Earnings call transcript: Masco Q2 2025 beats earnings forecast, stock surges

Masco Corporation exceeded market expectations for Q2 2025, reporting an earnings per share (EPS) of $1.30, compared to the anticipated $1.08. This 20.37% earnings surprise was accompanied by a revenue of 2.05 billion, surpassing the forecast of 2 billion. In response, Masco’s stock surged 8.09% in pre-market trading, reflecting strong investor confidence. According to InvestingPro analysis, the company’s current market valuation appears fairly priced relative to its Fair Value, with a strong financial health rating of "GOOD" based on comprehensive metrics.

Key Takeaways

• Masco’s EPS and revenue both exceeded forecasts, highlighting robust financial performance.
• Operating profit and margins improved, despite a 2% decline in net sales.
• The stock price rose significantly in pre-market activity, indicating positive market sentiment.
• The company continues to innovate, with new product launches contributing to sales.
• Macroeconomic challenges persist, with a decline in existing home sales.

Company Performance

Masco Corporation demonstrated resilience in Q2 2025, achieving growth in operating profit and margins despite a challenging market environment. The company has maintained its position in the premium and luxury segments, outperforming competitors in the plumbing sector. However, a 2% decrease in net sales reflects ongoing market pressures.

Financial Highlights

• Revenue: 2.05 billion, a slight increase from the forecasted 2 billion.
• Earnings per share: $1.30, up 8% year-over-year.
• Gross margins improved by 10 basis points to 37.7%.
• Operating profit increased by $14 million to $413 million.

Earnings vs. Forecast

Masco’s Q2 2025 EPS of $1.30 significantly exceeded the forecast of $1.08, marking a 20.37% surprise. This performance is a continuation of the company’s trend of surpassing earnings expectations, indicating effective management and strategic execution.

Market Reaction

Following the earnings release, Masco’s stock price increased by 5.65% to $69.45, with a pre-market surge of 8.09% to $71.05. This positive movement aligns with the company’s strong financial results and investor optimism about future growth prospects. The company maintains a healthy current ratio of 1.75 and operates with a moderate debt level, while generating substantial free cash flow with a yield of 6%.

Outlook & Guidance

Masco projects full-year EPS to range between $3.90 and $4.10, reflecting confidence in ongoing operational improvements and market strategies. The company anticipates flat sales growth, excluding divestitures and currency impacts, with the plumbing segment expected to grow slightly. Analyst consensus suggests moderate upside potential, with price targets ranging from $60 to $82. For detailed analysis and comprehensive insights, including exclusive ProTips and financial metrics, explore Masco’s full research report on InvestingPro.

Executive Commentary

"We will continue to play our game and keep serving our consumers and then be really well set up for when the market gets back to historical growth rates," stated John Nudi, President and CEO. CFO Rick Westenberg added, "We’re continuing to leverage the Masco operating system... with continuous improvement and cost reduction."

Risks and Challenges

• The decline in existing home sales could impact demand in the remodeling market.
• Macroeconomic pressures and lower consumer confidence pose ongoing challenges.
• Potential supply chain disruptions and tariff impacts remain concerns.

Q&A

During the earnings call, analysts inquired about Masco’s tariff mitigation strategies and e-commerce growth plans. The company addressed consumer demand trends and provided insights on pricing and market conditions, reinforcing its strategic focus on innovation and market expansion.

Full transcript - Masco Corporation (MAS) Q2 2025:

Operator: morning, ladies and gentlemen. Welcome to the Masco Corporation Second Quarter twenty twenty five Conference Call. My name is Marissa, and I will be your operator for today’s call. As a reminder, today’s conference call is being recorded for replay purposes. I will now turn the call over to Robin Zondervan, Vice President, Investor Relations and FP and A.

You may begin.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation: Thank you, operator, and good morning, everyone. Welcome to Masco Corporation’s twenty twenty five second quarter conference call. With me today are John Nudi, President and CEO of Masco and Rick Westenberg, Masco’s Vice President and Chief Financial Officer. Our second quarter earnings release and the presentation slides are available on our website under Investor Relations. Following our remarks, we will open the call for analyst questions.

Please limit yourself to one question with one follow-up. If we can’t take your question now, please call me directly at (313) 792-5500. Our statements today will include our views about our future performance, which constitute forward looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward looking statements. We describe these risks and uncertainties in our Risk Factors and other disclosures in our Form 10 ks and our Form 10 Q that we filed with the Securities and Exchange Commission.

Our statements will also include non GAAP financial metrics. Our references to operating profit and earnings per share will be as adjusted unless otherwise noted. We reconcile these adjusted metrics to GAAP in our earnings release and presentation slides, which are available on our website under Investor Relations. With that, I will now turn the call over to John.

John Nudi, President and CEO, Masco Corporation: Thank you, Robin. Good morning, everyone, and thank you for joining us. I want to start today by expressing my gratitude to all of our employees, customers, suppliers, and investors who’ve been so welcoming and supportive as I officially started my role as president and CEO of Masco as of the beginning of this month. I am humbled by the opportunity to lead such an outstanding company, and I intend to build on Masco’s successful history of creating exceptional value for all of our stakeholders. During my two years serving on our Board of Directors, I came to deeply respect and admire this company.

I strongly believe in the power of our brands, the strength of our people and the opportunities ahead. I plan to use my first one hundred days to actively engage with internal and external stakeholders to hear their views on Masco, our industry, and further opportunities for our business. I already had the opportunity to kick off my listening tour, the headquarters of Delta Faucet and one of their manufacturing facilities. I returned from that trip energized by the team’s passion, shared sense of ownership, and desire for growth. As I visit our other businesses over the next several weeks, I’m excited to work closely with our entire Masco team to continue to strengthen our portfolio of brands, enhance consumers’ lives, drive profitable growth and deliver meaningful shareholder value.

Now let’s turn to our second quarter performance. Please turn to Slide five. As I mentioned, I believe in the power of Masco’s brands. During the quarter, our innovative products received several recognitions. Beginning with North America Plumbing, we are very pleased with Delta Faucet’s performance in their newest product category of water filtration and a $1,200,000,000 market for under counter water filtration products.

Delta and Breezos award winning reverse osmosis systems are the most certified tankless systems based on leading competitors, National Sanitation Foundation certifications. These products are also the first reverse osmosis systems in the industry to earn the WaterSense certification label from the U. S. Environmental Protection Agency. In our international plumbing business, Hansgrohe continues to demonstrate their leadership in branding and design.

This quarter, Hansgrohe won four Red Dot Design Awards, including the Best of the Best Award for their Rain Dance Alive showering products. In our Decorative Architectural segment, Baer received the number one rating for interior paint from a leading independent third party rating agency for the twelfth year in a row. This year, we swept the top three spots with our Dynasty, Marquee and Ultra products. Two of Behr’s Wood Stain products were also rated number one in the respective categories. These top ratings across multiple product categories show the depth and strength of products across our Behr brand.

Finally, Behr introduced ChatHue, an innovative AI tool designed to make choosing the perfect paint color even easier. I’m incredibly proud of the team at Behr for evolving the way we approach color selection, providing our consumers with a more personalized and enhanced experience. I’ll now shift to discuss our second quarter results and outlook for 2025. Please turn to Slide six. We were very pleased with our operating performance in the second quarter, particularly as we navigated a dynamic geopolitical and macroeconomic environment.

We have worked diligently to address the impacts from additional tariffs through various mitigating actions, including cost savings initiatives, ongoing changes to our sourcing footprint and pricing where necessary. For the quarter, our net sales decreased 2%. However, in local currency and excluding the Kichler divestiture, sales were in line with the year prior. Gross margins increased 10 basis points to 37.7%. Operating profit grew $14,000,000 to $413,000,000 and operating profit margin increased 100 basis points to 20.1%.

Lastly, we delivered earnings per share growth of 8% in the quarter to $1.3 per share. Turning to our segments. Plumbing sales increased 4% in local currency. North American Plumbing sales increased 5% in local currency, driven by favorable pricing and volume. Delta Faucet continues to deliver strong performance through consumer driven demand for their innovative products and industry leading brands.

International plumbing sales increased 1% in local currency as we continue to see stability in many European markets, while other markets such as China remain challenged. Operating profit for the segment was $276,000,000 and operating margin increased 110 basis points to 21. Turning to our Decorative Architectural segment, sales decreased 12% in the quarter or 4% excluding our divestiture of Kichler. Overall, paint sales decreased mid single digits. DIY paint sales decreased high single digits.

Demand for DIY paint remains soft across the industry, driven by low existing home turnover and the dampened macroeconomic environment, and we expect this pressure to continue throughout the remainder of this year. In propane, sales increased mid single digits. Our strategic investments in this category and our close partnership with The Home Depot continue to result in growth with pro customers. The strength of our Behr brand and the quality of our products resonates with pro customers and allows us to capitalize on the sizable growth opportunity in the propane market. Operating profit for the segment was $157,000,000 and operating margin was 21.3%.

We are proud of the work of our teams across our business during the first half of the year as they mobilized quickly to implement various mitigation actions in response to increased tariffs, higher commodity costs and the macroeconomic uncertainty. Our teams were able to deliver strong financial results through focused execution and responding rapidly to the changing environment. Now turning to our expectations for the full year. While some uncertainty surrounding near term market conditions persist, we are restoring financial guidance for 2025. Rick will provide more detail into the components of our guidance.

However, given the overall macroeconomic environment, we now anticipate the global repair and remodel market to be down low single digits. We expect to continue to outperform the market. We anticipate our sales to be roughly flat, excluding the impacts of divestiture and currency, with lower volumes largely offset with pricing. Based on our expected operating performance and capital deployment actions, we anticipate adjusted earnings per share for 2025 to be in the range of $3.9 to $4.1 per share. It is important to note that the 2025 estimates we are providing today include the impact from an active tariffs that are currently in effect net of our various mitigation actions.

These estimates do not include impacts from any potential future tariffs or changes in existing tariffs. While some market uncertainty remains for the near term, the structural factors for repair and remodel activity over the mid to long term are strong, namely the growing age of the housing stock and home equity levels. Nearly 1,700,000 more homes will reach the prime remodeling ages of 20 to 39 years old by 2027. Homeowners are staying in their homes longer and home equity levels are near record highs. We continue to be focused on achieving additional growth, and we are structured to achieve favorable incremental benefits from volume growth due to our available capacity, high levels of productivity and disciplined cost structures.

We believe we are well positioned to grow faster than our competition to evolve and lead while remaining true to the values that have been foundational throughout our nearly one hundred year history. It is an absolute privilege for me to join such a high performing company, but on iconic brands are part of people’s daily lives, and I’m honored to help write the next chapter. With that, I’ll turn the call over to Rick to go over our second quarter results and our 2025 outlook in more detail. Rick?

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Thank you, John, and good morning, everyone. Thank you for joining. As Robin mentioned, my comments today will focus on adjusted performance, excluding the impact of rationalization charges and other onetime items. Turning to Slide eight. Sales in the second quarter decreased 2%, but were in line with the prior year, excluding the impacts of our divestiture of Kichler and favorable currency.

Our divestiture of Kichler in the 2024 decreased sales by 3% year over year in the 2025, while currency represented a 1% increase in sales. In local currency, North American sales decreased 3% or were in line with the prior year, excluding the divestiture impact. International sales increased 1% in local currency. Gross margin increased 10 basis points in the quarter to 37.7%. SG and A decreased $27,000,000 driven by our divestiture and lower employee related expenses.

SG and A as a percent of sales improved 90 basis points to 17.6% in the quarter. Operating profit increased 4% to $413,000,000 in the quarter, and our margin expanded 100 basis points to 20.1%. Operating profit was driven by cost productivity initiatives, favorable SG and A and a positive price cost relationship, partially offset by lower volume. Lastly, our EPS increased 8% to $1.3 per share. Turning to Slide nine.

Plumbing sales increased 5% in the second quarter or 4% excluding the favorable impact of currency, largely driven by pricing, which increased sales by 3%. In local currency, North American Plumbing sales increased 5% in the quarter. This performance was primarily driven by Delta Faucet, which delivered strong growth in both the trade and e commerce channels. In local currency, international plumbing sales increased 1% driven by pricing actions. Hansgrohe achieved growth in many of its European markets, including its key market of Germany.

This was largely offset by softness in other markets, particularly China. Segment operating profit in the second quarter increased 11% to $276,000,000 and operating margin expanded 110 basis points to 21%. Operating performance was driven by cost savings initiatives and a favorable price cost relationship. Turning to Slide 10. Decorative Architectural sales decreased 12% in the second quarter.

The divestiture of Kichler reduced sales by 8%. In the quarter, total paint sales decreased mid single digits due to lower volume. Pro paint sales were up mid single digits and DIY paint sales decreased high single digits. Given the continued softness in the overall DIY market and the unfavorable impact of inventory timing this year versus 2024 as discussed on prior earnings calls, we anticipate our total paint sales for the full year to decrease mid single digits. We anticipate our full year DIY paint business to decrease high single digits.

In our Pro Paint business, we expect sales to increase mid single digits for the full year. Operating profit in the second quarter was $157,000,000 impacted by lower volume and an unfavorable price cost relationship, partially offset by cost savings initiatives. Operating profit margin was 21.3% and was favorably impacted by the divestiture of Kichler. Turning to Slide 11. Our balance sheet remains strong with gross debt to EBITDA at two times at quarter end.

We ended the quarter with $1,300,000,000 of liquidity, including cash and availability under our revolving credit facility. Working capital was 20.1 of sales at quarter end. Working capital was impacted by tariff related dynamics, including higher material costs and pricing, increasing our working capital balances. As a result of these tariff related impacts, we anticipate that our working capital as a percent of sales will be approximately 17.5 at year end. Given our strong cash generation, we returned $167,000,000 to shareholders in the second quarter through dividends and share repurchases, including the repurchase of $101,000,000 in stock.

As it relates to capital allocation, we expect to invest approximately $175,000,000 through capital expenditures to pay a dividend of $1.24 per share and currently anticipate deploying at least $450,000,000 towards share repurchases or acquisitions in 2025. Now let’s turn to Slide 12 and review our outlook for the full year. The market environment remains volatile and uncertain, particularly related to tariffs. That said, there has been some improved visibility since our Q1 earnings. Based on this visibility, we are reinstating our 2025 guidance.

Please note that the guidance being provided today includes the impacts of currently enacted tariffs in effect in July. We estimate the total annualized cost impact of these incremental tariffs to be approximately $210,000,000 before mitigation, down from $675,000,000 as of our Q1 earnings call. Of the $210,000,000 annualized cost impact, approximately $140,000,000 relates to the incremental 30% China tariffs, while the remaining $70,000,000 is driven by the 10% global reciprocal tariffs and 50% tariff on steel and aluminum. Of this approximately $210,000,000 total annual cost, we expect a 2025 in year impact of approximately $140,000,000 before mitigation, with the impact largely occurring in the second half of the year. Our teams continue to actively work to mitigate these additional costs through a combination of levers.

These include cost reductions, continued efforts to change our sourcing footprint and pricing where necessary. We anticipate that these mitigation actions will largely offset the direct cost impacts of the currently enacted tariffs in 2025. It is important to note that our guidance does not attempt to estimate the impact of potential future tariffs, including on copper or any changes in existing tariffs. Turning to the overall market. Our expectation is that The U.

S. And international repair and remodel markets will decrease low single digits in 2025. For Masco, we expect our sales in 2025 to decrease low single digits, impacted by the 2024 divestiture of Kichler, which will reduce sales by approximately 2% year over year. We anticipate currency will have a favorable impact of approximately 1%, similar to the favorable impact experienced in the second quarter. Excluding the impacts of divestiture and currency, we anticipate Masco’s overall sales to be roughly flat year over year, with lower volumes largely offset with pricing.

We will continue to invest in our business for future growth, while also maintaining cost discipline. As a result, we expect SG and A as a percent of sales to be in line with 2024. As always, we will take appropriate actions to address our costs as the year develops based on market conditions. We anticipate total company operating margin to be approximately 17% in 2025, including the impacts of tariffs and lower volume. As we think about our results in the first half of the year versus our expected second half performance, we anticipate there to be some headwinds in the second half, particularly as it relates to tariff costs and commodity inflation.

In addition, we experienced some favorability in certain cost items in the second quarter, such as lower employee related costs that are not expected to repeat in the second half of the year. Finally, as a reminder, fourth quarter sales will face a challenging year over year comparison due to the favorable inventory timing impact we experienced in our paint business in the fourth quarter of last year. In our Plumbing segment, we expect 2025 full year sales to be up low single digits. We anticipate the full year Plumbing margin will be approximately 18.5%. In our Decorative Architectural segment, we expect 2025 sales to decrease low double digits or mid single digits excluding the impacts of our divestiture.

We anticipate the full year Decorative Architectural margin to be approximately 18%. Finally, as John mentioned earlier, our 2025 EPS estimate is $3.9 to $4.1 per share. This assumes a $211,000,000 average diluted share count for the year and a 24.5% effective tax rate, which is consistent with our 2024 effective tax rate. With that, I would like to open up the call for questions. Operator?

Operator: Thank And the first question comes from John Lovallo with UBS. Please go ahead.

John Lovallo, Analyst, UBS: Good morning, guys. Thanks for taking my questions. The first one is on the expectation to allocate $450,000,000 to repos and acquisitions. I guess maybe two parts here. One, I mean, you expect any acquisitions to be pretty close to core?

In other words, not adding an additional leg. And then more importantly, I mean, what does the landscape look like out there? And would you expect the majority of this $450,000,000 to be allocated to share repos this year?

John Nudi, President and CEO, Masco Corporation: Hi, John. It’s, John Nudi. Maybe I’ll take the first part of the question. I’ll let Rick, give a little bit more color as well. We feel really good about where we are from a portfolio standpoint.

Keith and the management team over the last decade have done a terrific job really being focused on, you know, r and r, low ticket items, and we really like where we play today. So I would say m and a is gonna be bolt on in nature. We’ll stay committed to the strategy that we have in place. As you know, I’ve been on the board for the last couple of years. So myself and the rest of the board have been actively involved in the strategy to get a believe in it.

Maybe over to Rick for little bit more detail.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah. John, with regards to the $4.50 estimate for the year, we’ve we’ve repurchased about 230,000,000 of shares through the first half of the year. And absent any m and a transaction, you’d expect us to deploy the remaining amount to share repurchases.

John Lovallo, Analyst, UBS: Okay. Yeah. That’s really helpful. And then in terms of propane, it’s been growing really nicely. It’s sort of mid single digits each quarter over, I think, the past five quarters.

I mean, how are you sort of thinking about the sustainability of the

Speaker 7: of this growth as we move through the back half of

John Lovallo, Analyst, UBS: this year and into next year?

John Nudi, President and CEO, Masco Corporation: Hey, John. Our our propane business has grown nicely, between 2020 and 2024. It’s grown 70%, and obviously taking share, through that period. We think there’s a lot more room to run. As you know, our our partner, the Home Depot, is very focused on the pro.

We’re very committed to working with them and putting strategies in place to continue to grow into the future. So we think it can continue to grow at an outsized rate for us as we move into the future.

Speaker 7: Okay. Thank you, guys.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Thanks, John.

Operator: Your next question comes from Stephen King with Evercore ISI. Please go ahead.

Stephen King, Analyst, Evercore ISI: Yes. Thanks very much, guys. Appreciate it. Yes, obviously strong results here, particularly domestically. And I guess in the Plumbing business, in particular, was curious if you felt like there was maybe any pre buy activity, maybe ahead of some anticipated price increases.

I think you said e commerce was strong. Maybe you could give us a sense for did you see what you might consider to be some element of prebuy, you know, in some of your channels?

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah. Good morning, Steven. It’s Rick. So we we did see a little bit of of prebuy really on the plumbing side. It wasn’t significant, so we didn’t call it out in our prepared remarks.

But we did see a bit on the plumbing side as it pertains to getting ahead a little bit of the tariff prices. But I would say from an overall channel inventory standpoint, channel inventories are are reasonably healthy, really, across the the plumbing segment. So for this time of year, everything looks pretty pretty normal.

Stephen King, Analyst, Evercore ISI: Right. And I’d like to expand

John Nudi, President and CEO, Masco Corporation: our our our business is really, you know, firing at all cylinders right now. We really like our our brand building. We like the innovation that they’re putting to the market. We know they’re growing share overall, and they’re growing quite a bit of share when it comes to ecommerce. So really like the performance of our our biggest plumbing business in in North America.

Stephen King, Analyst, Evercore ISI: Encouraging. Appreciate that. Wanted to switch gears to Paint, and particularly DIY. I think you’ve done a good job laying out the dynamics between DIY and Pro. So my question is a little bit of a broader one.

I’m curious about the handoff from baby boomers to millennials. I think you said in the past that the as baby boomers sort of age out of the DIY kind of age bracket that the backfilling by millennials isn’t quite sufficient to take up the slack. And so I was wondering if you could expound on that. In particular, do you have any data or any research which suggests how millennial paint consumption looks compared to baby boomers when they were at a similar age? I’m thinking particularly on a gallons basis.

I was curious if you have any insight into that.

John Nudi, President and CEO, Masco Corporation: Steven, this is John. We we won’t get into that specific data right now. We can continue to look and talk about as we move forward. I think the bigger thing that’s affecting DIY right now is really existing home sales, which we know is highly correlated to DIY sales. And if you look at existing home sales, they’re down dramatically certainly during the COVID period.

They’re down pretty significantly since the pre COVID period as well. In fact, existing home sales are at a three decade low right now. So we would say that’s the major driver of the softness in DIY. And as consumer confidence improves, as interest rates get a bit better, we’d expect that to pick up. Continue to look hard at, you know, millennials.

They’re they’re forming households now, and their behaviors are are certainly different than other generations. At the same time, we are seeing DIY behaviors being exhibited by them. We’ll continue to look at that. We can continue to talk about that as we move into the future as well.

Stephen King, Analyst, Evercore ISI: Okay. Thanks a lot, guys.

Speaker 7: Thank you.

Operator: Your next question comes from Anthony Pettinari with Citi. Please go ahead.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Good morning.

John Lovallo, Analyst, UBS: In Plumbing, given some of the consumer trends that you called out, I’m wondering how the brands are performing between good, better, best, so Peerless, Delta, BRISO. And then for the full year sales guidance of up low single digits, I’m sorry if I missed this, but in terms of price versus volume, what would you expect that would break out as?

John Nudi, President and CEO, Masco Corporation: Yes. So, Anthony, this is John. I’ll take the first part and turn it over to Rick for the second part. We we really like the performance of our brands. When we look at what’s holding up best, it’s really our upper premium and luxury brands that consumer continues to spend and continues to invest in remodeling.

I would say some of our our mid tier brands, we’re seeing a bit of trade down, but nothing overly concerning But our luxury brands and our upper premium is really performing quite strong quite strongly right now. Turn over to Rick for the second part.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah. Sure, Anthony. With regards to our our expectations on sales in the plumbing segment, so we we had we we indicated in our guidance that we would expect plumbing sales to be up low single digits. The composition of that is really pricing partially offset by lower volume. So we do expect a bit lower volume as we as we move through the course of the year, but more than offset by by pricing.

John Lovallo, Analyst, UBS: Okay. That that’s helpful. I’ll turn it over.

Operator: Your next question comes from Michael Rao with JPMorgan. Please go ahead.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation0: Thanks. Good morning, everyone. Thanks for taking my questions. Wanted to first try and dive in a little bit to your demand trends during the second quarter. You know, we’ve heard so far this earning season from, you know, other companies that there’s been some disruption, more on the inventory and, retail side as opposed to the end user perhaps.

But would love to get a sense across both Plumbing and Decorative, how that progressed throughout the quarter, you know, if there were any kind of unusual movements, know, from a channel perspective or from an end customer perspective?

John Nudi, President and CEO, Masco Corporation: Yes. So, Mike, this is John. I would say, in plumbing, we didn’t see anything all that unusual. Rick mentioned earlier, again, we’ve seen with with tariffs and pricing, maybe a little bit of pull forward, but nothing too concerning. And, again, across our different channels, we have seasonal movements and other things, but nothing a surprise there.

In paint, it’s really the dynamic between DIY and pro. And, again, our our DIY business is soft. I think that’s consistent across the rest of industry. We believe that we are holding share in DIY. At the same time, pro is growing nicely for us, and we believe that we absolutely are taking share.

We think there’s a lot more room to run there. Again, if you look at our over overall share levels in pro, you know, they’re much lower than they are in DIY. So, again, that’s an area that we believe that we can continue to focus on with our retail partner in the Home Depot and continue to get some nice sized gains as we move forward.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation0: Great. Thanks for that. Secondly, on the mitigation actions against the tariffs, was wondering if you can give a little more detail there in terms of maybe unpacking how those actions would fall out if you think about the $140,000,000, how that would roughly be offset between supply chain cost control and price? And if it would be kind of evenly matched in 3Q or 4Q or if there’d be a kind of a greater hit in 3Q maybe before some of the actions fully come to bear? And if I could just throw in a small third question, if you’re able to quantify the second quarter non repeating cost benefits that help the margins, you know, in in 2Q, that’d be helpful as well.

Thanks.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah. Sure, Mike. It’s Rick. I’ll answer your third question first. With regards to the the cost benefits that we experienced in q two, so our just to dimension it, our s g and a cost were down favorably about $27,000,000.

About half of that related to the divestiture of Kichler. So the the the those costs going away. And then the other half of that, roughly speaking, was favorable cost performance. Some timing, but mostly favorable items that we don’t expect to repeat in the second half of the year. So, hopefully, that dimensions the magnitude of the favorability we saw in cost in q two.

As it pertains to your your second question on on the tariff cadence and the mitigation actions, what we’ve said is with regards and it’s important to note that we are talking about currently enacted tariffs. So not tariffs that are, you know, may or or expected to go into effect here in August, but tariffs that are in effect here in July are in your impact of those tariffs is approximately 140,000,000 and largely in the second half of the year. In terms of our mitigation, we really are pulling on all three levers. And there’s many other elements to our mitigation activity, but the three main levers are pricing, cost, reductions, and sourcing footprint. Really, the the drivers of the mitigation this year are gonna be the the cost reduction and pricing activities.

As we mentioned before, the resourcing activity that we’ve been doing, primarily moving imports from China to other markets, is going to be something that we’ve accelerated, and we continue to build on momentum in that regard. But that’s largely gonna be a 2026, mitigation, impact. But we’re not gonna get into the the the dimension or the split between pricing costs. Suffice it to say that they’re both significant contributors in terms of our mitigation. I think in terms of cadence during the course of the year, again, mostly largely in the second half of the year, in terms of tariff impact as well as as well as our mitigation activities.

I think the one thing to note, that we will highlight, it wasn’t mentioned in the in the prepared remarks is, as you may recall, well, first of all, China tariffs, as we all know, are are currently sitting at an incremental 30%. But as you recall, for about a month period of time from about April 10 to May 12, there was incremental tariffs of a 145% imposed on imports from China. Although we did manage, our import activity during that window of time, we did still import products into The US during that window of time, and we’re, impacted by the increased tariffs at a 145%. That really is flowing through our inventory, and that will be an impact that we’ll experience in the first half of the second half of the year, so really on a q three basis. So that’s the one kind of timing element that I would call out.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation0: Great. Thank you.

Operator: Your next question comes from Matthew Bouley with Barclays. Please go ahead.

Stephen King, Analyst, Evercore ISI: Good morning, everyone. Thanks for taking the question. Welcome, John, to the call. Questions for you. You know, obviously, you’ve only been in the seat here for, just a few weeks.

But curious, you know, as you’ve kinda, you know, delved deeper into the company, obviously, you’re not new to the company having been previously on the board. But as you’ve delved deeper, as you’ve spoken to the board under the new role, any any just kinda high level thoughts on your early priorities? You know, what what might you’ve looked to kinda tweak from a strategic perspective? And, you know, what might be some of the goals and and and, I guess, milestones we can look for from you. Thank you.

John Nudi, President and CEO, Masco Corporation: Yep. You’re welcome. Absolutely. So, you know, I am spending my first hundred days just really listening and learning. I’ve been active in getting out with our teams.

I I was, again, with our Delta team. I’m heading to Germany next week. I’ll be on the West Coast with the Baron Watkins team the week after that. Spent time with customers. I I really value that.

I’ve been met all of our major customers and and some of them twice since I was announced, and we’ll continue to focus on that. And and what I see and what I continue to hear is that Masco is an incredibly strong company. And, again, I knew that being on the board and coming in with teams that really know our business, know how to innovate. We have strong brands, which is great. And our strategy, think, is is spot on with repair, remodel, and low ticket items.

I think the one thing, and and this won’t surprise anyone likely, is that we we would like to grow a bit faster on top line standpoint and to do that profitably. So that’s what I’m really focused on is understanding what are some levers for us to continue to drive, you know, strong margins and profit like we have historically, and at the same time accelerate our top line. And some of the opportunities we’re talking about internally are leveraging digital bit more aggressively in things like ecommerce and digital marketing and even strategic revenue management. But, again, it’s early days, but just know that that is the area that I will be focused on with the rest of the team to continue to do all the great things that we do here at Masco. We’ll probably do it with a bit more top line and and profitable top line at that.

Stephen King, Analyst, Evercore ISI: Excellent. Great. Well, we’ll we’ll certainly look forward to the the news on that front. Second question, guess, for Rick. You know, you had mentioned that this is on the tariffs, of course.

So the you know, you’re you’re not including what may change from a tariff perspective in August, perhaps even tomorrow. So if I’m thinking about Vietnam, perhaps even the copper announcement yesterday. I’m not sure if what you source from a brass components perspective would or would not be included in that. So we just kinda love to hear your thoughts on as some of these things go into effect, any potential framework, dollar framework you can give us, and and how you would be thinking about mitigating those those, you know, new tariffs coming. Thank you.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah. Sure, Matt. And and appreciate the question. Obviously, it’s a very dynamic environment. Remains uncertain as as you mentioned.

There was a proclamation yesterday as it pertains to the $2.32 tariffs on copper that are effective August 1. What I would say is we’re pretty focused on providing our outlook and guidance based off of tariffs that are in place and enacted, and that informed us with regards to our guidance that we shared here this morning. As it pertains to dimensioning the future tariffs, whether that’s copper or in in the case of of other countries, the reciprocal tariffs changing, you know, it’s premature for us to really dimension that. Obviously, we’ve run different scenarios and and and the like internally. But as it pertains to to influencing our outlook, at the end of the day, it really will depend on what the ultimate rates are, the timing of those, and some of the specific regulations.

So with regards to copper, we know the timing and the rate, but we don’t know the composition and the HTS code. So it’s premature for us to estimate what the impact is for Masco specifically. It does impact our our sourcing. It will also have an impact on commodities. As you’ve seen lately, the commodity costs have been fairly volatile.

So at this point, you know, it would be, premature for us to to to share estimates just because we don’t have full visibility in terms of the implications of where they may settle. That said, as we’ve demonstrated in the past, we’ll be transparent, with regards to what those impacts are once they’re once they’re known and we provide an updated outlook. We’ll update the, the street as it pertains to those impacts, again, when we have have those, those known and and we provide an updated outlook.

Stephen King, Analyst, Evercore ISI: Alright. Understood. Thanks again, and good luck, guys.

Speaker 7: Thanks, Matt. Thanks.

Operator: Your next question comes from Sam Reid with Wells Fargo. Please go ahead.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation1: Awesome. Thanks so much. John, also welcome aboard. I believe you took anywhere from, I want to say, a 7% to 9% price in May in plumbing based on, the letter you sent out

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: to some of your customers, if

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation1: I was reading it correctly. Just wanted to talk through the reception on that price, perhaps by channel. Give us a sense as to what realization on that pricing could look like, especially as we move into the second half. And then, you know, just digging a little bit deeper, it does sound like plumbing volumes are gonna slow a little bit in the second half, if I’m listening to your commentary correctly. Is that just a function of elasticity, or are you embedding something, you know, kind of more market specific like a slowdown?

Just wanna unpack those dynamics.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Hey, Sam. It’s Rick. With regards to pricing actions, we’re not gonna disclose specific pricing actions, certainly not by channel. You know, we we’ll we provided an outlook as as it pertains to pricing impacts on plumbing segment overall, and we indicated it was a low single digit 3% benefit here in q two, and we’re expecting a mid single digit benefit for the full year. And so you can kinda read into that what you can as it pertains to the the magnitude of the pricing.

Mean, it continues to be something that we continue to to look at. And it’s really something that we work with our channel partners on in addition to our our cost in in sourcing mitigation actions. As it pertains to Yeah. That helps. Cadence Oh, cool.

Yeah. In regards to your second question, Sam, in terms of cadence, you know, I I would say that what we’re seeing is is we mentioned, before, we did see some pull forward in terms of sales It wasn’t significant, but that is some somewhat impacting our expectations in the second half of the year. I mean, just as a general matter, we’re just seeing some headwinds from a macroeconomic perspective that’s impacting the overall industry. And so as I mentioned earlier, we’re expecting plumbing, volume to be down low single digits, but to be more than offset by pricing.

So our expectation is for for the plumbing segment overall to be up low single digits for the year.

Speaker 7: That’s very helpful, Rick.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation1: And then you’ve talked about adjustments to strategic sourcing, you know, since, a lot of this tariff noise started to enter the narrative. And I realize it’s it’s kind of early days, but could you contextualize any early wins, perhaps steps you’ve taken to reorient your footprint to more tariff favorable geographies like Mexico, for instance? And then just to quickly follow-up on the commodity piece, can you remind us what the lag typically is between spot and impact to your p and l? Thanks.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Sure, Sam. So so with regards to the yeah. Sorry about that, Sam. So with regards to from a sourcing perspective, as we’ve articulated in the past, we’ve really focused on reducing our exposure to China. We’ve effectively reduced our exposure from to China by about 45% since 2018, and that continues to be a focus.

Really, we’re focused overall from in terms of building a resilient and cost effective supply supply chain. And so that entails sourcing from multiple countries. Obviously, the tariff environment is dynamic as we’ve talked about before, and so we’re we wanna be dynamic as well and flexible. So in terms of in terms of what we’ve done, we’ve largely moved some sourcing out of China to other markets, and we’ll continue to do that. We expect to accelerate those efforts this year and to have much more of an impact in terms of next year.

And the team has done an excellent job just in terms of overall managing the tariff exposure as well as mitigating our our cost overall, and we’ll continue to do that.

John Nudi, President and CEO, Masco Corporation: Maybe maybe just one add, and that’s that we have a significant manufacturing presence in The US today. We’ll continue to build on that. We have 29 manufacturing facilities, 21 distribution centers. So, we have a significant footprint in The US as well.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Thanks, John. As it pertains to commodity cadence, generally speaking, it’s about a a two quarter impact. So you’d expect the inflation product inflation in copper and other raws that we saw in q two to really impact us in q four on a on a on a cadence perspective.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation1: All helpful color, guys. Thanks so much. I’ll pass it on.

John Nudi, President and CEO, Masco Corporation: Thank you.

Operator: Your next question comes from Trevor Allison with Wolfe Research. Please go ahead.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation2: Hi, good morning.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Thank you for taking my questions and welcome to

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation2: the call, John. Rick, I wanted to follow-up on some of the comments you just made in answering that last question, specifically on your China exposure. You’ve made a lot of progress over the last several years reducing that exposure. How significantly do you expect to reduce it from here moving forward if you look out over the next twelve to eighteen months? And then previously, the expectation was China tariff rates are gonna be a 145%.

Clearly, that’s that’s come down a lot since then. Does that change the rapidity in which you are shifting your supply chain or or your views on the ultimate end state?

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Sure. Sure, Trevor. So with regards to our, sourcing footprint out of China, as as we’ve articulated in the past, we reduced our China exposure by 45% since 2018, and we’ve articulated and shared in the past that our our exposure to China import tariffs is about 450,000,000 currently. We’re not gonna quantify in terms of what that end state looks like. Needless to say, we’re continuing to focus on reducing the exposure to China.

In in terms of in terms of the dynamics with tariffs, yes, there’s been a volatile dynamic with regards to China tariffs. They increased us all the way up to a 145%, which we’ve mentioned. They are now sitting at an incremental 30%, but keep in mind that’s on top of the initial tariffs from 2018, 2019. So the all in tariff rate for imports from China is roughly 55%. So it still makes economic sense for us to be, aggressively looking at diversifying our sourcing footprint.

And just from an overall geopolitical, mitigation standpoint, it seems to be the prudent thing to do. So we’re gonna continue to do that, but our focus is is to really develop a resilient and flexible sourcing footprint, not to be overly exposed to any particular country. And so as we’re looking at our our various levers, we’re looking at diversifying from a country perspective, overall, from a sourcing standpoint. Okay. Makes a lot of sense.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation2: And then, second question on working capital, 17.5, clearly above the 16% historically we pegged you guys at. Is that purely just inflation? Are you also holding, intentionally holding some more inventory with the expectation that perhaps you have, higher costs to come in the future? Thanks.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yes. Sure, Trevor. It’s driven largely by tariffs. What I would say is both re regards to material cost inflation as well as the impact on pricing. So material cost impacting the nominal value of our inventory, as well as pricing impacting the nominal value of our receivables.

What I didn’t mention in the opening comments, but it is also a driver, is the payment terms with regards to the tariff invoices. They’re roughly thirty days, which is shorter than our average payment terms. And so the combination of of of inflation as well as on our receivables and inventory, as well as payment terms on our payables are are the main drivers. We we really are focused on on lean inventory. We do prudently build inventory, whether it’s for tariff mitigation or other activities as we continue to look at resourcing alternatives, etcetera.

So that is a small contributing factor, but the large driver is is really the tariff the direct tariff impacts on our on our working capital balances.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation2: Very helpful. Thanks for all the color, good luck moving forward.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Sure. Thanks, Trevor. Thanks, Trevor.

Operator: Your next question comes from Susan Maklari with Goldman Sachs. Please go ahead.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation3: Thank you. Good morning, everyone.

John Nudi, President and CEO, Masco Corporation: Good morning.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation3: Thinking a bit about the elasticity of demand, you mentioned that you are seeing strength in plumbing at that upper premium and the luxury price points. I guess how are you thinking about the state of the consumer today and how that mix is impacting the business, and any thoughts on how that may come together over the upcoming quarters?

John Nudi, President and CEO, Masco Corporation: Yes. So so, Susan, confidence is obviously, lower than what we’d like to see, with consumers today. And, obviously, that’s putting pressure on on everyone’s business. Like I said, the the upper premium and luxury segment is is held in better than some of the other segments as that consumer continues to spend, they continue to remodel. I think for us, you know, we’re gonna keep playing our game, and that’s about building our brands and then marketing our brands.

That’s all of them, whether it’s a luxury brand or a brand or a mid tier brand like Delta. That’s the biggest brand plumbing brand in The US and can just perform well. And then innovation. Consumers are still looking for innovation. They’re still looking for unique benefits.

So we’re doubling down on that. And and in fact,

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation1: if you look

John Nudi, President and CEO, Masco Corporation: at our vitality index, it’s at a 25% rate, meaning that 25% of all of our sales are coming from products introduced in the last three years, and that’s up pretty dramatically, over the last several years. So we’ll continue to play our game. We think for the long term, all the fundamentals are are looking, you know, quite bright terms of, you know, the housing stock, the age of the housing stock. Interest rates, we think when they they start heading a bit lower, we’ll really unlock some things as well. But I think that we will see some choppiness over the near term here.

We’re gonna keep playing our game and keep serving our consumers and then be really well set up for when the market gets back to historical growth rates, whenever that might be.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation3: Okay. That’s helpful color. And turning to the cost side, you know, aside from the tariffs, can you talk about where you are in terms of the lean initiatives and the cost saving efforts that you’ve been focused on in the last couple of years and how you’re thinking about where the most opportunity lies to see further improvement?

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Sure, Sue. Good morning. It’s Rick. So as we as you’ve heard us talk about in the past and you’re pretty well familiar with, we we really leverage our Masco operating system that has allowed us to drive efficiencies, productivities, and ultimately cost reductions really through our our enterprise. And it’s been a main it’s been a a really important driver and contributor to our margin expansion over the last couple of years even despite a a challenging environment.

And we’re continuing to leverage the mask operating system. So there’s really no change in terms of our approach in terms of really continuous improvement and and cost reduction. We’re seeing that really in from a supply chain, logistics, manufacturing efficiencies, productivity, etcetera, and we’re gonna continue to do that. I think in the near term, what you’ll see more of, and it did go itself a bit in q two, is with regards to further austerity just given the current climate we’re faced with with regards to tariff and commodity inflation. We’re taking a little bit more significant actions with regards to things such as hiring, travel, discretionary spend.

But important to note that we’re really protecting investments in our our key growth areas to make sure that we’re really well positioned to continue to outperform the market as well as to leverage, the growth opportunities when the the r and r market does return to to growth here in in the foreseeable future.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation3: Okay. Thank you both, and good luck with the quarter.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Great. Thanks, Susan.

Operator: Next question comes from Phil Ng with Jefferies. Please go ahead.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation4: Hey, good morning. It’s Maggie on for Phil. I wanted to go back to some of your commentary around pricing. Obviously, it’s been a really dynamic backdrop with tariffs, and some of your price increases were announced when tariffs were at a much higher rate. So just how are you thinking about adjusting those increases in response to, you know, changing tariff policy and you know, versus holding on to, you know, the initial headline increase?

Are you getting more pushback as tariffs get negotiated down? And then how the the future tariff policy implications may play into that pricing strategy.

John Nudi, President and CEO, Masco Corporation: Hi, Maggie. It’s, it’s John. I I guess maybe I’d start by saying just, a reminder that pricing is just one of the mitigation levers that we’re pulling, and it really starts with, the footprint moves that we’ve been taking for quite some time. Really looking at cost both within our walls as well as negotiating with suppliers to make sure that we’re getting the best cost that we can. And then finally, disciplined pricing, and and really that’s the the last lever that we pull.

As you mentioned, we we did take some pricing earlier this year, and I can tell you and we’re not gonna get into channel specifics or customer specifics, but, generally, we’ve been able to stick handle that pricing, you know, with our with our customers. You know, it’s a dynamic environment, as you mentioned. We’ll continue to be cognizant of what’s happening in the road around us. We wanna make sure that we are protecting our margins, but at the same time that we’re, you know, continuing to hold and grow share. And I think that’s the balancing act.

But at this point, I feel really good about the the disciplined fashion in which we’ve taken pricing. I think our teams are thinking about it the right way. They’ve got a lot of experience over the years in doing this. And, I think we’ll continue to monitor the environment, stay agile, and continue to pull all those levers as needed as we move forward.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation4: Alright. Thanks so much for the color. I’ll turn it over.

Speaker 7: Thank you.

Operator: Your next question comes from Mike Dahl with RBC Capital Markets. Please go ahead.

Speaker 7: Hi, thanks for taking my questions. Maybe just one last cleanup on tariffs. When you talked about largely offsetting the $140,000,000 of in year costs, is that dollar for dollar or does that include offsetting the 140,000,000 plus your normal margin?

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Yeah, Mike. It’s it’s Rick. So when we talk about largely offsetting, it’s really on on a nominal basis. So that’s what we’re endeavoring to do. Ultimately, we do focus on margins, and we look to to drive margin improvement over time.

But as it pertains to our mitigation actions in 2025, in terms of currently enacted tariffs, we’re talking on a dollar for dollar basis.

Speaker 7: Okay. Got it. Second question, just the the comments about e com outperformance. John, I think you made a start of the Q and A or some of your comments. I think that’s been something that’s kind of inconsistent across the peers.

And if we look at one of your large distributors, I think the e comm results have been under some pressure for most of the last kind of year and a half or so. So I guess maybe just a question on yeah. What you think is driving the strength for you against what still seems to be kind of a choppier broader backdrop there?

John Nudi, President and CEO, Masco Corporation: Yeah, Mike. It is John. So so, again, week four, so I’m probably not as versed as I I will be the next time we talk at the end of q three. What I can tell you, like I mentioned, I spent quite a bit of time with our Delta team and they’re our largest plumbing business. And I’ve been really, really impressed with their ecommerce capabilities and and really the talent that they’ve built to drive our business there.

So I think over time, Delta has been a leader in ecommerce, and I think they continue to outpace the competition. So clearly, you know, ecommerce is gonna continue to grow. It continues to evolve and change as well. I mean, if you think about, you know, search for many years drove ecommerce. Now we’ve got AI coming in, which requires different capabilities.

We’re staying ahead of the curve here. Think it’s gonna be really important. I think the team has done a great job to date. And and with my background, I’ll be spending a lot of time to make sure that we continue to evolve and continue to lead the ecommerce space.

Speaker 7: Okay. Great. Thank you. Thank you.

Operator: The final question comes from Rafe

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation5: non China exposure or impact from tariffs, can you just give some more color on like what the exposure there is by country? Understand that we still don’t know how how those tariffs are going to to to shake out, but if you

Stephen King, Analyst, Evercore ISI: could just give a little

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation5: bit more more color on on on what that is actually included in that.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: Morning, Rafe. It’s Rick. So, you know, the only exposure dimensionality that we’re really providing at this point in time is our exposure to China, the 450,000,000 that we’ve mentioned previously. We’re not providing our our exposure by country. Obviously, it’s a very dynamic environment, not only in terms of the tariff rates, but also our sourcing footprint, which is changing over time as we’ve talked about before as we build a more diversified and resilient sourcing footprint.

So, you know, we the approach that we’ve taken is to be very transparent and clear as it pertains to the impact on tariffs. And so that’s what we’ve done here is provide that 70,000,000 as part of the overall, 210 annualized impact, with regards to to the impact with regards to not only reciprocal tariffs, but steel and aluminum. So at this point, we’re not gonna provide incremental exposure detail, but we will continue to provide the impacts, not only on this call, but going forward as if and as things change.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation5: Okay. Understood. And then if I look at the the plumbing organic growth, I think it’s the strongest quarter you’ve put up since 2022. And I understand there’s some pull forward there, but it doesn’t seem like it’s the majority of it, and you’re expecting some slowdown off that in the second half. But what did you see in terms of what you saw in terms of sell through in the second quarter?

And like what drove the improvement? Because even with the pull forward, it does seem like there has been been an uptick here. Is there anything specific to call out? And then your trend versus the industry in in the second quarter.

Rick Westenberg, Vice President and Chief Financial Officer, Masco Corporation: You’re right. So with regards you know, we’re not gonna speak to specific trends. We’re very pleased with the performance of our plumbing business, particularly here in North America. As you mentioned or we mentioned, we did have some pull forward effect, but the underlying business was was very strong, and it was both from a from a volume and price perspective. And so in terms of underlying demand, we continue to monitor the situation closely.

The macroeconomic environment continues to be volatile, and we track it. And as we’ve articulated, you know, we we do expect overall r and r both here in North America as well as globally to be down low single digits, and we do expect to outperform the market. So I think from an overall performance perspective, you know, we’re performing very strongly across all of our channels, but particularly the ecommerce and trade channels have been particularly strong for us, and we’re continuing to make investments in those channels to to to continue to outperform the market and position ourselves for success over the mid middle and long term.

Speaker 7: Great. Thank you.

John Nudi, President and CEO, Masco Corporation: Thanks, Ray.

Operator: That concludes the Q and A portion of today’s call. I would now like to turn it back over to Robin Zondervan.

Robin Zondervan, Vice President, Investor Relations and FP&A, Masco Corporation: We’d like to thank all of you for joining us this morning and for your interest in Masco. That concludes today’s call. Have a wonderful day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you so much for your participation. You may now disconnect.

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