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SHW

Sherwin-Williams Reports 2.1% Increase in Net Sales

The Sherwin-Williams Company has reported its financial results for the year and fourth quarter ended December 31, 2025. The company's consolidated net sales increased by 2.1% to $23.57 billion for the year, with net sales from stores in the paint stores group open more than twelve calendar months increasing by 1.7%.

However, diluted net income per share decreased by 2.7% to $10.26 per share for the year compared to $10.55 per share in the full year 2024. Adjusted diluted net income per share, on the other hand, increased by 0.9% to $11.43 per share in the year compared to $11.33 per share in the full year 2024.

In the fourth quarter of 2025, diluted net income per share increased by 1.1% to $1.92 per share, while adjusted diluted net income per share increased by 6.7% to $2.23 per share.

The company generated net operating cash of $3.45 billion, which represents 14.6% of net sales for the year. Additionally, it returned $2.4 billion to shareholders through share repurchases and dividends.

Looking ahead, the company provided guidance for the full year 2026, with diluted net income per share expected in the range of $10.70 to $11.10 per share, including acquisition-related amortization expense of $0.80 per share. The adjusted diluted net income per share guidance for the full year 2026 is in the range of $11.50 to $11.90 per share.

The company's CEO, Heidi G. Petz, stated that the company delivered strong fourth-quarter results driven by solid core performance and the first full quarter of the Suvinil acquisition. She also highlighted the record consolidated net sales and adjusted diluted net income per share for the full year 2025.

In terms of segment performance, the Paint Stores Group (PSG) saw an increase in net sales primarily due to selling price increases, while the Consumer Brands Group (CBG) experienced a significant increase in net sales due to the acquisition of Suvinil. The Performance Coatings Group (PCG) also saw an increase in net sales primarily due to favorable foreign currency translation and an acquisition.

The company's liquidity and cash flow were robust, with $3.45 billion in net operating cash generated during the year, and it returned cash of $2.45 billion to shareholders in the form of dividends and stock repurchases.

Looking ahead to 2026, the company expects consolidated net sales to increase by a low to mid-single digit percentage compared to 2025, with adjusted diluted net income per share in the range of $11.50 to $11.90 per share.

Today the company's shares have moved 0.48% to a price of $357.83. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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