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Masco to Report Q2 Earnings: Here's What Investors Must Know

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Key Takeaways

  • MAS' Q2 EPS estimate rose to $1.08, but still signals a 10% YoY decline on higher costs and tariff impacts.
  • Plumbing Products sales are seen up 1.3%, while Decorative Architectural sales are expected to fall 12%.
  • MAS has a +2.61% Earnings ESP, signaling a possible Q2 beat despite soft volume and rising input costs.

Masco Corporation (MAS - Free Report) is scheduled to report its second-quarter 2025 results on July 31, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and net sales missed the Zacks Consensus Estimate by 5.4% and 1.9%, respectively. Year over year, the metrics declined 6.5% and 6%, respectively

Masco’s earnings topped the consensus mark in two of the last four quarters, met on one occasion and missed on the remaining occasion, the negative average surprise being 0.2%.

MAS’ Estimate Revision Trend

The Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended upward to $1.08 from $1.07 over the past 30 days. But the estimated figure indicates a 10% decline from the year-ago EPS of $1.20.

Masco Corporation Price and EPS Surprise

Masco Corporation Price and EPS Surprise

Masco Corporation price-eps-surprise | Masco Corporation Quote

The consensus estimate for net sales is pegged at $2 billion, which indicates a 4.1% decline from the prior-year quarter’s figure of $2.09 billion.

Factors Likely to Define Masco’s Q2 Results

Sales Trends

In the to-be-reported quarter, Masco’s top line is expected to have declined year over year because of reduced contributions from its Decorative Architectural Products segment (which accounted for 34.3% of total net sales in the first quarter of 2025) due to lower sales volume and adverse impacts from the divestiture of its Kichler business. Notable decreases in DIY paint sales and PRO paint sales impacted the sales volume under this segment.

However, sales improvement in the Plumbing Products segment (which accounted for 65.8% of total net sales in the first quarter of 2025) is likely to have supported the top line from declining further amid macro uncertainties. This segment is expected to have benefited from higher net selling prices, partially offset by an unfavorable sales mix.

Segment-wise, our model expects the Plumbing Products segment’s net sales to inch up 1.3% year over year to $1.27 billion. The expectations for the Decorative Architectural Products segment’s net sales indicate a 12% decline year over year to $737.4 million.

Geographically, we expect net sales in North America (which accounted for 78.4% of first-quarter 2025 total net sales) to decline 5.7% year over year to $1.6 billion. Net sales in International (which accounted for 21.6% of first-quarter 2025 total net sales) are anticipated to increase year over year by 2.5% to $406.9 million.

Margins

The company’s bottom line in the second quarter of 2025 is likely to have tumbled year over year due to the higher cost structure and adverse impact from tariffs. Masco expects that incremental China tariffs, alongside incremental annual expenses from tariffs on steel and aluminum, are likely to elevate its cost structure and pressure margins. Although it is taking steps to mitigate these impacts as much as possible, the external pressures keep adding up.

Besides, higher commodity costs, increased marketing costs, unfavorable sales mix from its Plumbing Products segment and lower sales volume in its Decorative Architectural Products segment are likely to have added to the decline in its bottom line during the quarter to be reported.

Segment-wise, we expect the adjusted operating margin for Plumbing Products and Decorative Architectural Products to decline year over year by 150 basis points (bps) to 18.4% and 300 bps to 17.8%, respectively.

What Our Model Unveils for MAS

Our proven model conclusively predicts an earnings beat for Masco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: MAS has an Earnings ESP of +2.61%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the company carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With the Favorable Combination

Here are some other stocks from the Zacks Construction sector, which per our model, have the right combination of elements to deliver an earnings beat this time around.

Primoris Services Corporation (PRIM - Free Report) has an Earnings ESP of +5.33% and a Zacks Rank of 1.

Primoris Services’ earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

MasTec, Inc. (MTZ - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank of 1.

MasTec’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26%. MasTec’s earnings for the second quarter of 2025 are expected to grow 46.9%.

Quanta Services, Inc. (PWR - Free Report) currently has an Earnings ESP of +0.65% and a Zacks Rank of 3.

Quanta’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 4.8%. Quanta’s earnings for the second quarter of 2025 are expected to increase 27.9%.

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