Home improvement firm Masco misses quarterly sales estimates as demand weakens

Masco

11/02/2025 13:10

Feb 11 (Reuters) - Masco  MAS.N  missed Wall Street
estimates for fourth-quarter sales on Tuesday and signaled
"challenging demand" for repair and renovation projects in the
year ahead. 
    
    WHY IT'S IMPORTANT
    Masco has witnessed sluggish demand this year as interest
rates remained high, deterring spending from cautious customers
on home renovation activities.
    In an attempt to counter weak demand, the company has
undertaken cost-saving measures such as supply chain
improvements as well as price increases. Still, margins were
flat during the quarter.
    
     CONTEXT
     The company said it expects flat to a low-single-digit
decline in the global repair and remodel market.
    Net sales in the company's plumbing segment decreased 1%,
while they fell 6% in its decorative architectural products'
segment.
    
    BY THE NUMBERS 
    The Livonia, Michigan-based firm expects full-year earnings
per share in the range of $4.20 to $4.45 per share, including
the impact of U.S. tariffs on China. Analysts on average were
expecting a profit of $4.40 per share, according to data
compiled by LSEG. 
    The company expects annual sales to be flat to up low-single
digits, compared to a 2% decline in 2024
    Sales fell 3% to $1.83 billion in the quarter ended December
31 from a year ago. Analysts had expected $1.84 billion.
    Gross margin was flat at 34.7% on a reported basis.
    It earned 89 cents per share on an adjusted basis, beating
expectations of 87 cents.
    Net sales in the company's plumbing segment fell to $1.19
billion from $1.20 billion last year, while its decorative
architectural products' segment sales dropped to $639 million
from $677 million.

 (Reporting by Aamir Sohail in Bengaluru; Editing by Maju
Samuel)
 ((Aamir.Sohail@thomsonreuters.com;))