The Sherwin-Williams 2025 Q1 Earnings Mixed Results as Net Income Declines 0.3%
Wednesday, Apr 30, 2025 5:44 am ET
27min read Revenue
Sherwin-Williams reported a total revenue of $5.31 billion for Q1 2025, down from $5.37 billion in the same quarter of 2024. The Paint Stores Group generated $2.94 billion, demonstrating robust performance, while the Consumer Brands Group contributed $762.20 million amid softer DIY demand. The Performance Coatings Group reported $1.60 billion in sales, facing challenges due to currency headwinds and lower demand. Administrative revenues were marginal at $1.70 million, contributing to the overall revenue figure.
Earnings/Net Income
The Sherwin-Williams's EPS rose 1.0% to $2.02 in 2025 Q1 from $2.00 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's net income declined to $503.90 million in 2025 Q1, down 0.3% from $505.20 million reported in 2024 Q1. The EPS performance was solid, reflecting the company's effective cost management and strategic focus on margin expansion.
Price Action
The stock price of the sherwin-williams has edged up 0.82% during the latest trading day, has climbed 4.87% during the most recent full trading week, and has edged up 0.72% month-to-date.
Post-Earnings Price Action Review
The Sherwin-Williams Company (SHW) has historically experienced positive short-to-medium-term gains following its earnings report releases. An analysis of past performance indicates a favorable trend, with a 71.43% win rate over three days, a 66.67% win rate over ten days, and a consistent 66.67% win rate over thirty days post-announcement. This suggests a tendency for bullish momentum in the immediate aftermath of earnings releases. The maximum recorded return was 8.24% across thirty days, highlighting potential for notable price appreciation in the months following earnings disclosures. These statistics underscore a pattern where investors may anticipate upward movement, aligning with the company's strategy of delivering solid financial performance and shareholder value.
CEO Commentary
Sherwin-Williams' Chair, President, and Chief Executive Officer, Heidi G. Petz, highlighted that despite a challenging demand environment, the company achieved solid first-quarter results through gross margin expansion and effective cost control. Consolidated sales met guidance expectations, primarily driven by the Paint Stores Group, which saw growth in adjusted diluted net income per share and adjusted EBITDA. Petz noted that while residential repaint sales experienced mid-single digit growth, commercial results faced challenges due to weak construction completions. The company continued to invest in growth, opening 18 new stores and enhancing shareholder returns through share repurchases and a dividend increase.
Guidance
Sherwin-Williams reaffirmed its full-year 2025 diluted net income per share guidance in the range of $10.70 to $11.10, which incorporates acquisition-related amortization expenses of $0.80 per share and severance and restructuring costs of $0.15 per share. Additionally, the company maintained its adjusted diluted net income per share guidance for 2025 between $11.65 and $12.05, reflecting its commitment to strategic execution amidst market challenges.
Additional News
Sherwin-Williams' Board of Directors proposed an annual dividend increase of 10.5%, raising it to $3.16 per share for 2025, up from $2.86 the previous year. This marks the 47th consecutive year of dividend growth, reflecting the company's commitment to returning value to shareholders. The dividend proposal is a key highlight alongside the ongoing share repurchase efforts, which saw the company buy back 1.0 million shares in Q1 2025. Additionally, the company has authorized the repurchase of up to 33.4 million shares, further indicating strong confidence in its long-term growth prospects and financial stability.
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