01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
The Sherwin-Williams Company reported solid third-quarter and year-to-date results for 2025, demonstrating resilience in a dynamic market.
Consolidated net sales saw an increase of 3.2% to $6.36 billiona for the quarter and 1.0% to $17.98 billion year-to-date. This growth was primarily driven by the Paint Stores Group, with steady performance from the Performance Coatings Group, despite a slight dip in the Consumer Brands Group due to softer DIY demand. Profitability remained robust, with diluted net income per share increasing to $3.35 in the quarter, reflecting effective cost management and strategic pricing.
The company generated strong operating cash flow, up 6.3% year-to-date to $2.36 billionb, supporting significant shareholder returns through dividends and share repurchases. Strategic acquisitions, including the notable Suvinil acquisition in Brazil, are expected to contribute to future growth. While facing a challenging macroeconomic environment, Sherwin-Williams maintains a disciplined capital deployment strategy and a strong liquidity position, indicating continued focus on profitable growth and shareholder value.
02—Key points
Key Highlights
- Consolidated net sales increased by 3.2% to $6.36 billion in Q3 2025 and 1.0% to $17.98 billion year-to-date, driven by the Paint Stores Group.
- Diluted net income per share rose to $3.35 in Q3 2025, reflecting improved profitability and effective cost controls.
- Net operating cash flow increased by 6.3% year-to-date to $2.36 billion, providing strong support for shareholder returns.
- The company completed a significant acquisition of BASF's Brazilian decorative paints business (Suvinil) for $1.15 billion in October 2025, funded by debt.
- Shareholders received $2.13 billion in dividends and share repurchases year-to-date, with the quarterly dividend increased to $0.79 per share.
- Paint Stores Group same-store sales increased by 3.6% for the quarter and 1.9% year-to-date, indicating ongoing strength in their core retail segment.
- Total debt outstanding increased to $11.52 billion, primarily due to new debt issued to fund the Suvinil acquisition and general corporate purposes.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.36B$6.16B | +3.2% |
| Cost of Revenue | $3.23B$3.13B | +3.1% |
| Gross Profit | $3.13B$3.03B | +3.2% |
| SG&A Expenses | $1.95B$1.89B | +3.1% |
| Net Income | $833.10M$806.20M | +3.3% |
| EPS (Basic) | $3.38$3.22 | +5.0% |
| EPS (Diluted) | $3.35$3.18 | +5.3% |
| Shares Outstanding (Basic) | 246.20M250.60M | −1.8% |
| Shares Outstanding (Diluted) | 249.00M253.90M | −1.9% |
05—Questions
Frequently Asked Questions
What was the overall financial performance for the third quarter and first nine months of 2025?
Sherwin-Williams reported a 3.2% increase in consolidated net sales to $6.36 billion for the third quarter of 2025, and a 1.0% increase to $17.98 billion for the first nine months of 2025. Diluted net income per share was $3.35 for the third quarter, an increase from $3.18 in the prior year, while year-to-date diluted EPS was $8.34, a decrease from $8.65.
How did the recent acquisition of BASF's Brazilian decorative paints business (Suvinil) impact the company's financials?
The acquisition of Suvinil for $1.15 billion was completed in October 2025 and funded by debt. A deposit of $1.15 billion related to this acquisition was recognized in 'Other assets' on the balance sheet as of September 30, 2025, impacting cash flow from investing activities. The financial impact of the acquisition will be further reflected in subsequent reporting periods.
What is the company's liquidity position and how is it managing its debt?
The company maintained a strong liquidity position with $241.5 million in cash and cash equivalents and $3.13 billion of unused capacity under its credit facilities as of September 30, 2025. Total debt outstanding increased to $11.52 billion, largely due to new debt issuance for the Suvinil acquisition and the repayment of existing senior notes. The company remains compliant with its debt covenants and expects to continue doing so.
What were the key drivers of the changes in Net Sales across the different segments?
The Paint Stores Group saw a 5.1% increase in net sales for the quarter and 3.3% year-to-date, driven by price increases and sales volume growth, with same-store sales up 3.6% for the quarter. The Consumer Brands Group experienced a 2.6% decrease in quarterly sales and 4.3% year-to-date decrease, mainly due to soft DIY demand. The Performance Coatings Group had a slight 1.7% increase in quarterly sales and a 1.1% decrease year-to-date, influenced by acquisition contributions and sales mix.
06—Continue