The Sherwin-Williams Company (SHW) Q4 2024 earnings summary

Executive summary

• Consolidated net sales reached a record $23.1 billion in 2024, with Paint Stores Group driving growth and adjusted EPS up 9.5% to $11.33.

• Gross margin expanded 180 bps to 48.5% for the year; Q4 adjusted EPS rose 15.5% to $2.09.

• Strong cash generation of $3.2 billion (13.7% of sales); $2.5 billion returned to shareholders via buybacks and dividends.

• Continued targeted investments in innovation, capacity, and digital tools to drive share gains.

• Adjusted EBITDA for the year grew 8.2% to $4.5 billion, or 19.4% of net sales.

Financial highlights

• Full-year gross margin expanded to 48.5%; EBITDA margin up to 19.4%.

• Q4 sales were $5.3 billion, up 0.9% year-over-year; Q4 adjusted EPS up 15.5% to $2.09.

• Net debt-to-Adjusted EBITDA at 2.2x at year-end 2024.

• Capital expenditures for 2024 totaled $1.07 billion, including $532 million for new HQ and R&D center.

• Cash dividends paid in 2024 were $723.4 million, up from $623.7 million.

Outlook and guidance

• 2025 consolidated sales expected to rise low single digits; adjusted EPS guidance $11.65–$12.05, diluted EPS $10.70–$11.10.

• Paint Stores Group implemented a 5% price increase in January 2025, expected to reach 50–60% effectiveness in Q1.

• Gross margin expansion anticipated for 2025; SG&A to grow low single digits, including $80–100 million in new building costs.

• Interest expense to rise due to refinancing at higher rates and new building financing.

• 80–100 new stores planned for 2025; annual dividend increase of 10.5% to $3.16/share recommended.