10-KPeriod: FY2024

SHERWIN WILLIAMS CO Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:SHW

Summary

The Sherwin-Williams Company reported record net sales of $23.099 billion for the year ended December 31, 2024, a slight increase of 0.2% from the prior year. Despite facing continued macroeconomic challenges, the company demonstrated resilience with a 14.1% increase in diluted net income per share, reaching $10.55. This growth was supported by a 4.1% increase in gross profit, driven by higher sales volumes in the Paint Stores Group and moderating raw material costs. The company also generated strong net operating cash flow of $3.153 billion, enabling significant investments in its operations, strategic acquisitions, and substantial returns to shareholders through dividends and share repurchases. Looking ahead to 2025, Sherwin-Williams anticipates continued economic pressures impacting consumer behavior, particularly in North America and Europe. However, the company remains confident in its "Success by Design" strategy, focusing on talent development, digitization, supply chain responsiveness, and sustainability to drive above-market growth opportunities. Key initiatives include opening 80-100 new stores and managing inflationary pressures through simplification efforts. The company also announced a significant acquisition of BASF's Brazilian decorative paints business for $1.15 billion, subject to regulatory approval, signaling continued strategic expansion.

Financial Highlights

52 data points
Beta

Revenue

$23.10B

48.5% Gross Margin

Net Income

$2.68B

11.6% Net Margin

EPS (Diluted)

$10.55

Total Assets

$23.63B

Cash & Equivalents

$210.40M

Free Cash Flow

$3.15B

Financial Statements
Beta
Revenue$23.10B
Cost of Revenue$11.90B
Gross Profit$11.20B
SG&A Expenses$7.42B
Interest Expense$354.70M
Net Income$2.68B
EPS (Basic)$10.68
EPS (Diluted)$10.55
Shares Outstanding (Basic)251.00M
Shares Outstanding (Diluted)254.10M

Key Highlights

  • 1Record consolidated net sales of $23.099 billion for the year, a 0.2% increase.
  • 2Diluted net income per share increased by 14.1% to $10.55.
  • 3Gross profit increased by 4.1% to $11.195 billion, with gross profit margin improving to 48.5% from 46.7%.
  • 4Generated $3.153 billion in net operating cash flow, demonstrating strong cash generation capabilities.
  • 5Invested $1.014 billion in capital expenditures and returned $2.462 billion to shareholders via dividends and share repurchases.
  • 6Announced definitive agreement to acquire BASF's Brazilian decorative paints business for $1.15 billion, subject to closing conditions.
  • 7Anticipates opening 80-100 new stores in the U.S. and Canada in 2025.

Frequently Asked Questions

Sherwin-Williams achieved record consolidated net sales of $23.099 billion, a slight increase of 0.2% year-over-year. Diluted net income per share saw a significant increase of 14.1% to $10.55, driven by improved gross margins and effective cost management.

Sherwin-Williams expects continued economic pressures to affect consumer behavior in 2025. However, the company plans to drive above-market growth through its "Success by Design" strategy, focusing on talent, digitization, supply chain responsiveness, and sustainability. Key growth initiatives include opening 80-100 new stores and expanding its footprint through strategic acquisitions like the pending deal for BASF's Brazilian decorative paints business.

The company anticipates a low-single digit percentage increase in raw material and employee-related costs in 2025. To counter this, Sherwin-Williams plans to implement cost-saving simplification efforts across its supply chain, focusing on capacity and productivity improvements.

Sherwin-Williams maintains a balanced capital deployment strategy. In 2024, the company generated strong operating cash flow, which was used for capital expenditures, strategic acquisitions, and significant returns to shareholders through dividends and share repurchases. The company expects to continue returning value to shareholders in 2025.