mas-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number: 1-5794

Masco Corporation

(Exact name of Registrant as Specified in its Charter)

Delaware

38-1794485

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer Identification No.)

17450 College Parkway,

Livonia,

Michigan

48152

(Address of Principal Executive Offices)

(Zip Code)

(313) 274-7400

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange
On Which Registered

Common Stock, $1.00 par value

MAS

New York Stock Exchange

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Shares Outstanding at June 30, 2025
Common stock, par value $1.00 per share						209,363,636

MASCO CORPORATION

INDEX

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited):

Condensed Consolidated Balance Sheets as of June 3 0 , 2025 and December 31, 2024

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 3 0 , 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 3 0 , 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2025 and 2024

Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended June 3 0 , 2025 and 2024

Notes to Condensed Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds

MASCO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30, 2025 and December 31, 2024

(In Millions, Except Share Data)


	June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash investments	$	390	$	634

Receivables	1,318		1,035
Inventories	1,097		938
Prepaid expenses and other	119		123

Total current assets	2,925		2,730
Property and equipment, net	1,174		1,116
Goodwill	621		597
Other intangible assets, net	219		220
Operating lease right-of-use assets	244		231
Other assets	106		123

Total assets	$	5,288	$	5,016

LIABILITIES
Current liabilities:
Accounts payable	$	871	$	789
Notes payable	48		3
Accrued liabilities	690		767

Total current liabilities	1,609		1,560
Long-term debt	2,945		2,945
Noncurrent operating lease liabilities	231		223
Other liabilities	352		342

Total liabilities	$	5,138	$	5,069

Commitments and contingencies (Note L)


EQUITY
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2025 – 209,400,000; 2024 – 212,500,000	209		212
Preferred shares authorized: 1,000,000; Issued and outstanding: 2025 and 2024 – None	—		—
Paid-in capital	—		—
Retained deficit	(583)		(693)
Accumulated other comprehensive income	289		201
Total Masco Corporation's shareholders' deficit	(84)		(279)
Noncontrolling interest	234		227
Total equity	150		(53)
Total liabilities and equity	$	5,288	$	5,016

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net sales	$	2,051	$	2,091	$	3,852	$	4,017
Cost of sales	1,278		1,306		2,435		2,547
Gross profit	772		785		1,416		1,470
Selling, general and administrative expenses	361		388		719		755


Operating profit	412		397		698		715
Other income (expense), net:
Interest expense	(26)		(26)		(52)		(50)
Other, net	(7)		(5)		(14)		(10)
	(33)		(31)		(66)		(61)
Income before income taxes	378		366		632		655
Income tax expense	95		94		150		154
Net income	283		272		482		501


Less: Net income attributable to noncontrolling interest	13		14		25		28
Net income attributable to Masco Corporation	$	270	$	258	$	456	$	473

Income per common share attributable to Masco Corporation:
Basic:


Net income	$	1.29	$	1.18	$	2.16	$	2.15
Diluted:


Net income	$	1.28	$	1.17	$	2.15	$	2.14

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	283	$	272	$	482	$	501
Less: Net income attributable to noncontrolling interest	13		14		25		28
Net income attributable to Masco Corporation	$	270	$	258	$	456	$	473
Other comprehensive income (loss), net of tax:
Currency translation adjustment	$	77	$	(10)	$	112	$	(34)

Pension and other post-retirement benefits	—		—		1		1

Other comprehensive income (loss), net of tax	77		(10)		112		(33)
Less: Other comprehensive income (loss) attributable to noncontrolling interest	16		(1)		25		(7)
Other comprehensive income (loss) attributable to Masco Corporation	$	61	$	(9)	$	88	$	(27)
Total comprehensive income	$	360	$	262	$	594	$	467
Less: Total comprehensive income attributable to noncontrolling interest	29		13		50		22
Total comprehensive income attributable to Masco Corporation	$	332	$	249	$	544	$	446

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2025 and 2024

(In Millions)


	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$	606	$	648
Increase in receivables	(271)		(265)
Increase in inventories	(133)		(43)
Decrease in accounts payable and accrued liabilities, net	(55)		(87)
Net cash from operating activities	148		252

CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:

Purchase of Company common stock	(231)		(290)
Excise tax paid on the purchase of Company common stock	(6)		—
Cash dividends paid	(132)		(128)
Purchase of redeemable noncontrolling interest	—		(15)
Dividends paid to noncontrolling interest	(15)		(12)

Proceeds from revolving credit borrowings, net	46		—





Proceeds from the exercise of stock options	2		75
Employee withholding taxes paid on stock-based compensation	(8)		(33)

Decrease in debt, net	(1)		(1)


Net cash for financing activities	(344)		(404)

CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(68)		(74)
Acquisition of business	—		(4)









Other, net	(1)		(1)
Net cash for investing activities	(70)		(80)

Effect of exchange rate changes on cash and cash investments	22		(5)

CASH AND CASH INVESTMENTS:
Decrease for the period	(243)		(236)
At January 1	634		634
At June 30	$	390	$	398

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)


	Total		Common Shares ($1 par value)		Paid-In Capital		Retained (Deficit) Earnings		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest
Balance, January 1, 2024	$	98	$	221	$	—	$	(596)	$	249	$	224
Total comprehensive income (loss)	205		—		—		215		(18)		8
Shares issued	56		2		54		—		—		—
Shares retired:
Repurchased	(148)		(2)		(77)		(68)		—		—
Surrendered (non-cash)	(14)		—		—		(13)		—		—
Cash dividends declared	(64)		—		—		(64)		—		—


Redemption of redeemable noncontrolling interest	4		—		4		—		—		—
Stock-based compensation	20		—		20		—		—		—
Balance, March 31, 2024	$	157	$	220	$	—	$	(527)	$	231	$	232
Total comprehensive income (loss)	262		—		—		258		(9)		13

Shares retired:
Repurchased	(144)		(2)		(8)		(134)		—		—

Cash dividends declared	(64)		—		—		(64)		—		—
Dividends declared to noncontrolling interest	(37)		—		—		—		—		(37)

Stock-based compensation	8		—		8		—		—		—
Balance, June 30, 2024	$	182	$	218	$	—	$	(467)	$	223	$	208

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Concluded)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)


	Total		Common Shares ($1 par value)		Paid-In Capital		Retained (Deficit) Earnings		Accumulated Other Comprehensive Income		Noncontrolling Interest
Balance, January 1, 2025	$	(53)	$	212	$	—	$	(693)	$	201	$	227
Total comprehensive income	234		—		—		186		27		21
Shares issued	2		—		1		—		—		—
Shares retired:
Repurchased	(131)		(2)		(18)		(111)		—		—
Surrendered (non-cash)	(8)		—		—		(8)		—		—
Cash dividends declared	(66)		—		—		(66)		—		—

Stock-based compensation	17		—		17		—		—		—
Balance, March 31, 2025	$	(6)	$	211	$	—	$	(693)	$	228	$	248
Total comprehensive income	360		—		—		270		61		29

Shares retired:
Repurchased	(102)		(2)		(5)		(95)		—		—

Cash dividends declared	(65)		—		—		(65)		—		—
Dividends declared to noncontrolling interest	(42)		—		—		—		—		(42)
Stock-based compensation	5		—		5		—		—		—
Balance, June 30, 2025	$	150	$	209	$	—	$	(583)	$	289	$	234

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A. ACCOUNTING POLICIES

In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to fairly state our financial position at June 30, 2025, our results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, cash flows for the six months ended June 30, 2025 and 2024 and changes in shareholders' equity for the three and six months ended June 30, 2025 and 2024. The condensed consolidated balance sheet at December 31, 2024 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted ("GAAP") in the United States of America. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.

Recently Adopted Accounting Pronouncements. In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires additional income tax disclosures, particularly regarding the effective tax rate reconciliation and income taxes paid. We adopted this standard for annual periods beginning January 1, 2025. The adoption of this guidance will modify our annual disclosures, but will not have an impact on our financial position and results of operations.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires additional disclosures regarding an entity's reportable segments, particularly regarding significant segment expenses, as well as information relating to the chief operating decision maker. We adopted this standard on a retrospective basis for annual periods beginning January 1, 2024, and for interim periods beginning in 2025. The adoption of this guidance modified our disclosures, but did not have an impact on our financial position and results of operations.

Recently Issued Accounting Pronouncements. In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," which requires additional disclosure of the nature of expenses included in the income statement. ASU 2024-03 is effective on a prospective or retrospective basis for annual periods beginning January 1, 2027, and interim periods within those annual periods beginning January 1, 2028. Early adoption is permitted. The adoption of this guidance will modify our disclosures, but will not have an impact on our financial position and results of operations.

B. ACQUISITIONS

In the first quarter of 2021, our Hansgrohe SE subsidiary acquired a 75.1 percent equity interest in Easy Sanitary Solutions B.V. ("ESS"). The remaining 24.9 percent equity interest in ESS was subject to a call and put option that was exercisable by Hansgrohe SE or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option was the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and were recorded as temporary equity in the condensed consolidated balance sheets. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit.

In the first quarter of 2024, the sellers exercised their put option to sell the remaining 24.9 percent equity interest in ESS for €13 million ($15 million). The transaction was accounted for as an equity purchase transaction.

C. DIVESTITURES

In the third quarter of 2024, we sold our Kichler Lighting ("Kichler") business, a provider of decorative residential and light commercial lighting products, ceiling fans, and LED lighting system. The sale of Kichler did not represent a strategic shift that will have a major effect on our operations and financial results and therefore was not presented as discontinued operations. Prior to the divestiture, the results of the business were included in our Decorative Architectural Products segment.

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

D. REVENUE

Our revenues are derived from sales to customers in the following geographic areas: North America and International, which are particularly in Europe. Net sales from these geographic areas, by segment, were as follows, in millions:


	Three Months Ended June 30, 2025
	Plumbing Products		Decorative Architectural Products		Total
Primary geographic areas:
North America	$	899	$	738	$	1,638
International	413		—		413
Total

SEC Form 10-Q filed by Masco Corporation