0000062996false00000629962024-10-292024-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC  20549
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): October 29, 2024

Masco Corporation
(Exact name of Registrant as Specified in Charter)
Delaware1-579438-1794485
(State or Other Jurisdiction of
Incorporation)		(Commission File Number)(I.R.S. Employer Identification No.)
17450 College Parkway,Livonia,Michigan48152
(Address of Principal Executive Offices)(Zip Code)
(313) 274-7400
(Registrant’s telephone number, including area code)
 
    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 par valueMASNew York Stock Exchange

    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

    ☐ Emerging growth company

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02.  Results of Operations and Financial Condition.
 
Attached and incorporated herein by reference as Exhibit 99 is a copy of the press release dated October 29, 2024 reporting Masco Corporation’s financial results for the third quarter 2024 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter 2024. On October 29, 2024, Masco Corporation will hold an investor conference call and webcast to discuss financial results for the third quarter 2024.
 
This information, including Exhibit 99 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d) Exhibits.
 
99  Press Release of Masco Corporation dated October 29, 2024 reporting Masco Corporation’s financial results for the third quarter 2024 and certain other information and supplemental information prepared for use in connection with the financial results for the third quarter 2024.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 MASCO CORPORATION
  
  
 By:/s/ Richard J. Westenberg
 Name:
Richard J. Westenberg
 Title:
Vice President, Chief Financial Officer and Treasurer
  
October 29, 2024
2

Exhibit 99
masco_logoxgray.jpg
 
MASCO CORPORATION REPORTS THIRD QUARTER 2024 RESULTS

Highlights
•Net sales were in line with prior year at $1,983 million
•Operating profit decreased 7 percent to $357 million; adjusted operating profit increased 3 percent to $360 million
•Operating profit margin decreased 140 basis points to 18.0 percent; adjusted operating profit margin increased 60 basis points to 18.2 percent
•Earnings per share was $0.77 per share; adjusted earnings per share grew 8 percent to $1.08 per share
•Repurchased 2.5 million shares for $192 million
•Expect 2024 earnings per share in the range of $3.74 - $3.84 per share, and on an adjusted basis, $4.05 - $4.15 per share

LIVONIA, Mich. (October 29, 2024) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its third quarter 2024 results.

2024 Third Quarter Results
•On a reported basis, compared to third quarter 2023:
•Net sales were in line with prior year at $1,983 million; in local currency net sales increased 1 percent
◦Plumbing Products’ net sales increased 2 percent; in local currency and excluding acquisitions, net sales increased 1 percent
◦Decorative Architectural Products’ net sales decreased 3 percent; in local currency and excluding divestitures, net sales decreased 1 percent
◦In local currency, North American sales were in line with prior year and International sales increased 3 percent
•Gross margin decreased 100 basis points to 36.6 percent from 37.6 percent
•Operating profit decreased 7 percent to $357 million from $383 million
•Operating margin decreased 140 basis points to 18.0 percent from 19.4 percent
•Net income decreased to $0.77 per share, compared to $1.10 per share
•Compared to third quarter 2023, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows:
•Gross margin increased 90 basis points to 36.7 percent from 35.8 percent
•Operating profit increased 3 percent to $360 million from $348 million
•Operating margin increased 60 basis points to 18.2 percent from 17.6 percent
•Net income increased 8 percent to $1.08 per share, compared to $1.00 per share
•Liquidity at the end of the third quarter was $1,646 million (including availability under our revolving credit facility)

“We delivered another quarter of strong operating results,” said Masco President and CEO, Keith Allman. “Our adjusted operating margin expanded 60 basis points to 18.2 percent, marking the sixth consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 8 percent. Additionally, we executed on our capital allocation strategy by returning $255 million to shareholders though dividends and share repurchases.”

“We remain focused on driving the full potential of our portfolio with our leading brands, innovative products, and exceptional customer service. For the remainder of the year, we expect market demand to remain challenged and now anticipate our 2024 adjusted earnings per share to be in the range of $4.05 to $4.15, compared to our previous expectation of $4.05 to $4.20,” said Allman. “With our ongoing focus on operational efficiencies and cost savings initiatives, we remain well positioned to drive operating margin expansion for the full year. Additionally, we remain confident in the long-term fundamentals of the repair and remodel market and our ability to deliver shareholder value.”






1

Dividend Declaration
Masco’s Board of Directors declared a quarterly dividend of $0.29 per share, payable on November 25, 2024 to shareholders of record on November 8, 2024.
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; Liberty® branded decorative and functional hardware; 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.
The 2024 third quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.
Conference Call Details
A conference call regarding items contained in this release is scheduled for Tuesday, October 29, 2024 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-549-8228 or 646-564-2877. Please use the conference identification number 72522.
The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Masco’s website or by phone by dialing 888-660-6264 or 646-517-3975. Please use the playback passcode 72522#. The telephone replay will be available approximately two hours after the end of the call and continue through November 29, 2024.
Safe Harbor Statement
This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.
Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
Investor Contact
Robin Zondervan
Vice President, Investor Relations and FP&A
313.792.5500
robin_zondervan@mascohq.com
# # #




2
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three and Nine Months Ended September 30, 2024 and 2023
(in millions, except per common share data)
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net sales$1,983 $1,979 $6,000 $6,085 
Cost of sales1,258 1,235 3,805 3,903 
Gross profit725 744 2,195 2,182 
Selling, general and administrative expenses368 361 1,123 1,081 
Operating profit357 383 1,073 1,101 
Other income (expense), net:
Interest expense(25)(26)(75)(82)
Other, net(85)(11)(95)(14)
(109)(37)(170)(96)
Income before income taxes248 346 903 1,005 
Income tax expense68 86 222 246 
Net income180 260 681 759 
Less: Net income attributable to noncontrolling interest13 11 41 42 
Net income attributable to Masco Corporation$167 $249 $640 $717 
Income per common share attributable to Masco Corporation (diluted):
Net income$0.77 $1.10 $2.91 $3.17 
Average diluted common shares outstanding218 226 220 226 
 
Historical information is available on our website.

Amounts may not add due to rounding.
3
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Nine Months Ended September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations    
Net sales$1,983 $1,979 $6,000 $6,085 
Gross profit, as reported$725 $744 $2,195 $2,182 
Rationalization charges2 5 6 2 
Insurance settlement (1)
— (40)— (40)
Gross profit, as adjusted$727 $709 $2,202 $2,144 
Gross margin, as reported36.6 %37.6 %36.6 %35.9 %
Gross margin, as adjusted36.7 %35.8 %36.7 %35.2 %
Selling, general and administrative expenses, as reported$368 $361 $1,123 $1,081 
Rationalization charges— — 1 1 
Selling, general and administrative expenses, as adjusted$368 $361 $1,121 $1,080 
Selling, general and administrative expenses as a percent of net sales, as reported18.6 %18.2 %18.7 %17.8 %
Selling, general and administrative expenses as a percent of net sales, as adjusted18.6 %18.2 %18.7 %17.7 %
Operating profit, as reported$357 $383 $1,073 $1,101 
Rationalization charges2 5 8 3 
Insurance settlement (1)
— (40)— (40)
Operating profit, as adjusted$360 $348 $1,081 $1,064 
Operating margin, as reported18.0 %19.4 %17.9 %18.1 %
Operating margin, as adjusted18.2 %17.6 %18.0 %17.5 %

(1) Represents income for the three and nine months ended September 30, 2023 from the receipt of an insurance settlement payment.

Historical information is available on our website.









Amounts may not add due to rounding.
4
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three and Nine Months Ended September 30, 2024 and 2023
(in millions, except per common share data)
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Income Per Common Share Reconciliations
Income before income taxes, as reported$248 $346 $903 $1,005 
Rationalization charges2 5 8 3 
Loss on sale of business (1)
81 — 81 — 
Realized (gains) from private equity funds(1)— (1)(1)
Loss from equity investments, net— 1 — 1 
Insurance settlement (2)
— (40)— (40)
Income before income taxes, as adjusted330 312 990 968 
Tax at 24.5% rate (81)(76)(243)(237)
Less: Net income attributable to noncontrolling interest13 11 41 42 
Net income, as adjusted$236 $225 $706 $689 
Net income per common share, as adjusted$1.08 $1.00 $3.21 $3.05 
Average diluted common shares outstanding218 226 220 226 
(1) Represents the preliminary loss for the three and nine months ended September 30, 2024 from the sale of our Kichler Lighting business.
(2) Represents income for the three and nine months ended September 30, 2023 from the receipt of an insurance settlement payment.

Outlook for the Year Ended December 31, 2024
Year Ended December 31, 2024
Low EndHigh End
Income Per Common Share Reconciliation
Net income per common share$3.74 $3.84 
Rationalization charges
0.03 0.03 
Loss on sale of business (1)
0.28 0.28 
Net income per common share, as adjusted$4.05 $4.15 

(1) Represents the preliminary loss from the sale of our Kichler Lighting business.
    
Historical information is available on our website.

Amounts may not add due to rounding.
5
MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
September 30, 2024 and December 31, 2023
(dollars in millions)
September 30, 2024December 31, 2023
Balance Sheet  
Assets  
Current assets:  
Cash and cash investments$646 $634 
Receivables1,152 1,090 
Inventories1,013 1,022 
Prepaid expenses and other153 110 
Total current assets2,965 2,856 
Property and equipment, net1,125 1,121 
Goodwill610 604 
Other intangible assets, net230 377 
Operating lease right-of-use assets238 268 
Other assets128 139 
Total assets$5,296 $5,363 
Liabilities  
Current liabilities:  
Accounts payable$874 $840 
Notes payable3 3 
Accrued liabilities742 852 
Total current liabilities1,618 1,695 
Long-term debt2,945 2,945 
Noncurrent operating lease liabilities230 258 
Other liabilities360 349 
Total liabilities5,154 5,247 
Redeemable noncontrolling interest— 18 
Equity142 98 
Total liabilities and equity$5,296 $5,363 

 As of September 30,
20242023
Other Financial Data  
Working capital days  
Receivable days50 54 
Inventory days78 77 
Payable days70 71 
Working capital$1,291 $1,447 
Working capital as a % of sales (LTM)
16.4 %18.1 %

Historical information is available on our website.
Amounts may not add due to rounding.
6
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Nine Months Ended September 30, 2024 and 2023

(dollars in millions)
Nine Months Ended September 30,
 20242023
Cash Flows From (For) Operating Activities:  
Cash provided by operating activities$957 $954 
Working capital changes(288)(26)
Net cash from operating activities668 928 
Cash Flows From (For) Financing Activities:  
Purchase of Company common stock(482)(126)
Cash dividends paid(191)(193)
Purchase of redeemable noncontrolling interest(15)— 
Dividends paid to noncontrolling interest(25)(49)
Proceeds from short-term borrowings— 77 
Payment of short-term borrowings— (11)
Payment of term loan— (200)
Proceeds from the exercise of stock options76 37 
Employee withholding taxes paid on stock-based compensation(34)(29)
Decrease in debt, net(2)(4)
Net cash for financing activities(673)(498)
Cash Flows From (For) Investing Activities:  
Capital expenditures(112)(181)
Acquisition of business, net of cash acquired
(4)(136)
Proceeds from disposition of business, net of cash disposed
131
— 
Other, net(3)(4)
Net cash from (for) investing activities12 (321)
Effect of exchange rate changes on cash and cash investments5 (1)
Cash and Cash Investments:  
Increase for the period12 108 
At January 1634 452 
At September 30$646 $560 
 
 As of September 30,
 20242023
Liquidity
Cash and cash investments$646 $560 
Revolver availability1,000 1,000 
Total Liquidity$1,646 $1,560 
 
Historical information is available on our website.



Amounts may not add due to rounding.
7
MASCO CORPORATION
Segment Data - Unaudited
For the Three and Nine Months Ended September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September 30,Nine Months Ended September 30,
 20242023Change20242023Change
Plumbing Products      
Net sales$1,219 $1,191 2 %$3,665 $3,638 1 %
Operating profit, as reported$240 $223 $713 $673 
Operating margin, as reported19.7 %18.7 %19.5 %18.5 %
Rationalization charges (income)2 2 7 (1)
Operating profit, as adjusted242 225 720 672 
Operating margin, as adjusted19.9 %18.9 %19.6 %18.5 %
Depreciation and amortization26 26 80 76 
EBITDA, as adjusted$269 $251 $799 $748 
Decorative Architectural Products
Net sales$764 $788 (3)%$2,336 $2,447 (5)%
Operating profit, as reported$138 $181 $436 $493 
Operating margin, as reported18.1 %23.0 %18.7 %20.1 %
Rationalization charges— 3 1 4 
Insurance settlement— (40)— (40)
Operating profit, as adjusted138 144 437 457 
Operating margin, as adjusted18.1 %18.3 %18.7 %18.7 %
Depreciation and amortization9 9 28 26 
EBITDA, as adjusted$147 $153 $465 $483 
Total
Net sales$1,983 $1,979 — %$6,000 $6,085 (1)%
Operating profit, as reported - segment$378 $404 $1,149 $1,166 
General corporate expense, net(21)(21)(76)(65)
Operating profit, as reported357 383 1,073 1,101 
Operating margin, as reported18.0 %19.4 %17.9 %18.1 %
Rationalization charges - segment2 5 8 3 
Insurance settlement—(40)— (40)
Operating profit, as adjusted360 348 1,081 1,064 
Operating margin, as adjusted18.2 %17.6 %18.0 %17.5 %
Depreciation and amortization - segment36 35 108 102 
Depreciation and amortization - other2 2 5 5 
EBITDA, as adjusted$397 $385 $1,194 $1,171 

Historical information is available on our website.
Amounts may not add due to rounding.
8
MASCO CORPORATION
North American and International Data - Unaudited
For the Three and Nine Months Ended September 30, 2024 and 2023
(dollars in millions)
Three Months Ended September 30,Nine Months Ended September 30,
 20242023Change20242023Change
North American      
Net sales$1,595 $1,602 — %$4,815 $4,875 (1)%
Operating profit, as reported$322 $348 $967 $972 
Operating margin, as reported20.2 %21.7 %20.1 %19.9 %
Rationalization charges2 5 5 3 
Insurance settlement—(40)— (40)
Operating profit, as adjusted324 313 973 935 
Operating margin, as adjusted20.3 %19.5 %20.2 %19.2 %
Depreciation and amortization23 22 69 65 
EBITDA, as adjusted$347 $335 $1,042 $1,000 
International
Net sales$388 $377 3 %$1,185 $1,210 (2)%
Operating profit, as reported$56 $56 $182 $194 
Operating margin, as reported14.4 %14.9 %15.4 %16.0 %
Rationalization charges— — 2 — 
Operating profit, as adjusted56 56 184 194 
Operating margin, as adjusted14.4 %14.9 %15.5 %16.0 %
Depreciation and amortization13 13 38 37 
EBITDA, as adjusted$69 $69 $222 $231 
Total
Net sales$1,983 $1,979 — %$6,000 $6,085 (1)%
Operating profit, as reported - segment$378 $404 $1,149 $1,166 
General corporate expense, net(21)(21)(76)(65)
Operating profit, as reported357 383 1,073 1,101 
Operating margin, as reported18.0 %19.4 %17.9 %18.1 %
Rationalization charges - segment2 5 8 3 
Insurance settlement—(40)—(40)
Operating profit, as adjusted360 348 1,081 1,064 
Operating margin, as adjusted18.2 %17.6 %18.0 %17.5 %
Depreciation and amortization - segment36 35 108 102 
Depreciation and amortization - other2 2 5 5 
EBITDA, as adjusted$397 $385 $1,194 $1,171 

Historical information is available on our website.
Amounts may not add due to rounding.
9
v3.24.3
Cover
Oct. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 29, 2024
Entity Registrant Name Masco Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 1-5794
Entity Tax Identification Number 38-1794485
Entity Address, Address Line One 17450 College Parkway,
Entity Address, City or Town Livonia,
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48152
City Area Code 313
Local Phone Number 274-7400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $1.00 par value
Trading Symbol MAS
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000062996
Amendment Flag false
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