Sherwin-Williams recently released its 10-K report, detailing its operations in the development, manufacture, distribution, and sale of paints, coatings, and related products. The company operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. In the year ended December 31, 2024, Sherwin-Williams reported record net sales of $23.099 billion, representing a 0.2% increase from the previous year. Diluted net income per share increased by 14.1% to $10.55 per share, while adjusted diluted net income per share increased by 9.5% to $11.33 per share.
The Paint Stores Group segment saw a 2.7% increase in net sales in 2024, driven by sales volume growth and selling price increases. The Consumer Brands Group segment, however, experienced a 7.7% decrease in net sales primarily due to soft DIY demand in North America and unfavorable foreign currency translation. The Performance Coatings Group segment also saw a 0.7% decrease in net sales, primarily due to selling price decreases and unfavorable foreign currency translation.
Sherwin-Williams' income before income taxes as a percent of net sales for the year ended December 31, 2024, was 14.9%, compared to 13.5% in 2023. The effective income tax rate for 2024 was 22.3%, down from 23.2% in 2023, primarily due to a more favorable impact of tax benefits related to employee share-based payments.
The company's diluted net income per share for 2024 increased to $10.55 per share from $9.25 per share in 2023. The 10-K report also outlines the company's outlook for 2025, which includes expectations for continued economic pressures impacting consumer behavior and significant above-market growth opportunities in each business segment.
As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $350.11. For the full picture, make sure to review Sherwin-Williams's 10-K report.
