Masco Q2 Earnings and Sales Surpass Estimates, Stock Up

Masco Corporation MAS posted its second-quarter 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate. Following the results, the company’s shares are up 10% in the pre-market trading session today.

Masco’s president and CEO Jon Nudi stated that the company showcased its ability to effectively manage a dynamic geopolitical and macroeconomic landscape during the first half of the year, attributing the performance to strong and focused execution.

Inside MAS’ Headlines

The company reported adjusted earnings per share (EPS) of $1.30, beating the Zacks Consensus Estimate of $1.08. In the year-ago quarter, it reported an adjusted EPS of $1.20. 

Net sales of $2,051 million beat the consensus mark of $2,004 million, but declined 1.9% from the prior-year period. Excluding divestitures, net sales were flat year over year.

Net sales in the North American region slipped 3% (in local currency) from the prior year. Internationally, the metric rose 1% year over year in local currency.

Masco’s Segmental Analysis

Plumbing Products: Net sales in the segment rose 5% year over year to $1.31 billion. In local currency, net sales rose 4%. 

The adjusted operating margin expanded 130 basis points (bps) year over year to 21%. Adjusted EBITDA during the quarter came in at $303 million compared with $276 million reported in the prior-year quarter.

Decorative Architectural Products: The segment reported sales of $738 million, down 12% from the prior-year period. In local currency and after excluding divestitures, the segment’s net sales decreased 4% year over year. 

Adjusted operating margin expanded 50 bps from the prior-year level to 21.3%. Adjusted EBITDA came in at $165 million compared with the prior-year figure of $184 million.

Margin Performance of MAS

Adjusted gross margin during the quarter expanded 10 bps from the prior-year level to 37.7%. Adjusted selling, general and administrative expenses — as a percentage of net sales — were down 90 bps to 17.6% from the year-ago figure of 18.5%.

Adjusted operating margin expanded 100 bps on a year-over-year basis to 20.1%. Adjusted EBITDA during the quarter came in at $449 million compared with $437 million reported in the prior-year quarter.

MAS’ Q2 Financials

As of June 30, 2025, Masco had a total liquidity of $1.34 billion compared with $1.39 billion as of June 30, 2024. This includes cash and cash investments of $390 million and revolver availability of $954 million. Long-term debt as of the second quarter came in at $2.94 billion, flat from 2024-end.

During the reported period, the company repurchased 1.6 million shares for about $101 million. Masco’s board of directors has announced a quarterly dividend of $0.31 per share, scheduled to be paid on Aug. 25, 2025, to shareholders of record as of Aug. 8.

MAS’ Zacks Rank & Recent Construction Releases

Masco currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

D.R. Horton, Inc. DHI delivered third-quarter fiscal 2025 results (ended June 30, 2025) that surpassed Zacks Consensus Estimate for both earnings and total revenues, though both metrics declined year over year.

D.R. Horton has updated its full-year outlook, now projecting consolidated revenues between $33.7 billion and $34.2 billion, slightly narrowing its prior guidance of $33.3 billion to $34.8 billion. This revised range is below the $36.8 billion reported in fiscal 2024. D.R. Horton also expects to close between 85,000 and 85,500 homes in fiscal 2025, down from its earlier estimate of 85,000 to 87,000 and lower than the 89,690 homes closed in the prior fiscal year.

KB Home KBH reported second-quarter fiscal 2025 results last month. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate. However, both metrics decreased on a year-over-year basis, reflecting ongoing weakness in the housing market. Persistently high mortgage rates continue to weigh on affordability, dampening buyer activity.

In response to market uncertainty and a reduced level of net orders at quarter-end, KB Home revised its fiscal 2025 outlook downward. KB Home now projects housing revenues between $6.30 billion and $6.50 billion, down from its previous guidance of $6.6 billion to $7 billion.

Lennar Corporation LEN reported mixed results for the second quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate while total revenues topped the same. On the contrary, year over year, both metrics tumbled, reflecting the softness in the housing market due to ongoing affordability challenges and a decline in consumer confidence. To counter the affordability issues, Lennar’s initiative of lowering ASP adversely impacted the revenue growth during the quarter.

For the third quarter of fiscal 2025, Lennar expects deliveries to be in the range of 22,000-23,000 homes, depicting growth from 21,516 homes delivered in the year-ago period. Lennar expects the ASP of the delivered homes to be in the range of $380,000-$385,000 compared with $422,000 reported a year ago. The gross margin on home sales is expected to be about 18%, down from 22.5% reported a year ago.

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This article originally published on Zacks Investment Research (zacks.com).

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