Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Masco's free cash flow margin improved compared to the same quarter last year, driven by higher operating cash flow and lower capital expenditure. However, the margin weakened slightly from the prior quarter as revenue decreased and operating cash flow declined more than proportionally.
- Revenue was stable year-over-year while operating cash flow rose, leading to an improved cash conversion rate. Capital expenditure was lower than a year ago but higher than the previous quarter, partially offsetting the operating cash flow gain.
- Compared to the prior quarter, revenue and operating cash flow were lower, resulting in a slightly weaker free cash flow margin. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow margin rising notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$866.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$371.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$418.0M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
20.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-03-31 | $1.8B | -$158.0M | $32.0M | -$190.0M | -10.5% |
| 2025-06-30 | $2.1B | $306.0M | $36.0M | $270.0M | 13.2% |
| 2025-09-30 | $1.9B | $456.0M | $41.0M | $415.0M | 21.6% |
| 2025-12-31 | $1.8B | $418.0M | $47.0M | $371.0M | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 224.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Strength
Operating cash flow increased year-over-year while revenue remained flat, indicating improved cash conversion efficiency. This allowed free cash flow to grow despite a slight sequential increase in capital expenditure.
The higher operating cash flow was the primary driver behind the year-over-year expansion of the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year-over-year while operating cash flow rose, leading to an improved cash conversion rate. Capital expenditure was lower than a year ago but higher than the previous quarter, partially offsetting the operating cash flow gain.
Compared to the prior quarter, revenue and operating cash flow were lower, resulting in a slightly weaker free cash flow margin. Versus the same quarter one year earlier, all cash flow metrics improved, with free cash flow margin rising notably.
Monitor the company's capital allocation, including share repurchases and dividends, as highlighted in the filing as a key use of cash.