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Why Is Masco (MAS) Down 0.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Masco (MAS - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Masco due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Masco Corporation before we dive into how investors and analysts have reacted as of late.
Masco 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.
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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.48% due to these changes.
VGM Scores
At this time, Masco has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Masco (MAS) Down 0.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Masco (MAS - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Masco due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Masco Corporation before we dive into how investors and analysts have reacted as of late.
Masco Misses Q3 Earnings & Sales Estimates, Slashes '25 EPS Outlook
Masco 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.
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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.48% due to these changes.
VGM Scores
At this time, Masco has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Masco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.