Masco reported Q3 2025 results with adjusted operating profit of $312 million and adjusted EPS of $0.97, below consensus estimates of $1.08. Net sales fell 3.3% year‑over‑year to $1.92 billion, and net income was $189 million, or $0.90 per share.
Management revised its 2025 adjusted EPS outlook to $3.90‑$3.95, trimming the upper end of the prior $3.90‑$4.10 range. The company maintained its quarterly dividend at $0.31 per share and returned $188 million to shareholders through dividends and share repurchases, including the purchase of 1.8 million shares for $124 million.
The earnings miss and guidance cut stem from softness in the decorative architectural segment, which saw sales decline 12% (6% excluding the Kichler divestiture), and tariff headwinds that added approximately $15 million in cost pressure on the plumbing segment. Operating margin was 16.3% adjusted, slightly below the 15.8% reported margin in some sources.
Compared with Q2 2025, adjusted EPS fell from $1.30 to $0.97, indicating a deceleration in earnings momentum. Net sales also slipped 3.3% year‑over‑year, reflecting weaker demand in the home‑improvement market and higher input costs.
Management highlighted that higher tariffs and expectations of softer industry demand justify the trimmed guidance. The company remains focused on lower‑ticket repair and remodel products, which are expected to be more resilient in a slowing housing market. Masco also emphasized its strong liquidity position of $1.56 billion as of September 30 2025, and its commitment to disciplined cost management.
The company’s strategic focus includes innovation in its Delta Faucet and Behr paint brands, and the divestiture of Kichler, which has impacted reported sales figures. Masco’s capital allocation strategy continues to prioritize dividends and share repurchases to deliver shareholder value.
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