SHW 8-K — Smart Summary

Sherwin-Williams reported full year 2025 consolidated net sales of $23.57 billion, up 2.1% YoY, with record adjusted diluted EPS of $11.43. Q4 2025 net sales rose 5.6% to $5.60 billion, aided by the Suvinil acquisition. The company issued full year 2026 guidance for adjusted diluted EPS of $11.50–$11.90 and net sales growth of a low to mid-single digit %.

• Net sales (FY2025): $23.57B, +2.1% YoY; (Q4 2025): $5.60B, +5.6% YoY
• Gross profit (FY2025): $11.52B vs. $11.20B prior year; gross margin 48.8% vs. 48.5% (+30 bps YoY)
• Gross margin (Q4 2025): 48.5% vs. 48.6% (-10 bps YoY)
• SG&A (FY2025): $7.70B, 32.6% of net sales vs. 32.1% prior year
• Income before income taxes (FY2025): $3.34B vs. $3.45B (-3.3% YoY); (Q4 2025): $639.0M vs. $615.6M (+3.8% YoY)
• Net income (FY2025): $2.57B vs. $2.68B (-4.2% YoY); (Q4 2025): $476.8M vs. $480.1M (-0.7% YoY)
• Diluted EPS (FY2025): $10.26, -2.7% YoY; Adjusted diluted EPS: $11.43, +0.9% YoY
• Diluted EPS (Q4 2025): $1.92, +1.1% YoY; Adjusted diluted EPS: $2.23, +6.7% YoY
• Net operating cash (FY2025): $3.45B, 14.6% of net sales, +9% YoY
• Adjusted EBITDA (FY2025): $4.61B vs. EBITDA of $4.49B in FY2024; Q4 2025 adjusted EBITDA: $993.1M vs. $876.0M EBITDA in Q4 2024

• Paint Stores Group (FY2025): Net sales $13.61B, +3.2% YoY; Segment profit $3.06B vs. $2.90B (+5.5% YoY); same-store sales +1.7% for the year
• Paint Stores Group (Q4 2025): Net sales $3.13B, +2.7% YoY; Segment profit $649.5M, +7.1% YoY; same-store sales +1.0%; segment margin 20.8% vs. 19.9%
• Consumer Brands Group (FY2025): Net sales $3.17B, +1.9% YoY; Segment profit $509.6M vs. $589.9M (-13.6% YoY)
• Consumer Brands Group (Q4 2025): Net sales $824.7M, +24.5% YoY (Suvinil contributed $164.5M or 24.8%); Segment profit $56.2M, -15.6% YoY; Adjusted segment profit $87.3M, +6.5% YoY; reported margin 6.8% vs. 10.1%
• Performance Coatings Group (FY2025): Net sales $6.80B, essentially flat YoY (-0.03%); Segment profit $942.7M vs. $1.03B (-8.3% YoY)
• Performance Coatings Group (Q4 2025): Net sales $1.64B, +3.3% YoY; Segment profit $244.6M, +6.8% YoY; Adjusted segment profit $312.8M, +12.6% YoY; reported margin 14.9% vs. 14.4%
• Suvinil acquisition contributed $164.5M to Q4 2025 consolidated net sales, representing 3.1% of consolidated net sales change

• Cash and cash equivalents at December 31, 2025: $207.2M vs. $210.4M at December 31, 2024
• Returned $2.45B to shareholders in FY2025 via dividends and share repurchases
• Repurchased 4.8 million shares of common stock during FY2025
• Remaining share repurchase authorization at December 31, 2025: 29.6 million shares
• Cash dividends paid (FY2025): $789.8M vs. $723.4M in FY2024; dividend increased for 47th consecutive year
• Q4 2025 cash dividends: $195.8M vs. $179.8M in Q4 2024
• Long-term debt at December 31, 2025: $9.32B vs. $8.18B at December 31, 2024
• Short-term borrowings: $1.20B vs. $662.4M at December 31, 2024
• Capital expenditures (FY2025): $797.6M vs. $1.07B in FY2024; Q4 2025: $230.4M vs. $300.0M
• Free cash flow conversion in Q4 2025: 90.1%

• "Sherwin-Williams delivered strong fourth quarter results driven by solid core performance amid continued demand choppiness, and inclusive of the first full quarter of the Suvinil acquisition... For the full year, our 'Success by Design' approach resulted in record consolidated Net sales and record adjusted diluted net income per share." — Heidi G. Petz, Chair, President and CEO
• "We enter 2026 with a continuation of the softer-for-longer demand environment we have previously described... At the same time, we also expect to continue to outperform the market given our differentiated strategy of providing innovative and productivity-improving solutions for our customers." — Heidi G. Petz, Chair, President and CEO

• Q1 2026: Consolidated net sales expected up a mid-single digit % vs. Q1 2025
• FY2026: Consolidated net sales expected up low to mid-single digit % vs. 2025
• FY2026 diluted EPS guidance: $10.70–$11.10 per share (includes $0.80/share Valspar acquisition-related amortization)
• FY2026 adjusted diluted EPS guidance: $11.50–$11.90 per share (+2.4% at midpoint vs. 2025)
• FY2026 effective tax rate: low twenty %
• Management expects softer-for-longer demand environment to persist well into the second half of 2026