SHERWIN WILLIAMS CO Quarterly Report for Q1 Ended Mar 31, 2025

Summary

The Sherwin-Williams Company reported a slight decrease in net sales for the first quarter of 2025, down 1.1% to $5.306 billion, primarily due to unfavorable foreign currency translation. Despite this, diluted earnings per share saw a modest increase of 1.5% to $2.00. The company's Paint Stores Group demonstrated resilience with a 2.3% net sales increase, driven by higher selling prices and growth in professional customer segments, particularly protective and marine, and residential repaint. Operating performance remained robust, with gross profit as a percentage of net sales improving to 48.2% from 47.2% in the prior year, benefiting from higher selling prices. The company maintained a strong liquidity position with $199.8 million in cash and $2.148 billion in unused credit facility capacity. Management remains focused on its "Success by Design" strategy, prioritizing initiatives for sustained, profitable growth amid economic uncertainties. The company also announced a significant acquisition in Brazil, indicating continued strategic expansion.

Key Highlights

• 1Consolidated Net sales decreased 1.1% to $5.306 billion in Q1 2025, primarily due to unfavorable foreign currency translation.
• 2Diluted net income per share increased 1.5% to $2.00 in Q1 2025, compared to $1.97 in Q1 2024.
• 3Paint Stores Group net sales increased 2.3%, with comparable store sales up 1.2%, indicating resilience in its core retail operations.
• 4Gross profit margin improved to 48.2% from 47.2% year-over-year, driven by higher selling prices.
• 5Adjusted EBITDA increased by 4.6% to $937.0 million, showing strong operational performance.
• 6The company signed an agreement to acquire BASF's Brazilian decorative paints business for $1.15 billion, signaling strategic growth in international markets.
• 7Sherwin-Williams maintained a strong liquidity position with $199.8 million in cash and significant unused credit facilities.

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