Sherwin-Williams Company (SHW) Q2 2025 Earnings
How Did SHW Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +1.06%.
Did SHW Beat Earnings? Q2 2025 Results
No. Sherwin-Williams Company reported Q2 2025 earnings of $3.38 a share on Jul 22, 2025, missing the $3.81 consensus estimate by 11.4%. Revenue was $6.3B against a $6.3B estimate.
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 Company CEO, on the earnings call
What Was Sherwin-Williams Company's Outlook in Q2 2025?
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
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $6.3B | $6.3B | +0.7% |
| Gross Profit | $3.1B | $3.1B | +1.8% |
| Operating Income | $985.7M | $1.2B | −20.0% |
| Net Income | $754.7M | $889.9M | −15.2% |
SHW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.