Masco Corporation Reports Second Quarter 2023 Results

Masco Corporation (“Masco”), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter results.

2023 Second Quarter Results

• On a reported basis, compared to second quarter 2022:
  • Net sales decreased 10 percent to $2,127 million; in local currency, net sales decreased 9 percent
  • In local currency, North American sales decreased 10 percent and international sales decreased 8 percent
  • Gross margin increased 350 basis points to 36.2 percent from 32.7 percent
  • Operating profit decreased 1 percent to $403 million from $408 million
  • Operating margin increased 160 basis points to 18.9 percent from 17.3 percent
  • Net income decreased to $1.16 per share, compared to $1.18 per share
• Compared to second quarter 2022, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24 percent, were as follows:
  • Gross margin increased 320 basis points to 36.2 percent from 33.0 percent
  • Operating profit decreased 2 percent to $404 million from $414 million
  • Operating margin increased 140 basis points to 19.0 percent from 17.6 percent
  • Net income increased 3 percent to $1.19 per share, compared to $1.15 per share
• Liquidity at the end of the second quarter was $1,380 million (including availability under revolving credit facility)
• Plumbing Products’ net sales decreased 11 percent; in local currency, net sales decreased 10 percent
• Decorative Architectural Products’ net sales decreased 8 percent

“In the first half of the year, we demonstrated our ability to mitigate the impacts of a lower demand environment with a focus on productivity and shareholder returns,” said Masco President and CEO, Keith Allman. “In the second quarter, our pricing actions and improved operational efficiency helped drive adjusted operating profit margin expansion of 140 basis points. At the same time, we continued to execute on our balanced capital deployment strategy and returned $89 million to shareholders through dividends and share repurchases in the quarter, while announcing a strategic bolt-on with the anticipated addition of Sauna360 Group Oy to expand our spa and wellness product offerings.”

Allman continued, “As a result of our strong execution during the first half of the year, we now anticipate adjusted earnings per share in the range of $3.50 to $3.65 per share for 2023, up from our previous expectation of $3.10 to $3.40 per share. While the near-term demand environment remains challenging, the long-term fundamentals of our repair and remodel markets continue to be strong. We remain focused on investing in our brands and capabilities and maintaining strong execution. Given Masco’s strong free cash flow and disciplined capital deployment, we are well positioned to drive shareholder value creation for the long-term,” concluded Allman.

Agreement to Acquire Sauna360 Group Oy

Masco has entered into an agreement to acquire Sauna360 Group Oy, a leading global manufacturer of sauna solutions. Sauna360 Group Oy complements the Company’s spa business and will expand its wellness product offerings with the addition of the Tylö^®, Helo^®, Kastor^®, Finnleo^® and Amerec^® brands. The transaction is expected to close in the third quarter, subject to regulatory approval.

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.285 per share, payable on August 28, 2023 to shareholders of record on August 11, 2023.

For the full second quarter results, click here.

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr^® paint; Delta^® and Hansgrohe^® faucets, bath and shower fixtures; Kichler^® decorative and outdoor lighting; and HotSpring^® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

Contact:

David Chaika – Vice President, Treasurer and Investor Relations – david_chaika@mascohq.com – (313) 792-5500

Source: Masco Corporation