Sherwin-Williams Announces Financial Results for Fourth Quarter

January 30, 2025  by Karen Parrish in Business Strategy, Industry   

SUMMARY

• Consolidated Net sales increased in the year to a record $23.10 billion
  • Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 1.7% in the year
• Diluted net income per share increased 14.1% to $10.55 per share in the year compared to $9.25 per share in the full year 2023
  • Adjusted diluted net income per share increased 9.5% to $11.33 per share in the year compared to $10.35 per share in the full year 2023
• Diluted net income per share increased 36.7% to $1.90 per share and adjusted diluted net income per share increased 15.5% to $2.09 per share in the fourth quarter of 2024
• Generated Net operating cash of $3.15 billion, or 13.7% of Net sales, in the year
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) increased 6.0% in the year to $4.49 billion or 19.4% of Net sales
• Full year 2025 diluted net income per share guidance in the range of $10.70 to $11.10 per share, including acquisition-related amortization expense of $0.80 per share and restructuring expense of $0.15 per share
  • Full year 2025 adjusted diluted net income per share guidance in the range of $11.65 to $12.05 per share

CEO REMARKS

"Sherwin-Williams delivered strong fourth quarter results despite continued demand choppiness in the majority of our end markets," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Consolidated Net sales grew by a low-single digit percentage, and gross margin improved slightly year-over-year. We expanded adjusted segment margin in all three segments, and adjusted diluted earnings per share and EBITDA grew by double-digit percentages. In our architectural business, residential repaint significantly outgrew the market and increased by a high-single digit percentage as we continued to see a return on prior growth investments. We delivered low-single digit percentage growth in new residential driven by continued above-market growth. Sales in our industrial businesses were led by double-digit percentage growth in Packaging and low-single digit percentage growth in Coil. For the full year, Net sales grew slightly to a record $23.10 billion, as above-market growth in the Paint Stores Group offset softness in our other segments, and gross margin expanded 180 basis points to 48.5%. Adjusted diluted earnings per share grew 9.5% to a record $11.33 per share. We continued to generate strong cash flow and returned $2.46 billion to shareholders through dividends and share repurchases."