Masco Corporation reports its fourth quarter and full-year 2025 results.

2025 Fourth Quarter Results

On a reported basis, compared to the fourth quarter 2024:

• Net sales decreased 2% to $1,793 million; net sales decreased 3% in local currency.

• Plumbing Products’ net sales increased 5%; in local currency, net sales increased 3%.

• Decorative Architectural Products’ net sales decreased 15%.

• In local currency, North American sales decreased 5% and International sales increased 1%

• Gross margin decreased 80 basis points to 33.9% from 34.7%

• Operating profit decreased 14% to $248 million from $290 million

• Operating margin decreased 210 basis points to 13.8% from 15.9%

• Net income decreased 6% to $0.80 per share, compared to $0.85 per share

Compared to fourth quarter 2024, results for key financial measures, as adjusted for certain items, and with a normalized tax rate of 24.5%, were as follows:

• Gross margin decreased 110 basis points to 33.7% from 34.8%

• Operating profit decreased 11% to $259 million from $291 million

• Operating margin decreased 150 basis points to 14.4% from 15.9%

• Net income decreased 8% to $0.82 per share, compared to $0.89 per share

• Liquidity at the end of the fourth quarter was $1,647 million (including availability under our revolving credit facility)

2025 Full Year Results

On a reported basis, compared to the full year 2024:

• Net sales decreased 3% to $7,562 million; in local currency and excluding divestitures, net sales decreased 2%

• Plumbing Products’ net sales increased 3%; in local currency net sales increased 2%

• Decorative Architectural Products’ net sales decreased 14%; in local currency and excluding divestitures, net sales decreased 8%

• Gross margin decreased 80 basis points to 35.4% from 36.2%

• Operating profit decreased 8% to $1,248 million from $1,363 million

• Operating margin decreased 90 basis points to 16.5% from 17.4%

• Net income increased 3% to $3.86 per share, compared to $3.76 per share

Compared to full year 2024, results for key financial measures, as adjusted for certain items and with a normalized tax rate of 24.5%, were as follows:

• Gross margin decreased 80 basis points to 35.5% from 36.3%

• Operating profit decreased 7% to $1,272 million from $1,372 million

• Operating margin decreased 70 basis points to 16.8% from 17.5%

• Net income decreased 3% to $3.96 per share, compared to $4.10 per share

“Overall, our fourth quarter operating results were largely in line with our expectations, as we continued to navigate through a dynamic geopolitical and macroeconomic environment,” says Jon Nudi, Masco’s president and CEO. “We delivered adjusted operating profit of $259 million and adjusted earnings per share of $0.82 during the quarter. Additionally, our capital allocation strategy enabled us to return $281 million to shareholders in the quarter through dividends and share repurchases.

“For the full year 2025, we delivered solid adjusted operating profit margins of 16.8% and adjusted earnings per share of $3.96, and we returned $832 million to shareholders through dividends and share repurchases,” adds Nudi. “We are taking decisive actions to further position our business to drive results and deliver long-term shareholder value. We recently established an Executive Committee with dual corporate and business unit representation to fully leverage our enterprise strengths, which will enable us to continue to deliver strong execution and accelerate growth moving forward.

“We also began to implement various restructuring actions to further streamline our business, reduce headcount, and optimize operations. In connection with these actions, we incurred charges of approximately $18 million in the fourth quarter of 2025, and we expect to incur approximately $50 million in additional charges in 2026. We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion,” he notes.

“As we move into 2026, we are announcing the integration of Liberty Hardware into Delta Faucet Company. This realignment is a key component of our consumer driven strategy to leverage our brands, capabilities, and scale across our organization,” says Nudi. “As a result of this integration, Liberty Hardware, which was previously reported in the Decorative Architectural Products segment, will be reported within our Plumbing Products segment moving forward.

“For 2026, we believe sales across the global repair and remodel markets will be roughly flat. We expect our sales to be roughly flat to up low-single digits when adjusted for currency, as we expect to continue to outperform the market in 2026,” Nudi concludes. “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 $4.10 to $4.30 per share. With our industry leading brands, consumer-focused product portfolio, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to continue to deliver long-term shareholder value.”