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

Executive summary

• Consolidated sales for 2025 rose 2.1% year-over-year to a record $23.57 billion, driven by price/mix, acquisitions, and strong Q4 performance, with Suvinil contributing significantly.

• Adjusted diluted EPS for 2025 increased 0.9% to $11.43, while reported EPS declined 2.7% to $10.26; Q4 adjusted EPS grew 6.7%.

• Maintained disciplined cost control, with SG&A as a percent of sales decreasing year-over-year in Q4 and restructuring actions yielding savings.

• Free cash flow conversion in Q4 was 90.1%; net operating cash for the year was $3.45 billion, up 9.5%.

• Returned $2.5 billion to shareholders via dividends and share repurchases; dividend raised for the 47th consecutive year.

Financial highlights

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

• Gross margin for 2025 was 48.8%, up from 48.5% in 2024, despite Suvinil's dilutive impact.

• Q4 adjusted EPS grew 6.7% to $2.23; adjusted EBITDA margin expanded to 17.7%.

• Full-year adjusted EBITDA was $4.61 billion, up 2.6% year-over-year.

• Free cash flow for the year was $2.7 billion, with 59% conversion.

Outlook and guidance

• 2026 consolidated sales expected to rise low- to mid-single digits, with acquisitions contributing low-single digits.

• Adjusted EPS guidance for 2026 is $11.50–$11.90; GAAP EPS $10.70–$11.10, up 2.4% at midpoint.

• 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 to $3.20 per share.

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