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Masco's Q3 earnings and sales miss estimates as Decorative Architectural Products weighed on performance.
Plumbing segment growth and stable margins could not offset weakness and overall profitability decline.
MAS trimmed its 2025 EPS outlook amid soft demand but remains focused on innovation and shareholder returns.
Masco Corporation (MAS - Free Report) posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year.
The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment. The ongoing uncertainties in the global economy and tariff-related risks are restricting the company’s near-term prospects.
However, its innovative product portfolio and focus on aligning execution per the market’s trends are expected to boost long-term trends and enable it to maintain shareholder value.
Following the financial release, MAS stock moved down 7.6% in today’s pre-market trading session.
Inside MAS’ Headlines
The company reported adjusted earnings per share (EPS) of 97 cents, which missed the Zacks Consensus Estimate of $1.02 by 4.9%. In the year-ago quarter, it reported an adjusted EPS of $1.08.
Net sales of $1.92 billion also missed the consensus mark of $1.94 billion by 1.1% and declined 3% from the prior-year period. Excluding divestitures, net sales decreased 2% year over year.
Masco Corporation Price, Consensus and EPS Surprise
Net sales in the North American region slipped 6% (in local currency) from the prior year, while International sales remained flat year over year in local currency.
Masco’s Segmental Analysis
Plumbing Products: Net sales in the segment rose 2% year over year to $1.25 billion (slightly down from our model’s projection of $1.26 billion). In local currency, net sales inched up 1% year over year.
The adjusted operating margin contracted 350 basis points (bps) year over year to 16.4%. Adjusted EBITDA during the quarter came in at $232 million, down from $269 million reported in the prior-year quarter.
Decorative Architectural Products: The segment reported sales of $670 million (up from our projection of $666.6 million), down 12% from the prior-year period. In local currency and after excluding divestitures, the segment’s net sales decreased 6% year over year.
Adjusted operating margin expanded 100 bps from the prior-year level to 19.1%. Adjusted EBITDA came in at $136 million, down from the prior-year figure of $147 million.
Margin Performance of MAS
Adjusted gross margin during the quarter contracted 210 bps from the prior-year level to 34.6%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were down 20 bps to 18.4% from the year-ago figure of 18.6%.
Adjusted operating margin decreased 190 bps on a year-over-year basis to 16.3% (up from our model’s expected value of 15.7%). Adjusted EBITDA during the quarter came in at $349 million (up from our expected value of $342.8 million) compared with $397 million reported in the prior-year quarter.
Financial Highlights of MAS
As of Sept. 30, 2025, Masco had a total liquidity of $1.56 billion compared with $1.65 billion as of Sept. 30, 2024. This includes cash and cash investments of $559 million and revolver availability of $1 billion. Long-term debt as of the third quarter was $2.95 billion, in line with 2024-end.
During the reported quarter, the company repurchased 1.8 million shares for about $124 million. Masco’s board of directors has announced a quarterly dividend of $0.31 per share, scheduled to be paid on Nov. 24, 2025, to shareholders of record as of Nov. 7.
Masco Updates 2025 Outlook
The company expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024).
Plumbing Products’ net sales are expected to be up in low single digits and the adjusted operating margin is anticipated to be about 18% (compared with 19% in 2024). Decorative Architectural Products’ net sales are expected to be down in low double digits (down mid-single digits excluding divestitures). This segment’s adjusted operating margin is expected to be about 18% (compared with 18.5% in 2024).
Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
D.R. Horton, Inc. (DHI - Free Report) reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same. On a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected third-quarter 2025 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. However, the metrics declined year over year.
The performance of PulteGroup was hurt during the quarter due to the current softness in the housing market because of weaker consumer confidence and ongoing affordability challenges. Moreover, increases in direct costs related to home and land sales hurt the bottom line, alongside a decline in revenues. Nonetheless, with a diversified business platform, PulteGroup aims to counter the macro challenges and position itself for better growth prospects in the upcoming period.
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Masco Misses Q3 Earnings & Sales Estimates, Slashes '25 EPS Outlook
Key Takeaways
Masco Corporation (MAS - Free Report) posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year.
The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment. The ongoing uncertainties in the global economy and tariff-related risks are restricting the company’s near-term prospects.
However, its innovative product portfolio and focus on aligning execution per the market’s trends are expected to boost long-term trends and enable it to maintain shareholder value.
Following the financial release, MAS stock moved down 7.6% in today’s pre-market trading session.
Inside MAS’ Headlines
The company reported adjusted earnings per share (EPS) of 97 cents, which missed the Zacks Consensus Estimate of $1.02 by 4.9%. In the year-ago quarter, it reported an adjusted EPS of $1.08.
Net sales of $1.92 billion also missed the consensus mark of $1.94 billion by 1.1% and declined 3% from the prior-year period. Excluding divestitures, net sales decreased 2% year over year.
Masco Corporation Price, Consensus and EPS Surprise
Masco Corporation price-consensus-eps-surprise-chart | Masco Corporation Quote
Net sales in the North American region slipped 6% (in local currency) from the prior year, while International sales remained flat year over year in local currency.
Masco’s Segmental Analysis
Plumbing Products: Net sales in the segment rose 2% year over year to $1.25 billion (slightly down from our model’s projection of $1.26 billion). In local currency, net sales inched up 1% year over year.
The adjusted operating margin contracted 350 basis points (bps) year over year to 16.4%. Adjusted EBITDA during the quarter came in at $232 million, down from $269 million reported in the prior-year quarter.
Decorative Architectural Products: The segment reported sales of $670 million (up from our projection of $666.6 million), down 12% from the prior-year period. In local currency and after excluding divestitures, the segment’s net sales decreased 6% year over year.
Adjusted operating margin expanded 100 bps from the prior-year level to 19.1%. Adjusted EBITDA came in at $136 million, down from the prior-year figure of $147 million.
Margin Performance of MAS
Adjusted gross margin during the quarter contracted 210 bps from the prior-year level to 34.6%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were down 20 bps to 18.4% from the year-ago figure of 18.6%.
Adjusted operating margin decreased 190 bps on a year-over-year basis to 16.3% (up from our model’s expected value of 15.7%). Adjusted EBITDA during the quarter came in at $349 million (up from our expected value of $342.8 million) compared with $397 million reported in the prior-year quarter.
Financial Highlights of MAS
As of Sept. 30, 2025, Masco had a total liquidity of $1.56 billion compared with $1.65 billion as of Sept. 30, 2024. This includes cash and cash investments of $559 million and revolver availability of $1 billion. Long-term debt as of the third quarter was $2.95 billion, in line with 2024-end.
During the reported quarter, the company repurchased 1.8 million shares for about $124 million. Masco’s board of directors has announced a quarterly dividend of $0.31 per share, scheduled to be paid on Nov. 24, 2025, to shareholders of record as of Nov. 7.
Masco Updates 2025 Outlook
The company expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024).
Plumbing Products’ net sales are expected to be up in low single digits and the adjusted operating margin is anticipated to be about 18% (compared with 19% in 2024). Decorative Architectural Products’ net sales are expected to be down in low double digits (down mid-single digits excluding divestitures). This segment’s adjusted operating margin is expected to be about 18% (compared with 18.5% in 2024).
Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.
MAS’ Zacks Rank & Recent Construction Releases
Masco currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Rentals, Inc.’s (URI - Free Report) third-quarter 2025 EPS missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
D.R. Horton, Inc. (DHI - Free Report) reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same. On a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected third-quarter 2025 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate. However, the metrics declined year over year.
The performance of PulteGroup was hurt during the quarter due to the current softness in the housing market because of weaker consumer confidence and ongoing affordability challenges. Moreover, increases in direct costs related to home and land sales hurt the bottom line, alongside a decline in revenues. Nonetheless, with a diversified business platform, PulteGroup aims to counter the macro challenges and position itself for better growth prospects in the upcoming period.