10-QPeriod: Q2 FY2025

SHERWIN WILLIAMS CO Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 24, 2025For Securities:SHW

Summary

Sherwin-Williams Company (SHW) reported its second-quarter 2025 results, demonstrating resilience amidst a challenging demand environment. Consolidated net sales saw a modest increase of 0.7% to $6.315 billion for the quarter and a slight decrease of 0.2% year-to-date to $11.620 billion. The Paint Stores Group was a key contributor to growth, with same-store sales up 0.8% for the quarter. However, diluted net income per share declined by 14.3% to $3.00 for the quarter and 8.6% year-to-date to $5.00, impacted by increased selling, general, and administrative expenses related to restructuring initiatives, building costs, and growth investments, as well as higher foreign currency transaction losses. The company highlighted its ongoing commitment to its "Success by Design" strategy, focusing on deepening customer relationships and capturing market share. Despite anticipated continued softer demand, Sherwin-Williams is accelerating restructuring actions while maintaining strategic investments. The company maintains a strong liquidity position with $269.8 million in cash and $2.235 billion in unused credit facilities, underscoring its financial stability.

Financial Highlights

50 data points
Beta

Revenue

$6.31B

49.4% Gross Margin

Net Income

$754.70M

12.0% Net Margin

EPS (Diluted)

$3.00

Total Assets

$25.36B

Cash & Equivalents

$269.80M

Free Cash Flow

$1.11B

Financial Statements
Beta
Revenue$6.31B
Cost of Revenue$3.20B
Gross Profit$3.12B
SG&A Expenses$2.01B
Net Income$754.70M
EPS (Basic)$3.04
EPS (Diluted)$3.00
Shares Outstanding (Basic)248.40M
Shares Outstanding (Diluted)251.30M

Key Highlights

  • 1Consolidated Net Sales increased 0.7% to $6.315 billion in Q2 2025, with year-to-date sales at $11.620 billion.
  • 2Paint Stores Group showed resilience with a 0.8% increase in same-store sales for the quarter and a 1.0% increase year-to-date.
  • 3Diluted Net Income Per Share decreased to $3.00 in Q2 2025, down from $3.50 in Q2 2024, reflecting increased operating expenses.
  • 4Selling, General, and Administrative (SG&A) expenses increased significantly in Q2 2025 due to restructuring, building costs, and investment.
  • 5Gross profit margin improved to 49.4% in Q2 2025, up from 48.8% in the prior year period, driven by price increases in the Paint Stores Group.
  • 6The company maintained a strong liquidity position with $269.8 million in cash and cash equivalents and $2.235 billion in unused credit capacity as of June 30, 2025.
  • 7Restructuring actions are being accelerated in response to softer demand, indicating a proactive approach to market conditions.

Frequently Asked Questions

The decrease in diluted net income per share was primarily driven by higher Selling, General, and Administrative (SG&A) expenses in the second quarter of 2025. These increases were attributed to broader restructuring initiatives related to softer demand, building-related costs for new headquarters and R&D facilities, and heightened growth investments. Additionally, increased foreign currency transaction related losses also impacted profitability.

The Paint Stores Group showed growth with a 2.3% increase in net sales for the quarter, primarily due to selling price increases and strength in professional customer end markets. The Consumer Brands Group experienced a 4.1% decrease in net sales, attributed to soft DIY demand in North America and unfavorable foreign currency impacts. The Performance Coatings Group's net sales were flat, with growth from acquisitions offset by selling price decreases.

Sherwin-Williams anticipates continued softer demand in the second half of 2025 and is responding by accelerating its restructuring actions. The company plans to continue making strategic investments to deepen customer relationships and capture market share, while maintaining a disciplined capital deployment strategy focused on acquisitions, dividends, and share repurchases. They believe they are well-positioned to achieve sustained and profitable growth.

The company's financial condition and liquidity remained strong. As of June 30, 2025, Sherwin-Williams had $269.8 million in cash and cash equivalents and $2.235 billion in unused capacity under its credit facilities. Net operating cash generated was $1.052 billion for the first six months of 2025, and the company returned $1.269 billion to shareholders through dividends and share repurchases during the same period.