Sherwin-Williams Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did SHW Beat Earnings? Q1 2025 Results
Sherwin-Williams navigated a difficult start to 2025 with a mixed but ultimately encouraging first quarter, beating earnings expectations even as revenue came in slightly below consensus. The paint giant posted adjusted diluted EPS of $2.25, ahead of the $2.16 analyst estimate by 4.12%, while revenue of $5.31 billion fell 1.85% short of the $5.41 billion consensus and declined 1.1% year-over-year, with roughly one percentage point of that drop tied to unfavorable foreign currency translation. The real story was margin discipline: gross margins expanded 100 basis points to 48.2% of net sales, with the Paint Stores Group serving as the standout, growing net sales 2.3% to $2.94 billion and posting same-store sales growth of 1.2%, reversing a prior-year decline. Adjusted EBITDA climbed 4.6% to $937.00 million despite the soft volume backdrop. Management reaffirmed full-year guidance for adjusted diluted EPS of $11.65 to $12.05, and the company's previously announced acquisition of BASF's Brazilian decorative paints business adds a longer-term growth dimension as Sherwin-Williams deepens its presence in an expanding architectural coatings market.
- Gross margin expansion to 48.2% from 47.2% driven by selling price increases in Paint Stores Group
- Effective cost control across all segments
- High-single digit growth in protective and marine coatings within PSG
- Mid-single digit growth in residential repaint within PSG
- High-single digit growth in Packaging within Performance Coatings Group
- Same-store sales growth of 1.2% in Paint Stores Group
- Mid-single digit percentage selling price increases in PSG
“In a demand environment that remained choppy as we anticipated, Sherwin-Williams continued to execute our strategy and delivered solid first quarter results driven by gross margin expansion and good cost control. Consolidated sales were within our guidance range, led by Paint Stores Group, and we delivered mid-single digit percentage growth in both adjusted diluted net income per share and adjusted EBITDA. We continued to execute our consistent capital allocation strategy and invested $351.7 million in share repurchases and increased our dividend by 10.5% in the quarter.”
Sherwin Williams CEO, on the earnings call
Forward Guidance & Outlook
Sherwin-Williams reaffirmed full year 2025 guidance: consolidated net sales expected to grow a low-single digit percentage versus 2024; diluted net income per share of $10.70 to $11.10 (including $0.80/share acquisition-related amortization and $0.15/share severance and restructuring); adjusted diluted net income per share of $11.65 to $12.05, representing 4.6% growth at the midpoint versus $11.33 in 2024. Second quarter 2025 consolidated net sales expected to be up or down a low-single digit percentage versus Q2 2024. Effective tax rate expected in the low twenty percent range. Demand softness expected to persist in several end markets well into the second half. On tariffs, the company noted the majority of revenue is U.S.-based and most raw materials are sourced in regions where they manufacture. Management expects to provide a full-year guidance update with Q2 results in July.
SHW YoY Financials
SHW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.