Masco (MAS) Q4 2025 earnings summary

Executive summary

• Achieved key milestones in 2025 despite a challenging macroeconomic and geopolitical environment, including market share gains in plumbing and wellness, and recognition for brand strength and innovation.

• Integrated Sauna360 and Liberty Hardware into the dealer network and Delta Faucet Company, driving double-digit sales growth in wellness and impacting segment reporting.

• Decorative architectural segment maintained strong brand leadership, with Behr rated #1 in multiple paint categories and significant growth in Pro paint market share.

• Initiated broad restructuring actions and established a new executive committee to enhance operational agility and leverage enterprise strengths.

• Recognized by a key customer for strong partnerships and expanded into new categories through innovation.

Financial highlights

• Q4 2025 net sales decreased 2% (3% in local currency); operating profit was $259M with a 14.4% margin; adjusted EPS was $0.82.

• Full-year 2025 net sales decreased 3% (2% excluding currency/divestiture); operating profit was $1.3B with a 16.8% margin; adjusted EPS was $3.96.

• Return on invested capital reached 41%; free cash flow exceeded $850M, with $832M returned to shareholders via dividends and buybacks.

• Repurchased 8.5 million shares for $571 million in 2025.

• Free cash flow for 2025 was $866 million; free cash flow conversion rate 99%.

Outlook and guidance

• 2026 adjusted EPS guidance is $4.10–$4.30; reported EPS guidance is $3.91–$4.11.

• Sales expected to be flat to up low single digits, outperforming a flat global repair and remodel market.

• Operating margin projected to expand to ~17% in 2026, with plumbing margins at ~18% and decorative architectural at ~19%.

• $190M planned for capital expenditures; capex targeted at 2–2.5% of sales.

• Board approved a 3% dividend increase to $1.28/share and authorized a new $2B share repurchase program.