Masco Corporation · NYSE:MAS
Masco — Q4 2025 Earnings Presentation
32 slides from Masco's earnings presentation, Feb 10, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Presentation
Fourth Quarter and Full Year 2025 Earnings Presentation February 10, 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,”
Slide 3: Agenda
Agenda 1 Summary of Results Jon Nudi 2 Financial / Operations Review Rick Westenberg 3 Q&A Jon Nudi Rick Westenberg 3
Slide 4: Summary of Results
1 Summary of Results Jon Nudi 4
Slide 5: 2025 Significant Achievements
2025 Significant Achievements 5
Slide 6: Q4 2025 Review
Q4 2025 Review Top line decreased 2%, or 3% excluding the favorable impact of currency Achieved adjusted gross margin of 33.7% Adjusted operating profit margin was 14.4% Delivered adjusted EPS of $0.82 per share Repurchased 3.4 million shares for $217 million For adjusted numbers, see Appendix for G
Slide 7: Full Year 2025 Review
Full Year 2025 Review Top line decreased 3%, or 2% excluding the impacts of our divestiture and favorable currency Adjusted gross margin was 35.5% Adjusted operating profit margin was 16.8% Delivered adjusted EPS of $3.96 per share Drove return on invested capital of ~41% Repurchased 8.5 million sha
Slide 8: Financial / Operations Review
2 Financial / Operations Review Rick Westenberg 8
Slide 9: Masco Corporation
Masco Corporation Fourth Full Year Quarter Highlights Quarter 2025 2025 ($ in Millions, except EPS) • Total company sales decreased 2%, or Revenue $1,793 $7,562 3% excluding the favorable impact of Y-O-Y Change (2)% (3)% currency • In local currency, North American sales Operating Profit* $259 $1,27
Slide 10: Plumbing Products Segment
Plumbing Products Segment Fourth Quarter Highlights Full Year Quarter 2025 2025 ($ in Millions) • Total segment sales increased 5%, or increased 3% excluding favorable Revenue $1,248 $4,992 currency Y-O-Y Change 5% 3% • In local currency, North American sales increased 4% Operating Profit* $204 $904
Slide 11: Decorative Architectural Products Segment
Decorative Architectural Products Segment Quarter Highlights Fourth Full Year Quarter 2025 • Total segment sales decreased 15% 2025 ($ in Millions) • Paints and other coating products sales Revenue $545 $2,570 decreased double digits, including the impacts Y-O-Y Change (15)% (14)% of inventory timin
Slide 12: Strong Balance Sheet
Strong Balance Sheet Masco Corporation Balance Sheet Metrics as of 12/31/2025 Cash and cash investments $647M Revolver availability $1,000M Total liquidity $1,647M Gross debt to EBITDA1 2.1x Working capital as a % of sales1 16.7% Free cash flow conversion rate1 99% 1. See Appendix for reconciliation
Slide 13: Full Year 2026 Outlook
Full Year 2026 Outlook 2026 Forecasted Adjusted EPS $4.10 - $4.30 Assumptions: • Reflects the integration of Liberty Hardware into Delta Faucet Company, with Liberty’s results to be reported in the Plumbing Products Segment (previously reported in the Decorative Architectural Products Segment) • Glo
Slide 14: Q&A
3 Q&A Jon Nudi Rick Westenberg 14
Slide 15: Appendix
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Slide 16: 2026 Assumptions
2026 Assumptions Item Assumption Tax rate 24.5% Rationalization charges ~$50m General corporate expense ~$105m Interest and other expense ~$105m Capital expenditures ~$190m (includes maintenance capex of ~$75m) Depreciation and amortization1 ~$160m Favorable foreign currency translation impact to sa
Slide 17: Capital Allocation Strategy
Capital Allocation Strategy Balanced Approach to Continue to Drive Shareholder Value • Capex: 2-2.5% of sales 1 Reinvest in the Business • Target working capital: ~16.5% of sales 2 Maintain investment grade credit rating • Target gross debt to EBITDA below 2.5x • Target dividend payout ratio of ~30%
Slide 18: Long-Term Outlook
Low ticket, repair and remodel products provide LONG-TERM OUTLOOK growth and stability through Average annual sales growth an economic cycle • Organic: ~3-5% • Acquisition: ~1-3% Market-leading brands, Operating profit margin history of innovation, • Expand margins through cost productivity and volu
Slide 19: 2025 Segment Mix
2025 Segment Mix* Total Geographic Business Segment 2025 Revenue R&R% vs. NC NA% v. Int’l Revenue Split Plumbing Products $5.2B 84% 69% Decorative Architectural $2.4B 100% 100% Products Total Company $7.6B 89% 79% R&R = % of sales to repair NA = % of sales within and remodel channels North America N
Slide 20: 2025 Channel Mix
2025 Channel Mix* 2025 Channel Mix as a Percentage of Sales Plumbing Decorative Architectural Total Channel Products Products Masco Retail 20% 96% 45% Wholesale/Trade/Dealer 49% 3% 34% E-commerce 20% 1% 13% Specialty Dealer/Other 11% 0% 8% *Based on Company estimates and reflects the integration of
Slide 21: Profit Reconciliations – Fourth Quarter
Profit Reconciliations – Fourth Quarter ($ in Millions) Q4 2025 Q4 2024 Net sales $ 1,793 $ 1,828 Gross profit, as reported $ 607 $ 635 Rationalization (income) charges (1) (2) 1 Gross profit, as adjusted $ 605 $ 636 Gross margin, as reported 33.9 % 34.7 % Gross margin, as adjusted 33.7 % 34.8 % Sel
Slide 22: Profit Reconciliations – Full Year
Profit Reconciliations – Full Year ($ in Millions) 2025 2024 Net sales $ 7,562 $ 7,828 Gross profit, as reported $ 2,679 $ 2,831 Rationalization charges 8 7 Gross profit, as adjusted $ 2,688 $ 2,838 Gross margin, as reported 35.4 % 36.2 % Gross margin, as adjusted 35.5 % 36.3 % Selling, general and
Slide 23: EPS Reconciliation – Fourth Quarter
EPS Reconciliation – Fourth Quarter ($ in Millions, Except per Common Share Data) Q4 2025 Q4 2024 Income before income taxes, as reported $ 227 $ 258 Rationalization charges 6 1 Impairment charge for other intangible assets 5 — Loss on sale of business (1) — 8 Income before income taxes, as adjusted
Slide 24: EPS Reconciliation – Full Year
EPS Reconciliation – Full Year ($ in Millions, Except per Common Share Data) 2025 2024 Income before income taxes, as reported $ 1,135 $ 1,161 Rationalization charges 19 9 Impairment charge for other intangible assets 5 — Loss on sale of business (1) — 88 Realized losses (gains) from private equity
Slide 25: Return on Invested Capital Reconciliation
Return on Invested Capital Reconciliation Return on Invested Capital Reconciliation ($ in Millions) December 31, 2025 Operating profit, as adjusted $ 1,272 Tax at 24.5% rate (312) Operating profit after income taxes, as adjusted $ 960 Average invested capital Average shareholders' equity 12 Average
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Free Cash Flow Reconciliation ($ in Millions) Year Ended December 31, 2025 Net cash from operating activities $ 1,022 Less: Capital expenditures (156) Free cash flow $ 866 Income before income taxes, as adjusted $ 1,163 Tax at 24.5% rate (285) Net income, as adjusted (i
Slide 27: EPS Outlook Reconciliation
EPS Outlook Reconciliation 2026 Low End High End Net income per common share $ 3.91 $ 4.11 Rationalization charges 0.19 0.19 Net income per common share, as adjusted $ 4.10 $ 4.30 Amounts may not add due to rounding. 27
Slide 28: Gross Debt to EBITDA Reconciliation
Gross Debt to EBITDA Reconciliation ($ in Millions) December 31, 2025 Debt $ 2,947 ($ in Millions) TTM December 31, 2025 Operating profit, as reported $ 1,248 Rationalization charges 19 Impairment charge for other intangible assets 5 Operating profit, as adjusted $ 1,272 Depreciation and amortizatio
Slide 29: Working Capital as a % of Sales
Working Capital as a % of Sales As Reported ($ in Millions) December 31, 2025 Receivables $ 1,028 Inventories 1,046 Less: Accounts payable (810) Working capital $ 1,264 Net sales $ 7,562 Working capital as a % of sales 16.7 % Amounts may not add due to rounding. 29
Slide 30: Recasted Segment Data – Full Year
Recasted Segment Data – Full Year ($ in Millions) Year Ended December 31, 2025 Year Ended December 31, 2024 Adjustment Adjustment Reported Recasted Reported Recasted (1) (1) Plumbing Products Net sales $ 4,992 $ 218 $ 5,209 $ 4,853 $ 260 $ 5,113 Operating profit, as reported $ 895 $ 12 $ 906 $ 911 $
Slide 31: Recasted Segment Data – First & Second Quarter 2025
Recasted Segment Data – First & Second Quarter 2025 ($ in Millions) Three Months Ended March 31, 2025 Three Months Ended June 30, 2025 Adjustment Adjustment Reported Recasted Reported Recasted (1) (1) Plumbing Products Net sales $ 1,185 $ 61 $ 1,246 $ 1,312 $ 60 $ 1,372 Operating profit, as reported
Slide 32: Recasted Segment Data – Third & Fourth Quarter 2025
Recasted Segment Data – Third & Fourth Quarter 2025 ($ in Millions) Three Months Ended September 30, 2025 Three Months Ended December 31, 2025 Adjustment Adjustment Reported Recasted Reported Recasted (1) (1) Plumbing Products Net sales $ 1,247 $ 43 $ 1,290 $ 1,248 $ 54 $ 1,302 Operating profit, as