Home improvement firm Masco forecasts robust annual profit amid tariff woes

Masco

31/07/2025 12:42

July 31 (Reuters) - Masco MAS.N on Thursday reinstated its annual profit forecast, after beating analysts' estimates for second-quarter results, on resilient demand for its home improvement supplies and building materials, even as macroeconomic uncertainty looms.

The annual profit forecast, which is above Wall Street expectations, comes months after the company pulled it citing uncertainty around trade tariffs.

WHY IT IS IMPORTANT

The Livonia, Michigan-based company saw resilient demand for its products, including showerheads, kitchen accessories, home decor products and paints, even as macroeconomic uncertainties have pressured consumer spending in the U.S.

KEY QUOTE

"For the second half of this year, we remain confident in the ability of our teams to continue to execute our strategic priorities to drive results, even while uncertainty surrounding near-term market conditions persists," said Masco CEO Jon Nudi, who took charge earlier this month.

CONTEXT

Masco has been raising prices and cutting costs as it looks to counter low volumes, as well as high commodity and product costs.

The company, in May, said it had cut its exposure to China for supplies by about 45% since 2018. But its international operations, mostly in China and Europe, accounted for 26% of manufacturing and 38% of warehouse and distribution operations as of December 31, making it vulnerable to tariffs.

MARKET REACTION

Shares of the company were up nearly 5% in premarket trading.

BY THE NUMBERS

Masco now expects its full-year adjusted earnings per share between $3.87 and $4.07, above analysts' average estimate of $3.64, according to data compiled by LSEG.

Higher product prices and cost cuts have helped lift the company's gross margin by 10 basis points to 37.6% for the second quarter ended June 30.

Sales at Masco's plumbing products segment, a major revenue contributor, rose 5%, compared to a 2% rise a year ago.

The company posted adjusted earnings per share of $1.3, compared with estimates of $1.09.

Its quarterly sales fell 2% to $2.05 billion, compared with an estimated 4.7% decline to $1.99 billion.

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber)

 ((Neil.JKanatt@thomsonreuters.com;))