Q4 2025 Sherwin-Williams Co Earnings Call Transcript
Key Points
- Sherwin-Williams Co (SHW) ended the year with strong fourth-quarter results, driven by solid core performance and the first full quarter of the Suvinil acquisition.
- Adjusted diluted net income per share in the quarter increased by 6.7%, and adjusted EBITDA grew 13.4%, expanding 120 basis points to 17.7% as a percent of sales.
- Free cash flow conversion in the quarter was 90.1%, indicating strong cash generation capabilities.
- The Paint Stores Group saw sales increase, led by high single-digit growth in Protective & Marine, with segment margin expanding 90 basis points to 20.8%.
- Sherwin-Williams Co (SHW) returned $2.5 billion to shareholders through share repurchases and dividends, marking the 47th consecutive year of dividend increases.
- Reported gross margin was flattish year-over-year, impacted by the dilutive effect of the Suvinil acquisition.
- Consumer Brands Group sales were offset by price mix and volume declines, with adjusted segment margin decreasing due to Suvinil-related costs.
- The Performance Coatings Group faced challenges with unfavorable geographic mix, impacting adjusted segment margin.
- The demand environment remains challenging, with expectations of a 'softer for longer' dynamic persisting into 2026.
- Sherwin-Williams Co (SHW) anticipates raw material costs to rise by a low single-digit percentage in 2026, driven by tariffs and select commodity inflation.
Good morning. Thank you for joining The Sherwin-Williams Company's review of fourth-quarter and full-year 2025 results and our outlook for the first quarter and full year of 2026.
With us on today's call are Heidi Petz, Chair, President and Chief Executive Officer; Ben Meisenzahl, Chief Financial Officer; Paul Lang, Chief Accounting Officer; and Jim Jaye, Senior Vice President, Investor Relations and Communications. This conference call is being webcast simultaneously in listen-only mode by Access Newswire via the Internet at www.sherwin.com. An archived replay of this website will be available at www.sherwin.com, beginning approximately 2 hours after this conference call concludes.
This conference call will include certain forward-looking statements as defined under the US federal securities laws with respect to sales, earnings and other matters. Any forward-looking statement speaks only as of the date on which such statement is made, and the company undertakes
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