Sherwin-Williams Reports Q4 Revenue of $5.6B
Reports Q4 revenue $5.6B, consensus $5.57B. "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," said CEO Heidi Petz. "Consolidated Net sales were at the high end of our guidance, adjusted EBITDA improved by a low-teens percentage and adjusted diluted net income per share increased by a mid-single digit percentage. We continued to execute our strategy, prioritize strategic growth investments, and tightly manage general and administrative expenses. SG&A growth remained in our targeted low-single digit range, including the addition of Suvinil, as previously announced restructuring efforts continued to yield savings. Free cash flow conversion in the quarter was 90.1%...Net operating cash grew 9% to $3.5B, or 14.6% of Net sales, which is within our mid-term target range and consistent with our disciplined capital allocation strategy. Our targeted capital expenditures included our new buildings, which are now occupied and supporting our field teams and customers, and we returned $2.4B to shareholders through share repurchases and dividends, which we increased for the 47th consecutive year."
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Sherwin-Williams Q4 2025 Earnings Call Highlights
- Performance Growth: In 2025, Sherwin-Williams achieved record full-year consolidated sales and adjusted diluted earnings per share, with adjusted EBITDA growing by 13.4%, demonstrating the company's resilience in a challenging market environment.
- Acquisition and Investment: The company completed the acquisition of Suvinil and returned $2.5 billion to shareholders through share repurchases and dividends, indicating its commitment to strategic investments and market share expansion.
- Employee Benefit Restoration: Sherwin-Williams reinstated the 401(k) matching program for U.S. employees, aiming to protect jobs and retain talent, reflecting the company's focus on long-term health.
- Future Outlook: Management expects consolidated sales to grow low to mid-single digits in 2026, with adjusted diluted earnings per share projected between $11.50 and $11.90, indicating cautious optimism for future market conditions.
Sherwin-Williams Reports Strong Quarterly Earnings Beat
- Quarterly Earnings Beat: Sherwin-Williams reported adjusted earnings per share of $2.23 for Q4, surpassing the analyst consensus of $2.16, indicating a robust profitability trend that is likely to positively influence stock performance.
- Significant Sales Growth: The company achieved quarterly sales of $5.595 billion, exceeding the Street's expectation of $5.544 billion, with Paint Stores Group sales growing 2.7% year-over-year, reflecting stable market demand.
- Gross Margin Dynamics: Gross profit increased from $2.573 billion to $2.712 billion, although gross margin slightly contracted to 48.5%, suggesting some cost control challenges, yet overall profitability remains strong.
- Cautious Future Outlook: The firm anticipates fiscal 2026 adjusted earnings between $11.50 and $11.90 per share, below the market view of $12.42, indicating uncertainty in future market demand, particularly with a projected decline in the new residential market.
