The Sherwin-Williams Company (SHW) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated net sales rose 0.7% to $6.16 billion, led by Paint Stores Group, with same-store sales up 2.2% and modest acquisition contributions, despite declines in other segments and FX headwinds.

• Gross margin improved 140 bps to 49.1%, and diluted EPS increased 7.8% to $3.18; adjusted EPS was $3.37, up 5.3%.

• EBITDA grew 1.2% to $1.28 billion, representing 20.8% of net sales.

• $631 million was returned to shareholders via dividends and share repurchases in Q3; $1.97 billion returned YTD.

• Investments were made in stores, sales, technical reps, services, and digital capabilities to drive long-term growth.

Financial highlights

• Gross margin improved to 49.1% in Q3 2024 from 47.7% in Q3 2023.

• Net income for Q3 was $806.2 million, up from $761.5 million year-over-year.

• SG&A expenses increased to 30.7% of net sales, reflecting growth investments and higher employee costs.

• Operating cash flow for the first nine months reached $2.22 billion.

• Adjusted segment margins: Consumer Brands 22.9%, Performance Coatings 18.0%.

Outlook and guidance

• Full-year 2024 diluted EPS guidance reaffirmed at $10.30–$10.60; adjusted EPS $11.10–$11.40, up 8.7% at midpoint.

• Q4 2024 net sales expected to be flat to up low-single digits year-over-year.

• SG&A expected to moderate sequentially, with a low to mid-single digit increase for H2 2024.

• 5% price increase in Paint Stores Group effective January 6, 2025, to offset inflation.

• Demand expected to remain choppy in H1 2025; strategy focused on differentiated solutions and market outperformance.