01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
The Sherwin-Williams Company reported a modest increase in net sales for the fiscal year ended December 31, 2025, reaching $23.574 billiona, a 2.1% rise from the previous year.
This growth was primarily driven by the Paint Stores Group and the Consumer Brands Group. However, diluted net income per share saw a slight decrease of 2.7% to $10.26b. The company successfully generated substantial net operating cash of $3.452 billion, which was utilized for strategic investments, including the acquisition of Suvinil in Brazil, capital expenditures, and returning value to shareholders through dividends and share repurchases.
The company anticipates continued demand challenges in 2026 but remains confident in its "Success by Design" strategy. Key initiatives for growth include store expansion, ongoing acquisitions, and a focus on talent, simplification, digitization, supply chain responsiveness, and sustainability. While facing potential impacts from evolving tariff policies and increased employee-related expenses, Sherwin-Williams aims to offset these with cost-saving simplification efforts.
02—Key points
Key Highlights
- Net sales increased by 2.1% to $23.574 billion, driven by growth in the Paint Stores and Consumer Brands segments.
- Diluted net income per share decreased slightly by 2.7% to $10.26, though adjusted diluted net income per share increased by 0.9% to $11.43.
- Generated strong net operating cash flow of $3.452 billion, a 14.6% increase.
- Completed the acquisition of Suvinil, a Brazilian decorative paints business, for approximately $1.15 billion in October 2025.
- The company plans to open 80 to 100 new stores in the United States and Canada in 2026.
- Maintained a strong liquidity position with $207.2 million in cash and $3.649 billion of unused capacity under its credit facilities.
- Total debt increased by $982.9 million to $10.871 billion, primarily due to financing the Suvinil acquisition.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $23.57B$23.10B | +2.1% |
| Cost of Revenue | $12.06B$11.90B | +1.3% |
| Gross Profit | $11.52B$11.20B | +2.9% |
| SG&A Expenses | $7.70B$7.42B | +3.7% |
| Interest Expense | $396.20M$354.70M | +11.7% |
| Net Income | $2.57B$2.68B | −4.2% |
| EPS (Basic) | $10.37$10.68 | −2.9% |
| EPS (Diluted) | $10.26$10.55 | −2.7% |
| Shares Outstanding (Basic) | 247.60M251.00M | −1.4% |
| Shares Outstanding (Diluted) | 250.40M254.10M | −1.5% |
05—Questions
Frequently Asked Questions
What was Sherwin-Williams' overall financial performance in 2025?
Sherwin-Williams reported a 2.1% increase in net sales to $23.574 billion, driven by its Paint Stores and Consumer Brands segments. However, diluted net income per share saw a slight decrease to $10.26. The company generated strong operating cash flow and utilized it for strategic acquisitions, capital expenditures, and shareholder returns.
What were the key strategic moves made by Sherwin-Williams in 2025?
The company's most significant strategic move was the acquisition of BASF SE's Brazilian decorative paints business, Suvinil, for approximately $1.15 billion in October 2025. This acquisition is expected to bolster its presence in Latin America. Additionally, the company is planning further expansion by opening 80 to 100 new stores in North America in 2026.
What are the main risks and challenges highlighted by Sherwin-Williams for 2026?
Sherwin-Williams anticipates continued economic pressures impacting customer behavior in 2026, particularly within the Paint Stores and Consumer Brands groups, with expectations for softer-for-longer demand. Risks also include potential impacts from evolving tariff policies on raw material costs, increased employee-related expenses, and general macroeconomic uncertainties such as inflation and interest rates.
How is Sherwin-Williams managing its debt and liquidity?
The company ended 2025 with $10.871 billion in total debt, an increase largely due to the Suvinil acquisition financing. Sherwin-Williams maintains a strong liquidity position with $207.2 million in cash and $3.649 billion in unused credit facility capacity, and remains in compliance with its financial covenants. The company targets a net debt to EBITDA ratio of 2.0 to 2.5 times, which stood at 2.4 times at year-end 2025.
06—Continue