Masco Corporation Reports Fourth Quarter and 2023 Year-End Results

Masco Corporation, one of the world’s leading manufacturers of branded home improvement and building products, reported its fourth quarter and full-year 2023 results.

Highlights

• Sales for the fourth quarter decreased 2 percent to $1,882 million
• Operating profit for the quarter was $247 million; adjusted operating profit increased 16 percent to $272 million
• Earnings per share for the quarter was $0.85 per share; adjusted earnings per share grew 28 percent to $0.83 per share
• Anticipate 2024 earnings per share to be in the range of $4.00 – $4.25 per share
• Board declares a quarterly dividend of $0.29 per share, a 2 percent increase, payable on March 11, 2024 to shareholders of record on February 22, 2024

2023 Fourth Quarter Results

• On a reported basis, compared to fourth quarter 2022:
  • Net sales decreased 2 percent to $1,882 million; in local currency and excluding acquisitions, net sales decreased 4 percent
  • In local currency, North American and international sales each decreased 3 percent
  • Gross margin increased 640 basis points to 34.7 percent from 28.3 percent
  • Operating profit increased 34 percent to $247 million from $185 million
  • Operating margin increased 350 basis points to 13.1 percent from 9.6 percent
  • Net income increased to $0.85 per share, compared to $0.51 per share
• Compared to fourth quarter 2022, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent (24 percent for 2022), were as follows:
  • Gross margin increased 560 basis points to 35.1 percent from 29.5 percent
  • Operating profit increased 16 percent to $272 million from $234 million
  • Operating margin increased 230 basis points to 14.5 percent from 12.2 percent
  • Net income increased 28 percent to $0.83 per share, compared to $0.65 per share
• Liquidity at the end of the fourth quarter was $1,634 million (including availability under revolving credit facility)
• Plumbing Products’ net sales increased 1 percent; in local currency and excluding acquisitions, net sales decreased 2 percent
• Decorative Architectural Products’ net sales decreased 7 percent

2023 Full Year Highlights

• Sales for the year decreased 8 percent to $7,967 million
• Operating profit increased 4 percent to $1,348 million; adjusted operating profit decreased 1 percent to $1,336 million
• Operating margin increased 200 basis points to 16.9 percent from 14.9 percent; adjusted operating margin increased 120 basis points to 16.8 percent from 15.6 percent
• Returned $610 million to shareholders through share repurchases and dividends
• Earnings per share for the year increased 11 percent to $4.02 per share; adjusted earnings per share increased 2 percent to $3.86 per share from $3.77 per share

2023 Full Year Results

• On a reported basis, compared to full year 2022:
  • Net sales decreased 8 percent to $7,967 million; in local currency and excluding acquisitions, net sales decreased 8 percent
  • In local currency, North American sales decreased 9 percent and international sales decreased 6 percent
  • Gross margin increased 430 basis points to 35.6 percent from 31.3 percent
  • Operating profit increased 4 percent to $1,348 million from $1,297 million
  • Operating margin increased 200 basis points to 16.9 percent from 14.9 percent
  • Net income increased to $4.02 per share, compared to $3.63 per share
• Compared to full year 2022, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent (24 percent for 2022), were as follows:
  • Gross margin increased 360 basis points to 35.2 percent from 31.6 percent
  • Operating profit decreased 1 percent to $1,336 million from $1,355 million
  • Operating margin increased 120 basis points to 16.8 percent from 15.6 percent
  • Net income increased to $3.86 per share, compared to $3.77 per share

“We finished the year strong by delivering fourth quarter adjusted operating profit margin expansion of 230 basis points and adjusted earnings per share growth of 28 percent,” said Keith Allman, Masco’s President and Chief Executive Officer. “Additionally, we continued our focus on disciplined capital allocation and returned $291 million to shareholders in the quarter through dividends and share repurchases.”

“For the full year 2023, we achieved strong adjusted operating margin expansion of 120 basis points through disciplined pricing and improved operational efficiencies,” continued Allman. “With this strong execution, we delivered adjusted earnings per share growth of 2 percent despite weaker end-markets and lower volume. Our strong cash flow also enabled us to deploy nearly $1 billion toward capital expenditures, acquisitions, share repurchases and dividends.”

“In 2024, we believe demand is stabilizing and expect our sales to be approximately flat for the full year in a market that is flat to down low single digits,” said Allman. “Based on this market outlook and our expected operating performance and capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.00 to $4.25 per share. With our industry leading repair and remodel-oriented products in diverse channels, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to deliver long-term shareholder value.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.29 per share, payable on March 11, 2024 to shareholders of record on February 22, 2024.

For full results click here.

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; Kichler^® decorative and outdoor lighting; 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 2023 fourth quarter and full year supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.

Contact:

David Chaika – Vice President, Treasurer and Investor Relations – david_chaika@mascohq.com – (313) 792-5500

Source: Masco Corporation