Masco reveals 2024 financial highlights
Masco Corporation has reported its fourth quarter and full-year 2024 results.
2024 Q4 highlights
- On a reported basis, compared to the fourth quarter 2023:
- Net sales decreased 3 percent to $1,828 million
- Plumbing Products’ net sales decreased 1 percent; in local currency net sales decreased 1 percent
- Decorative Architectural Products’ net sales decreased 6 percent
- In local currency, North American sales decreased 4 percent and International sales increased 2 percent
- Gross margin was flat at 34.7 percent
- Operating profit increased 17 percent to $290 million from $247 million
- Operating margin increased 280 basis points to 15.9 percent from 13.1 percent
- Net income was flat at $0.85 per share
- Net sales decreased 3 percent to $1,828 million
- Compared to Q4 2023, results for key financial measures, as adjusted for certain items and with a normalized tax rate of 24.5 percent, were as follows:
- Gross margin decreased 30 basis points to 34.8 percent from 35.1 percent
- Operating profit increased 7 percent to $291 million from $272 million
- Operating margin increased 140 basis points to 15.9 percent from 14.5 percent
- Net income increased 7 percent to $0.89 per share, compared to $0.83 per share
- Liquidity at the end of the fourth quarter was $1,634 million (including availability under our revolving credit facility).
2024 full-year results
- On a reported basis, compared to full year 2023:
- Net sales decreased 2 percent to $7,828 million; in local currency and excluding acquisitions and divestitures, net sales decreased 1 percent
- In local currency, North American sales decreased 2 percent and international sales were flat
- Gross margin increased 60 basis points to 36.2 percent from 35.6 percent
- Operating profit increased 1 percent to $1,363 million from $1,348 million
- Operating margin increased 50 basis points to 17.4 percent from 16.9 percent
- Net income decreased to $3.76 per share, compared to $4.02 per share
- Compared to full year 2023, results for key financial measures, as adjusted for certain items and with a normalized tax rate of 24.5 percent, were as follows:
- Gross margin increased 110 basis points to 36.3 percent from 35.2 percent
- Operating profit increased 3 percent to $1,372 million from $1,336 million
- Operating margin increased 70 basis points to 17.5 percent from 16.8 percent
- Net income increased 6 percent to $4.10 per share, compared to $3.86 per share
“We delivered another quarter of strong operating results,” said Keith Allman, Masco’s president and CEO. “Our fourth quarter adjusted operating profit margin expanded 140 basis points, marking the seventh consecutive quarter of year-over-year margin expansion, and our adjusted earnings per share grew by 7 percent. Additionally, we executed on our capital allocation strategy by returning $331 million to shareholders in the quarter through dividends and share repurchases.”
“For the full year 2024, we expanded adjusted operating margin by 70 basis points to 17.5 percent through our focus on cost savings initiatives and operational efficiencies,” continued Allman. “With this strong execution, we delivered adjusted earnings per share growth of 6 percent despite a challenging demand environment. Our strong cash flow also enabled us to return $1 billion to shareholders through dividends and share repurchases.”
“In 2025, we believe demand across the global repair and remodel markets will be flat to down low single digits. We expect our sales to be approximately flat to up low-single digits when adjusted for divestitures and currency, as we expect to continue to outperform the market in 2025,” said Allman. “Based on the market outlook, our expected operating performance, and our capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.20 to $4.45 per share. With our industry leading repair and remodel-oriented product portfolio, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to continue to deliver long-term shareholder value.”
Learn more about Masco's financial outlook here.
