Masco Corporation Reports Third Quarter 2023 Results

Operating profit was $383 million; adjusted operating profit was $348 million

Operating profit margin was 19.4 percent; adjusted operating profit margin expanded 170 basis points to 17.6 percent

Earnings per share was $1.10 per share; adjusted earnings per share grew 1 percent to $1.00 per share

Returned $109 million to shareholders through share repurchases and dividends, and closed the acquisition of Sauna360 Group Oy for €124 million

Raising expected 2023 earnings per share to be in the range of $3.76 – $3.86 per share, and on an adjusted basis, $3.65 – $3.75 per share

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

2023 Third Quarter Results

• On a reported basis, compared to third quarter 2022:
  • Net sales decreased 10 percent to $1,979 million; in local currency and excluding acquisitions, net sales decreased 11 percent
  • In local currency, North American sales decreased 11 percent and international sales decreased 11 percent
  • Gross margin increased 610 basis points to 37.6 percent from 31.5 percent
  • Operating profit increased 9 percent to $383 million from $351 million
  • Operating margin increased 350 basis points to 19.4 percent from 15.9 percent
  • Net income increased to $1.10 per share, compared to $0.97 per share

• Compared to third 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 430 basis points to 35.8 percent from 31.5 percent
  • Operating profit decreased 1 percent to $348 million from $351 million
  • Operating margin increased 170 basis points to 17.6 percent from 15.9 percent
  • Net income increased 1 percent to $1.00 per share, compared to $0.99 per share
• Liquidity at the end of the third quarter was $1,560 million (including availability under revolving credit facility)
• Plumbing Products’ net sales decreased 10 percent; in local currency and excluding acquisitions, net sales decreased 11 percent
• Decorative Architectural Products’ net sales decreased 10 percent; in local currency, net sales decreased 11 percent

“Our continued ability to successfully execute in a challenging demand environment, along with our continued focus on driving productivity improvements led to strong margin performance and earnings per share growth in the third quarter,” said Masco President and CEO, Keith Allman. “Consistent with our focus on disciplined capital allocation, we returned $109 million to shareholders through dividends and share repurchases, and completed our bolt-on acquisition of Sauna360 Group Oy for approximately €124 million.”

“With our strong operational performance, we now anticipate our 2023 adjusted earnings per share to be in the range of $3.65 to $3.75 per share, increased from our previous expectation of $3.50 to $3.65 per share. While the near-term demand environment for repair and remodel products remains uncertain, we are executing well and demonstrating the earnings power of our business model. We remain committed to investing in our brands and capabilities to drive strong growth when market conditions improve, and are well-positioned to create long-term shareholder value,” concluded Allman.

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.285 per share, payable on November 27, 2023 to shareholders of record on November 10, 2023.

For the full third 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