Masco Earnings: Profit Margins Expand Despite Challenging End Markets

In February 2023, Masco management unveiled its 2023 outlook for a 10% sales decline and adjusted operating margin compressing 60 basis points to 15%. We thought this guidance could prove conservative. Through the third quarter, Masco is tracking toward a 10% revenue decline, but profit margins have been much better than we expected. Management raised its full-year adjusted operating margin guidance again to 16.5% from 16%. Last year, Masco delivered a 15.6% margin.