Masco Corporation · NYSE:MAS
Masco — Q3 2025 Earnings Presentation
24 slides from Masco's earnings presentation, Oct 29, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation October 29, 2025
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: CEO First Days Reflections
CEO First 100 Days Reflections 5
Slide 6: Q3 2025 Review
Q3 2025 Review Top line decreased 3%, or 2% excluding the impacts of our divestiture and currency Achieved adjusted gross margin of 34.6% Adjusted operating profit margin was 16.3% Delivered adjusted EPS of $0.97 per share Repurchased 1.8 million shares for $124 million Updated anticipated full year
Slide 7: Financial / Operations Review
2 Financial / Operations Review Rick Westenberg 7
Slide 8: Masco Corporation Third Quarter 2025 Quarter Highlights
Masco Corporation Third Quarter Quarter Highlights 2025 ($ in Millions) • Total company sales decreased 3%, or 2% excluding the impacts of our divestiture and Revenue $1,917 currency Y-O-Y Change (3)% • In local currency, North American sales Operating Profit* $312 decreased 6%, or 2% excluding the
Slide 9: Plumbing Products Segment
Plumbing Products Segment Quarter Highlights Third Quarter 2025 ($ in Millions) • Total segment sales increased 2%, or increased 1% excluding currency Revenue $1,247 Y-O-Y Change 2% • In local currency, North American sales increased 1% Operating Profit* $204 • In local currency, International sales
Slide 10: Decorative Architectural Products Segment
Decorative Architectural Products Segment Quarter Highlights Third Quarter 2025 ($ in Millions) • Total segment sales decreased 12%, or 6% excluding our divestiture Revenue $670 Y-O-Y Change (12)% • Paints and other coating products sales decreased low single digits Operating Profit* $128 • PRO pain
Slide 11: Strong Balance Sheet
Strong Balance Sheet Masco Corporation Balance Sheet Metrics as of 9/30/2025 Cash and cash investments $559M Revolver availability $1,000M Total liquidity $1,559M Gross debt to EBITDA1 2.0x Working capital as a % of sales1 18.5% 1. See Appendix for reconciliation. 11
Slide 12: Full Year 2025 Outlook
Full Year 2025 Outlook 2025 Forecasted Adjusted EPS $3.90 - $3.95 Assumptions: • 2025 guidance includes all enacted tariffs in effect in October, net of mitigation actions, but does not include potential future tariffs or changes to existing tariffs • Global repair and remodel market (including pric
Slide 13: Q&A
3 Q&A Jon Nudi Rick Westenberg 13
Slide 14: Appendix
as O Cc o or or << MASCO
Slide 15: 2025 Assumptions
2025 Assumptions Item Assumption Tax rate 24.5% General corporate expense ~$95m Interest and other expense ~$110m Capital expenditures ~$160m (includes maintenance capex of ~$75m) Depreciation and amortization1 ~$150m Favorable foreign currency translation impact to sales2 ~$50m Share repurchase or
Slide 16: 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% of sales 2 Maintain investment grade credit rating • Target gross debt to EBITDA below 2.5x 3 Maintain relevant dividend • • Current
Slide 17: 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 18: 2024 Segment Mix
2024 Segment Mix* Total Geographic Business Segment 2024 Revenue R&R% vs. NC NA% v. Int’l Revenue Split Plumbing Products $4.9B 83% 68% Decorative Architectural $3.0B 97% 100% Products Total Company $7.8B 88% 80% R&R = % of sales to repair NA = % of sales within and remodel channels North America NC
Slide 19: 2024 Channel Mix
2024 Channel Mix* 2024 Channel Mix as a Percentage of Sales Plumbing Decorative Architectural Total Channel Products Products Masco Retail 19% 88% 46% Wholesale/trade/dealer 52% 8% 35% E-commerce 18% 4% 12% Specialty Dealer/Other 11% 0% 7% *Based on Company estimates 19
Slide 20: Profit Reconciliations – Third Quarter
Profit Reconciliations – Third Quarter ($ in Millions) Q3 2025 Q3 2024 Net sales $ 1,917 $ 1,983 Gross profit, as reported $ 656 $ 725 Rationalization charges 7 2 Gross profit, as adjusted $ 663 $ 727 Gross margin, as reported 34.2 % 36.6 % Gross margin, as adjusted 34.6 % 36.7 % Selling, general an
Slide 21: EPS Reconciliation – Third Quarter
EPS Reconciliation – Third Quarter ($ in Millions, Except per Common Share Data) Q3 2025 Q3 2024 Income before income taxes, as reported $ 276 $ 248 Rationalization charges 8 2 Loss on sale of business (1) — 81 Realized (gains) from private equity funds, net — (1) Income before income taxes, as adju
Slide 22: EPS Outlook Reconciliation
EPS Outlook Reconciliation 2025 Low End High End Net income per common share $ 3.84 $ 3.89 Rationalization charges 0.04 0.04 Realized losses from private equity funds, net 0.02 0.02 Net income per common share, as adjusted $ 3.90 $ 3.95 Amounts may not add due to rounding. 22
Slide 23: Gross Debt to EBITDA Reconciliation
Gross Debt to EBITDA Reconciliation ($ in Millions) September 30, 2025 Debt $ 2,947 ($ in Millions) TTM September 30, 2025 Operating profit, as reported $ 1,291 Rationalization charges 14 Operating profit, as adjusted $ 1,304 Depreciation and amortization 145 EBITDA, as adjusted $ 1,450 Debt to EBIT
Slide 24: Working Capital as a % of Sales
Working Capital as a % of Sales As Reported ($ in Millions) September 30, 2025 Receivables $ 1,181 Inventories 1,069 Less: Accounts payable (842) Working capital $ 1,408 Net sales (last 12 months) $ 7,597 Working capital as a % of sales 18.5 % Amounts may not add due to rounding. 24