SHERWIN WILLIAMS CO (SHW) Earnings History

SHERWIN WILLIAMS CO - Q4 FY2025 EarningsMet

Filed at: Jan 29, 2026, 7:08 AM EST|Read from source

EXECUTIVE SUMMARY

Sherwin-Williams reported solid fourth quarter results with consolidated net sales at the high end of guidance, driven by the Suvinil acquisition and price increases, despite continued demand choppiness. The company achieved record full-year net sales and adjusted diluted net income per share, with improvements in gross margin and adjusted EBITDA, while returning significant capital to shareholders.

POSITIVE HIGHLIGHTS

  • •

    Consolidated Net sales increased 5.6% to $5.60 billion in Q4 2025, driven by price increases and the Suvinil acquisition.

    positive
  • •

    Adjusted diluted net income per share increased 6.7% to $2.23 in Q4 2025.

    positive
  • •

    Paint Stores Group segment profit increased 7.1% to $649.5 million, with reported segment margin expanding to 20.8%.

    positive
  • •

    Full year 2025 Net operating cash generated was $3.45 billion, or 14.6% of Net sales.

    positive

CONCERNS & RISKS

  • •

    Consumer Brands Group segment profit decreased 15.6% to $56.2 million, with reported segment margin compressing to 6.8% from 10.1% in the prior year, impacted by restructuring expenses.

    attention
  • •

    Diluted net income per share for the full year decreased 2.7% to $10.26 compared to $10.55 in the prior year.

    negative
  • •

    Full year 2025 Net sales increased only 2.1% to $23.57 billion, a deceleration from prior periods.

    attention
  • •

    Management anticipates a 'softer-for-longer' demand environment to persist well into the second half of 2026.

    attention
  • •

    Inventory levels increased to $2.32 billion from $2.29 billion YoY.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$5.60B
+5.6%
Prior year: $5.30B
Annual (YTD)
$23.57B
N/A
Prior year: $23.10B
Net Income
Quarterly
$476.80M
-0.7%
Prior year: $480.10M
Annual (YTD)
$2.57B
N/A
Prior year: $2.68B
EPS (Diluted)
Quarterly
$1.92
+1.1%
Prior year: $1.90
Annual (YTD)
$10.26
N/A
Prior year: $10.55
Operating Income
Quarterly
$639.00M
+3.8%
Prior year: $615.60M
Annual (YTD)
$3.34B
N/A
Prior year: $3.45B
EPS (Basic)
Quarterly
$1.94
+1.0%
Prior year: $1.92
Annual (YTD)
$10.37
N/A
Prior year: $10.68

MARGIN ANALYSIS

Gross Margin
Current Quarter
48.5%
Prior Year
48.6%
YoY Change
-10 bps
Operating Margin
Current Quarter
11.4%
Prior Year
11.6%
YoY Change
-20 bps
Net Margin
Current Quarter
8.5%
Prior Year
9.1%
YoY Change
-60 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Paint Stores Group (PSG)
0.0%
N/A
Consumer Brands Group (CBG)
0.0%
N/A
Performance Coatings Group (PCG)
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Paint Stores Group (PSG)
N/A———
Consumer Brands Group (CBG)
N/A———
Performance Coatings Group (PCG)
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

Revenue
"Up low to mid-single digit %"
Diluted net income per share
$10.70—$11.10
Mid-point: $10.90
Adjusted diluted net income per share
$11.50—$11.90
Mid-point: $11.70

Q1 2026

Revenue
"Up mid-single digit %"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Severance and other restructuring expenses
+$18.3M
$0.06 per share
Q4 2025
Trademark impairment
+$17.8M
$0.05 per share
FY2025
Severance and other restructuring expenses
+$111M
$0.44 per share
FY2025
Trademark impairment
+$17.8M
$0.07 per share
Total Impact
+$164.9M$0.62 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Sherwin-Williams delivered strong fourth quarter results driven by solid core performance amid continued demand choppiness, and inclusive of the first full quarter of the Suvinil acquisition.

— SHERWIN WILLIAMS CO, Q4 FY2025 2025 Earnings Call

For the full year, our ‘Success by Design’ approach resulted in record consolidated Net sales and record adjusted diluted net income per share.

— SHERWIN WILLIAMS CO, Q4 FY2025 2025 Earnings Call

We enter 2026 with a continuation of the softer-for-longer demand environment we have previously described.

— SHERWIN WILLIAMS CO, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Consumer Brands Group - net new stores
3
Prior year: -27
stores
Paint Stores Group - net new stores
19
-44.1% YoY
Prior year: 34
stores
Paint Stores Group - same-store sales change
1
Prior year: 2
%
Performance Coatings Group - net new branches
-7
branches

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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