Sherwin-Williams Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.06%.
Did SHW Beat Earnings? Q2 2025 Results
Sherwin-Williams delivered a deeply disappointing second quarter, posting adjusted diluted EPS of $3.38, a miss of 11.38% against the $3.81 consensus estimate, even as revenue edged up 0.7% year over year to $6.31 billion, barely clearing expectations by 0.19%. The profit shortfall was driven primarily by a wave of cost headwinds including roughly $59 million in restructuring charges, approximately $40 million in transition costs tied to new headquarters and R&D construction arriving ahead of schedule, and around $75 million in non-operating cost pressures, all of which pushed SG&A to 31.9% of sales from 29.4% a year ago. The results were uneven across segments, with the Paint Stores Group providing modest growth while the Consumer Brands Group suffered from weak North American DIY demand, a trend management sees persisting with no visible catalysts for recovery. CEO Heidi Petz characterized conditions as "softer for longer," and the company lowered its full-year adjusted EPS guidance to a range of $11.20 to $11.50, essentially flat with the $11.33 earned in 2024, while doubling down on restructuring initiatives to navigate the prolonged softness.
- Gross margin expansion for 12th consecutive quarter reaching 49.4% of net sales
- Paint Stores Group protective and marine sales grew high-single digit percentage for fourth consecutive quarter
- Residential repaint sales increased mid-single digits in PSG despite down market
- Packaging sales in Performance Coatings Group increased by double digit percentage
- Mid-single digit price realization in Paint Stores Group tracking better than expected
- SG&A increased to 31.9% of net sales from 29.4% due to restructuring charges, building costs, and growth investments
“Sherwin-Williams continued to execute on our consistent and disciplined strategy in a demand environment that remained choppy as we anticipated. Consolidated sales were within our guided range, and we delivered gross margin expansion for the 12th consecutive quarter.”
Sherwin Williams CEO, on the earnings call
Forward Guidance & Outlook
Management lowered full-year 2025 guidance due to softer-than-anticipated demand through June with no visible catalysts for improvement. Full year 2025 consolidated net sales are expected to be up or down a low-single digit percentage compared to 2024. Full year GAAP diluted EPS is guided at $10.11 to $10.41, including $0.77 per share of acquisition-related amortization and $0.32 per share of severance and restructuring expenses. Adjusted diluted EPS is expected in the range of $11.20 to $11.50 compared to $11.33 in 2024. Third quarter 2025 net sales are expected to be up or down a low-single digit percentage compared to Q3 2024. The company is doubling its previously announced restructuring initiatives in response to the softer demand environment.
SHW YoY Financials
SHW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.