Masco Corporation Reports Fourth Quarter and 2024 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 2024 results.

Fourth Quarter Highlights

• Net sales decreased 3 percent to $1,828 million
• Operating profit margin increased 280 basis points to 15.9 percent; adjusted operating profit margin increased 140 basis points to 15.9 percent
• Earnings per share was $0.85 per share; adjusted earnings per share grew 7 percent to $0.89 per share
• Repurchased 3.3 million shares for $268 million

Full Year Highlights

• Net sales decreased 2 percent to $7,828 million
• Operating profit margin increased 50 basis points to 17.4 percent from 16.9 percent; adjusted operating profit margin increased 70 basis points to 17.5 percent from 16.8 percent
• Earnings per share decreased 6 percent to $3.76 per share; adjusted earnings per share increased 6 percent to $4.10 per share from $3.86 per share
• Returned $1.0 billion to shareholders through dividends and share repurchases

Outlook for 2025 and Dividend Declaration

• Expect 2025 earnings per share in the range of $4.20 – $4.45 per share
• Estimates include the impact from recently enacted China tariffs
• Board declared a quarterly dividend of $0.31 per share, a 7 percent increase, payable on March 10, 2025 to shareholders of record on February 21, 2025

2024 Fourth Quarter Results

• On a reported basis, compared to the fourth quarter 2023:
  • Net sales decreased 3 percent to $1,828 million; in local currency and excluding divestitures, net sales increased 1 percent
    • Plumbing Products’ net sales decreased 1 percent; in local currency net sales decreased 1 percent
    • Decorative Architectural Products’ net sales decreased 6 percent; in local currency and excluding divestitures, net sales increased 5 percent
    • In local currency, North American sales decreased 4 percent and International sales increased 2 percent
  • Gross margin was flat at 34.7 percent
  • Operating profit increased 17 percent to $290 million from $247 million
  • Operating margin increased 280 basis points to 15.9 percent from 13.1 percent
  • Net income was flat at $0.85 per share
• Compared to fourth 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 decreased 30 basis points to 34.8 percent from 35.1 percent
  • Operating profit increased 7 percent to $291 million from $272 million
  • Operating margin increased 140 basis points to 15.9 percent from 14.5 percent
  • Net income increased 7 percent to $0.89 per share, compared to $0.83 per share
• Liquidity at the end of the fourth quarter was $1,634 million (including availability under our revolving credit facility)

2024 Full Year Results

• On a reported basis, compared to full year 2023:
  • Net sales decreased 2 percent to $7,828 million; in local currency and excluding acquisitions and divestitures, net sales decreased 1 percent
  • In local currency, North American sales decreased 2 percent and international sales were flat
  • Gross margin increased 60 basis points to 36.2 percent from 35.6 percent
  • Operating profit increased 1 percent to $1,363 million from $1,348 million
  • Operating margin increased 50 basis points to 17.4 percent from 16.9 percent
  • Net income decreased to $3.76 per share, compared to $4.02 per share
• Compared to full year 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 110 basis points to 36.3 percent from 35.2 percent
  • Operating profit increased 3 percent to $1,372 million from $1,336 million
  • Operating margin increased 70 basis points to 17.5 percent from 16.8 percent
  • Net income increased 6 percent to $4.10 per share, compared to $3.86 per share

“We delivered another quarter of strong operating results,” said Keith Allman, Masco’s President and Chief Executive Officer. “Our fourth quarter adjusted operating profit margin expanded 140 basis points, marking the seventh consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 7 percent. Additionally, we executed on our capital allocation strategy by returning $331 million to shareholders in the quarter through dividends and share repurchases.”

“For the full year 2024, we expanded adjusted operating margin by 70 basis points to 17.5 percent through our focus on cost savings initiatives and operational efficiencies,” continued Allman. “With this strong execution, we delivered adjusted earnings per share growth of 6 percent despite a challenging demand environment. Our strong cash flow also enabled us to return $1.0 billion to shareholders through dividends and share repurchases.”

“In 2025, we believe demand across the global repair and remodel markets will be flat to down low single digits. We expect our sales to be approximately flat to up low-single digits when adjusted for divestitures and currency, as we expect to continue to outperform the market in 2025,” said Allman. “Based on the market outlook, our expected operating performance, and our capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.20 to $4.45 per share. With our industry leading repair and remodel-oriented product portfolio, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to continue to deliver long-term shareholder value.”

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.31 per share, payable on March 10, 2025 to shareholders of record on February 21, 2025.

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