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

Executive summary

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

• 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% to $2.23.

• Gross margin expanded by 30 bps to 48.8% despite the dilutive impact of the Suvinil acquisition.

• Net operating cash for the year was $3.45 billion, up 9.5% year-over-year, with Q4 free cash flow conversion at 90.1%.

• Returned $2.45 billion to shareholders via dividends and share repurchases; dividend raised for 47th consecutive year.

Financial highlights

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

• Q4 adjusted EBITDA margin expanded 120 bps to 17.7%; full-year adjusted EBITDA was $4.61 billion, up 2.6% year-over-year.

• Full-year net income was $2.57 billion, down from $2.68 billion in 2024.

• Operating cash flow increased 9% to $3.45 billion, representing 14.6% of net sales.

• Capital expenditures for 2025 were $797.6 million, down 25.5% from prior year.

Outlook and guidance

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

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

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

• Raw material costs expected to rise low single digits; capital expenditures planned at $550 million.

• Guidance reflects continued soft demand expected through at least the second half of 2026.