Masco’s fourth quarter results were viewed favorably by the market despite revenue falling short of Wall Street expectations. Management attributed the quarter’s performance to strong pricing actions in plumbing, cost savings initiatives, and ongoing market share gains in key brands like Delta Faucet and Behr. CEO Jonathon Nudi pointed to Delta’s robust trade and e-commerce growth and highlighted that “our pro paint market share has grown over 200 basis points since 2019,” citing expanded delivery options and a growing sales force as contributors. The company also noted significant headwinds from lower volumes and elevated tariff and commodity costs, particularly in the Decorative Architectural segment.
Is now the time to buy MAS? Find out in our full research report (it’s free for active Edge members).
Masco (MAS) Q4 CY2025 Highlights:
- Revenue: $1.79 billion vs analyst estimates of $1.82 billion (1.9% year-on-year decline, 1.5% miss)
- Adjusted EPS: $0.82 vs analyst estimates of $0.79 (3.2% beat)
- Adjusted EBITDA: $298 million vs analyst estimates of $294.8 million (16.6% margin, 1.1% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.20 at the midpoint, in line with analyst estimates
- Operating Margin: 13.8%, down from 15.9% in the same quarter last year
- Organic Revenue fell 2% year on year (miss)
- Market Capitalization: $15.51 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Masco’s Q4 Earnings Call
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Matthew Bouley (Barclays) asked about the impact of copper inflation on plumbing margins. CFO Rick Westenberg explained that mid-single-digit commodity inflation is reflected in guidance, with a six-month lag before market prices affect financial results.
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Anthony Pettinari (Citi) questioned volume pressures in DIY paint and potential secular shifts to pro channels. CEO Jonathon Nudi emphasized Masco’s strong DIY brand but stressed the company’s focus on growing its relatively small pro paint market share through expanded customer programs.
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Michael Rehaut (JPMorgan) asked about the scale and reinvestment of restructuring savings. Nudi described broad-based actions across manufacturing and corporate operations, noting that some savings will fund growth initiatives while others support margin targets.
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Susan Maklari (Goldman Sachs) inquired about the new executive committee’s role. Nudi said the committee brings business unit leaders closer to decision-making, enabling faster responses to market challenges and more effective scale leverage.
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Phil Ng (Jefferies) asked about trade credit pilots in pro paint and momentum in plumbing. Nudi highlighted The Home Depot's leadership in trade credit and described continued share gains in North America plumbing, especially in premium product categories.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory analyst team will focus on (1) the pace of margin recovery as restructuring and integration actions take effect, (2) tangible evidence of share gains in pro paint and premium plumbing, and (3) the impact of ongoing commodity and tariff cost mitigation. We will also monitor management’s ability to balance investment in capabilities like digital marketing and e-commerce with disciplined cost control.
Masco currently trades at $76.19, up from $71.61 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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