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Second Quarter 2025 Earnings Presentation July 31, 2025
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2 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 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, the impact on demand, pricing and product costs resulting from tariffs, 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.
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3 Agenda 1 Summary of Results Jon Nudi 2 Financial / Operations Review Rick Westenberg 3 Q&A Jon Nudi Rick Westenberg
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4 1 Summary of Results Jon Nudi
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5 Delta ClarifiTM Reverse Osmosis System hansgrohe Raindance Alive Showerhead ChatHUETM Q2 2025 Product Recognitions
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6 Q2 2025 Review Top line decreased 2%, but in line with prior year excluding the impacts of our divestiture and currency Improved adjusted gross margin 10 basis points to 37.7% Repurchased 1.6 million shares for $101 million 6 Delivered adjusted EPS growth of 8% to $1.30 per share Expanded adjusted operating profit margin 100 bps to 20.1% For adjusted numbers, see Appendix for GAAP reconciliation. 6 6 Anticipate full year adjusted EPS to be in the range of $3.90 - $4.10 per share
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2 Financial / Operations Review Rick Westenberg 7
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8 Masco Corporation *As adjusted, see Appendix for GAAP reconciliation. Quarter Highlights 8 • Total company sales decreased 2%, but were in line with prior year excluding the impacts of our divestiture and currency • In local currency, North American sales decreased 3%, but were in line with prior year excluding the impact of our divestiture • In local currency, International sales increased 1% • Operating profit driven by cost savings initiatives, favorable SG&A, and a positive price/cost relationship, partially offset by lower volume ($ in Millions) Second Quarter 2025 Revenue Y-O-Y Change $2,051 (2)% Operating Profit* Y-O-Y Change $413 $14 Operating Margin* Y-O-Y Change 20.1% 100 bps EPS* Y-O-Y Change $1.30 8%
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9 Plumbing Products Segment Quarter Highlights 9 • Total segment sales increased 5%, or increased 4% excluding currency • In local currency, North American sales increased 5% • In local currency, International sales increased 1% • Operating profit driven by cost savings initiatives and a favorable price/cost relationship * As adjusted and excludes business rationalization charges for the second quarter of 2025 and 2024 of $2 million in each period. ($ in Millions) Second Quarter 2025 Revenue Y-O-Y Change $1,312 5% Operating Profit* Y-O-Y Change $276 $27 Operating Margin* Y-O-Y Change 21.0% 110 bps
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10 Decorative Architectural Products Segment Quarter Highlights 10 • Total segment sales decreased 12%, or 4% excluding our divestiture • Paints & other coating products sales decreased mid-single digits • PRO paint increased mid-single digits • DIY paint decreased high single digits • Operating profit impacted by lower volume and an unfavorable price/cost relationship, partially offset by cost savings initiatives ($ in Millions) Second Quarter 2025 Revenue Y-O-Y Change $738 (12)% Operating Profit Y-O-Y Change $157 $(17) Operating Margin Y-O-Y Change 21.3% 50 bps
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11 Strong Balance Sheet Masco Corporation 1. See Appendix for reconciliation. Balance Sheet Metrics as of 6/30/2025 Cash and cash investments $390M Revolver availability $954M Total liquidity $1,344M Gross debt to EBITDA1 2.0x Working capital as a % of sales1 20.1% 11
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12 Full Year 2025 Outlook 2025 Forecasted Adjusted EPS $3.90 - $4.10 12 Assumptions: • 2025 guidance includes all enacted tariffs in effect in July, net of mitigation actions, but does not include potential future tariffs or changes to existing tariffs • Global repair and remodel market (including price): down low single digits ◦ North American repair and remodel market: down low single digits ◦ Masco International markets in aggregate: down low single digits • Year over year sales impacts: ◦ Divestiture (unfavorable): Masco ~(2)%; Decorative Architectural Products ~(6)% ◦ Foreign Currency (favorable): Masco ~1%; Plumbing Products ~1% 12
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13 3 Q&A Jon Nudi Rick Westenberg
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14 Appendix
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15 1 Plumbing Products segment ~$110m; Decorative Architectural Products segment ~$30m; Non-operating ~$10m. 2 Based on rates as of June 30, 2025. Item Assumption Tax rate 24.5% General corporate expense ~$95m Interest and other expense ~$110m Capital expenditures (includes maintenance capex of ~$75m) ~$175m Depreciation and amortization1 ~$150m Favorable foreign currency translation impact to sales2 ~$50m Share repurchase or acquisitions at least $450m Average diluted share count for 2025 ~211m Working capital as a % of net sales ~17.5% Free cash flow conversion ~80% 2025 Assumptions
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16 Capital Allocation Strategy Reinvest in the Business • Capex: 2-2.5% of sales • Target working capital: ~16% of sales1 Maintain investment grade credit rating • Target gross debt to EBITDA below 2.5x2 Maintain relevant dividend • Current expected annual dividend of $1.24 (subject to future Board declaration) • Target dividend payout ratio of ~30%3 Deploy excess free cash flow to share repurchase or acquisitions • Consistently in the market for share repurchase, but opportunistic • Expect to deploy at least $450 million for share repurchases or acquisitions in 2025 • Actively cultivating our M&A pipeline 4 Balanced Approach to Continue to Drive Shareholder Value
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17 17 LONG-TERM OUTLOOK Average annual sales growth • Organic: ~3-5% • Acquisition: ~1-3% Operating profit margin • Expand margins through cost productivity and volume leverage Capital deployment • Share buybacks: ~2-4% EPS growth • Dividends: ~1-2% return on top of EPS growth Average annual EPS growth • ~10% Market-leading brands, history of innovation, customer focus Low ticket, repair and remodel products provide growth and stability through an economic cycle Strong free cash flow and value creating capital allocation
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18 2024 Segment Mix* *Based on Company estimates Amounts may not add due to rounding Business Segment 2024 Revenue R&R% vs. NC NA% v. Int’l Total Geographic Revenue Split Plumbing Products $4.9B 83% 68% Decorative Architectural Products $3.0B 97% 100% Total Company $7.8B 88% 80% R&R = % of sales to repair and remodel channels NC = % of sales to new construction channels NA = % of sales within North America Int’l = % of sales outside North America
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19 2024 Channel Mix* *Based on Company estimates 2024 Channel Mix as a Percentage of Sales Channel Plumbing Products Decorative Architectural Products Total Masco Retail 19% 88% 46% Wholesale/trade/dealer 52% 8% 35% E-commerce 18% 4% 12% Specialty Dealer/Other 11% 0% 7%
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20 Profit Reconciliations – Second Quarter Amounts may not add due to rounding. ($ in Millions) Q2 2025 Q2 2024 Net sales $ 2,051 $ 2,091 Gross profit, as reported $ 772 $ 785 Rationalization charges 1 1 Gross profit, as adjusted $ 774 $ 786 Gross margin, as reported 37.6 % 37.5 % Gross margin, as adjusted 37.7 % 37.6 % Selling, general and administrative expenses, as reported $ 361 $ 388 Rationalization charges 1 1 Selling, general and administrative expenses, as adjusted $ 360 $ 387 Selling, general and administrative expenses as a percent of net sales, as reported 17.6 % 18.6 % Selling, general and administrative expenses as a percent of net sales, as adjusted 17.6 % 18.5 % Operating profit, as reported $ 412 $ 397 Rationalization charges 2 2 Operating profit, as adjusted $ 413 $ 399 Operating margin, as reported 20.1 % 19.0 % Operating margin, as adjusted 20.1 % 19.1 %
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21 EPS Reconciliation – Second Quarter Amounts may not add due to rounding. ($ in Millions, Except per Common Share Data) Q2 2025 Q2 2024 Income before income taxes, as reported $ 378 $ 366 Rationalization charges 2 2 Income before income taxes, as adjusted $ 380 $ 368 Tax at 24.5% rate (93) (90) Less: Net income attributable to noncontrolling interest 13 14 Net income, as adjusted $ 274 $ 264 Net income per common share, as adjusted $ 1.30 $ 1.20 Average diluted common shares outstanding 211 220
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22 EPS Outlook Reconciliation 2025 Low End High End Net income per common share $ 3.87 $ 4.07 Rationalization charges 0.01 0.01 Realized losses from private equity funds, net 0.02 0.02 Net income per common share, as adjusted $ 3.90 $ 4.10 Amounts may not add due to rounding.
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23 Gross Debt to EBITDA Reconciliation Amounts may not add due to rounding. ($ in Millions) June 30, 2025 Debt $ 2,993 ($ in Millions) TTM June 30, 2025 Operating profit, as reported $ 1,345 Rationalization charges 8 Operating profit, as adjusted $ 1,352 Depreciation and amortization 145 EBITDA, as adjusted $ 1,497 Debt to EBITDA 2.0 x
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24 Working Capital as a % of Sales Amounts may not add due to rounding. As Reported ($ in Millions) June 30, 2025 Receivables $ 1,318 Inventories 1,097 Less: Accounts payable (871) Working capital $ 1,544 Net sales (last 12 months) $ 7,663 Working capital as a % of sales 20.1 %