Masco Corporation reported its fourth quarter and full-year 2023 results.

2023 Fourth Quarter Results
• On a reported basis, compared to fourth quarter 2022:
• Net sales decreased 2% to $1,882 million; in local currency and excluding acquisitions, net sales decreased 4%
• In local currency, North American and international sales each decreased 3%
• Gross margin increased 640 basis points to 34.7% from 28.3%
• Operating profit increased 34% to $247 million from $185 million
• Operating margin increased 350 basis points to 13.1% from 9.6%
• Net income increased to $0.85 per share, compared to $0.51 per share
• Gross margin increased 560 basis points to 35.1% from 29.5%
• Operating profit increased 16% to $272 million from $234 million
• Operating margin increased 230 basis points to 14.5% from 12.2%
• Net income increased 28% to $0.83 per share, compared to $0.65 per share
• Liquidity at the end of the fourth quarter was $1,634 million (including availability under revolving credit facility)
• Plumbing Products’ net sales increased 1%; in local currency and excluding acquisitions, net sales decreased 2%
• Decorative Architectural Products’ net sales decreased 7%

2023 Full Year Results
• On a reported basis, compared to full year 2022:
• Net sales decreased 8% to $7,967 million; in local currency and excluding acquisitions, net sales decreased 8%
• In local currency, North American sales decreased 9% and international sales decreased 6%
• Gross margin increased 430 basis points to 35.6% from 31.3%
• Operating profit increased 4% to $1,348 million from $1,297 million
• Operating margin increased 200 basis points to 16.9% from 14.9%
• Net income increased to $4.02 per share, compared to $3.63 per share
• Gross margin increased 360 basis points to 35.2% from 31.6%
• Operating profit decreased 1% to $1,336 million from $1,355 million
• Operating margin increased 120 basis points to 16.8% from 15.6%
• Net income increased to $3.86 per share, compared to $3.77 per share

“We finished the year strong by delivering fourth quarter adjusted operating profit margin expansion of 230 basis points and adjusted earnings per share growth of 28%,” said Keith Allman, Masco’s president and CEO. “Additionally, we continued our focus on disciplined capital allocation and returned $291 million to shareholders in the quarter through dividends and share repurchases.

“For the full year 2023, we achieved strong adjusted operating margin expansion of 120 basis points through disciplined pricing and improved operational efficiencies,” continued Allman. “With this strong execution, we delivered adjusted earnings per share growth of 2% despite weaker end-markets and lower volume. Our strong cash flow also enabled us to deploy nearly $1 billion toward capital expenditures, acquisitions, share repurchases and dividends.”

“In 2024, we believe demand is stabilizing and expect our sales to be approximately flat for the full year in a market that is flat to down low single digits,” said Allman. “Based on this market outlook and our expected operating performance and capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.00 to $4.25 per share. With our industry leading repair and remodel-oriented products in diverse channels, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to deliver long-term shareholder value.”