Masco Corporation Reports Second Quarter 2024 Results

Net sales decreased 2 percent to $2,091 million

Operating profit decreased 1 percent to $397 million; adjusted operating profit decreased 1 percent to $399 million

Operating profit margin increased 10 basis points to 19.0 percent; adjusted operating profit margin increased 10 basis points to 19.1 percent

Earnings per share was $1.17 per share; adjusted earnings per share grew 1 percent to $1.20 per share

Repurchased 2.0 million shares for $143 million

Expect 2024 earnings per share in the range of $4.03 – $4.18 per share, and on an adjusted basis, $4.05 – $4.20 per share

Masco Corporation, one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter 2024 results.

2024 Second Quarter Results

• On a reported basis, compared to second quarter 2023:
  • Net sales decreased 2 percent to $2,091 million; in local currency and excluding acquisitions, net sales decreased 2 percent
    • Plumbing Products’ net sales increased 2 percent; in local currency and excluding acquisitions, net sales increased 1 percent
    • Decorative Architectural Products’ net sales decreased 7 percent
    • In local currency, North American and International sales both decreased 1 percent
  • Gross margin increased 130 basis points to 37.5 percent from 36.2 percent
  • Operating profit decreased 1 percent to $397 million from $403 million
  • Operating margin increased 10 basis points to 19.0 percent from 18.9 percent
  • Net income increased to $1.17 per share, compared to $1.16 per share
• Compared to second 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 increased 140 basis points to 37.6 percent from 36.2 percent
  • Operating profit decreased 1 percent to $399 million from $404 million
  • Operating margin increased 10 basis points to 19.1 percent from 19.0 percent
  • Net income increased 1 percent to $1.20 per share, compared to $1.19 per share
• Liquidity at the end of the second quarter was $1,398 million (including availability under our revolving credit facility)

“During the first half of this year, we continued to deliver solid results and shareholder value, despite a challenging environment, through the strength of our operating performance,” said Masco President and CEO, Keith Allman. “In the second quarter, we delivered strong adjusted operating profit margin of 19.1 percent and grew adjusted earnings per share by 1 percent. Additionally, our capital allocation strategy enabled us to return $206 million to shareholders though dividends and share repurchases.”

“In the second half of the year, we anticipate ongoing demand headwinds as market conditions remain challenged. However, with our continued focus on execution and operational efficiencies, we are well positioned to drive operating margin expansion for the full year. Additionally, we remain confident in the long-term fundamentals of the repair and remodel market and the strength of our brands and product portfolio,” said Allman. “We now anticipate our 2024 adjusted earnings per share to be in the range of $4.05 to $4.20 per share, compared to our previous expectations of $4.00 to $4.25 per share.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.29 per share, payable on August 19, 2024 to shareholders of record on August 2, 2024.

For the full second quarter 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.

Contact:

Robin Zondervan – Vice President, Investor Relations and FP&A – robin_zondervan@mascohq.com – (313) 792-5500

Source: Masco Corporation