Total Revenue (Net Sales)

Approximately –6.6%

Total revenue declined from $1,926M in Q1 2024 to $1,801M in Q1 2025 mainly due to lower sales volume and an unfavorable sales mix. These factors reflect persistent challenges from previous periods where pricing pressures and volume declines had already begun to impact net sales, now compounded by current market headwinds. " "

Plumbing Products

Approximately –0.6%

Plumbing Products’ revenue dipped slightly from $1,192M to $1,185M, reflecting a near-flat performance. The modest decline is attributable to balancing higher net selling prices and a slight drop in sales volume, continuing the trend seen in earlier periods where improvements were offset by market volume pressures. " "

Decorative Architectural Products

–16%

Decorative Architectural Products fell sharply from $734M in Q1 2024 to $617M in Q1 2025. The steep decline is driven by the ongoing impact of the Kichler divestiture and continued pricing and sales mix challenges. These adverse factors compounded trends observed in the previous period, where the segment had already been under pressure leading to a pronounced drop this quarter. " "

Operating Profit

Approximately –10%

Operating profit decreased from $318M to $286M in Q1 year-over-year. This drop is largely due to reduced net sales combined with margin compression under the pressure of macroeconomic and geopolitical factors (such as tariffs) that adversely affected cost structures. In previous periods, cost savings initiatives had supported margins, but these benefits were insufficient to counterbalance the revenue decline this quarter. " "

Net Income

Approximately –13.6%

Net income declined from $229M in Q1 2024 to $198M in Q1 2025, a 13.6% drop. This reduction stems from the lower operating profit, along with additional expense pressures and other unfavorable items that compounded the challenges identified in earlier periods. The cumulative effect of these factors resulted in a sharper decline in net income compared to the operating profit drop. " "

Tariff Costs

FY 2025

no prior guidance

$400 million " " "

no prior guidance

Total Annualized Tariff Impact

FY 2025

no prior guidance

$675 million " "

no prior guidance

Net Tariff Impact

FY 2025

no prior guidance

$150 million to $200 million " "

no prior guidance

Mitigation Actions

FY 2025

no prior guidance

Offset estimated $200–$250 million (50%–65% offset) " " "

no prior guidance

Volume Impact

FY 2025

no prior guidance

Potential softening in demand; no specific estimate " " "

no prior guidance

Capital Expenditures

FY 2025

$175 million "

$175 million "

no change

Dividend

FY 2025

$1.24 per share " "

$1.24 per share "

no change

Tariff Impacts and Mitigation Strategies

Q4 2024 called out a 10% China tariff with a $45 million annualized impact and noted a 45% reduction in exposure. " " " In Q2 2024, the focus was on a 30% exposure reduction using alternative sourcing solutions. "

Q1 2025 provided extensive detail—highlighting a $450 million exposure, incremental tariffs totaling an annualized $675 million impact, and multiple aggressive mitigation strategies (pricing, cost reduction, sourcing changes). " " "

Enhanced detail and proactive mitigation efforts as the company shifts from basic exposure reduction to a multi-pronged strategy amid larger tariff impacts. " " " " "

DIY Paint Segment Performance Challenges

Q4 2024 noted mid-single-digit declines in sales with structural shifts and deferred demand. " " " Q2 2024 emphasized high single-digit declines tied to price increases and volume headwinds. " "

Q1 2025 reported DIY paint sales down in the high single digits, accelerated by demographic shifts (boomers moving to professional services) with a concurrent shift to pro paint gains. " " " "

Consistent pressure on DIY sales with a continued migration toward pro channels, reinforcing longstanding market trends. " " " " " "

Operating Efficiency and Cost Management Initiatives

Q4 2024 highlighted successful operational efficiencies with cost saving measures driving margin expansion (e.g. improvements in operating margins and SG&A reductions). " " Q2 2024 discussed gross margin expansion and targeted cost saving initiatives via the Masco Operating System. " " "

Q1 2025 reported a 20 basis point gross margin increase to 35.9%, SG&A cuts, and proactive cost management to mitigate tariff impacts while maintaining operating profit margins. " " " "

A steady focus on cost control and efficiency improvements, now with heightened measures in response to external tariff pressures. " " " " "

Inventory Management in Decorative/Architectural Segment

Q4 2024 featured a mid-single-digit inventory timing benefit that boosted top‐line results, though it warned of a potential reversal. " " Q2 2024 did not address inventory specifically.

Q1 2025 described a partial reversal of the previous inventory benefit with normalization of channel inventories posing a headwind. " " " "

Shift from an inventory timing benefit to emerging normalization challenges, suggesting a natural cycle reversal. " " " "

Innovation and Product Pipeline Development

Q4 2024 detailed a robust innovation pipeline with a steady Vitality Index and multiple product introductions in plumbing and decorative segments, including strategic M&A considerations. " " " Q2 2024 emphasized customer pain-point solutions and IP protection in new developments. "

Q1 2025 highlighted the launch of several award-winning products across segments (Delta Faucet, Hansgrohe, Watkins Wellness) and reinforced the strategic focus on innovation to support margin strength. " " "

Sustained and visible emphasis on innovation, with increased recognition through awards and expanded product introductions across segments. " " " " "

Multi-Channel Performance and Brand Strength

Q4 2024 discussed strong partnerships (e.g. with Home Depot), brand strength for Behr, and balanced channel performance across DIY and pro segments. " " Q2 2024 reinforced this with detailed performance by channel and strategic long-term partnerships. " " "

Q1 2025 noted robust performance in e-commerce and international plumbing while citing challenges in retail, and confirmed sustained brand strength (e.g. Delta and Brizo), with a distinct shift toward pro paint growth. " "

Consistent multi-channel resilience with an evolving focus away from DIY weakness toward enhanced pro channel and e-commerce performance. " " " " " "

Market Conditions, Demographic Trends, and Housing Demand

Q4 2024 emphasized deferred demand, demographic shifts (millennial households, aging housing stock), and anticipated recovery in consumer confidence. " " " " Q2 2024 reflected on a stable but challenging macro environment balanced by long-term structural fundamentals. " "

Q1 2025 stressed an uncertain geopolitical and macroeconomic environment—including new tariffs prompting cautious consumer spending—and acknowledged persistent long-term strength in repair and remodel fundamentals. " "

An escalation in caution and uncertainty, particularly due to geopolitical changes and tariff-induced cost pressures, while keeping long-term demographic tailwinds in view. " " " " "

International Plumbing Performance (Germany)

Q2 2024 pointed to stabilization in key markets, including Germany, where Hansgrohe and other brands were making share gains. " " " Q4 2024 mentioned international growth in a broader context without specific emphasis on Germany. " " "

Q1 2025 specifically highlighted Germany as a market showing stabilization and growth, with Hansgrohe winning IF Design Gold Awards, underscoring its market leader status. " " "

Continued positive momentum in Germany with added emphasis on award recognition and market leadership. " " " "

Commodity Inflation and Ocean Freight Headwinds

Q4 2024 provided details on low single-digit commodity inflation and noted elevated ocean freight costs as headwinds for 2025. " " Q2 2024 discussed rising metal prices and freight cost pressures as significant headwinds impacting profit margins. " " "

Q1 2025 did not mention commodity inflation or ocean freight headwinds.

A noticeable drop in emphasis on these topics in Q1 2025, indicating a potential strategic shift to focus more on tariff-related and operational issues. " " " "

Manufacturing Expansion and Strategic Retail Partnerships

Q4 2024 referenced strategic retail partnerships with Home Depot in the context of share gains in the paint business. " " Q2 2024 also mentioned long-term retail partnerships without explicit reference to manufacturing expansion. "

Q1 2025 did not provide specific discussion on manufacturing expansion, though it briefly noted robust retail performance in pro channels with implied partner strength. "

Reduced explicit focus on manufacturing expansion and only indirect references to retail partnerships, suggesting this topic is less of a current spotlight compared to earlier discussions. " " "