk)[12](index=12&type=chunk)

Core Viewpoint - Analysts project that Masco (MAS) will report quarterly earnings of $1.08 per share, reflecting a 10% decline year over year, with revenues expected to reach $2 billion, down 4.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 3.4% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics - Analysts estimate 'Net Sales- Plumbing Products' to be $1.26 billion, representing a 0.5% increase year over year [5]. - The consensus for 'Net Sales- Decorative Architectural Products' is $744.34 million, indicating an 11.2% decline year over year [5]. - Expected 'Operating profit, as adjusted- Plumbing Products' is projected at $225.09 million, down from $249.00 million in the same quarter last year [6]. - Analysts forecast 'Operating profit, as adjusted- Decorative Architectural Products' at $145.41 million, compared to $174.00 million in the previous year [6]. - The projected 'Operating profit, as reported- Decorative Architectural Products' is $140.29 million, down from $174.00 million year over year [7]. - 'Operating profit, as reported- Plumbing Products' is expected to be $223.34 million, compared to $247.00 million in the same quarter last year [7]. Stock Performance - Over the past month, Masco shares have returned -0.7%, while the Zacks S&P 500 composite has changed by +3.4% [7]. - Masco holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [7].

Core Insights - Behr Paint Company has announced Hidden Gem (N430-6A) as its 2026 Colour of the Year, described as a smoky jade that balances grounding and energizing qualities [1][2] - The colour reflects a growing consumer desire for unconventional colours that evoke wonder in everyday spaces, with 78% of Canadians believing that paint colours can impact confidence [2][9] Product and Market Positioning - Hidden Gem is part of the BEHR® 2026 Colour Trends Palette, which includes a variety of trend-forward colours emphasizing warmth, comfort, and playfulness [4] - The palette features grounding earth tones, deep jewel tones, and relaxed pastels, catering to diverse styles from traditional to modern [4] Consumer Engagement and Promotions - Behr Paint is running a promotional contest offering a chance to win $50,000 USD for customers who purchase any BEHR® product and follow the brand on social media [5] - The company emphasizes the versatility of Hidden Gem, suitable for various applications from residential to commercial spaces [3][6] Company Background - Founded in 1947, Behr Paint Company is a leading manufacturer of paints and related products in North America, known for its commitment to quality and innovation [8][10] - The company operates under the BEHR®, KILZ®, and WHIZZ® brands, serving both DIYers and professional contractors [8]

Core Insights - Behr Paint Company has announced "Hidden Gem" (N430-6A) as the 2026 Color of the Year, described as a smoky jade that balances grounding and energizing qualities [1][2] - The color reflects a growing consumer desire for unconventional colors that evoke a sense of wonder in everyday spaces, with 82% of Americans believing that paint colors can impact confidence [2][9] Company Overview - Behr Paint Company is one of the largest manufacturers of architectural paints and stains in the U.S. and Canada, offering a wide range of products for both professionals and DIY users [10] - The company is a subsidiary of Masco Corporation, listed on NYSE under the ticker MAS [10] Product Offering - "Hidden Gem" is part of the BEHR® 2026 Color Trends Palette, which includes a variety of colors that emphasize warmth, comfort, and playfulness, featuring earth tones, jewel tones, and pastels [4] - BEHR® products, including the 2026 Color of the Year, are available in several lines such as BEHR DYNASTY®, BEHR MARQUEE®, BEHR ULTRA®, and BEHR PREMIUM PLUS®, sold at The Home Depot [6] Marketing and Consumer Engagement - To promote the 2026 Color of the Year, Behr Paint is running a sweepstakes offering a chance to win $50,000 for customers who purchase any BEHR® product [5] - Research indicates that more than half of Americans find a room painted with Hidden Gem captivating (58%), and two-thirds believe it would create a unique and peaceful environment [9]

Core Viewpoint - Masco Corporation is expected to report its second-quarter 2025 results on July 31, with anticipated declines in both adjusted earnings and net sales compared to the previous year, influenced by various segment performances and external cost pressures [1][2][7]. Financial Performance - In the last reported quarter, Masco's adjusted earnings and net sales missed the Zacks Consensus Estimate by 5.4% and 1.9%, respectively, with year-over-year declines of 6.5% and 6% [1]. - The Zacks Consensus Estimate for adjusted EPS has increased to $1.08 from $1.07 over the past 30 days, indicating a 10% decline from the year-ago EPS of $1.20. The consensus estimate for net sales is pegged at $2 billion, reflecting a 4.1% decline from the prior-year quarter's figure of $2.09 billion [2]. Sales Trends - The top line is expected to decline year over year due to reduced contributions from the Decorative Architectural Products segment, which accounted for 34.3% of total net sales in Q1 2025, impacted by lower sales volume and the divestiture of the Kichler business [3]. - The Plumbing Products segment, which accounted for 65.8% of total net sales in Q1 2025, is anticipated to support the top line with higher net selling prices, despite an unfavorable sales mix [4]. Segment Performance - The Plumbing Products segment's net sales are expected to increase by 1.3% year over year to $1.27 billion, while the Decorative Architectural Products segment's net sales are projected to decline by 12% year over year to $737.4 million [5]. - Geographically, net sales in North America are expected to decline by 5.7% year over year to $1.6 billion, while international net sales are anticipated to increase by 2.5% year over year to $406.9 million [6]. Margin Analysis - The company's bottom line is likely to decline year over year due to a higher cost structure and adverse impacts from tariffs, including incremental China tariffs and increased annual expenses from tariffs on steel and aluminum [7]. - Higher commodity costs, increased marketing costs, and an unfavorable sales mix from the Plumbing Products segment are expected to contribute to the decline in the bottom line [9]. Earnings Expectations - Masco has a positive Earnings ESP of +2.61%, indicating a potential earnings beat despite soft volume and rising input costs [8][10]. - The company currently holds a Zacks Rank of 3, suggesting a neutral outlook [11].

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][2]. Earnings Expectations - Masco is expected to report quarterly earnings of $1.08 per share, reflecting a 10% decrease year-over-year, with revenues projected at $2 billion, down 4.1% from the previous year [3]. - The consensus EPS estimate has been revised 3.43% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Masco has a positive Earnings ESP of +2.61%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 3, indicating a hold position, which combined with the positive Earnings ESP suggests a potential earnings beat [12]. Historical Performance - In the last reported quarter, Masco was expected to post earnings of $0.92 per share but delivered $0.87, resulting in a surprise of -5.43% [13]. - Over the past four quarters, Masco has beaten consensus EPS estimates twice [14]. Industry Context - Armstrong World Industries, a peer in the Zacks Building Products - Miscellaneous industry, is expected to report earnings of $1.75 per share, reflecting an 8% year-over-year increase, with revenues projected at $403.73 million, up 10.6% [18]. - Armstrong's consensus EPS estimate has been revised 0.9% lower in the last 30 days, but a higher Most Accurate Estimate results in an Earnings ESP of +1.71%, suggesting a likely earnings beat [19][20].

Core Insights - Behr Paint Company has announced a collaboration with REMAX Canada to support DIY home improvement and real estate decisions for Canadians [1][2] - The partnership emphasizes the concept of DIYconomics, promoting financially responsible home updates through the use of BEHR paint and resources [2] Company Collaboration - The collaboration leverages the REMAX Media Network to provide content and resources aimed at empowering homeowners [4] - Both brands are recognized as BrandSpark Most Trusted® in their categories, enhancing consumer confidence in their offerings [1] Consumer Insights - A survey by REMAX Canada revealed that 27% of active buyers and sellers consider a freshly painted home important, with 28% willing to paint before listing or purchasing [3] - 20% of Canadians plan to remodel or significantly upgrade their homes, indicating a strong interest in home improvement [3] Marketing Initiatives - A national digital contest will be launched on REMAX.ca, offering a DIY prize pack valued at $2,000 CAD, including BEHR paint and a personal colour consultation [5] - The collaboration aims to provide budget-friendly tips and expert insights to homeowners looking to enhance their spaces [5] Tools and Resources - Behr offers tools like ColourSmart to help consumers visualize and coordinate paint colors in their spaces [4] - Curated colour palettes, including the BEHR Designer Collection, are available to assist consumers in making informed choices [4] Market Trends - A REMAX renovation study found that 56% of Canadians believe minor updates, such as refreshing paint, provide the best return on investment [5] - The collaboration targets cost-conscious Millennials and Gen Z homeowners who are looking to personalize their spaces and boost home value [3]

Core Insights - Behr Paint Company has partnered with Google Cloud to develop an AI-powered tool named ChatHUE™ to assist consumers in selecting paint colors, addressing a significant challenge in home improvement projects [1][2][3] Company Overview - Behr Paint Company, founded in 1947, is a major manufacturer of paints and related products in North America, known for its commitment to quality and innovation [5] - Google Cloud provides a comprehensive suite of AI and cloud services, supporting organizations in their digital transformation efforts [6] Consumer Insights - Over 40% of consumers find color selection to be the most challenging aspect of their painting projects, with a similar percentage indicating that indecision prevents them from starting projects [2] - The partnership aims to simplify the color selection process, transforming it from a daunting task into an engaging experience for consumers [3][4] Technological Innovation - The ChatHUE™ tool leverages Behr's proprietary color data and Google Cloud's AI capabilities, including Gemini and Vertex AI, to offer personalized color recommendations [1][3] - Behr conducted extensive testing and real-world pilots to ensure the effectiveness of the AI tool before its launch [3] Strategic Goals - Behr aims to enhance creativity and provide smart solutions for homeowners through innovative technology, reinforcing its position as a leader in the paint industry [4]

Industry Overview - The Zacks Building Products - Miscellaneous industry is experiencing growth due to increased government infrastructure spending, which is driving demand for construction-related products and services [1] - Key players in the industry, such as United Rentals, Inc., Masco Corporation, Construction Partners, Inc., Hillman Solutions Corp., and Quanex Building Products Corporation, are well-positioned to capitalize on these trends [1] Current Challenges - The industry faces near-term challenges from high mortgage rates, affordability concerns, and inflation-related cost pressures, including tariffs on raw materials like iron, steel, and copper [2] - Despite these challenges, proactive cost management and pricing strategies are helping to mitigate headwinds [2] Industry Description - The industry comprises manufacturers, designers, and distributors of home improvement and building products, including ceiling systems, doors, windows, flooring, and metal products [3] - Companies also provide solutions for rehabilitating aging infrastructure and rent equipment to a diverse customer base [3] Future Trends - Strong global trends in infrastructure modernization and energy transition are expected to benefit industry players [4] - Improving residential construction markets are anticipated to drive growth, with builders cautiously optimistic for 2025 due to a lack of existing inventory [4] Operational Strategies - Industry participants are implementing cost-saving initiatives, including business consolidation and supply chain improvements, to boost profitability [5] - Strategic investments in new products and acquisitions are being pursued to supplement organic growth [5] Tariff Impact - U.S. tariff policies are increasing costs and disrupting supply chains, leading to heightened inflation [6] - Overall construction input prices were reported to be 1.1% higher in June compared to the previous year [6] Market Performance - The Zacks Building Products - Miscellaneous industry has underperformed the S&P 500 Composite and the broader Zacks Construction sector over the past year, losing 8.4% [12] - The industry is currently trading at a forward P/E ratio of 16.7X, lower than the S&P 500's 22.61X and the sector's 18.76X [15] Company Highlights - **Construction Partners**: Positioned for strong growth with a record project backlog of $2.84 billion and significant revenue growth from acquisitions [20][21] - **Quanex**: Benefiting from the acquisition of Tyman, contributing to a 67.3% year-over-year increase in consolidated sales [24][25] - **United Rentals**: Growth driven by strong demand in infrastructure projects and a stable customer sentiment, with a reaffirmed full-year guidance [27][28][29] - **Masco**: Facing a potential $400 million tariff headwind but expects to offset 50%-65% through pricing and cost reduction efforts [31][32] - **Hillman**: Aiming to reduce reliance on Chinese suppliers and maintain sales growth despite macroeconomic challenges [35][36]