The Sherwin-Williams Company (SHW) Q4 2025 earnings summary

Executive summary

• Consolidated sales for 2025 rose 2.1% year-over-year to $23.57 billion, achieving record levels, with growth from price/mix and acquisitions offset by lower volumes.

• Adjusted diluted EPS for 2025 increased 0.9% to $11.43, while reported EPS declined 2.7% to $10.26.

• Fourth quarter adjusted diluted EPS grew 6.7% to $2.23, with net sales up 5.6% to $5.60 billion.

• Suvinil acquisition contributed significantly to Consumer Brands Group sales and overall growth, though it diluted gross margin.

• Free cash flow for the year was $3.45 billion, with Q4 conversion at 90.1%.

Financial highlights

• Q4 2025 sales increased 5.6% year-over-year to $5.60 billion, at the high end of guidance.

• Adjusted EBITDA for the year was $4.61 billion, up 2.6% year-over-year, with Q4 margin expanding to 17.7%.

• Gross margin for the year was 48.8%, up from 48.5% in 2024.

• Net operating cash for the year was $3.45 billion, representing 14.6% of net sales.

• Returned $2.45 billion to shareholders via dividends and share repurchases.

Outlook and guidance

• 2026 full-year sales expected to rise low to mid-single digits, with adjusted diluted EPS guidance of $11.50–$11.90 and GAAP EPS of $10.70–$11.10.

• Q1 2026 sales projected up mid-single digits; CBG segment up low to mid-teens.

• Paint Stores Group implemented a 7% price increase effective January 1, with realization expected in the low single-digit range.

• Expect to open 80–100 net new stores in 2026 and recommend a 1.3% dividend increase.

• Guidance assumes continued challenging demand, with little broad-based recovery expected in 2026.