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 ~~September~~March 3031, ~~2024~~2025

☐ 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 ~~September~~March 3031, ~~2024~~2025
Common stock, par value $1.00 per share						~~215~~210,~~748~~942,~~893~~022

MASCO CORPORATION

INDEX

		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited):	1
	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	1
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023	2
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2025 and 2024	3
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	4
	Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023	5
	Condensed Consolidated Statements of Shareholders' Equity for the Three Months Ended March 31, 2025 and 2024	5
	Notes to Condensed Consolidated Financial Statements	76
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1613
Item 4.	Controls and Procedures	2620
	PART II. OTHER INFORMATION	2721
Item 1.	Legal Proceedings	2721
Item 1A.	Risk Factors	2721
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2721
Item 5.	Other Information	2721
Item 6.	Exhibits	2822
	Signature	2923

MASCO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024

(In Millions, Except Share Data)

	September 30, 2024		December 31, 2023
	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash investments	$	~~646~~377	$	634
Receivables	1,~~152~~258		1,~~090~~035
Inventories	1,~~013~~047		~~1,022~~938
Prepaid expenses and other	~~153~~116		~~110~~123
Total current assets	2,~~965~~798		2,~~856~~730
Property and equipment, net	1,~~125~~133		1,~~121~~116
Goodwill	~~610~~605		~~604~~597
Other intangible assets, net	~~230~~218		~~377~~220
Operating lease right-of-use assets	~~238~~237		~~268~~231
Other assets	~~128~~115		~~139~~123
Total assets	$	5,~~296~~107	$	5,~~363~~016
LIABILITIES
Current liabilities:
Accounts payable	$	~~874~~868	$	~~840~~789
Notes payable	3133		3
Accrued liabilities	~~742~~602		~~852~~767
Total current liabilities	1,~~618~~603		1,~~695~~560
Long-term debt	2,945		2,945
Noncurrent operating lease liabilities	~~230~~228		~~258~~223
Other liabilities	~~360~~337		~~349~~342
Total liabilities	$	5,~~154~~113	$	5,~~247~~069
Commitments and contingencies (Note M)
Commitments and contingencies (Note L)
Redeemable noncontrolling interest	—		18
EQUITY
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2024 – 215,700,000; 2023 – 220,600,000	216		221
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2025 – 210,900,000; 2024 – 212,500,000	211		212
Preferred shares authorized: 1,000,000; Issued and outstanding: 2024 and 2023 – None	—		—
Preferred shares authorized: 1,000,000; Issued and outstanding: 2025 and 2024 – None	—		—
Paid-in capital	—		—
Retained deficit	(~~551~~693)		(~~596~~693)
Accumulated other comprehensive income	~~247~~228		~~249~~201
Total Masco Corporation's shareholders' deficit	(88254)		(~~126~~279)
Noncontrolling interest	~~230~~248		~~224~~227
Total equity	~~142~~(6)		98(53)
Total liabilities and equity	$	5,~~296~~107	$	5,~~363~~016

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the Three ~~and Nine~~ Months Ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024

(In Millions, Except Per Common Share Data)

	Three Months Ended September 30,				Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		2024		2023
					2025		2024
Net sales	$	~~1,983~~	$	~~1,979~~	$	61,~~000~~801	$	61,~~085~~926
Cost of sales	~~1,258~~		~~1,235~~		31,~~805~~157		31,~~903~~241
Gross profit	~~725~~		~~744~~		~~2,195~~644		~~2,182~~685
Selling, general and administrative expenses	~~368~~		~~361~~		~~1,123~~358		~~1,081~~367
Operating profit	~~357~~		~~383~~		~~1,073~~286		~~1,101~~318
Other income (expense), net:
Interest expense	~~(25)~~		~~(26)~~		(7526)		(8225)
Other, net	~~(85)~~		~~(11)~~		(957)		(145)
	(109)		(37)		(170)		(96)
					(32)		(30)
Income before income taxes	~~248~~		~~346~~		~~903~~254		~~1,005~~289
Income tax expense	68		86		~~222~~56		~~246~~60
Net income	~~180~~		~~260~~		~~681~~198		~~759~~229
Less: Net income attributable to noncontrolling interest	13		11		4112		4214
Net income attributable to Masco Corporation	$	~~167~~	$	~~249~~	$	~~640~~186	$	~~717~~215
Income per common share attributable to Masco Corporation:
Basic:
Net income	$	~~0.77~~	$	~~1.11~~	$	20.9287	$	30.1997
Diluted:
Net income	$	~~0.77~~	$	~~1.10~~	$	20.9187	$	30.1797

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

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

For the Three ~~and Nine~~ Months Ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024

(In Millions)

	Three Months Ended September 30,				Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		2024		2023
					2025		2024
Net income	$	~~180~~	$	~~260~~	$	~~681~~198	$	~~759~~229
Less: Net income attributable to noncontrolling interest	13		11		4112		4214
Net income attributable to Masco Corporation	$	~~167~~	$	~~249~~	$	~~640~~186	$	~~717~~215
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment	$	33	$	(25)	$	(1)	$	(10)
Currency translation adjustment					$	35	$	(24)
Pension and other post-retirement benefits	—		1		1		1
Other comprehensive income (loss), net of tax					35		(24)
Other comprehensive income (loss), net of tax	33		(24)		—		(9)
Less: Other comprehensive income (loss) attributable to noncontrolling interest					9		(6)
Less: Other comprehensive income (loss) attributable to noncontrolling interest	9		(6)		2		(6)
Other comprehensive income (loss) attributable to Masco Corporation					$	27	$	(18)
Other comprehensive income (loss) attributable to Masco Corporation	$	24	$	(18)	$	(2)	$	(3)
Total comprehensive income					$	234	$	205
Total comprehensive income	$	213	$	236	$	681	$	750
Less: Total comprehensive income attributable to noncontrolling interest					21		8
Less: Total comprehensive income attributable to noncontrolling interest	22		5		43		36
Total comprehensive income attributable to Masco Corporation					$	212	$	197
Total comprehensive income attributable to Masco Corporation	$	192	$	231	$	637	$	714

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the ~~Nine~~Three Months Ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024

(In Millions)

	Nine Months Ended September 30,
	Three Months Ended March 31,
	2024		2023
	2025		2024
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$	~~957~~262	$	~~954~~314
Increase in receivables	(~~142~~225)		(~~120~~258)
(Increase) decrease in inventories	(52)		199
Increase in inventories	(102)		(44)
Decrease in accounts payable and accrued liabilities, net	(9492)		(~~105~~107)
Net cash from operating activities	668		928
Net cash for operating activities	(158)		(94)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Purchase of Company common stock	(~~482~~130)		(~~126~~145)
Cash dividends paid	(~~191~~66)		(~~193~~64)
Purchase of redeemable noncontrolling interest	~~(15)~~—		—(15)
Dividends paid to noncontrolling interest	(25)		(49)
Proceeds from revolving credit borrowings, net	131		49
Proceeds from short-term borrowings	—		77
Proceeds from the exercise of stock options	2		75
Payment of short-term borrowings	—		(11)
Employee withholding taxes paid on stock-based compensation	(8)		(33)
Payment of term loan	—		(200)
Decrease in debt, net	—		(1)
Proceeds from the exercise of stock options	76		37
Net cash for financing activities	(72)		(134)
Employee withholding taxes paid on stock-based compensation	(34)		(29)
Decrease in debt, net	(2)		(4)
Net cash for financing activities	(673)		(498)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(~~112~~32)		(~~181~~31)
Acquisition of business, net of cash acquired	(4)		(136)
Other, net	—		(2)
Proceeds from disposition of business, net of cash disposed	131		—
Net cash for investing activities	(33)		(33)
Other, net	(3)		(4)
Effect of exchange rate changes on cash and cash investments	6		(6)
Net cash from (for) investing activities	12		(321)
Effect of exchange rate changes on cash and cash investments	5		(1)
CASH AND CASH INVESTMENTS:
Increase for the period	12		108
Decrease for the period	(257)		(266)
At January 1	634		~~452~~634
At September 30	$	646	$	560
At March 31	$	377	$	368

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

For the Three ~~and Nine~~ Months Ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024

(In Millions, Except Per Common Share Data)

	Total		CommonShares($1 par value)		Paid-InCapital		Retained (Deficit) Earnings		Accumulated Other Comprehensive Income (Loss)		NoncontrollingInterest
Balance, January 1, 2023	$	(262)	$	225	$	16	$	(947)	$	226	$	218
Balance, January 1, 2024	$	98	$	221	$	—	$	(596)	$	249	$	224
Total comprehensive income	243		—		—		205		17		21
Total comprehensive income (loss)	205		—		—		215		(18)		8
Shares issued	656		12		554		—		—		—
Shares retired:
Repurchased	(56148)		(12)		(3277)		(2368)		—		—
Surrendered (non-cash)	(1714)		—		—		(1713)		—		—
Cash dividends declared	(65)		—		—		(65)		—		—
Stock-based compensation	11		—		11		—		—		—
Balance, March 31, 2023	$	(140)	$	225	$	—	$	(847)	$	243	$	239
Total comprehensive income (loss)	270		—		—		263		(2)		9
Shares issued	11		1		10		—		—		—
Shares retired:
Repurchased	(25)		(1)		(1)		(23)		—		—
Cash dividends declared	(64)		—		—		(64)		—		—
Dividends declared to noncontrolling interest	(49)		—		—		—		—		(49)
Redemption of redeemable noncontrolling interest	4		—		4		—		—		—
Stock-based compensation	420		—		420		—		—		—
Balance, June 30, 2023	$	7	$	225	$	13	$	(671)	$	241	$	199
Balance, March 31, 2024	$	157	$	220	$	—	$	(527)	$	231	$	232
Total comprehensive income (loss)	236		—		—		249		(18)		5
Shares issued	9		—		9		—		—		—
Shares retired:
Repurchased	(45)		(1)		(23)		(21)		—		—
Cash dividends declared	(64)		—		—		(64)		—		—
Stock-based compensation	5		—		5		—		—		—
Balance, September 30, 2023	$	148	$	224	$	4	$	(507)	$	223	$	204



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

MASCO CORPORATION

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

For the Three and Nine Months Ended September 30, 2024 and 2023

(In Millions, Except Per Common Share Data)

	Total		CommonShares($1 par value)		Paid-InCapital		Retained (Deficit) Earnings		Accumulated Other Comprehensive Income (Loss)		NoncontrollingInterest
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
Total comprehensive income	213		—		—		167		24		22
Shares retired:
Repurchased	(194)		(3)		(3)		(188)		—		—
Cash dividends declared	(63)		—		—		(63)		—		—
Stock-based compensation	3		—		3		—		—		—
Balance, September 30, 2024	$	142	$	216	$	—	$	(551)	$	247	$	230

See notes to condensed consolidated financial statements.

Amounts may not add due to rounding.

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 ~~September~~March 3031, ~~2024~~2025, and our results of operations, ~~and~~ comprehensive income (loss) ~~for the three and nine months ended September 30~~, ~~2024 and 2023,~~ cash flows ~~for the nine months ended September 30, 2024~~ and ~~2023 and~~ changes in shareholders' equity for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024. The condensed consolidated balance sheet at December 31, ~~2023~~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 ~~November~~December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-0709, "~~Segment~~Income ~~Reporting~~Taxes (Topic ~~280~~740): Improvements to ~~Reportable~~Income ~~Segment~~Tax Disclosures,” which requires additional ~~disclosures~~income ~~regarding~~tax ~~an entity's reportable segments~~disclosures, particularly regarding ~~significant~~the ~~segment~~effective ~~expenses,~~tax asrate ~~well~~reconciliation asand ~~information~~income ~~relating~~taxes ~~to the chief operating decision maker~~paid. We adopted this standard ~~on a retrospective basis~~ for annual periods beginning January 1, ~~2024, and will adopt this standard for interim periods beginning in~~ 2025. The adoption of this guidance will modify our annual disclosures ~~in 2024~~, but will not have an impact on our financial position and results of operations.

In ~~March~~November 2023, the FASB issued ASU 2023-0207, "~~Investments~~Segment –Reporting ~~Equity Method and Joint Ventures~~ (Topic ~~323~~280): ~~Accounting~~Improvements ~~for~~to ~~Investments~~Reportable inSegment ~~Tax Credit Structures Using the Proportional Amortization Method~~Disclosures,” which ~~permits~~requires additional disclosures regarding an entity's toreportable ~~elect~~segments, toparticularly ~~account~~regarding ~~for~~significant ~~their~~segment ~~tax~~expenses, ~~equity~~as ~~investments~~well ~~using~~as ~~the~~information ~~proportional~~relating ~~amortization~~to ~~method~~the ifchief ~~certain~~operating ~~conditions~~decision ~~are~~maker. ~~met,~~We ~~regardless~~adopted ofthis ~~the~~standard ~~tax~~on ~~credit~~a ~~program~~retrospective ~~from~~basis ~~which~~for ~~the~~annual ~~income~~periods ~~tax~~beginning ~~credits~~January ~~are~~1, ~~received.~~2024, Weand ~~adopted~~for ~~this~~interim ~~standard~~periods beginning ~~January~~in ~~1, 2024~~2025. The adoption of this ~~new~~guidance ~~standard~~modified our disclosures, but did not have an impact on our financial position orand results of operations.

Recently Issued Accounting Pronouncements. In ~~September~~November ~~2022~~2024, the FASB issued ASU ~~2022~~2024-0403, "~~Liabilities~~Income Statement – ~~Supplier~~Reporting ~~Finance~~Comprehensive ~~Programs~~Income – Expense Disaggregation Disclosures (Subtopic ~~405~~220-5040): ~~Disclosure~~Disaggregation of ~~Supplier~~Income ~~Finance~~Statement ~~Program Obligations~~Expenses,”" which requires ~~that~~additional andisclosure ~~entity~~of ~~that uses a supplier finance program in connection with~~ the ~~purchase~~nature of ~~goods~~expenses orincluded ~~services~~in ~~disclose information about~~ the ~~program’s~~income ~~nature,~~statement. ~~activity~~ASU ~~during~~2024-03 ~~the~~is ~~period,~~effective ~~changes~~on ~~from~~a ~~period~~prospective toor ~~period,~~retrospective ~~and~~basis ~~potential magnitude. We adopted this standard~~ for annual periods onbeginning aJanuary ~~retrospective~~1, ~~basis~~2027, ~~including~~and interim periods within those annual periods, beginning January 1, ~~2023~~2028. WeEarly ~~also~~adoption ~~adopted~~is ~~the amendment on rollforward information, which became effective prospectively for annual periods beginning January 1, 2024~~permitted. The adoption of this guidance ~~modified our disclosures and~~ will modify our ~~annual~~ disclosures ~~for the rollforward information in 2024~~, but ~~did~~will not have an impact on our financial position and results of operations.

Recently Issued Accounting Pronouncements. In December 2023, the 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. ASU 2023-09 is effective on a prospective basis for annual periods beginning January 1, 2025, with early adoption permitted. The adoption of this guidance will modify our disclosures, but will not have an impact on our financial position and results of operations.

MASCO CORPORATION

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

B. ACQUISITIONS

In the third quarter of 2023, we acquired all of the share capital of Sauna360 Group Oy (“Sauna360”) for approximately €124 million ($136 million), net of cash acquired. Sauna360 has a portfolio of products that includes traditional, infrared, and wood-burning saunas as well as steam showers. The business is included within the Plumbing Products segment. In connection with this acquisition, we recognized $22 million of indefinite-lived intangible assets, which is related to trademarks, and $45 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 16 years. We also recognized $60 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. During the fourth quarter of 2023 and third quarter of 2024, we updated the allocation of the purchase price to certain identifiable assets and liabilities based on analysis of information as of the acquisition date, which resulted in a $1 million decrease and a $2 million increase to goodwill, respectively.

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 ~~systems, for preliminary consideration of $125 million, net of cash disposed, and subject to final closing adjustments~~system. In connection with the divestiture, we recognized a preliminary loss of $81 million for the three and nine months ended September 30, 2024, which is included in other, net in our condensed consolidated statements of operations. 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.

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 September 30, 2024
	Three Months Ended March 31, 2025
	Plumbing Products		Decorative Architectural Products		Total
Primary geographic areas:
North America	$	~~831~~795	$	~~764~~617	$	1,~~595~~412
International	~~388~~389		—		~~388~~389
Total	$	1,~~219~~185	$	~~764~~617	$	1,~~983~~801
	Nine Months Ended September 30, 2024
	Plumbing Products		Decorative Architectural Products		Total
Primary geographic areas:
North America	$	2,480	$	2,336	$	4,815
International	1,185		—		1,185
Total	$	3,665	$	2,336	$	6,000

	Three Months Ended September 30, 2023
	Three Months Ended March 31, 2024
	Plumbing Products		Decorative Architectural Products		Total
Primary geographic areas:
North America	$	~~814~~792	$	~~788~~734	$	1,~~602~~526
International	~~377~~400		—		~~377~~400
Total	$	1,~~191~~192	$	~~788~~734	$	1,~~979~~926
	Nine Months Ended September 30, 2023
	Plumbing Products		Decorative Architectural Products		Total
Primary geographic areas:
North America	$	2,428	$	2,447	$	4,875
International	1,210		—		1,210
Total	$	3,638	$	2,447	$	6,085

We ~~recognized~~reversed $1 million ~~and $8 million~~ of revenue for the three months ended ~~September~~March 3031, ~~2024~~2025 ~~and 2023, respectively,~~ related to performance obligations settled in previous quarters of the same year. We recognized $7 million and $8 million of revenue for the three and nine months ended September 30, 2024, respectively, and $6 million and $11 million of revenue for the three and nine months ended September 30, 2023, respectively, related to performance obligations settled in previous years.

Our contract asset balance was $2 million ~~and $3 million~~ at ~~September~~both March 3031, ~~2024~~2025 and December 31, ~~2023, respectively~~2024. Our contract liability balance was $1517 million and $45 million at ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024, respectively.

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:

	Nine Months Ended September 30, 2024		Twelve Months Ended December 31, 2023
	Three Months Ended March 31, 2025		Twelve Months Ended December 31, 2024
Balance at January 1	$	1110	$	811
Provision for expected credit losses during the period	21		74
Write-offs charged against the allowance	(51)		(6)
Recoveries of amounts previously written off	1		12
Balance at end of period	$	1011	$	1110

E. ~~DEPRECIATION AND AMORTIZATION~~ INVENTORIES

Depreciation and amortization expense was $113 million and $107 million for the nine months ended September 30, 2024 and 2023, respectively.

F. INVENTORIES

The components of inventory were as follows, in millions:

	At September 30, 2024		At December 31, 2023
	At March 31, 2025		At December 31, 2024
Finished goods	$	~~594~~626	$	~~630~~541
Raw materials	~~322~~320		~~298~~300
Work in process	96101		9497
Total	$	1,~~013~~047	$	~~1,022~~938

~~G. GOODWILL AND OTHER INTANGIBLE ASSETS~~7

Goodwill at September 30, 2024, by segment, was as follows, in millions:

	Gross Goodwill At September 30, 2024		Accumulated Impairment Losses		Net Goodwill At September 30, 2024
Plumbing Products	$	680	$	(301)	$	380
Decorative Architectural Products (A)	305		(75)		230
Total	$	986	$	(376)	$	610

(A) As a result of the divestiture of Kichler in the third quarter of 2024, both gross goodwill and accumulated impairment losses for the Decorative Architectural Products segment were reduced by $64 million as the goodwill had been fully impaired prior to the divestiture.

MASCO CORPORATION

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

GF. GOODWILL AND OTHER INTANGIBLE ASSETS ~~(Concluded)~~

~~The~~Goodwill ~~changes~~at ~~in the carrying amount of goodwill for the nine months ended September~~March 3031, ~~2024~~2025, by segment, ~~were~~was as follows, in millions:

	Gross Goodwill At December 31, 2023		Accumulated Impairment Losses		Net Goodwill At December 31, 2023		Acquisitions (B)		Foreign Currency Translation		Net Goodwill At September 30, 2024
	Gross Goodwill At March 31, 2025		Accumulated Impairment Losses		Net Goodwill At March 31, 2025
Plumbing Products	$	~~677~~675	$	(301)	$	~~377~~375	$	2	$	1	$	~~380~~
Decorative Architectural Products	~~366~~305		(~~139~~75)		~~227~~230		4		—		~~230~~
Total	$	~~1,043~~981	$	(~~440~~376)	$	~~604~~605	$	6	$	1	$	~~610~~

~~(B) In~~The ~~the~~changes ~~third~~in ~~quarter~~the ofcarrying ~~2024,~~amount ~~we recognized $2 million~~ of goodwill ~~in our Plumbing Products segment related to our acquisition of Sauna360 (refer to Note B~~ for ~~additional information). In~~ the ~~second~~three ~~quarter~~months ofended ~~2024~~March 31, we2025, ~~recognized~~by $4segment, ~~million~~were ofas ~~goodwill~~follows, in ~~our~~millions: ~~Decorative Architectural Products segment related to an immaterial acquisition.~~

The carrying value of our other indefinite-lived intangible assets was $81 million and $108 million at September 30, 2024 and December 31, 2023, respectively, and principally included registered trademarks. The carrying value of our definite-lived intangible assets was $149 million (net of accumulated amortization of $97 million) at September 30, 2024 and $269 million (net of accumulated amortization of $120 million) at December 31, 2023, and principally included customer relationships. The decrease in our indefinite-lived intangible assets and definite-lived intangible assets is primarily a result of the divestiture of Kichler.


	Gross Goodwill At December 31, 2024		Accumulated Impairment Losses		Net Goodwill At December 31, 2024		Foreign Currency Translation		Net Goodwill At March 31, 2025
Plumbing Products	$	667	$	(301)	$	367	$	8	$	375
Decorative Architectural Products	305		(75)		230		—		230
Total	$	973	$	(376)	$	597	$	8	$	605

HThe carrying value of our other indefinite-lived intangible assets was $80 million and $79 million at March 31, 2025 and December 31, 2024, respectively, and principally included registered trademarks. ~~SUPPLIER~~The ~~FINANCE~~carrying ~~PROGRAM~~value of our definite-lived intangible assets was $138 million (net of accumulated amortization of $106 million) at March 31, 2025 and $140 million (net of accumulated amortization of $102 million) at December 31, 2024, and principally included customer relationships.

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 institutionsG. ASUPPLIER ~~third~~FINANCE party administers the program; our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. We do not enter into agreements with any of the participating financial institutions in connection with the program. Our current payment terms with a majority of our suppliers generally range from 45 to 90 days. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program.PROGRAM

~~All~~We ~~outstanding~~facilitate ~~payments~~a ~~owed~~voluntary ~~under~~supply ~~the~~chain finance program ~~are~~(the ~~recorded~~"program") ~~within~~to ~~accounts~~provide ~~payable~~certain inof our ~~condensed~~suppliers ~~consolidated~~with ~~balance~~the ~~sheets~~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 $5246 million and $5336 million at ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $2824 million atand ~~both~~$23 ~~September~~million at March 3031, ~~2024~~2025 and December 31, ~~2023. All payments made under the program are recorded as a decrease in accounts payable and accrued liabilities~~2024, ~~net, in our condensed consolidated statements of cash flows~~respectively.

11H. DEBT

MASCO CORPORATION

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

I. 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 ~~September~~March 3031, ~~2024~~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 no borrowings were outstanding at September 30, 2024.8

On April 26, 2022, we entered into a 364-day $500 million senior unsecured delayed draw term loan (the "term loan") due April 26, 2023 with a syndicate of lenders. The term loan and commitments thereunder were subject to prepayment or termination at our option and the loans bore interest at SOFR plus a spread adjustment and 0.70%. The covenants, including the financial covenants, were substantially the same as those in the 2022 Credit Agreement. We repaid $300 million during 2022 and the remaining $200 million upon the maturity of the term loan on April 26, 2023.

On May 9, 2023, our Hansgrohe SE subsidiary entered into €70 million ($77 million) of short-term borrowings to support working capital needs. The loans contained no financial covenants and €60 million ($63 million) remained borrowed and outstanding at a weighted average interest rate of 4.807% at September 30, 2023, and was fully repaid at December 31, 2023.

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 September 30, 2024 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, 2023 was approximately $2.6 billion, compared with the aggregate carrying value of $3.0 billion.

MASCO CORPORATION

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

JH. ~~SEGMENT~~DEBT ~~INFORMATION~~(Concluded)

~~Information~~In byorder ~~segment~~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 ~~geographic~~requirements ~~area~~relating ~~was~~to aslegal ~~follows~~compliance, maintenance of our properties and insurance) and our representations and warranties in ~~millions:~~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 $131 million was borrowed and outstanding at a weighted average interest rate of 5.554% at March 31, 2025.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2024		2023		2024		2023		2024		2023		2024		2023
	Net Sales (A)				Operating Profit				Net Sales (A)				Operating Profit
Our operations by segment were:
Plumbing Products	$	1,219	$	1,191	$	240	$	223	$	3,665	$	3,638	$	713	$	673
Decorative Architectural Products	764		788		138		181		2,336		2,447		436		493
Total	$	1,983	$	1,979	$	378	$	404	$	6,000	$	6,085	$	1,149	$	1,166
Our operations by geographic area were:
North America	$	1,595	$	1,602	$	322	$	348	$	4,815	$	4,875	$	967	$	972
International	388		377		56		56		1,185		1,210		182		194
Total, as above	$	1,983	$	1,979	378		404		$	6,000	$	6,085	1,149		1,166
General corporate expense, net					(21)		(21)						(76)		(65)
Operating profit					357		383						1,073		1,101
Other income (expense), net					(109)		(37)						(170)		(96)
Income before income taxes					$	248	$	346					$	903	$	1,005

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 March 31, 2025 was approximately $2.8 billion, compared with the aggregate carrying value of $3.1 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.

~~(A) Inter-segment~~I. ~~sales~~SEGMENT ~~were not material.~~INFORMATION

K.Information ~~INCOME~~by ~~TAXES~~segment was as follows, in millions:

Our effective tax rate was 27 percent and 25 percent for the three and nine months ended September 30, 2024, respectively, and was 25 percent and 24 percent for the three and nine months ended September 30, 2023, respectively. Our effective tax rate for the three months ended September 30, 2024 was unfavorably impacted primarily by $4 million of income tax expense resulting from adjustments to reflect filed tax returns and an increase in the liability for uncertain tax positions.


	Three Months Ended March 31, 2025
	Plumbing Products		Decorative Architectural Products		Total
Net sales (A)	$	1,185	$	617	$	1,801
Operating expenses (B)	957		514
Corporate expenses (C)	10		6
Segment operating profit	$	217	$	96	$	313
General corporate expense, net (C)					(27)
Operating profit					286
Other income (expense), net					(32)
Income before income taxes					$	254


	Three Months Ended March 31, 2024
	Plumbing Products		Decorative Architectural Products		Total
Net sales (A)	$	1,192	$	734	$	1,926
Operating expenses (B)	954		601
Corporate expenses (C)	12		9
Segment operating profit	$	226	$	124	$	350
General corporate expense, net (C)					(31)
Operating profit					318
Other income (expense), net					(30)
Income before income taxes					$	289

MASCO CORPORATION

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

LI. ~~INCOME~~SEGMENT ~~PER~~INFORMATION ~~COMMON SHARE~~ (Concluded)


	Property Additions				Depreciation and Amortization
	Three Months Ended March 31,				Three Months Ended March 31,
	2025		2024			2025		2024
Plumbing Products	$	26	$	18		$	26	$	27
Decorative Architectural Products	6		12			7		10
Corporate	—		—			2		2
Total	$	32	$	31		$	35	$	38


	Assets
	At March 31, 2025		At December 31, 2024
Plumbing Products	$	3,333	$	3,131
Decorative Architectural Products	1,548		1,435
Corporate	226		450
Total	$	5,107	$	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.

J. INCOME TAXES

Our effective tax rate was 22 percent and 21 percent for the three months ended March 31, 2025 and 2024, respectively. Our effective tax rate for the three months ended March 31, 2025 and 2024 was impacted by $9 million and $16 million of income tax benefits, respectively. For both periods, the income tax benefits primarily resulted from a reduction in the liability for uncertain tax positions resulting from the expiration of statutes of limitations and stock-based compensation.

MASCO CORPORATION

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

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 September 30,				Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		2024		2023
					2025		2024
Numerator (basic and diluted):
Net income	$	~~167~~	$	~~249~~	$	~~640~~186	$	~~717~~215
Less: Allocation to unvested restricted stock awards	—		—		—		—
Net income attributable to common shareholders	$	~~167~~	$	~~249~~	$	~~640~~186	$	~~717~~215
Denominator:
Basic common shares (based upon weighted average)	~~217~~		~~225~~		~~219~~212		~~225~~221
Add: Dilutive effect of stock options and other stock-based incentives	—		1		1—		1
Diluted common shares	~~218~~		~~226~~		~~220~~213		~~226~~221

For the three months ended March 31, 2025, basic and ~~nine~~diluted income per common share were calculated using the treasury stock method. For the three months ended ~~September~~March 3031, 2024 ~~and 2023~~, 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 September 30,		Nine Months Ended September 30,
		Three Months Ended March 31,
	2024	2023	2024	2023
			2025	2024
Number of stock options	53	~~392~~	~~168~~159	~~861~~109
Number of restricted stock units	—	8	—82	4—
Number of performance restricted stock units	—	15	—47	15—

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 ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025, we repurchased and retired approximately 61.68 million shares of our common stock (including 0.53 million shares to offset the dilutive impact of restricted stock units granted in the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025) for approximately $~~486~~131 million, inclusive of excise tax of $31 million. At ~~September~~March 3031, ~~2024~~2025, we had approximately $~~1.2~~766 ~~billion~~million remaining under the 2022 authorization.

We have declared and paid cash dividends per common share of $0.~~290~~31 and $0.~~870~~29 for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024,~~2025 ~~respectively,~~ and ~~$0.285 and $0.855 for the three and nine months ended September 30~~2024, ~~2023,~~ respectively.

1411

MASCO CORPORATION

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

ML. 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 ~~believe we have adequate defenses in these matters. 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:

	Nine Months Ended September 30, 2024		Twelve Months Ended December 31, 2023
	Three Months Ended March 31, 2025		Twelve Months Ended December 31, 2024
Balance at January 1	$	8381	$	8083
Accruals for warranties issued during the period	299		3538
Accruals related to pre-existing warranties	41		78
Settlements made (in cash or kind) during the period	(3410)		(4243)
Other, net (including currency translation, acquisitions, and divestitures)	(2)		2
Other, net (including currency translation and divestitures)	1		(4)
Balance at end of period	$	8082	$	8381

~~N. INSURANCE SETTLEMENT~~12

During the three months ended September 30, 2023, we received an insurance settlement payment in our Decorative Architectural Products segment related to lost sales resulting from a weather event that occurred in Texas in 2021 which impacted the operations of a resin supplier and interrupted our ability to manufacture certain paints and other coating products. The insurance settlement payment increased gross profit and operating profit by $40 million for the three and nine months ended September 30, 2023.


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-announced tariffs, particularly those related to China, to result in significantly higher costs to us, principally in our Plumbing Products segment. We ~~aim~~seek to ~~offset~~mitigate the ~~potential~~impact of higher tariffs and other unfavorable impact ofto our costs over time with pricing, cost savings initiatives, sourcing changes, and ~~lower~~other activities. Consumer demand for our products, ~~with~~however, ~~productivity~~could ~~improvements,~~further ~~pricing,~~diminish if consumer confidence erodes and the cost of our products and other ~~initiatives~~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.

~~THIRD~~FIRST QUARTER ~~2024~~2025 ~~AND~~VERSUS ~~THE~~ FIRST ~~NINE MONTHS 2024 VERSUS THIRD~~ QUARTER ~~2023 AND THE FIRST NINE MONTHS 2023~~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 nine~~ months ended ~~September~~March 3031, ~~2024~~2025 compared to the same ~~periods~~period of ~~2023~~2024.

NET SALES

Below is a summary of our net sales, in millions, for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024:

	Three Months Ended September 30,						Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		Change		2024		2023		Change
							2025		2024		Change
Net sales, as reported	$	~~1,983~~	$	~~1,979~~	—	%	$	61,~~000~~801	$	61,~~085~~926	(16)	%
Acquisitions	(13)		—				(58)		—
Divestitures							—		(59)
Divestitures	—		(9)				—		(9)
Net sales, excluding divestitures							1,801		1,867		(4)	%
Net sales, excluding acquisitions and divestitures	1,970		1,969		—	%	5,942		6,076		(2)	%
Currency translation							18		—
Currency translation	6		—				24		—
Net sales, excluding divestitures and the effect of currency translation							$	1,819	$	1,867	(3)	%
Net sales, excluding acquisitions, divestitures and the effect of currency translation	$	1,976	$	1,969	—	%	$	5,966	$	6,076	(2)	%

1613

Our net sales for the three months ended ~~September~~March 3031, ~~2024~~2025 were $1,~~983~~801 million, which ~~remained~~decreased ~~flat~~ six percent compared to the three months ended ~~September~~March 3031, ~~2023~~2024. Excluding ~~acquisitions,~~ divestitures and the effect of currency translation, net sales ~~remained~~decreased ~~flat~~three percent. Our net sales for three months ended March 31, 2025 decreased primarily due to ~~higher~~lower sales volume mostly driven by paints and other coating products which decreased sales by three percent and unfavorable sales mix of plumbing products which ~~increased~~decreased sales by one percent, ~~mostly~~partially offset by ~~unfavorable~~higher ~~sales~~net ~~mix~~selling prices of plumbing products which ~~decreased~~increased sales by one percent.

Our net sales for the nine months ended September 30, 2024 were $6,000 million, which decreased one percent compared to the nine months ended September 30, 2023. Excluding acquisitions, divestitures and the effect of currency translation, net sales decreased two percent. Our net sales for the nine months ended September 30, 2024 decreased primarily due to lower sales volume across the entire company which decreased sales by two percent, lower net selling prices of decorative architectural products which decreased sales by one percent and unfavorable sales mix of plumbing products which decreased sales by one percent. These amounts were 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 nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024:

	Three Months Ended September 30,								Nine Months Ended September 30,
				Three Months Ended March 31,
	2024			2023			Favorable / (Unfavorable)		2024			2023			Favorable / (Unfavorable)
									2025			2024			Favorable / (Unfavorable)
Net sales	$	~~1,983~~		$	~~1,979~~		—	%	$	61,~~000~~801		$	61,~~085~~926		(16)	%
Cost of sales	~~(1,258)~~			~~(1,235)~~			~~(2)~~	%	(31,~~805~~157)			(31,~~903~~241)			37	%
Gross profit	$	~~725~~		$	~~744~~		~~(3)~~	%	$	~~2,195~~644		$	~~2,182~~685		1(6)	%
Gross margin	~~36.6~~		%	~~37.6~~		%	~~(100) bps~~		3635.68		%	35.96		%	7020 bps
Selling, general and administrative expenses	$	~~(368)~~		$	~~(361)~~		~~(2)~~	%	$	(~~1,123~~358)		$	(~~1,081~~367)		~~(4)~~2	%
Selling, general and administrative expenses as a percent of net sales	~~(18.6)~~		%	~~(18.2)~~		%	~~(40) bps~~		(1819.79)		%	(1719.81)		%	(9080) bps
Operating profit	$	~~357~~		$	~~383~~		~~(7)~~	%	$	~~1,073~~286		$	~~1,101~~318		(310)	%
Operating profit margin	~~18.0~~		%	~~19.4~~		%	~~(140) bps~~		1715.9		%	1816.15		%	(2060) bps

~~Three~~Our ~~Months~~gross ~~Ended~~profit ~~September~~for 30the three months ended March 31, ~~2024~~2025 was $644 million, which decreased six percent, and was negatively impacted by three percent due to lower sales volume, three percent due to the divestiture of our Kichler Lighting ("Kichler") business, as well as higher commodity costs, partially offset by cost savings initiatives and two percent due to higher net selling prices.

Our ~~gross~~selling, ~~profit~~general and administrative expenses for the three months ended ~~September~~March 3031, ~~2024~~2025 ~~was~~were $~~725~~358 million, which decreased ~~three~~two percent, and ~~was~~were ~~negatively~~positively impacted by five percent due to the ~~non-recurrence~~divestiture of ~~the~~Kichler ~~receipt~~and ofone anpercent ~~insurance~~due ~~settlement~~to ~~payment~~favorable inforeign ~~2023~~currency, aspartially ~~well~~offset asby ~~higher~~two ~~commodity~~percent ~~costs~~due ~~and~~to ~~unfavorable~~higher ~~sales~~marketing ~~mix, partially offset by cost savings initiatives~~costs.

Our ~~selling,~~operating ~~general~~profit ~~and administrative expenses~~ for the three months ended ~~September~~March 3031, ~~2024~~2025 ~~were~~was $~~368~~286 million, which ~~increased~~decreased ~~two~~10 percent, and ~~were~~was ~~primarily~~negatively impacted by ~~higher~~decreased ~~marketing~~gross ~~costs~~profit, partially offset by lower selling, general and administrative expenses.

Our operating profit for the three months ended September 30, 2024 was $357 million, which decreased seven percent, and was negatively impacted by decreased gross profit and higher selling, general and administrative expenses.

Nine Months Ended September 30, 2024

Our gross profit for the nine months ended September 30, 2024 was $2,195 million, which increased one percent, and was positively impacted by cost savings initiatives and one percent due to higher net selling prices. These amounts were partially offset by two percent due to the non-recurrence of the receipt of an insurance settlement payment in 2023, two percent due to lower sales volume, as well as unfavorable sales mix and one percent due to unfavorable foreign currency translation.

Our selling, general and administrative expenses for the nine months ended September 30, 2024 were $1,123 million, which increased four percent, and were primarily impacted by higher employee-related costs.

Our operating profit for the nine months ended September 30, 2024 was $1,073 million, which decreased three percent, and was negatively impacted by higher selling, general and administrative expenses, partially offset by increased gross profit.

OTHER INCOME (EXPENSE), NET

Below is a summary of our other income (expense), net, in millions, for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024:

	Three Months Ended September 30,						Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		Favorable / (Unfavorable)		2024		2023		Favorable / (Unfavorable)
							2025		2024		Favorable / (Unfavorable)
Interest expense	$	~~(25)~~	$	~~(26)~~	4	%	$	(7526)	$	(8225)	9(4)	%
Other, net	~~(85)~~		~~(11)~~		~~(673)~~	%	(957)		(145)		(~~579~~40)	%
Other income (expense), net	$	~~(109)~~	$	~~(37)~~	~~(195)~~	%	$	(~~170~~32)	$	(9630)	(777)	%

~~Other, net included a preliminary loss on the sale of Kichler Lighting ("Kichler") of $81 million for the three and nine months ended September 30, 2024.~~14

INCOME TAXES

Below is a summary of our income tax expense, in millions, and our effective tax rate for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024:

	Three Months Ended September 30,							Nine Months Ended September 30,
				Three Months Ended March 31,
	2024			2023			Favorable / (Unfavorable)	2024			2023			Favorable / (Unfavorable)
								2025			2024			Favorable / (Unfavorable)
Income tax expense	$	~~(68)~~		$	~~(86)~~		~~21%~~	$	(~~222~~56)		$	(~~246~~60)		107%
Effective tax rate	~~(27)~~		%	~~(25)~~		%	~~(200) bps~~	(2522)		%	(2421)		%	(100) bps

Our effective tax rate for the three months ended ~~September 30~~March 31, 2025 and 2024 was ~~unfavorably~~ impacted ~~primarily~~ by $49 million and $16 million of income tax ~~expense~~benefits, ~~resulting~~respectively. ~~from~~For ~~adjustments~~both toperiods, ~~reflect~~the ~~filed~~income tax ~~returns~~benefits ~~and~~primarily anresulted ~~increase~~from a reduction in the liability for uncertain tax positions resulting from the expiration of statutes of limitations and stock-based compensation.

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 nine~~ months ended ~~September~~March 3031, ~~2024~~2025 and ~~2023~~2024:

	Three Months Ended September 30,						Nine Months Ended September 30,
			Three Months Ended March 31,
	2024		2023		Favorable / (Unfavorable)		2024		2023		Favorable / (Unfavorable)
							2025		2024		Favorable / (Unfavorable)
Net income	$	~~167~~	$	~~249~~	~~(33)~~	%	$	~~640~~186	$	~~717~~215	(1113)	%
Diluted income per common share	$	~~0.77~~	$	~~1.10~~	~~(30)~~	%	$	20.9187	$	30.1797	(810)	%

1915

Business Segment ~~and Geographic Area~~ Results

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

	Three Months Ended September 30,				Percent Change		Nine Months Ended September 30,				Percent Change
					Three Months Ended March 31,				Percent Change
	2024		2023		2024 vs. 2023		2024		2023		2024 vs. 2023
							2025		2024		2025 vs. 2024
Net Sales:
Plumbing Products	$	~~1,219~~	$	~~1,191~~	2	%	$	31,~~665~~185	$	31,~~638~~192	(1)	%
Decorative Architectural Products	~~764~~		~~788~~		~~(3)~~	%	~~2,336~~617		~~2,447~~734		(516)	%
Total	$	~~1,983~~	$	~~1,979~~	—	%	$	61,~~000~~801	$	61,~~085~~926	(16)	%
North America	$	1,595	$	1,602	—	%	$	4,815	$	4,875	(1)	%
International	388		377		3	%	1,185		1,210		(2)	%
Total	$	1,983	$	1,979	—	%	$	6,000	$	6,085	(1)	%

	Three Months Ended September 30,				Percent Change		Nine Months Ended September 30,				Percent Change
					Three Months Ended March 31,				Percent Change
	2024		2023		2024 vs. 2023		2024		2023		2024 vs. 2023
							2025		2024		2025 vs. 2024
Operating Profit:
Plumbing Products	$	~~240~~	$	~~223~~	8	%	$	~~713~~217	$	~~673~~226	6(4)	%
Decorative Architectural Products	~~138~~		~~181~~		~~(24)~~	%	~~436~~96		~~493~~124		(1223)	%
Total	$	~~378~~	$	~~404~~	~~(6)~~	%	$	~~1,149~~313	$	~~1,166~~350	(111)	%
North America	$	322	$	348	(7)	%	$	967	$	972	(1)	%
General corporate expense, net							(27)		(31)		(13)	%
International	56		56		—	%	182		194		(6)	%
Total operating profit							$	286	$	318	(10)	%
Total	378		404		(6)	%	1,149		1,166		(1)	%
General corporate expense, net	(21)		(21)		—	%	(76)		(65)		17	%
Total operating profit	$	357	$	383	(7)	%	$	1,073	$	1,101	(3)	%

The following discussion of business segment ~~and geographic area~~ results refers to the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025 compared to the same ~~periods~~period of ~~2023~~2024. Changes in operating profit in the following business segment ~~and geographic area~~ results discussion exclude general corporate expense, net.

BUSINESS SEGMENT RESULTS DISCUSSION

Plumbing Products

Sales

Net sales in the Plumbing Products segment ~~increased~~decreased ~~two percent and~~ one percent for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024, respectively~~2025. In local currencies (including sales in currencies outside their respective functional currencies), net sales increased ~~two percent and~~ one percent ~~for the three and nine months ended September 30, 2024, respectively~~. ~~For~~Higher the three months ended September 30, 2024, higher sales volume increased sales by two percent and the acquisition of Sauna360 Group Oy ("Sauna360") increased sales by one percent. These increases were partially offset by unfavorable sales mix which decreased sales by one percent. For the nine months ended September 30, 2024, higher net selling prices ~~and the acquisition of Sauna360 each~~ increased sales by ~~two~~one percent., ~~These increases were~~ partially offset by ~~lower sales volume and an~~ unfavorable sales mix which ~~each~~ decreased sales by one percent.

Operating Results

Operating profit in the Plumbing Products segment for the three months ended ~~September~~March 3031, ~~2024~~2025 was ~~positively~~negatively impacted by ~~cost savings initiatives and~~ higher ~~sales~~commodity ~~volume~~costs, ~~partially offset by~~ higher ~~commodity~~marketing ~~and transportation~~ costs and unfavorable sales mix~~. Operating profit for the nine months ended September 30~~, ~~2024~~partially ~~was~~offset ~~positively impacted~~ by ~~cost savings initiatives and~~ higher net selling prices, ~~partially offset by unfavorable sales mix~~ and ~~increased~~cost ~~employee-related~~savings ~~costs~~initiatives.

Decorative Architectural Products

Sales

Net sales in the Decorative Architectural Products segment decreased ~~three~~16 percent ~~and five percent~~ for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024, respectively~~2025. ~~For~~The ~~the three months ended September 30, 2024, the decrease was due primarily to the~~ divestiture of our Kichler business ~~and~~decreased ~~lower~~ sales ~~volume~~by ofeight ~~builders'~~percent ~~hardware~~ and ~~lighting products. For the nine months ended September 30, 2024, the decrease was due primarily to~~ lower sales volume ~~and~~decreased ~~lower~~sales ~~net~~by ~~selling~~seven ~~prices across the segment~~percent.

Operating Results

Operating profit in the Decorative Architectural Products segment for the three months ended ~~September~~March 3031, ~~2024~~2025 was ~~negatively~~primarily impacted by the non-recurrence of the receipt of an insurance settlement payment in 2023, higher marketing costs, and lower sales volume, partially offset by cost savings initiatives. Operating profit for the nine months ended September 30, 2024 was negatively impacted by ~~the non-recurrence of the receipt of an insurance settlement payment in 2023,~~ lower ~~net selling prices, and lower~~ sales volume~~, partially offset by cost savings initiatives~~.

~~GEOGRAPHIC AREA RESULTS DISCUSSION~~16

North America

Sales

North America net sales were flat for the three months ended September 30, 2024 and decreased one percent for the nine months ended September 30, 2024. For the three months ended September 30, 2024, sales increased one percent due to the acquisition of Sauna360, mostly offset by one percent due to the divestiture of Kichler. For the nine months ended September 30, 2024, lower sales volume decreased sales by two percent and lower net selling prices of decorative architectural products decreased sales by one percent, partially offset by the acquisition of Sauna360 and higher net selling prices of plumbing products which each increased sales by one percent.

Operating Results

North America operating profit for the three months ended September 30, 2024 was negatively impacted by the non-recurrence of the receipt of an insurance settlement payment in 2023 and higher marketing costs, partially offset by cost savings initiatives. For the nine months ended September 30, 2024, operating profit was negatively impacted by the non-recurrence of the receipt of an insurance settlement payment in 2023, lower sales volume, unfavorable sales mix and higher employee-related costs, partially offset by cost savings initiatives and higher net selling prices.

International

Sales

International net sales increased three percent for the three months ended September 30, 2024, and in local currencies (including sales in currencies outside their respective functional currencies), net sales increased three percent. Higher sales volume increased sales by five percent and higher net selling prices increased sales by one percent, partially offset by unfavorable sales mix which decreased sales by three percent. International net sales decreased two percent for the nine months ended September 30, 2024, and in local currencies, net sales decreased one percent. Unfavorable sales mix decreased sales two percent, partially offset by higher net selling prices which increased sales by one percent.

Operating Results

International operating profit for the three months ended September 30, 2024 increased primarily due to higher sales volume, mostly offset by unfavorable sales mix. For the nine months ended September 30, 2024, operating profit was negatively impacted by unfavorable sales mix, higher employee-related costs and unfavorable foreign currency translation, partially offset by cost savings initiatives and higher net selling prices.

Liquidity and Capital Resources

Overview of Capital Structure

We had cash and cash investments of approximately $~~646~~377 million and $634 million at ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~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 ~~September~~March 3031, ~~2024~~2025 and December 31, ~~2023~~2024, $~~332~~265 million and $~~323~~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 IH to the condensed consolidated financial statements for additional information.

22The 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 $131 million was borrowed and outstanding at a weighted average interest rate of 5.554% at March 31, 2025.

364-day Term Loan

Other Liquidity and Capital Resource Activities

OnAs ~~May~~part 9,of ~~2023~~our ongoing efforts to improve our cash flow and related liquidity, we work with suppliers to optimize our ~~Hansgrohe~~terms SEand ~~subsidiary~~conditions, ~~entered~~including ~~into~~extending ~~€70 million~~payment terms. We also facilitate a voluntary supply chain finance program (~~$77 million~~the "program") to provide certain of ~~short-term~~our ~~borrowings~~suppliers with the opportunity to ~~support~~sell ~~working~~receivables ~~capital~~due ~~needs~~from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. The ~~loans~~amounts ~~contained~~confirmed noas ~~financial~~valid ~~covenants~~under the program and ~~€60~~included in accounts payable were $46 million (and $63 36 million) ~~remained~~at ~~borrowed~~March 31, 2025 and ~~outstanding~~December 31, 2024, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $24 million and $23 million at March 31, 2025 and December 31, 2024, respectively. All payments made under the program are recorded as a ~~weighted~~decrease ~~average~~in ~~interest~~accounts ~~rate~~payable and accrued liabilities, net, in our condensed consolidated statements of 4cash flows.~~807%~~ atA ~~September~~downgrade ~~30,~~in ~~2023~~our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and ~~was~~participate ~~fully~~in, ~~repaid~~the atprogram. ~~December~~We 31do not believe such risk would have a material impact on our working capital or cash flows, ~~2023~~as substantially all of our payments are made outside of the program.

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 $52 million and $53 million at September 30, 2024 and December 31, 2023, respectively. Of the amounts confirmed as valid under the program, the amounts owed to participating financial institutions were $28 million at both September 30, 2024 and December 31, 2023. 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.17

Acquisitions

In the third quarter of 2023, we acquired all of the share capital of Sauna360 for approximately €124 million ($136 million), net of cash acquired. Sauna360 has a portfolio of products that includes traditional, infrared, and wood-burning saunas as well as steam showers.

Divestitures

In the third quarter of 2024, we sold our Kichler business, a provider of decorative residential and light commercial lighting products, ceiling fans, and LED lighting systems, for preliminary consideration of $125 million, net of cash disposed, and subject to final closing adjustments.

Share Repurchases

Cash Flows

For the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025, net cash ~~provided~~used byfor operations was $~~668~~158 million, primarily driven by ~~operating~~changes ~~profit~~in working capital, partially offset by ~~changes~~operating ~~in working capital~~profit.

For the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025, net cash used for financing activities was $~~673~~72 million, primarily due to $~~482~~130 million for the repurchase and retirement of our common stock, and $~~191~~66 million for the payment of cash dividends, $34 million for employee withholding taxes paid on stock-based compensation, $25 million for dividends paid to noncontrolling interest, and $15 million for the purchase of the remaining equity interest in Easy Sanitary Solutions B.V. These uses of cash were partially offset by $76131 million of net proceeds from ~~the~~revolving ~~exercise~~credit ofloan ~~stock options~~borrowings.

For the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025, net cash ~~provided~~used byfor investing activities was $1233 million, primarily driven by $~~131~~32 million of ~~proceeds from the sale of Kichler, net of cash disposed, partially offset by $112 million of~~ capital expenditures.

2418

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.

2519


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 ~~September~~March 3031, ~~2024~~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 ~~September~~March 3031, ~~2024~~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.

26During the second quarter of 2025, we plan to upgrade the enterprise resource planning system in one of our operating units within our Plumbing Products segment. The current system will be upgraded to a newer version and is not in response to any identified deficiency or weakness in the Company's internal control over financial reporting. However, this upgrade may involve complexities that could result in modification to certain internal controls at the operating unit.

MASCO CORPORATION

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings involving us is set forth in Note ML 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, ~~2023~~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 ~~September~~March 3031, ~~2024~~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
7/1/24 - 7/31/24	763,419	$	70.74	763,419	$	1,302,670,493
1/1/25 - 1/31/25	467,144	$	77.05	467,144	$	860,357,022
8/1/24 - 8/31/24	866,003	$	76.22	866,003	$	1,236,663,318
2/1/25 - 2/28/25	180,116	$	77.73	180,116	$	846,356,045
9/1/24 - 9/30/24	893,300	$	80.61	893,300	$	1,164,655,516
3/1/25 - 3/31/25	1,125,861	$	71.07	1,125,861	$	766,345,395
Total for the quarter	21,~~522~~773,~~722~~121	$	7673.1232	21,~~522~~773,~~722~~121	$	1766,~~164~~345,~~655,516~~395

Item 5. Other Information

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

During the three months ended ~~September~~March 3031, ~~2024~~2025, none of our officers or directors adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.

2721

MASCO CORPORATION

PART II. OTHER INFORMATION, Continued

Item 6. Exhibits

10.a						Employment Offer Letter dated March 3, 2025 between Jonathan J. Nudi and Masco Corporation.
10.b						Retention Agreement dated March 5, 2025 between Jai Shah 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 ~~September~~March 3031, ~~2024~~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)

2822

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

~~October~~April 2923, ~~2024~~2025

2923

Filing Compare · MASCO CORP /DE/