[10-Q] Masco Corporation Quarterly Earnings Report

Rhea-AI Filing Summary

Masco (MAS) Q2-25 10-Q highlights: Net sales slipped 2% YoY to $2.05 bn, but pricing and cost controls lifted gross margin 10 bps to 37.6% and pushed operating profit up 4% to $412 m. Diluted EPS rose 9% to $1.28 as the share count fell 4% from buybacks and the tax rate eased to 25%.

Segment mix diverged. Plumbing Products grew 5% (price-driven) and expanded operating profit 11% to $275 m. Decorative Architectural Products contracted 12% due to the Kichler divestiture and softer paint volumes; segment profit fell 10% to $157 m.

First-half view: Sales down 4% to $3.85 bn; EPS flat at $2.15. Operating cash flow declined to $148 m (-41%) as receivables and inventory built. Cash fell to $390 m after $233 m of share repurchases and $132 m of dividends; $666 m remains on the $2 bn authorization. Debt steady at $2.95 bn; leverage covenants comfortably met.

Outlook & risks: Management cites continued commodity, tariff and wage inflation plus weaker consumer demand, especially in paint/coatings. Price actions and Masco Operating System efficiencies are intended to offset cost headwinds. No material impact expected from the July 2025 One Big Beautiful Bill Act.

Positive

• Diluted EPS up 9% YoY to $1.28 despite lower revenue, aided by buybacks and tax rate improvement.
• Operating margin expanded 110 bps to 20.1%, reflecting pricing and cost controls.
• Plumbing Products segment revenue +5% and profit +11%, demonstrating pricing power and resilience.
• Gross margin improved to 37.6%, highest in six quarters.
• Share repurchases of $233 m reduced share count; $666 m authorization remains.

Negative

• Consolidated net sales declined 2% in Q2 and 4% YTD, signalling demand softness.
• Decorative Architectural Products sales down 12% and segment profit down 10%, led by paint volume erosion.
• Operating cash flow fell 41% YTD to $148 m, driven by working-capital build.
• Cash balance dropped $244 m since year-end due to repurchases and dividends.
• Management warns of continued cost inflation and tariff pressures that could weigh on H2.

Insights

Equity Analyst

TL;DR: Margins and EPS up despite top-line softness; overall neutral impact.

Masco’s Q2 shows disciplined pricing and cost control. Although revenue slipped 2%, plumbing strength and SG&A cuts widened operating margin to 20.1%. EPS outpaced profit growth thanks to repurchases. Cash outflows for buybacks and dividends reduced liquidity and operating cash conversion weakened, which tempers the quality of earnings. Decorative weakness and ongoing inflation/tariff risk could pressure H2. Guidance not provided, so visibility remains limited. Net: fundamentals broadly intact, modestly constructive yet not a clear catalyst.

Industry Specialist – Building Products

TL;DR: Plumbing resilience offsets paint slump; mix shift favorable for margins.

Masco’s portfolio tilt toward branded plumbing (Hansgrohe, Delta) proved defensive: 5% sales growth and double-digit profit gain. Paint volumes—closely tied to DIY traffic—remain weak, explaining the 12% drop in Decorative Architectural sales. Kichler divestiture exaggerates the decline but also removes a historically lower-margin line, aiding gross margin. Supply-chain finance usage ($44 m confirmed) and stable debt support liquidity, but inventory build merits monitoring if demand further deteriorates. Overall sector read-through: plumbing channels showing better price elasticity than coatings.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

    ☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

or

    ☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the transition period from ___________ to ___________

Commission file number: 1-5794

Masco Corporation

(Exact name of Registrant as Specified in its Charter)

Delaware

38-1794485

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

17450 College Parkway,

Livonia,

Michigan

48152

(Address of Principal Executive Offices)

(Zip Code)

(313) 274-7400

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange On Which Registered

Common Stock, $1.00 par value

MAS

New York Stock Exchange

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 

Class						Shares Outstanding at June 30, 2025
Common stock, par value $1.00 per share						209,363,636

MASCO CORPORATION

INDEX

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited):

1

Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024

1

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024

2

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024

3

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024

4

Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024

5

Notes to Condensed Consolidated Financial Statements

7

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

15

Item 4.

Controls and Procedures

22

PART II. OTHER INFORMATION

23

Item 1.

Legal Proceedings

23

Item 1A.

Risk Factors

23

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

23

Item 5.

Other Information

23

Item 6.

Exhibits

24

Signature

25

MASCO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30, 2025 and December 31, 2024

(In Millions, Except Share Data)

			June 30, 2025						December 31, 2024
ASSETS
Current assets:
Cash and cash investments			$	390					$	634
Receivables			1,318						1,035
Inventories			1,097						938
Prepaid expenses and other			119						123
Total current assets			2,925						2,730
Property and equipment, net			1,174						1,116
Goodwill			621						597
Other intangible assets, net			219						220
Operating lease right-of-use assets			244						231
Other assets			106						123
Total assets			$	5,288					$	5,016
LIABILITIES
Current liabilities:
Accounts payable			$	871					$	789
Notes payable			48						3
Accrued liabilities			690						767
Total current liabilities			1,609						1,560
Long-term debt			2,945						2,945
Noncurrent operating lease liabilities			231						223
Other liabilities			352						342
Total liabilities			$	5,138					$	5,069
Commitments and contingencies (Note L)
EQUITY
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share    Authorized shares: 1,400,000,000;    Issued and outstanding: 2025 – 209,400,000; 2024 – 212,500,000			209						212
Preferred shares authorized: 1,000,000;    Issued and outstanding: 2025 and 2024 – None			—						—
Paid-in capital			—						—
Retained deficit			(583)						(693)
Accumulated other comprehensive income			289						201
Total Masco Corporation's shareholders' deficit			(84)						(279)
Noncontrolling interest			234						227
Total equity			150						(53)
Total liabilities and equity			$	5,288					$	5,016

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

1

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net sales			$	2,051					$	2,091					$	3,852					$	4,017
Cost of sales			1,278						1,306						2,435						2,547
Gross profit			772						785						1,416						1,470
Selling, general and administrative expenses			361						388						719						755
Operating profit			412						397						698						715
Other income (expense), net:
Interest expense			(26)						(26)						(52)						(50)
Other, net			(7)						(5)						(14)						(10)
			(33)						(31)						(66)						(61)
Income before income taxes			378						366						632						655
Income tax expense			95						94						150						154
Net income			283						272						482						501
Less: Net income attributable to noncontrolling interest			13						14						25						28
Net income attributable to Masco Corporation			$	270					$	258					$	456					$	473
Income per common share attributable to Masco Corporation:
Basic:
Net income			$	1.29					$	1.18					$	2.16					$	2.15
Diluted:
Net income			$	1.28					$	1.17					$	2.15					$	2.14

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

2

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions)

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net income			$	283					$	272					$	482					$	501
Less: Net income attributable to noncontrolling interest			13						14						25						28
Net income attributable to Masco Corporation			$	270					$	258					$	456					$	473
Other comprehensive income (loss), net of tax:
Currency translation adjustment			$	77					$	(10)					$	112					$	(34)
Pension and other post-retirement benefits			—						—						1						1
Other comprehensive income (loss), net of tax			77						(10)						112						(33)
Less: Other comprehensive income (loss) attributable to noncontrolling interest			16						(1)						25						(7)
Other comprehensive income (loss) attributable to Masco Corporation			$	61					$	(9)					$	88					$	(27)
Total comprehensive income			$	360					$	262					$	594					$	467
Less: Total comprehensive income attributable to noncontrolling interest			29						13						50						22
Total comprehensive income attributable to Masco Corporation			$	332					$	249					$	544					$	446

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

3

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2025 and 2024

(In Millions)

			Six Months Ended June 30,
			2025						2024
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations			$	606					$	648
Increase in receivables			(271)						(265)
Increase in inventories			(133)						(43)
Decrease in accounts payable and accrued liabilities, net			(55)						(87)
Net cash from operating activities			148						252
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Purchase of Company common stock			(231)						(290)
Excise tax paid on the purchase of Company common stock			(6)						—
Cash dividends paid			(132)						(128)
Purchase of redeemable noncontrolling interest			—						(15)
Dividends paid to noncontrolling interest			(15)						(12)
Proceeds from revolving credit borrowings, net			46						—
Proceeds from the exercise of stock options			2						75
Employee withholding taxes paid on stock-based compensation			(8)						(33)
Decrease in debt, net			(1)						(1)
Net cash for financing activities			(344)						(404)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures			(68)						(74)
Acquisition of business			—						(4)
Other, net			(1)						(1)
Net cash for investing activities			(70)						(80)
Effect of exchange rate changes on cash and cash investments			22						(5)
CASH AND CASH INVESTMENTS:
Decrease for the period			(243)						(236)
At January 1			634						634
At June 30			$	390					$	398

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

4

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)

			Total						Common Shares ($1 par value)						Paid-In Capital						Retained (Deficit) Earnings						Accumulated Other Comprehensive Income (Loss)						Noncontrolling Interest
Balance, January 1, 2024			$	98					$	221					$	—					$	(596)					$	249					$	224
Total comprehensive income (loss)			205						—						—						215						(18)						8
Shares issued			56						2						54						—						—						—
Shares retired:
Repurchased			(148)						(2)						(77)						(68)						—						—
Surrendered (non-cash)			(14)						—						—						(13)						—						—
Cash dividends declared			(64)						—						—						(64)						—						—
Redemption of redeemable noncontrolling interest			4						—						4						—						—						—
Stock-based compensation			20						—						20						—						—						—
Balance, March 31, 2024			$	157					$	220					$	—					$	(527)					$	231					$	232
Total comprehensive income (loss)			262						—						—						258						(9)						13
Shares retired:
Repurchased			(144)						(2)						(8)						(134)						—						—
Cash dividends declared			(64)						—						—						(64)						—						—
Dividends declared to noncontrolling interest			(37)						—						—						—						—						(37)
Stock-based compensation			8						—						8						—						—						—
Balance, June 30, 2024			$	182					$	218					$	—					$	(467)					$	223					$	208

5

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Concluded)

For the Three and Six Months Ended June 30, 2025 and 2024

(In Millions, Except Per Common Share Data)

			Total						Common Shares ($1 par value)						Paid-In Capital						Retained (Deficit) Earnings						Accumulated Other Comprehensive Income						Noncontrolling Interest
Balance, January 1, 2025			$	(53)					$	212					$	—					$	(693)					$	201					$	227
Total comprehensive income			234						—						—						186						27						21
Shares issued			2						—						1						—						—						—
Shares retired:
Repurchased			(131)						(2)						(18)						(111)						—						—
Surrendered (non-cash)			(8)						—						—						(8)						—						—
Cash dividends declared			(66)						—						—						(66)						—						—
Stock-based compensation			17						—						17						—						—						—
Balance, March 31, 2025			$	(6)					$	211					$	—					$	(693)					$	228					$	248
Total comprehensive income			360						—						—						270						61						29
Shares retired:
Repurchased			(102)						(2)						(5)						(95)						—						—
Cash dividends declared			(65)						—						—						(65)						—						—
Dividends declared to noncontrolling interest			(42)						—						—						—						—						(42)
Stock-based compensation			5						—						5						—						—						—
Balance, June 30, 2025			$	150					$	209					$	—					$	(583)					$	289					$	234

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

6

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A. ACCOUNTING POLICIES

In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to fairly state our financial position at June 30, 2025, our results of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024, cash flows for the six months ended June 30, 2025 and 2024 and changes in shareholders' equity for the three and six months ended June 30, 2025 and 2024. The condensed consolidated balance sheet at December 31, 2024 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted ("GAAP") in the United States of America. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.

Recently Adopted Accounting Pronouncements. In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires additional income tax disclosures, particularly regarding the effective tax rate reconciliation and income taxes paid. We adopted this standard for annual periods beginning January 1, 2025. The adoption of this guidance will modify our annual disclosures, but will not have an impact on our financial position and results of operations.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires additional disclosures regarding an entity's reportable segments, particularly regarding significant segment expenses, as well as information relating to the chief operating decision maker. We adopted this standard on a retrospective basis for annual periods beginning January 1, 2024, and for interim periods beginning in 2025. The adoption of this guidance modified our disclosures, but did not have an impact on our financial position and results of operations.

Recently Issued Accounting Pronouncements. In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," which requires additional disclosure of the nature of expenses included in the income statement. ASU 2024-03 is effective on a prospective or retrospective basis for annual periods beginning January 1, 2027, and interim periods within those annual periods beginning January 1, 2028. Early adoption is permitted. The adoption of this guidance will modify our disclosures, but will not have an impact on our financial position and results of operations.

B. ACQUISITIONS

In the first quarter of 2021, our Hansgrohe SE subsidiary acquired a 75.1 percent equity interest in Easy Sanitary Solutions B.V. ("ESS"). The remaining 24.9 percent equity interest in ESS was subject to a call and put option that was exercisable by Hansgrohe SE or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option was the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and were recorded as temporary equity in the condensed consolidated balance sheets. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit.

In the first quarter of 2024, the sellers exercised their put option to sell the remaining 24.9 percent equity interest in ESS for €13 million ($15 million). The transaction was accounted for as an equity purchase transaction.

C. DIVESTITURES

In the third quarter of 2024, we sold our Kichler Lighting ("Kichler") business, a provider of decorative residential and light commercial lighting products, ceiling fans, and LED lighting system. The sale of Kichler did not represent a strategic shift that will have a major effect on our operations and financial results and therefore was not presented as discontinued operations. Prior to the divestiture, the results of the business were included in our Decorative Architectural Products segment.

7

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

D. REVENUE

Our revenues are derived from sales to customers in the following geographic areas: North America and International, which are particularly in Europe. Net sales from these geographic areas, by segment, were as follows, in millions:

			Three Months Ended June 30, 2025
			Plumbing Products						Decorative Architectural Products						Total
Primary geographic areas:
North America			$	899					$	738					$	1,638
International			413						—						413
Total			$	1,312					$	738					$	2,051
			Six Months Ended June 30, 2025
			Plumbing Products						Decorative Architectural Products						Total
Primary geographic areas:
North America			$	1,695					$	1,355					$	3,049
International			802						—						802
Total			$	2,497					$	1,355					$	3,852

			Three Months Ended June 30, 2024
			Plumbing Products						Decorative Architectural Products						Total
Primary geographic areas:
North America			$	857					$	838					$	1,695
International			397						—						397
Total			$	1,253					$	838					$	2,091
			Six Months Ended June 30, 2024
			Plumbing Products						Decorative Architectural Products						Total
Primary geographic areas:
North America			$	1,648					$	1,572					$	3,220
International			797						—						797
Total			$	2,445					$	1,572					$	4,017

We recognized $1 million and $4 million of revenue for the three months ended June 30, 2025 and 2024, respectively, related to performance obligations settled in previous quarters of the same year. We recognized $1 million of revenue and reversed $1 million of revenue for the three and six months ended June 30, 2025, respectively, and recognized $2 million of revenue for both the three and six months ended June 30, 2024, related to performance obligations settled in previous years.

Our contract asset balance was $2 million at both June 30, 2025 and December 31, 2024. Our contract liability balance was $16 million and $45 million at June 30, 2025 and December 31, 2024, respectively.

8

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

D. REVENUE (Concluded)

Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions:

			Six Months Ended June 30, 2025						Twelve Months Ended December 31, 2024
Balance at January 1			$	10					$	11
Provision for expected credit losses during the period			3						4
Write-offs charged against the allowance			(2)						(6)
Recoveries of amounts previously written off			1						2
Balance at end of period			$	13					$	10

E. INVENTORIES

The components of inventory were as follows, in millions:

			At June 30, 2025						At December 31, 2024
Finished goods			$	639					$	541
Raw materials			352						300
Work in process			106						97
Total			$	1,097					$	938

F. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill at June 30, 2025, by segment, was as follows, in millions:

			Gross Goodwill At June 30, 2025						Accumulated Impairment Losses						Net Goodwill At June 30, 2025
Plumbing Products			$	691					$	(301)					$	391
Decorative Architectural Products			305						(75)						230
Total			$	997					$	(376)					$	621

The changes in the carrying amount of goodwill for the six months ended June 30, 2025, by segment, were as follows, in millions:

			Gross Goodwill At December 31, 2024						Accumulated Impairment Losses						Net Goodwill At December 31, 2024																					Foreign Currency Translation						Net Goodwill At June 30, 2025
Plumbing Products			$	667					$	(301)					$	367																				$	24					$	391
Decorative Architectural Products			305						(75)						230																					—						230
Total			$	973					$	(376)					$	597																				$	24					$	621

The carrying value of our other indefinite-lived intangible assets was $82 million and $79 million at June 30, 2025 and December 31, 2024, respectively, and principally included registered trademarks. The carrying value of our definite-lived intangible assets was $137 million (net of accumulated amortization of $104 million) at June 30, 2025 and $140 million (net of accumulated amortization of $102 million) at December 31, 2024, and principally included customer relationships.

9

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

G. SUPPLIER FINANCE PROGRAM

We facilitate a voluntary supply chain finance program (the "program") to provide certain of our suppliers with the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The amounts confirmed as valid under the program were $44 million and $36 million at June 30, 2025 and December 31, 2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $26 million and $23 million at June 30, 2025 and December 31, 2024, respectively.

H. DEBT

On April 26, 2022, we entered into a revolving credit agreement (the “2022 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of April 26, 2027. Under the 2022 Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders.

The 2022 Credit Agreement provides for an unsecured revolving credit facility available to us and one of our foreign subsidiaries in U.S. dollars, European euros, British pounds sterling and certain other currencies for revolving credit loans, swingline loans and letters of credit. Borrowings under the revolving credit loans denominated in any agreed upon currency other than U.S. dollars are limited to the equivalent of $500 million. We can also borrow swingline loans up to $125 million and obtain letters of credit of up to $25 million. Outstanding letters of credit under the 2022 Credit Agreement reduce our borrowing capacity and we had no outstanding letters of credit under the 2022 Credit Agreement at June 30, 2025.

The 2022 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0.

In order for us to borrow under the 2022 Credit Agreement, there must not be any default in our covenants in the 2022 Credit Agreement (i.e., in addition to the two financial covenants described above, principally limitations on subsidiary debt, negative pledge restrictions, and requirements relating to legal compliance, maintenance of our properties and insurance) and our representations and warranties in the 2022 Credit Agreement must be true in all material respects on the date of borrowing (i.e., principally no material adverse change or litigation likely to result in a material adverse change, since December 31, 2021, no material ERISA or environmental non-compliance, and no material tax deficiency). We were in compliance with all covenants and $46 million was borrowed and outstanding at a weighted average interest rate of 5.551% at June 30, 2025. Subsequent to June 30, 2025, the entire borrowing was repaid.

Fair Value of Debt. The fair value of our short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues, which are Level 1 inputs. The aggregate estimated market value of our short-term and long-term debt at June 30, 2025 was approximately $2.7 billion, compared with the aggregate carrying value of $3.0 billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2024 was approximately $2.6 billion, compared with the aggregate carrying value of $3.0 billion.

10

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

I. SEGMENT INFORMATION

Information by segment was as follows, in millions:

			Three Months Ended June 30, 2025
			Plumbing Products						Decorative Architectural Products						Total
Net sales (A)			$	1,312					$	738					$	2,051
Operating expenses (B)			1,030						576
Corporate expenses (C)			8						5
Segment operating profit			$	275					$	157					$	432
General corporate expense, net (C)															(20)
Operating profit															412
Other income (expense), net															(33)
Income before income taxes															$	378

			Six Months Ended June 30, 2025
			Plumbing Products						Decorative Architectural Products						Total
Net sales (A)			$	2,497					$	1,355					$	3,852
Operating expenses (B)			1,987						1,090
Corporate expenses (C)			18						11
Segment operating profit			$	492					$	253					$	745
General corporate expense, net (C)															(47)
Operating profit															698
Other income (expense), net															(66)
Income before income taxes															$	632

			Three Months Ended June 30, 2024
			Plumbing Products						Decorative Architectural Products						Total
Net sales (A)			$	1,253					$	838					$	2,091
Operating expenses (B)			996						658
Corporate expenses (C)			11						6
Segment operating profit			$	247					$	174					$	421
General corporate expense, net (C)															(24)
Operating profit															397
Other income (expense), net															(31)
Income before income taxes															$	366

11

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

I. SEGMENT INFORMATION (Concluded)

			Six Months Ended June 30, 2024
			Plumbing Products						Decorative Architectural Products						Total
Net sales (A)			$	2,445					$	1,572					$	4,017
Operating expenses (B)			1,950						1,258
Corporate expenses (C)			23						15
Segment operating profit			$	472					$	299					$	771
General corporate expense, net (C)															(55)
Operating profit															715
Other income (expense), net															(61)
Income before income taxes															$	655

			Property Additions
			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024												2025						2024
Plumbing Products			$	26					$	32											$	52					$	51
Decorative Architectural Products			9						11												15						23
Corporate			1						1												1						1
Total			$	36					$	44											$	68					$	74

			Depreciation and Amortization
			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024												2025						2024
Plumbing Products			$	27					$	27											$	52					$	53
Decorative Architectural Products			7						9												15						19
Corporate			2						2												4						4
Total			$	36					$	38											$	71					$	76

			Assets
			At June 30, 2025						At December 31, 2024
Plumbing Products			$	3,461					$	3,131
Decorative Architectural Products			1,590						1,435
Corporate			237						450
Total			$	5,288					$	5,016

(A)Intra-company sales between segments were not material and have been excluded from net sales.

(B)Operating expenses included cost of sales and selling, general and administrative expenses.

(C)Corporate expenses included specific corporate overhead allocated to each segment. General corporate expense, net included those expenses not specifically attributable to our segments.

12

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

J. INCOME TAXES

Our effective tax rate was 25 percent and 26 percent for the three months ended June 30, 2025 and 2024, respectively, and was 24 percent for both the six months ended June 30, 2025 and 2024.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted. While we are still evaluating the potential implications of the Act, we currently do not anticipate it will have a material effect on our effective tax rate.

K. INCOME PER COMMON SHARE

Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Numerator (basic and diluted):
Net income			$	270					$	258					$	456					$	473
Less: Allocation to unvested restricted stock awards			—						—						—						—
Net income attributable to common shareholders			$	270					$	258					$	456					$	473
Denominator:
Basic common shares (based upon weighted average)			210						219						211						220
Add: Dilutive effect of stock options and other stock-based incentives			—						—						—						1
Diluted common shares			211						220						212						221

For the three and six months ended June 30, 2025, basic and diluted income per common share were calculated using the treasury stock method. For the three and six months ended June 30, 2024, we allocated dividends and undistributed earnings to the unvested restricted stock awards.

The following stock options, restricted stock units and performance restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Number of stock options			403						201						355						150
Number of restricted stock units			295						—						120						—
Number of performance restricted stock units			47						—						47						—

Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise. During the six months ended June 30, 2025, we repurchased and retired approximately 3.4 million shares of our common stock (including 0.3 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2025) for approximately $233 million, inclusive of excise tax of $2 million. At June 30, 2025, we had approximately $666 million remaining under the 2022 authorization.

13

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Concluded)

K. INCOME PER COMMON SHARE (Concluded)

We have declared and paid cash dividends per common share of $0.31 and $0.62 for the three and six months ended June 30, 2025, respectively, and $0.29 and $0.58 for the three and six months ended June 30, 2024, respectively.

L. OTHER COMMITMENTS AND CONTINGENCIES

Litigation.    We are involved in claims and litigation, including class actions, mass torts and regulatory proceedings, which arise in the ordinary course of our business. The types of matters may include, among others: advertising, competition, contract, data privacy, employment, environmental, insurance coverage, intellectual property, personal injury, product compliance, product liability, securities and warranty. We are also subject to product safety regulations, product recalls and direct claims for product liabilities. We believe the likelihood that the outcome of these claims, litigation and product safety matters would have a material adverse effect on us is remote. However, there is no assurance that we will prevail in these matters, and we could, in the future, incur judgments or penalties, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations.

Warranty.    Changes in our warranty liability were as follows, in millions:

			Six Months Ended June 30, 2025						Twelve Months Ended December 31, 2024
Balance at January 1			$	81					$	83
Accruals for warranties issued during the period			18						38
Accruals related to pre-existing warranties			6						8
Settlements made (in cash or kind) during the period			(20)						(43)
Other, net (including currency translation and divestitures)			2						(4)
Balance at end of period			$	86					$	81

14

MASCO CORPORATION

Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

Due to changing market conditions, we are experiencing, and may continue to experience, lower market demand for our products. We have been experiencing, and may continue to experience, elevated commodity and other input costs, as well as employee-related cost inflation. Additionally, we expect the recently-enacted and announced tariffs, particularly those related to China, to result in significantly higher costs to us, principally in our Plumbing Products segment. We seek to mitigate the impact of higher tariffs and other unfavorable impact to our costs over time with pricing, cost savings initiatives, sourcing changes, and other activities. Consumer demand for our products, however, could further diminish if consumer confidence erodes and the price of our products and other consumer goods increases.

We continue to execute our strategies of leveraging our strong brand portfolio, our industry-leading positions and the Masco Operating System, our methodology to drive growth and productivity, to create long-term shareholder value. We remain confident in the fundamentals of our business and long-term strategy. We believe that our strong financial position and cash flow generation, together with our investments in our industry-leading branded building products, our continued focus on innovation and customer service and disciplined capital allocation, will allow us to drive long-term growth and create value for our shareholders.

SECOND QUARTER 2025 AND THE FIRST SIX MONTHS 2025 VERSUS
SECOND QUARTER 2024 AND THE FIRST SIX MONTHS 2024

Consolidated Results of Operations

We report our financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, we believe that certain non-GAAP performance measures and ratios used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, our reported results under GAAP. Within the tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.

The following discussion of consolidated results of operations refers to the three and six months ended June 30, 2025 compared to the same periods of 2024.

NET SALES

Below is a summary of our net sales, in millions, for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Change						2025						2024						Change
Net sales, as reported			$	2,051					$	2,091					(2)		%				$	3,852					$	4,017					(4)		%
Divestitures			—						(66)												—						(124)
Net sales, excluding divestitures			2,051						2,026						1		%				3,852						3,893						(1)		%
Currency translation			(15)						—												3						—
Net sales, excluding divestitures and the effect of currency translation			$	2,036					$	2,026					—		%				$	3,855					$	3,893					(1)		%

15

Our net sales for the three months ended June 30, 2025 were $2,051 million, which decreased two percent compared to the three months ended June 30, 2024. Excluding divestitures and the effect of currency translation, net sales were flat primarily due to higher net selling prices of plumbing products which increased sales by two percent, partially offset by lower sales volume of paints and other coating products which decreased sales by one percent.

Our net sales for the six months ended June 30, 2025 were $3,852 million, which decreased four percent compared to the six months ended June 30, 2024. Excluding divestitures and the effect of currency translation, net sales decreased one percent. Our net sales for six months ended June 30, 2025 decreased primarily due to lower sales volume of paints and other coating products which decreased sales by two percent, partially offset by higher net selling prices of plumbing products which increased sales by one percent.

RESULTS OF OPERATIONS

Below is a summary of our results of operations for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Favorable / (Unfavorable)						2025						2024						Favorable / (Unfavorable)
Net sales			$	2,051					$	2,091					(2)		%				$	3,852					$	4,017					(4)		%
Cost of sales			(1,278)						(1,306)						2		%				(2,435)						(2,547)						4		%
Gross profit			$	772					$	785					(2)		%				$	1,416					$	1,470					(4)		%
Gross margin			37.6		%				37.5		%				10 bps						36.8		%				36.6		%				20 bps
Selling, general and administrative expenses			$	(361)					$	(388)					7		%				$	(719)					$	(755)					5		%
Selling, general and administrative expenses as a percent of net sales			(17.6)		%				(18.6)		%				100 bps						(18.7)		%				(18.8)		%				10 bps
Operating profit			$	412					$	397					4		%				$	698					$	715					(2)		%
Operating profit margin			20.1		%				19.0		%				110 bps						18.1		%				17.8		%				30 bps

Three Months Ended June 30, 2025

Our gross profit for the three months ended June 30, 2025 was $772 million, which decreased two percent, and was primarily impacted by higher commodity and tariff costs, three percent due to the divestiture of our Kichler Lighting ("Kichler") business, as well as an increase in other expenses, partially offset by five percent due to higher net selling prices of plumbing products, as well as cost savings initiatives.

Our selling, general and administrative expenses for the three months ended June 30, 2025 were $361 million, which decreased seven percent, and were impacted by four percent due to the divestiture of Kichler and two percent due to lower employee-related costs.

Our operating profit for the three months ended June 30, 2025 was $412 million, which increased four percent, and was impacted by lower selling, general and administrative expenses, partially offset by decreased gross profit.

16

Six Months Ended June 30, 2025

Our gross profit for the six months ended June 30, 2025 was $1,416 million, which decreased four percent, and was primarily impacted by higher commodity and tariff costs, three percent due to the divestiture of Kichler, two percent due to lower sales volume, as well as an increase in other expenses, partially offset by four percent due to higher net selling prices of plumbing products, as well as cost saving initiatives.

Our selling, general and administrative expenses for the six months ended June 30, 2025 were $719 million, which decreased five percent, and were impacted by the divestiture of Kichler.

Our operating profit for the six months ended June 30, 2025 was $698 million, which decreased two percent, and was impacted by decreased gross profit, partially offset by lower selling, general and administrative expenses.

OTHER INCOME (EXPENSE), NET

Below is a summary of our other income (expense), net, in millions, for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Favorable / (Unfavorable)						2025						2024						Favorable / (Unfavorable)
Interest expense			$	(26)					$	(26)					—		%				$	(52)					$	(50)					(4)		%
Other, net			(7)						(5)						(40)		%				(14)						(10)						(40)		%
Other income (expense), net			$	(33)					$	(31)					(6)		%				$	(66)					$	(61)					(8)		%

INCOME TAXES

Below is a summary of our income tax expense, in millions, and our effective tax rate for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Favorable / (Unfavorable)						2025						2024						Favorable / (Unfavorable)
Income tax expense			$	(95)					$	(94)					(1)%						$	(150)					$	(154)					3%
Effective tax rate			(25)		%				(26)		%				100 bps						(24)		%				(24)		%				— bps

NET INCOME AND INCOME PER COMMON SHARE - ATTRIBUTABLE TO MASCO CORPORATION

Below is a summary of our net income, in millions, and diluted income per common share for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,																		Six Months Ended June 30,
			2025						2024						Favorable / (Unfavorable)						2025						2024						Favorable / (Unfavorable)
Net income			$	270					$	258					5		%				$	456					$	473					(4)		%
Diluted income per common share			$	1.28					$	1.17					9		%				$	2.15					$	2.14					—		%

17

Business Segment Results

The following tables set forth our net sales and operating profit information by business segment, dollars in millions.

			Three Months Ended June 30,												Percent Change						Six Months Ended June 30,												Percent Change
			2025						2024						2025 vs. 2024						2025						2024						2025 vs. 2024
Net Sales:
Plumbing Products			$	1,312					$	1,253					5		%				$	2,497					$	2,445					2		%
Decorative Architectural Products			738						838						(12)		%				1,355						1,572						(14)		%
Total			$	2,051					$	2,091					(2)		%				$	3,852					$	4,017					(4)		%

			Three Months Ended June 30,												Percent Change						Six Months Ended June 30,												Percent Change
			2025						2024						2025 vs. 2024						2025						2024						2025 vs. 2024
Operating Profit:
Plumbing Products			$	275					$	247					11		%				$	492					$	472					4		%
Decorative Architectural Products			157						174						(10)		%				253						299						(15)		%
Total			$	432					$	421					3		%				$	745					$	771					(3)		%
General corporate expense, net			(20)						(24)						(17)		%				(47)						(55)						(15)		%
Total operating profit			$	412					$	397					4		%				$	698					$	715					(2)		%

The following discussion of business segment results refers to the three and six months ended June 30, 2025 compared to the same periods of 2024. Changes in operating profit in the following business segment results discussion exclude general corporate expense, net.

BUSINESS SEGMENT RESULTS DISCUSSION

Plumbing Products

Sales

Net sales in the Plumbing Products segment increased five percent and two percent for the three and six months ended June 30, 2025, respectively. In local currencies (including sales in currencies outside their respective functional currencies), net sales increased four percent and two percent for the three and six months ended June 30, 2025, respectively. For the three months and six months ended June 30, 2025, higher net selling prices increased sales by three percent and two percent, respectively.

Operating Results

Operating profit in the Plumbing Products segment for the three and six months ended June 30, 2025 was positively impacted by higher net selling prices and cost savings initiatives. For the three months ended June 30, 2025, these amounts were partially offset by higher commodity and tariff costs and an increase in other expenses. For the six months ended June 30, 2025, these amounts were partially offset by higher commodity and tariff costs, higher marketing costs, unfavorable sales mix, and an increase in other expenses.

18

Decorative Architectural Products

Sales

Net sales in the Decorative Architectural Products segment decreased 12 percent and 14 percent for the three and six months ended June 30, 2025, respectively. The divestiture of our Kichler business decreased sales by eight percent for both periods and lower sales volume decreased sales by four percent and five percent for the three and six months ended June 30, 2025, respectively.

Operating Results

Operating profit in the Decorative Architectural Products segment for the three and six months ended June 30, 2025 was negatively impacted by lower sales volume and higher commodity costs, partially offset by cost saving initiatives.

Liquidity and Capital Resources

Overview of Capital Structure

We had cash and cash investments of approximately $390 million and $634 million at June 30, 2025 and December 31, 2024, respectively. Our cash and cash investments consist of overnight interest bearing money market demand accounts, time deposit accounts, and money market mutual funds containing government securities and treasury obligations. While we attempt to diversify these investments in a prudent manner to minimize risk, it is possible that future changes in the financial markets could affect the security or availability of these investments. Of the cash and cash investments we held at June 30, 2025 and December 31, 2024, $276 million and $321 million, respectively, was held in our foreign subsidiaries. If these funds were needed for our operations in the U.S., their repatriation into the U.S. would not result in significant additional U.S. income tax or foreign withholding tax, as we have recorded such taxes on substantially all undistributed foreign earnings, except for those that are legally restricted.

We believe that our present cash balance and cash flows from operations, and borrowing availability under our revolving credit agreement, are sufficient to fund our near-term working capital and other investment needs. We believe that our longer-term working capital and other general corporate requirements will be satisfied through cash flows from operations and, to the extent necessary, from bank borrowings and future financial market activities. However, due to the changing market conditions and its impact on our customers and suppliers, we are unable to fully estimate the extent of the impact that the changing market conditions may have on our future financial condition.

Credit Agreement

On April 26, 2022, we entered into a revolving credit agreement (the “2022 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of April 26, 2027.

Under the 2022 Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders. See Note H to the condensed consolidated financial statements for additional information.

The 2022 Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. We were in compliance with all covenants and $46 million was borrowed and outstanding at a weighted average interest rate of 5.551% at June 30, 2025. Subsequent to June 30, 2025, the entire borrowing was repaid.

19

Other Liquidity and Capital Resource Activities

As part of our ongoing efforts to improve our cash flow and related liquidity, we work with suppliers to optimize our terms and conditions, including extending payment terms. We also facilitate a voluntary supply chain finance program (the "program") to provide certain of our suppliers with the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The amounts confirmed as valid under the program and included in accounts payable were $44 million and $36 million at June 30, 2025 and December 31, 2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $26 million and $23 million at June 30, 2025 and December 31, 2024, respectively. All payments made under the program are recorded as a decrease in accounts payable and accrued liabilities, net, in our condensed consolidated statements of cash flows. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the program. We do not believe such risk would have a material impact on our working capital or cash flows, as substantially all of our payments are made outside of the program.

Share Repurchases

Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise. During the six months ended June 30, 2025, we repurchased and retired approximately 3.4 million shares of our common stock (including 0.3 million shares to offset the dilutive impact of restricted stock units granted in the six months ended June 30, 2025) for approximately $233 million, inclusive of excise tax of $2 million. At June 30, 2025, we had approximately $666 million remaining under the 2022 authorization. Consistent with our past practice and as part of our long-term capital allocation strategy, outside of any potential acquisitions, we anticipate using at least $450 million of cash for share repurchases in 2025.

Cash Flows

For the six months ended June 30, 2025, net cash provided by operations was $148 million, primarily driven by operating profit, partially offset by changes in working capital.

For the six months ended June 30, 2025, net cash used for financing activities was $344 million, primarily due to $231 million for the repurchase and retirement of our common stock, $132 million for the payment of cash dividends, and $15 million for dividends paid to noncontrolling interest, partially offset by $46 million of net proceeds from revolving credit loan borrowings.

For the six months ended June 30, 2025, net cash used for investing activities was $70 million, primarily driven by $68 million of capital expenditures.

20

Cautionary Statement Concerning Forward-Looking Statements

This Report 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, the impact on demand, pricing and product costs resulting from tariffs, 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 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.

21

MASCO CORPORATION

Item 4.

CONTROLS AND PROCEDURES

a.Evaluation of Disclosure Controls and Procedures.

The Company's Principal Executive Officer and Principal Financial Officer have concluded, based on an evaluation of the Company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) as required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15 that, as of June 30, 2025, the Company's disclosure controls and procedures were effective.

b.    Changes in Internal Control over Financial Reporting.

In connection with the evaluation of the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2025, which is required under the Securities Exchange Act of 1934 by paragraph (d) of Exchange Rules 13a-15 or 15d-15 (as defined in paragraph (f) of Rule 13a-15), management determined that there was no change that materially affected or is reasonably likely to materially affect internal control over financial reporting.

During the second quarter of 2025, we upgraded the enterprise resource planning system in one of our operating units within our Plumbing Products segment. The current system was upgraded to a newer version and was not in response to any identified deficiency or weakness in the Company's internal control over financial reporting.

22

MASCO CORPORATION

PART II.  OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings involving us is set forth in Note L to our condensed consolidated financial statements included in Part I, Item 1 of this Report and is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors of the Company set forth in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information regarding the repurchase of our common stock for the three months ended June 30, 2025 under the 2022 share repurchase authorization: 

Period						Total Number Of Shares Purchased						Average Price Paid Per Common Share						Total Number Of Shares Purchased As Part Of Publicly Announced Plans or Programs						Maximum Value Of Shares That May Yet Be Purchased Under The Plans Or Programs
4/1/25 - 4/30/25						769,181						$	62.41					769,181						$	718,338,214
5/1/25 - 5/31/25						119,195						$	62.93					119,195						$	710,837,079
6/1/25 - 6/30/25						715,902						$	62.87					715,902						$	665,830,484
Total for the quarter						1,604,278						$	62.65					1,604,278						$	665,830,484

Item 5. Other Information

Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements

During the three months ended June 30, 2025, none of our officers or directors adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.

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MASCO CORPORATION

PART II.  OTHER INFORMATION, Continued

Item 6. Exhibits 

10.a						Severance and Release Agreement dated July 8, 2025 between Masco Corporation and Keith J. Allman.
10.b						Aircraft Time Sharing Agreement dated July 25, 2025 between Jonathon J. Nudi and Masco Corporation.
31.a						Certification by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
31.b						Certification by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
32						Certifications required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101						The following financial information from Masco Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Shareholders' Equity, and (vi) Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

24

MASCO CORPORATION

PART II.  OTHER INFORMATION, Concluded

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
						Richard J. Westenberg Vice President, Chief Financial Officer and Treasurer

July 31, 2025

25

FAQ

How did Masco's (MAS) earnings perform in Q2 2025?

Diluted EPS rose 9% YoY to $1.28, with net income of $270 million.

What drove the decline in Masco's revenue for Q2 2025?

Revenue fell 2% mainly from lower paint/coating volumes and the Kichler divestiture; pricing in plumbing partially offset the shortfall.

Which Masco segment showed growth in Q2 2025?

The Plumbing Products segment grew sales 5% and operating profit 11% thanks to pricing and cost savings.

How much cash did Masco spend on share repurchases during the first half of 2025?

Masco repurchased $233 million of common stock, retiring about 3.4 million shares.

What is Masco's current cash and debt position?

As of June 30 2025, cash was $390 million; long-term debt remained $2.95 billion with net leverage below the 4.0× covenant.