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Sherwin-Williams Reports 2025 Financial Results

The Sherwin-Williams Company has announced its financial results for the fiscal year and fourth quarter ending December 31, 2025. The results reveal a year marked by steady performance and strategic advancements, positioning the company favorably amidst ongoing market fluctuations.

Summary of Financial Performance

For the year 2025, consolidated net sales climbed by 2.1% to reach $23.57 billion. The increase in sales was primarily driven by the Paint Stores Group, which saw a net sales growth of 1.7% from stores that were operational for over twelve months. However, diluted net income per share witnessed a slight decline of 2.7% to $10.26 compared to the previous year, while the adjusted figure actually rose 0.9% to $11.43 per share.

In the fourth quarter specifically, Sherwin-Williams showcased a quarterly net sales increase of 5.6%, amounting to $5.60 billion, up from $5.30 billion in 2024. This was accompanied by a 1.1% rise in diluted net income per share compared to the prior year’s quarter, indicating solid operational performance.

CEO's Remarks on Business Strategy

Heidi G. Petz, the Chair and CEO of Sherwin-Williams, commented on the fourth quarter achievements, emphasizing the company's core strengths amidst unpredictable market demands. The growth during this period reflected the effective execution of their 'Success by Design' strategy, which focuses on capital investments aimed at long-term growth. Notably, the first complete quarter under the Suvinil acquisition positively contributed to the revenue growth.

With net operating cash reaching $3.45 billion, representing 14.6% of net sales, Sherwin-Williams continues its commitment to robust cash generation, ensuring adequate resources for strategic investments and shareholder returns.

Future Projections and Guidance

Looking ahead to 2026, Sherwin-Williams anticipates a continuation of moderate market conditions, stating that they expect sales growth to be in the low to mid-single digits. The projected diluted net income per share for the full year is estimated to be in the range of $10.70 to $11.10. These estimates take into account certain amortization expenses related to acquisitions, highlighting a cautious yet optimistic outlook on their financial trajectory.

The company will manage capital expenditures to include investments in innovation and infrastructure to facilitate operational efficiency. As part of their ongoing strategy, they will prioritize maintaining a disciplined approach to general and administrative expenses, alongside pursuing profitable growth opportunities across their diverse portfolio.

Segment Performance Overview

Examining individual segments reveals varied performances:

• - Paint Stores Group (PSG): This segment saw a revenue increase of $3.13 billion, driven by price increases in certain markets like marine-related products and residential repainting, with a reported segment margin improvement to 20.8%.
• - Consumer Brands Group (CBG): With sales of $824.7 million, this group experienced a substantial uptick from the Suvinil acquisition, despite facing softness in North America's DIY demand.
• - Performance Coatings Group (PCG): Revenue remained stable with net sales of $1.64 billion, supported by growth in Packaging and automotive refinishing.

Conclusion

In summary, despite encountering economic headwinds, Sherwin-Williams has demonstrated a resilient performance with strategic initiatives paving the way for future growth. The leadership expresses confidence in navigating the market challenges while capitalizing on their established brand strength and operational capabilities. The company will hold a conference call to further discuss its financial outcomes and outlook, demonstrating its commitment to transparency and stakeholder engagement.