Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation April 23, 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 Keith Allman 2 Financial / Operations Review Rick Westenberg 3 Q&A Keith Allman Rick Westenberg 3
Slide 4: Summary of Results
1 Summary of Results Keith Allman 4
Slide 5: Q1 2025 New Product and Award Highlights
Q1 2025 New Product and Award Highlights Showersense™ Digital Shower PivotPro™ 3-in-1 Combination Shower Avalegra Aqua Unit Raindance Alive Shower HotSpring® Vigor™ Cold Plunge Caldera Spas® Emerge™ *Based on the 2025 BrandSpark® American and Canadian Trust Study 5 Cold Plunge
Slide 6: Q1 2025 Review
Q1 2025 Review Top line decreased 6%, or 3% excluding impacts of our divestiture and currency Improved adjusted gross margin 20 basis points to 35.9% Achieved solid adjusted operating profit margin of 16.0% Delivered adjusted EPS of $0.87 per share Repurchased 1.8 million shares for $130 million Due
Slide 7: Financial / Operations Review
2 Financial / Operations Review Rick Westenberg 7
Slide 8: Masco Corporation Quarter Highlights
Masco Corporation First Quarter Quarter Highlights ($ in Millions) 2025 • Total company sales decreased 6%, or 3% excluding the impacts of our divestiture Revenue $1,801 and currency Y-O-Y Change (6)% • In local currency, North American sales Operating Profit* $288 decreased 7%, or decreased 3% excl
Slide 9: Plumbing Products Segment
Plumbing Products Segment Quarter Highlights First Quarter ($ in Millions) 2025 • Total segment sales decreased 1%, or increased 1% excluding currency Revenue $1,185 Y-O-Y Change (1)% • In local currency, North American sales increased 1% Operating Profit* $219 • In local currency, International sal
Slide 10: Decorative Architectural Products Segment
Decorative Architectural Products Segment Quarter Highlights First Quarter ($ in Millions) 2025 • Total segment sales decreased 16%, or 8% excluding our divestiture Revenue $617 Y-O-Y Change (16)% • Paints & other coating products sales decreased high single digits and was impacted by unfavorable in
Slide 11: Strong Balance Sheet
Strong Balance Sheet Masco Corporation Balance Sheet Metrics as of 3/31/2025 Cash and cash investments $377M Revolver availability $869M Total liquidity $1,246M Gross debt to EBITDA1 2.1x Working capital as a % of sales1 18.7% 1. See Appendix for reconciliation. 11
Slide 12: Q&A
3 Q&A Keith Allman Rick Westenberg 12
Slide 13: Appendix
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Slide 14: 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 15: 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 16: 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 $7.8B 88% 80% R&R = % of sales to repair NA = % of sales within and remodel channels North America NC
Slide 17: 2024 Channel Mix
2024 Channel Mix* 2024 Channel Mix as a Percentage of Sales Plumbing Decorative Architectural Total Channel Products Products Masco Retail 19% 88% 46% Wholesale/trade/dealer 52% 8% 35% E-commerce 18% 4% 12% Specialty Dealer/Other 11% 0% 7% *Based on Company estimates 17
Slide 18: Profit Reconciliations – First Quarter
Profit Reconciliations – First Quarter ($ in Millions) Q1 2025 Q1 2024 Net sales $ 1,801 $ 1,926 Gross profit, as reported $ 644 $ 685 Rationalization charges 2 3 Gross profit, as adjusted $ 646 $ 688 Gross margin, as reported 35.8 % 35.6 % Gross margin, as adjusted 35.9 % 35.7 % Selling, general an
Slide 19: EPS Reconciliation – First Quarter
EPS Reconciliation – First Quarter ($ in Millions, Except per Common Share Data) Q1 2025 Q1 2024 Income before income taxes, as reported $ 254 $ 289 Rationalization charges 2 3 Realized losses from private equity funds, net 5 — Income before income taxes, as adjusted $ 261 $ 292 Tax at 24.5% rate (6
Slide 20: EPS Reconciliation
EPS Reconciliation ($ in Millions, Except per Common Share Data) 2024 2019 Income from continuing operations before income taxes, as reported $ 1,161 $ 914 Rationalization charges 9 13 Impairment charge for other intangible assets — 9 Loss on sale of business (1) 88 — Realized (gains) from private e
Slide 21: Gross Debt to EBITDA Reconciliation
Gross Debt to EBITDA Reconciliation ($ in Millions) March 31, 2025 Debt $ 3,078 ($ in Millions) TTM March 31, 2025 Operating profit, as reported $ 1,330 Rationalization charges 8 Operating profit, as adjusted $ 1,338 Depreciation and amortization 146 EBITDA, as adjusted $ 1,485 Debt to EBITDA 2.1 x
Slide 22: Working Capital as a % of Sales
Working Capital as a % of Sales As Reported ($ in Millions) March 31, 2025 Receivables $ 1,258 Inventories 1,047 Less: Accounts payable (868) Working capital $ 1,437 Net sales (last 12 months) $ 7,703 Working capital as a % of sales 18.7 % Amounts may not add due to rounding. 22