SHW 8-K — Smart Summary

Sherwin-Williams reported Q3 2025 earnings on October 28, 2025, with consolidated net sales up 3.2% YoY to $6.36 billion and diluted EPS up 5.3% to $3.35. The company narrowed its full year 2025 guidance and completed the Suvinil acquisition on October 1, 2025. Paint Stores Group led growth while Consumer Brands Group faced continued soft DIY demand.

• Net sales: $6.36B in Q3 2025, up 3.2% YoY from $6.16B
• Gross profit: $3.13B (49.2% of net sales) vs. $3.03B (49.1%) in Q3 2024 — margin expanded 10 bps YoY
• Income before income taxes: $1.06B (16.7% of net sales), up 3.7% YoY
• Net income: $833.1M (13.1% of net sales), up 3.3% YoY from $806.2M
• Diluted EPS: $3.35, up 5.3% YoY; Adjusted diluted EPS: $3.59, up 6.5% YoY
• Adjusted EBITDA: $1.36B (21.4% of net sales), up 6.0% YoY
• Nine-month net cash from operations: $2.36B generated through first nine months of 2025
• SG&A: $1.95B (30.7% of net sales) in Q3 2025, flat as a % of net sales YoY

• Paint Stores Group (PSG): Net sales $3.84B, up 5.1% YoY; same-store sales +3.6%; segment profit $954.3M, up 6.5%; reported segment margin 24.9% vs. 24.5% prior year; growth led by protective and marine (double-digit %), residential repaint and commercial (mid-single digit %)
• Consumer Brands Group (CBG): Net sales $770.1M, down 2.6% YoY due to soft DIY demand in North America and Latin America; reported segment margin 20.4% vs. 20.9%; adjusted segment profit $179.3M, down 1.2%; adjusted segment margin 23.3% vs. 22.9% (expanded 40 bps)
• Performance Coatings Group (PCG): Net sales $1.75B, up 1.7% YoY driven by Packaging (double-digit % incl. acquisition) and Automotive Refinish; reported segment profit $240.3M, down 7.5%; reported segment margin 13.7% vs. 15.1%; adjusted segment margin 16.9% vs. 18.0%
• Nine-month PSG net sales: $10.48B, up 3.3% YoY; segment profit $2.41B, up 5.0%
• Nine-month CBG net sales: $2.34B, down 4.3% YoY; segment profit $453.4M, down 13.4%
• Nine-month PCG net sales: $5.15B, down 1.1% YoY; segment profit $698.1M, down 12.6%

• Share repurchases and dividends: $864M returned to shareholders in Q3 2025; $2.13B returned in first nine months of 2025
• Shares repurchased: 4.5 million shares in first nine months of 2025
• Remaining share repurchase authorization: 30.0 million shares as of September 30, 2025
• Cash dividends paid: $195.7M in Q3 2025; $594.0M in first nine months of 2025
• Cash and cash equivalents: $241.5M at September 30, 2025 vs. $238.2M at September 30, 2024
• Long-term debt: $9.32B at September 30, 2025 vs. $8.18B at September 30, 2024
• Short-term borrowings: $1.85B at September 30, 2025 vs. $915.5M at September 30, 2024
• Capital expenditures: $196.4M in Q3 2025; $567.2M in first nine months of 2025

• "Sherwin-Williams delivered solid third quarter results, as we continued to execute our strategy in a demand environment that remains softer for longer as we have previously described. Throughout the quarter, we continued to serve our customers, invest for success, control our costs, take advantage of a unique competitive environment, and execute on our enterprise priorities." — Heidi G. Petz, Chair, President and CEO
• "We're focused on providing customers with differentiated solutions that make them more productive and profitable. This is even more valuable at a time when competitive offerings are highly inconsistent. We have a deep and experienced team, we know what works and we're investing in it, and we continue to assess, adapt and control what we can control. We remain confident our approach is the right one to continue winning near-term, and it leaves us well positioned for when the demand cycle eventually turns." — Heidi G. Petz, Chair, President and CEO

• Q4 2025 net sales: Expected up low-to-mid single digit %
• Full year 2025 net sales: Expected up low-single digit % vs. full year 2024
• Full year 2025 effective tax rate: Low twenty percent range
• Full year 2025 diluted EPS: Narrowed to $10.16–$10.36 (includes $0.77/share acquisition-related amortization and $0.32/share severance and restructuring); vs. $10.55 in 2024
• Full year 2025 adjusted diluted EPS: Narrowed to $11.25–$11.45 vs. $11.33 in 2024 (up ~0.2% at midpoint)
• Suvinil acquisition (closed October 1, 2025) expected to add low-single digit % to Q4 consolidated net sales with immaterial EPS impact in Q4 due to transaction closing costs and purchase accounting items