Masco Corporation Reports Third Quarter 2024 Results

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

Highlights

• Net sales were in line with prior year at $1,983 million
• Operating profit decreased 7 percent to $357 million; adjusted operating profit increased 3 percent to $360 million
• Operating profit margin decreased 140 basis points to 18.0 percent; adjusted operating profit margin increased 60 basis points to 18.2 percent
• Earnings per share was $0.77 per share; adjusted earnings per share grew 8 percent to $1.08 per share
• Repurchased 2.5 million shares for $192 million
• Expect 2024 earnings per share in the range of $3.74 – $3.84 per share, and on an adjusted basis, $4.05 – $4.15 per share

2024 Third Quarter Results

• On a reported basis, compared to third quarter 2023:
  • Net sales were in line with prior year at $1,983 million; in local currency net sales increased 1 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 3 percent; in local currency and excluding divestitures, net sales decreased 1 percent
    • In local currency, North American sales were in line with prior year and International sales increased 3 percent
  • Gross margin decreased 100 basis points to 36.6 percent from 37.6 percent
  • Operating profit decreased 7 percent to $357 million from $383 million
  • Operating margin decreased 140 basis points to 18.0 percent from 19.4 percent
  • Net income decreased to $0.77 per share, compared to $1.10 per share
• Compared to third 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 90 basis points to 36.7 percent from 35.8 percent
  • Operating profit increased 3 percent to $360 million from $348 million
  • Operating margin increased 60 basis points to 18.2 percent from 17.6 percent
  • Net income increased 8 percent to $1.08 per share, compared to $1.00 per share
• Liquidity at the end of the third quarter was $1,646 million (including availability under our revolving credit facility)

“We delivered another quarter of strong operating results,” said Masco President and CEO, Keith Allman. “Our adjusted operating margin expanded 60 basis points to 18.2 percent, marking the sixth consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 8 percent. Additionally, we executed on our capital allocation strategy by returning $255 million to shareholders though dividends and share repurchases.”

“We remain focused on driving the full potential of our portfolio with our leading brands, innovative products, and exceptional customer service. For the remainder of the year, we expect market demand to remain challenged and now anticipate our 2024 adjusted earnings per share to be in the range of $4.05 to $4.15, compared to our previous expectation of $4.05 to $4.20,” said Allman. “With our ongoing focus on operational efficiencies and cost savings initiatives, we remain 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 our ability to deliver shareholder value.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.29 per share, payable on November 25, 2024 to shareholders of record on November 8, 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.

Contact:

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

Source: Masco Corporation