Core Insights - The company remains confident in its strategy to navigate a challenging demand environment while positioning itself for future growth as market conditions improve [1][5][21] Segment Performance - Sales in the Paint Stores Group increased by a mid-single-digit percentage, driven by a favorable price mix and volume growth, indicating effective growth investments [1][5] - The Protective and Marine segment saw low double-digit growth, reflecting strong performance despite overall market softness [1][5] - Residential repaint sales grew by mid-single digits, continuing a trend of consistent growth since early 2022, even amid declining existing home sales [6][11] - New residential sales increased by low single digits, while property maintenance and DIY sales also saw low single-digit growth [7][10] Financial Performance - Gross margin and gross profit dollars expanded, with SG&A growth moderating to low single digits, aligning with expectations [4][5] - Adjusted EBITDA margin increased by 60 basis points to 21.4%, and adjusted diluted earnings per share grew by 6.5% [4][5] - The company returned $864 million to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value [4] Strategic Initiatives - The company closed the acquisition of Suvenil, expected to enhance the Consumer Brands Group's portfolio in Latin America and contribute to sales growth [9][41] - The company is focused on channel optimization, closing underperforming stores while expanding its dealer network [10] - A 7% price increase in the Paint Stores Group is set for January 1, aimed at balancing volume growth with necessary price adjustments [18][24] Outlook - The company updated its full-year 2025 sales guidance to reflect a low single-digit percentage increase compared to 2024, factoring in the Suvenil acquisition [14][15] - The demand environment is expected to remain challenging into 2026, with minimal positive catalysts anticipated [16][20] - Raw material costs are projected to rise by low single digits, with healthcare and wage costs expected to increase as well [17][19] Market Dynamics - The company is experiencing a unique competitive environment, allowing it to outperform the market across all segments served [1][5][21] - There is a focus on differentiated solutions that enhance customer productivity and profitability, particularly in a time of inconsistent competitive offerings [2][21] - The company is committed to disciplined pricing actions and efficiency initiatives to counteract cost pressures while pursuing growth opportunities [17][18][19]

Group 1 - Major U.S. equities indexes reached new intraday highs, driven by strong corporate earnings and the commencement of the Federal Reserve's two-day meeting [6][5] - United Parcel Service (UPS) shares surged following the company's strong quarterly results, indicating successful turnaround efforts [2][6] - Sherwin-Williams (SHW) emerged as the best-performing stock in the Dow after exceeding analysts' earnings estimates for the third quarter [2] Group 2 - PayPal (PYPL) stock experienced a significant increase after announcing a partnership with OpenAI to integrate its digital wallet into ChatGPT for purchases [2] - F5 (FFIV) shares declined due to a soft outlook, as the company anticipates disruptions in sales cycles following a recent cybersecurity incident [3] - Royal Caribbean Cruises (RCL) shares fell after reporting quarterly revenue that did not meet analysts' expectations [3][6]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article suggests that users may face access issues if ad-blockers are enabled, indicating a need to disable them for a seamless experience [1]

Financial Data and Key Metrics Changes - Consolidated sales increased at the high end of the guided range, with adjusted EBITDA margin expanding by 60 basis points to 21.4% and adjusted diluted EPS growing by 6.5% [4][6] - SG&A growth moderated to low single digits, in line with expectations, driven by control of general and administrative expenses [5][6] - The company returned $864 million to shareholders through share repurchases and dividends [6] Business Line Data and Key Metrics Changes - **Paint Stores Group**: Sales increased by mid-single digits, with price mix up at the high end of low single digits and volume up low single digits [8] - **Consumer Brands Group**: Sales exceeded expectations, with price mix up low single digits and volume down mid-single digits, affected by softness in North America DIY [10] - **Performance Coatings Group**: Sales were in line with expectations, with volume, acquisitions, and FX all increasing by low single digits, but offset by unfavorable price mix [11][12] Market Data and Key Metrics Changes - The company outperformed the market in all segments served, despite a softer demand environment [8] - Residential repaint sales grew by mid-single digits, continuing a trend of growth since early 2022, despite negative existing home sales [8] - Commercial sales were up mid-single digits, even with multifamily completions down double digits [9] Company Strategy and Development Direction - The company continues to focus on growth investments, controlling costs, and leveraging a unique competitive environment [4][7] - The acquisition of Suvinil is expected to enhance the Consumer Brands Group's portfolio and provide profitable growth opportunities [11][48] - The company plans to continue investing in growth initiatives, including opening 80 to 100 North American paint stores for the year [15][18] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging demand environment is expected to persist into 2026, with minimal positive catalysts currently visible [16][20] - The company is focused on driving customer success and maintaining profitability despite market challenges [20][21] - Management expressed confidence in their strategy and the team's ability to outperform the market [21] Other Important Information - The company temporarily paused matching contributions to its 401(k) plan to preserve jobs and protect the company during a period of uncertainty [13][14] - The company expects to see a modest cost headwind next year due to new headquarters and R&D center investments [19][20] Q&A Session Summary Question: Can you provide more details on the 7% price increase for Paint Stores Group? - Management explained that the price increase is driven by higher year-over-year costs and the need to balance volume growth with pricing effectiveness [24][25] Question: What mortgage rates are needed to catalyze demand in the Paint Stores Group? - Management indicated that around 6% mortgage rates could drive stronger existing home turnover, which is crucial for demand [32][33] Question: How do you define the efficiency of investment spending? - Management emphasized a disciplined approach to investments, focusing on returns and adjusting spending based on market conditions [38][39] Question: What actions are planned for the Suvinil acquisition? - Management expressed excitement about the acquisition and the potential for synergies, expecting it to contribute positively to sales and profitability [45][48] Question: What is the outlook for the second half of next year? - Management noted that current trends do not indicate a strong recovery, emphasizing a pragmatic approach to forecasting [50][51] Question: Can you discuss the negative operating leverage in Performance Coatings? - Management attributed the negative leverage to unfavorable mix by region and business, but expects improvements in the fourth quarter [78][80] Question: What is the expected pricing capture in 2026? - Management indicated that pricing capture will depend on market dynamics, but they plan to be aggressive in balancing volume growth with price increases [63][64] Question: How much volume hurt gross margin rate this year? - Management noted that supply chain inefficiencies impacted gross margin, but they expect volume growth to drive operating margin expansion [110][111]

Financial Data and Key Metrics Changes - Consolidated sales increased at the high end of the guided range, with adjusted EBITDA margin expanding by 60 basis points to 21.4% and adjusted diluted EPS growing by 6.5% [4][6] - SG&A growth moderated to the low single-digit percentage level, in line with expectations, driven by control of general and administrative expenses [5][6] - The company returned $864 million to shareholders through share repurchases and dividends [6] Business Line Data and Key Metrics Changes - **Paint Stores Group**: Sales increased by a mid-single-digit percentage, with price mix up at the high end of low single digits and volume up low single digits [8] - **Consumer Brands Group**: Sales exceeded expectations, with price mix up low single digits and volume down mid-single digits, reflecting continued softness in North America DIY [10] - **Performance Coatings Group**: Sales were in line with expectations, with volume, acquisitions, and FX all increasing by low single digits, but offset by unfavorable price mix [11][12] Market Data and Key Metrics Changes - The company outperformed the market in all segments served, with residential repaint sales growing by mid-single digits despite negative existing home sales [8] - Commercial sales were up mid-single digits, while new residential sales increased by low single digits despite a slight decline in single-family completions [9] Company Strategy and Development Direction - The company continues to focus on growth investments, controlling costs, and leveraging a unique competitive environment to drive profitability [4][7] - The acquisition of Suvinil is expected to enhance the Consumer Brands Group's portfolio in Latin America, with significant growth opportunities anticipated [11][48] - The company plans to continue investing in growth initiatives, including opening 80-100 North America paint stores for the year [15] Management's Comments on Operating Environment and Future Outlook - Management indicated that the demand environment remains soft and choppy, with minimal positive catalysts expected in the near term [16][20] - Raw material costs are expected to increase by low single digits, with healthcare costs anticipated to rise by low double digits [17] - The company is focused on maintaining discipline in pricing and cost control while pursuing growth opportunities [18][94] Other Important Information - The company temporarily paused matching contributions to its 401(k) plan to preserve jobs and protect the company during a period of prolonged demand uncertainty [13][14] - The company is moving into a new headquarters and R&D center in Cleveland, with expectations for CapEx to return to around 2% of sales next year [19][20] Q&A Session Summary Question: Can you provide more details on the 7% price increase for Paint Stores Group? - Management explained that the price increase is driven by higher year-over-year costs and the need to balance volume growth with pricing effectiveness [23][25] Question: What mortgage rates are needed to catalyze demand in the Paint Stores Group? - Management indicated that around 6% mortgage rates could drive stronger existing home turnover, which is crucial for demand [32][33] Question: How does the company define the efficiency of its investment spending? - Management emphasized a disciplined approach to evaluating returns on investments in stores and sales representatives, with a focus on profitability [38][39] Question: What actions are planned for the Suvinil acquisition? - Management expressed excitement about the acquisition, highlighting opportunities for synergies and growth in the Consumer Brands Group [46][48] Question: What is the outlook for the second half of next year? - Management noted that current trends do not indicate a strong recovery, emphasizing a pragmatic approach to forecasting [50] Question: Can you discuss the negative operating leverage in Performance Coatings despite positive sales? - Management attributed this to unfavorable mix by region and business, but expects moderation in the fourth quarter [78][80]

Financial Data and Key Metrics Changes - Consolidated sales increased at the high end of the guided range, with adjusted EBITDA margin expanding by 60 basis points to 21.4% and adjusted diluted EPS growing by 6.5% [3][4] - SG&A growth moderated to the low single-digit percentage level, in line with expectations, driven by control of general and administrative expenses [4][6] - The company returned $864 million to shareholders through share repurchases and dividends [4] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased by a mid-single-digit percentage, with price mix up at the high end of low single digits and volume up low single digits [6][7] - Consumer Brands Group sales exceeded expectations, with price mix up low single digits and volume down mid-single digits, reflecting continued softness in North America DIY [8][9] - Performance Coatings Group sales were in line with expectations, with volume, acquisitions, and FX all increasing by low single digits, but offset by unfavorable price mix [9][10] Market Data and Key Metrics Changes - The company outperformed the market in all segments served, with residential repaint sales growing by mid-single digits despite negative existing home sales [6][7] - Commercial sales were up mid-single digits, even as multifamily completions were down double digits [7] - The company opened 23 net new stores in the quarter and 61 year-to-date, ahead of last year's pace [7] Company Strategy and Development Direction - The company continues to focus on differentiated solutions that enhance customer productivity and profitability, particularly in a competitive environment [5][6] - The acquisition of Suvinil is expected to provide profitable growth opportunities and enhance the Consumer Brands Group's portfolio in Latin America [9][40] - The company plans to continue investing in growth initiatives, including new stores and sales representatives, to capture market share [16][17] Management's Comments on Operating Environment and Future Outlook - Management indicated that the demand environment is expected to remain soft for an extended period, with minimal positive catalysts currently visible [15][42] - The company anticipates raw material costs to increase by low single digits and healthcare costs to rise by low double digits [16] - Management expressed confidence in their strategy and ability to adapt to market conditions while focusing on customer success [18][19] Other Important Information - The company temporarily paused matching contributions to its 401(k) plan to preserve jobs and protect the company amid prolonged demand uncertainty [11][12] - The company expects to open 80 to 100 North American paint stores for the year and will manage production and inventory closely [14] Q&A Session Summary Question: Can you provide more color on the 7% price increase for Paint Stores Group? - Management explained that the price increase is driven by higher year-over-year costs and the need to balance volume growth with price effectiveness [21][23] Question: What mortgage rates are needed to catalyze demand in the Paint Stores Group? - Management indicated that around 6% mortgage rates could drive stronger existing home turnover, as there is significant pent-up demand [27][28] Question: Can you discuss the investment spending and its efficiency? - Management emphasized a disciplined approach to investments, focusing on returns and adjusting spending based on market conditions [31][32] Question: What are the expected synergies from the Suvinil acquisition? - Management expressed excitement about the acquisition, expecting it to enhance sales and profitability in the Consumer Brands Group [39][40] Question: What is the outlook for pricing capture in 2026? - Management indicated that pricing capture will depend on market dynamics, but they plan to be aggressive in balancing volume growth with price increases [51][52] Question: How is the company addressing negative operating leverage in Performance Coatings? - Management noted that unfavorable mix by region and business impacted margins, but they expect moderation in this dynamic moving forward [60][62]

Core Insights - Sherwin-Williams reported $6.36 billion in revenue for Q3 2025, a 3.2% year-over-year increase, with an EPS of $3.59 compared to $3.37 a year ago, exceeding both revenue and EPS consensus estimates [1][2] Financial Performance - Revenue of $6.36 billion surpassed the Zacks Consensus Estimate of $6.21 billion by 2.37% [1] - EPS of $3.59 exceeded the consensus estimate of $3.46 by 3.76% [1] - The stock has returned -2% over the past month, underperforming the Zacks S&P 500 composite's +3.6% change [3] Segment Performance - Paint Stores Group net new stores increased to 23, above the average estimate of 20 [4] - Total number of Paint Stores Group stores reached 4,834, slightly above the average estimate of 4,831 [4] - Net sales for Paint Stores Group were $3.84 billion, exceeding the average estimate of $3.72 billion, reflecting a year-over-year increase of 5.1% [4] - Consumer Brands Group net sales were $770.1 million, below the average estimate of $740.03 million, showing a year-over-year decline of 2.6% [4] - Performance Coatings Group net sales were $1.75 billion, slightly above the estimated $1.74 billion, with a year-over-year increase of 1.7% [4] - Administrative net sales were $1.3 million, below the average estimate of $1.42 million, representing a significant year-over-year decline of 27.8% [4] Profitability Metrics - Segment profit for Paint Stores Group was $954.3 million, exceeding the average estimate of $934.29 million [4] - Adjusted segment profit for Performance Coatings Group was $294.9 million, below the estimated $309.79 million [4] - Adjusted segment profit for Consumer Brands Group was $179.3 million, above the average estimate of $168.79 million [4]

Financial Performance Overview - Consolidated sales increased by 3.2% to $6,358.2 million[7] - Gross profit increased by 3.2% to $3,125.5 million[7] - Reported EPS increased by 5.3% to $3.35[7] - Adjusted EPS increased by 6.5% to $3.59[7] - Net operating cash increased 21.7% to $1.3 billion[9] Segment Performance - Paint Stores Group (PSG) sales increased by 5.1% to $3,836.8 million[11] - Consumer Brands Group (CBG) sales decreased by 2.6% to $770.1 million[18] - Performance Coatings Group (PCG) sales increased by 1.7% to $1,750.0 million[23] Financial Position - Cash position is $241.5 million[31] - Net credit available is $3,130.5 million[31]

Core Insights - Sherwin-Williams reported quarterly earnings of $3.59 per share, exceeding the Zacks Consensus Estimate of $3.46 per share, and showing an increase from $3.37 per share a year ago, resulting in an earnings surprise of +3.76% [1] - The company achieved revenues of $6.36 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.37% and up from $6.16 billion year-over-year [2] Earnings Performance - Over the last four quarters, Sherwin-Williams has surpassed consensus EPS estimates three times [2] - The company had a previous earnings expectation of $3.76 per share but reported $3.38, resulting in a surprise of -10.11% [1] Stock Performance - Sherwin-Williams shares have declined approximately 1.1% since the beginning of the year, while the S&P 500 has gained 16.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $5.4 billion, and for the current fiscal year, it is $11.35 on revenues of $23.23 billion [7] - The outlook for the Chemical - Specialty industry, where Sherwin-Williams operates, is currently in the bottom 35% of Zacks industries, which may impact stock performance [8]

Sherwin-Williams reported third-quarter earnings that topped Wall Street expectations, as the paint maker’s cost control measures and pricing power help it navigate a choppy home improvement market https://t.co/RBf8FL3i3P ...