Masco (MAS) investor relations material

Strategic evolution and portfolio focus

• Streamlined from five segments and over 40 business units in 2005 to two segments and eight units in 2026, focusing on plumbing, paint, and wellness for higher margins and returns.

• Exited lower-margin categories like cabinets and windows, resulting in a more focused, resilient, and profitable business.

• Leading brands in each segment (Delta, Behr, Hot Spring) drive category leadership, with 90% of sales from branded, consumer-facing products and consumer insights guiding product development.

• Returned over $9 billion to shareholders since 2015, with a 45% average ROIC and 13 consecutive years of dividend increases.

• Global reach with sales in over 100 countries and a $32B total addressable market, excluding wellness.

Growth priorities, opportunities, and innovation

• Accelerating top-line growth through ecommerce leadership, luxury expansion, global projects in plumbing, and targeted plans in paint and wellness.

• Plumbing leverages digital leadership, luxury brand expansion, global project pipeline, and a $1.5B innovation pipeline.

• Paint focuses on pro segment growth, exclusive Home Depot partnership, digital innovation (ChatHUE), and adjacent category expansion.

• Wellness targets growth in hot tubs, saunas, aquatic fitness, and cold plunge, aiming to increase sauna global share from 15% to 25% by 2030.

• Digital-first capabilities and AI-driven personalization fuel omnichannel growth and customer engagement.

Financial performance, guidance, and capital allocation

• Achieved 2% CAGR in revenue and operating profit, and 10% CAGR in adjusted EPS from 2019–2025, despite macro challenges.

• 2028 outlook targets 3%-4% average annual organic/net sales growth, at least 18% operating profit margin, and ~10% adjusted EPS CAGR.

• Expects net sales to exceed $8B by 2028, with free cash flow conversion over 90% and $3.3B to be deployed over the next three years.

• Capital allocation priorities: reinvestment in business, maintaining investment-grade profile, ~30% dividend payout, share repurchases, and selective bolt-on acquisitions.

• M&A strategy focuses on bolt-ons within existing categories; organic growth is the primary driver.