Sherwin-Williams Q1 2025 Financial Summary

Sherwin-Williams reported first quarter 2025 results with net sales of $5.31 billion, down 1.1% from the prior year, primarily due to currency headwinds and lower volumes in some business segments. However, the company achieved a 1.5% increase in diluted net income per share to $2.00, and a 3.7% rise in adjusted diluted EPS to $2.25. Adjusted EBITDA increased 4.6% to $937 million, representing 17.7% of net sales.

Segment performance:
- Paint Stores Group sales rose 2.3% to $2.94 billion, driven by strong growth in protective and marine coatings and residential repaint. Same-store sales grew 1.2%. Segment profit increased 9.7% to $541.2 million.
- Consumer Brands Group sales declined 6.0% to $762.2 million due to weak DIY demand and unfavorable currency impact. Adjusted segment margin rose to 21.3%. Adjusted segment profit was $162.7 million.
- Performance Coatings Group sales fell 4.8% to $1.60 billion, with strength in packaging offset by declines in other industrial businesses. Adjusted segment profit was $264.7 million.

Cash flow and capital allocation:
- Net operating cash was negative $61.1 million due to seasonal working capital increases.
- The company returned $552.1 million to shareholders via dividends and share repurchases.
- Capital expenditures totaled $189.3 million.
- 18 new Paint Stores and 6 new Consumer Brands stores were opened during the quarter.

2025 guidance:
- Full-year adjusted diluted EPS is expected to be in the range of $11.65 to $12.05, compared to $11.33 in 2024.
- Full-year diluted EPS guidance remains $10.70 to $11.10, including $0.80 in acquisition amortization and $0.15 in restructuring costs.
- Second-quarter net sales are expected to be up or down a low-single-digit percent year over year.

Sherwin-Williams reported its financial results for the first quarter of 2025.

Consolidated net sales decreased 1.1% to $5.31 billion, mainly due to unfavorable currency translation. Net income per diluted share increased by 1.5% to $2.00, and adjusted diluted net income per share rose by 3.7% to $2.25. Adjusted EBITDA grew 4.6% to $937.0 million.

The Paint Stores Group saw a 2.3% increase in net sales, driven by selling price increases, while the Consumer Brands Group experienced a 6.0% sales decline due to soft DIY demand and currency headwinds. Performance Coatings Group sales fell 4.8%, impacted by lower industrial sales despite strong packaging segment growth.

The company reaffirmed its full-year 2025 guidance, expecting diluted net income per share between $10.70 and $11.10 and adjusted diluted net income per share between $11.65 and $12.05. Liquidity remains solid, with $199.8 million in cash and ongoing share repurchases and dividend increases.

Sherwin-Williams emphasized strong cost controls, margin expansion in key segments, and continued investment in growth initiatives despite ongoing softness in some end markets.

Sherwin-Williams Company – April 2025 8-K Summary

Board & Governance Updates:
At the 2025 Annual Meeting, Sherwin-Williams shareholders approved the 2025 Equity and Incentive Compensation Plan, authorizing 21.97 million shares for future equity-based awards. The plan covers various award types including options, RSUs, performance shares, and cash incentives, and includes a $750,000 annual limit for non-employee director compensation. Incentive stock option grants are capped at 20 million shares.

Charter Amendments:
Shareholders also approved amendments to the Company’s Charter to remove supermajority voting requirements, reducing required approvals on certain matters to a simple majority. The restated Charter reflecting these changes became effective on April 17, 2025.

Director Elections:
Nine directors were re-elected, including Heidi G. Petz and Thomas L. Williams, with vote counts exceeding 190 million in favor for each nominee.

Other Proposals Approved:

Executive compensation approved in an advisory vote.

Ernst & Young LLP ratified as independent auditor for 2025.

Charter amendments (Proposals 5 & 6) to eliminate supermajority voting were adopted by strong majority votes.

The Sherwin-Williams Company (NYSE: SHW) announced that Robert J. Gamgort was elected to the Board of Directors of Sherwin-Williams at the company's Annual Meeting of Shareholders today. Following the Annual Meeting, Sherwin-Williams' Board now consists of nine members, including eight independent directors. Mr. Gamgort was also appointed to the Audit Committee of the Board.

The Board of Directors of The Sherwin-Williams Company (NYSE: SHW) today announced a regular quarterly dividend of $0.79 per common share payable on June 6, 2025, to shareholders of record on May 16, 2025.

Williams Expands Transco Pipeline with Two New Projects to Meet Southeast Energy Demand

Williams announced the successful launch of two new Transco pipeline expansions: the Southeast Energy Connector in Alabama and the Texas to Louisiana Energy Pathway. These projects aim to address growing demand for natural gas in the Southeast U.S., driven by increased power generation, manufacturing, data centers, and LNG exports.

The Southeast Energy Connector adds 150 million cubic feet per day (MMcf/d) to support Alabama’s transition from coal to natural gas for electricity generation. The Texas to Louisiana Energy Pathway expands capacity by 364 MMcf/d to improve infrastructure reliability and support LNG activity along the Gulf Coast.

Williams emphasized its commitment to minimizing environmental and community impacts while delivering efficient, large-scale infrastructure. These projects increase Transco’s system capacity to over 20 billion cubic feet per day (Bcf/d), reinforcing its status as the largest-volume natural gas pipeline in the U.S.

Williams currently operates over 33,000 miles of pipeline and is advancing 12 additional transmission projects to meet surging energy demands nationwide while supporting the clean energy transition.

The Sherwin-Williams Company (NYSE: SHW) will issue a press release announcing its financial results for the first quarter ended March 31, 2025, prior to market open on Tuesday, April 29, 2025. At that time, a copy of the press release and information regarding Sherwin-Williams' financial condition, reportable segment results and other information will be available by clicking on this link Sherwin-Williams Press Releases, then clicking on the reference to the April 29 release.

The Sherwin-Williams Company has amended its credit agreement with Goldman Sachs Bank USA and Goldman Sachs Mortgage Company. The amendment, signed on March 10, 2025, extends the maturity of $75 million in commitments for borrowing and issuing letters of credit from June 20, 2025, to June 20, 2030.

The agreement, originally established on August 2, 2021, provides financial flexibility for Sherwin-Williams and maintains strong banking relationships with lenders that have previously provided and may continue to provide commercial banking, investment banking, and financial advisory services to the company.

A full copy of the amendment is included as an exhibit to Sherwin-Williams’ Form 8-K filing.

Sherwin-Williams has announced an agreement to acquire BASF’s decorative paints business in Brazil for $1.15 billion in cash. The deal, made through its wholly owned subsidiary, Sherwin-Williams do Brasil Indústria e Comércio Ltda., involves a carve-out process in which BASF will transfer all relevant assets, contracts, and employees into a new entity before completion.

The acquisition is subject to Brazilian antitrust approval and other customary closing conditions. If approval is not obtained within 18 months, the deal may be terminated, with Sherwin-Williams required to pay an 8% termination fee in such a scenario. Both Sherwin-Williams and BASF have provided guarantees for their respective obligations under the agreement.

This acquisition strengthens Sherwin-Williams’ presence in South America, particularly in the Brazilian market, and aligns with its strategy of expanding in high-growth regions.

The Sherwin-Williams Company reported its financial results for the fourth quarter and full year 2024. Net sales reached a record $23.1 billion, with a 1.7% increase in same-store sales in the Paint Stores Group. Diluted net income per share rose 14.1% to $10.55, while adjusted diluted net income per share increased 9.5% to $11.33. The company generated $3.15 billion in net operating cash, representing 13.7% of net sales, and adjusted EBITDA increased 6.0% to $4.49 billion.

For the fourth quarter, net sales increased slightly to $5.3 billion, and diluted net income per share grew 36.7% to $1.90, with adjusted diluted net income per share rising 15.5% to $2.09. The Paint Stores Group drove overall sales growth, offset by declines in the Consumer Brands and Performance Coatings Groups. Income before taxes rose 29.9%, benefiting from lower environmental provisions and the absence of Argentine peso devaluation losses recorded in the prior year.

Segment results showed a 3.4% increase in net sales for the Paint Stores Group, driven by selling price increases and volume growth in residential repaint and new residential sales. The Consumer Brands Group saw a 4.3% decline in net sales due to unfavorable foreign currency translation, but segment profit improved due to cost control measures and the absence of prior-year devaluation losses. The Performance Coatings Group experienced a 1.6% decline in net sales, primarily due to lower selling prices and unfavorable foreign currency effects, though segment profit increased slightly.

Sherwin-Williams returned $2.46 billion to shareholders through dividends and share repurchases in 2024. The company issued 2025 guidance with expected net sales growth in the low-single-digit range and adjusted diluted net income per share projected between $11.65 and $12.05.

CEO Heidi G. Petz noted that demand remains uncertain in several markets but highlighted strong growth opportunities, particularly in architectural coatings and industrial segments. The company plans to focus on cost control, supply chain efficiency, and sustainability initiatives to drive profitable growth.