Loading...
•
Dec 31, 2024
Sherwin-Williams Q4 2024 Earnings Report
Sherwin-Williams' Q4 2024 financial performance showed sales growth driven by the Paint Stores Group, offset by declines in Consumer Brands and Performance Coatings, with diluted net income per share increasing by 36.7%.
Key Takeaways
Sherwin-Williams reported a 0.9% increase in consolidated net sales, driven by the Paint Stores Group, while the Consumer Brands and Performance Coatings Groups experienced lower sales. Diluted net income per share increased by 36.7% to $1.90, and adjusted diluted net income per share increased by 15.5% to $2.09.
Consolidated Net sales increased primarily due to higher sales in the Paint Stores Group.
Income before income taxes increased primarily due to higher Net sales, lower provisions for environmental matters and higher other income.
Residential repaint significantly outgrew the market and increased by a high-single digit percentage.
Sales in industrial businesses were led by double-digit percentage growth in Packaging and low-single digit percentage growth in Coil.
Sherwin-Williams
Sherwin-Williams
Sherwin-Williams Revenue by Segment
Revenue by Segment
Consumer Brands Group Revenue
CapyFin.comPerformance Coatings Group Revenue
CapyFin.com Forward Guidance
The Company expects first quarter 2025 consolidated Net sales will be up or down a low-single digit percentage compared to the first quarter of 2024 with the Paint Stores Group at or above the high end of that range. For the full year 2025, we expect consolidated Net sales to be up a low-single digit percentage with the Paint Stores Group at or above the high end of that range. We expect adjusted diluted net income per share will be in the range of $11.65 to $12.05 per share, which represents 4.6% growth from 2024 at the mid-point.
Positive Outlook
- Expect full-year gross margin expansion driven by price-cost discipline and efficiency gains.
- Will work to control spending tightly, and expect growth in SG&A to moderate to a low-single digit level.
- Expect demand softness to persist in several end markets well into the second half of the year, if not into 2026.
- Significant above-market growth opportunities in every one of our businesses.
- Confidence in differentiated strategy that continues to deliver innovative and productive solutions.
Challenges Ahead
- Costs associated with the transition into new buildings in the year are expected to be $100 million, comprised of $80 million in SG&A and $20 million of interest.
- Refinancing activity associated with managing 2024 and 2025 debt maturities is expected to increase interest expense by approximately $40 million.
- Demand softness to persist in several end markets well into the second half of the year, if not into 2026.
- Transition costs into new buildings are expected to be $100 million.
- Refinancing activity associated with debt maturities is expected to increase interest expense by approximately $40 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income