Masco Corporation (MAS) Q3 2025 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:01.874 3%, or 2%, 00:00:01.874 -- 00:00:07.103 excluding the impacts of our divestiture of Kichler and favorable currency. 00:00:07.103 -- 00:00:11.951 Our divestiture of Kichler in the third quarter of 2024 resulted in a decrease in sales 00:00:11.951 -- 00:00:17.099 by 3% year-over-year in the third quarter of 2025, while currency represented a 1% 00:00:17.099 -- 00:00:19.620 increase in sales. 00:00:19.884 -- 00:00:24.929 In local currency, North American sales decreased 6%, or 2%, 00:00:25.153 -- 00:00:27.875 excluding the divestiture impact. 00:00:27.875 -- 00:00:32.319 International sales were in line with the prior year in local currency. 00:00:32.319 -- 00:00:37.665 Gross margin of 34.6% in the quarter was impacted by higher tariffs 00:00:37.665 -- 00:00:40.205 and commodity costs. 00:00:40.488 -- 00:00:46.093 SG&A decreased $16 million, primarily due to our divestiture. 00:00:46.093 -- 00:00:51.379 SG&A as a percent of sales improved 20 basis points to 18.4% in the 00:00:51.379 -- 00:00:56.427 quarter. Operating profit was $312 million in the quarter. 00:00:56.427 -- 00:00:59.689 and our margin was 16.3%. Operating 00:00:59.811 -- 00:01:05.158 profit was impacted by lower volume and higher costs, primarily related to tariffs, 00:01:05.158 -- 00:01:08.960 commodities, and inventory-related reserves. 00:01:09.163 -- 00:01:12.908 Note that the temporarily elevated tariffs of 145% 00:01:12.908 -- 00:01:18.274 on China imports added approximately $15 million to the overall tariff 00:01:18.274 -- 00:01:22.620 impact in the third quarter, primarily in the plumbing segment. 00:01:22.620 -- 00:01:28.503 These impacts were partially offset by pricing actions and cost savings initiatives. 00:01:28.926 -- 00:01:32.910 Our EPS was 97 cents pe...