AI Takeaway
Masco Corporation (MAS) reported FY2025 revenue of $7.56B, down 3.4% year-over-year, with net income declining modestly to $810M, though EPS rose 2.7% to $3.87 on the back of continued share buybacks, while the company maintained solid operating cash flow of $1.02B despite margin compression.
Revenue
$7.56B
-3.40% YoY
EPS (Basic)
$3.87
++2.65% YoY
Gross Margin
35.4%
-0.74% YoY
Operating Income
$1.25B
-8.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 3.4% year-over-year to $7.56B in FY2025 from $7.83B in the prior year, reflecting softer demand conditions in the home improvement and building products markets. Cost of revenue also declined 2.3% to $4.88B, partially cushioning the top-line pressure.
Source: Source: 10-K Income Statement
Gross margin contracted approximately 73 basis points to 35.4% from 36.2%, and operating margin declined roughly 91 basis points to 16.5% from 17.4%, indicating that cost reductions did not fully offset the revenue decline. Operating income fell 8.4% to $1.25B.
Source: Source: 10-K Income Statement & Key Ratios
Despite lower net income of $810M (down 1.5%), basic EPS increased 2.7% to $3.87 from $3.77, as the company repurchased $571M worth of shares during FY2025, reducing the share count and boosting per-share earnings.
Source: Source: 10-K Income Statement & Cash Flow Statement
2 more insights available
Upgrade to unlockMasco carries negative stockholders' equity of -$185M and long-term debt of approximately $2.95B, resulting in a deeply negative debt-to-equity ratio of -27.7x. This capital structure limits financial flexibility and increases vulnerability to rising interest rates or credit market disruptions. While improving year-over-year, the balance sheet remains technically insolvent on a book-value basis.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.82 versus the $0.80 analyst consensus — a +2.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.56B | $7.83B | -3.40% |
Cost of Revenue | $4.88B | $5B | -2.28% |
Gross Profit | $2.68B | $2.83B | -5.37% |
Operating Income | $1.25B | $1.36B | -8.44% |
Net Income | $810M | $822M | -1.46% |
EPS (Basic) | $3.87 | $3.77 | +2.65% |
EPS (Diluted) | $3.86 | $3.76 | +2.66% |
SG&A Expense | $1.43B | $1.47B | -2.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.2B | $5.02B | +3.69% |
Current Assets | $2.84B | $2.73B | +4.03% |
Total Liabilities | $5.13B | $5.07B | +1.10% |
Current Liabilities | $1.57B | $1.56B | +0.83% |
Stockholders' Equity | $-185M | $-279M | +33.69% |
Cash & Equivalents | $647M | $634M | +2.05% |
Long-Term Debt | $2.95B | $2.95B | -0.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.02B | $1.07B | -4.93% |
Investing Cash Flow | $-144M | $-50M | -188.00% |
Financing Cash Flow | $-888M | $-1.02B | +12.68% |
Share Buybacks | $571M | $751M | -23.97% |
D&A | $148M | $150M | -1.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 35.4% | 36.2% | -0.74% |
Operating Margin | 16.5% | 17.4% | -0.91% |
Net Margin | 10.7% | — | — |
ROE | -437.8% | — | — |
ROA | 15.6% | — | — |
Current Ratio | $1.805 | — | — |
Debt to Equity | $-27.703 | — | — |
Other companies in Building Products
Masco reported FY2025 revenue of $7.56B, down 3.4% year-over-year, and net income of $810M, down 1.5%. However, EPS rose 2.7% to $3.87 due to share buybacks, and operating cash flow remained solid at $1.02B.
Masco repurchased $571M worth of its own shares in FY2025, reducing the total share count and boosting earnings per share to $3.87 from $3.77 despite net income declining from $822M to $810M. This is a common mechanism where buybacks enhance per-share metrics even when total profits dip.
Based on the financial data, key risks include Masco's negative stockholders' equity of -$185M and $2.95B in long-term debt, which limit financial flexibility, as well as exposure to cyclical housing and remodeling markets that drove a 3.4% revenue decline. Margin compression, with gross margin falling to 35.4% and operating margin to 16.5%, also represents an ongoing concern.
Masco's financial health is mixed: it has strong operating cash flow of $1.02B and a healthy current ratio of 1.81, but carries negative stockholders' equity of -$185M and $2.95B in long-term debt. The company remains profitable with a net margin of 10.7% and ROA of 15.6%, suggesting solid operational performance despite a leveraged balance sheet.
Masco's margins declined in FY2025, with gross margin falling approximately 73 basis points to 35.4% and operating margin dropping roughly 91 basis points to 16.5%. The declines reflect a revenue drop of 3.4% that outpaced cost reductions, though net margin held at 10.7%.