On April 29, 2025, The Sherwin-Williams Company (NYSE: SHW) released its first quarter financial results for 2025, revealing a nuanced performance amid industry headwinds and macroeconomic uncertainty. This authoritative overview dives deep into the company’s financial health, shedding light on key statistics and strategic undertakings that shape Sherwin-Williams’ position in the global coatings market.
Consolidated net sales reported a slight decrease of 1.1% to $5.31 billion compared to Q1 2024.
Net sales from established Paint Stores Group outlets grew by 1.2%, indicating strong ongoing demand in core markets.
Diluted net income per share (EPS) increased modestly by 1.5% to \(2.00 versus \)1.97 in the prior year period.
Adjusted diluted EPS showed a more robust 3.7% increase to $2.25 per share, reflecting effective cost controls and margin improvements.
Adjusted EBITDA climbed 4.6% to $937 million, representing 17.7% of net sales, underscoring operational efficiency.
Paint Stores Group (PSG)
Net sales rose 2.3% to $2.94 billion, driven by high-single-digit growth in protective and marine sectors and mid-single-digit gains in residential repaint markets.
Segment profit surged 9.7% to $541.2 million, with margins expanding from 17.2% to 18.4%, signaling margin expansion through price realizations and disciplined cost management.
The group opened 18 new stores in Q1 2025, reflecting aggressive growth strategies.
Consumer Brands Group (CBG)
Q1 net sales declined 6% to $762 million, impacted by soft North American DIY demand and unfavorable currency translation effects, particularly in Latin America.
Segment profit declined 14% to $131.9 million, despite adjustments for acquisition-related amortization and restructuring expenses.
Performance Coatings Group (PCG)
Net sales dropped 4.8% to $1.60 billion, with performance negatively impacted by currency headwinds and mixed results across business units.
Adjusted segment profit decreased 7.7% to $264.7 million, with packaging sales showing notable high-single-digit growth.
Sherwin-Williams reaffirmed full-year guidance for 2025: - Diluted EPS guidance of \(10.70 to \)11.10 per share, - Adjusted diluted EPS guidance between \(11.65 to \)12.05 per share, - Consolidated net sales anticipated to grow or decline by low-single digit percentages.
CEO Heidi G. Petz highlighted the challenging demand environment but emphasized the company’s continued margin expansion, cost control, and capital allocation discipline including $351.7 million spent on share repurchases and a 10.5% dividend increase in Q1.
Operating cash flow saw a $61.1 million outflow mainly due to seasonal working capital increases.
The company maintains strong liquidity with $199.8 million in cash and cash equivalents as of March 31, 2025.
Short-term borrowings increased to fund working capital requirements.
The Q1 2025 report echoes recurring themes from Sherwin-Williams earnings calls, including: - Persistent challenges from economic uncertainty and global tariffs, - Emphasis on pricing power and margin management, - Strategic store expansion and capital return to shareholders, - Ongoing adjustments to foreign exchange impacts and raw material cost pressures.
Given the sector’s exposure to macroeconomic variables, including tariff policies and fluctuating raw material costs, Sherwin-Williams’ performance will likely hinge on its adaptive strategies and execution on targeted investments. The company’s focus on differentiated solutions and operational agility positions it well to navigate volatility.
For technical investors and industry analysts, Sherwin-Williams’ Q1 financial metrics point to disciplined margin control and steady cash returns to shareholders, despite minor revenue contractions.
For detailed review, access the full 8-K filing here: Sherwin-Williams Q1 2025 Earnings Release
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