Financial Performance Overview - Sales decreased by 1.1% from $5,367.3 million in 1Q 2024 to $5,305.7 million in 1Q 2025[6] - Gross profit increased by 1.1% from $2,531.0 million in 1Q 2024 to $2,559.1 million in 1Q 2025[6] - Gross margin expanded by 100 basis points to 48.2% in 1Q 2025[6] - Adjusted EPS increased by 3.7% to $2.25 per share[8] - Adjusted EBITDA grew by 4.6% to $937.0 million, with Adjusted EBITDA margin expanding by 100 basis points to 17.7%[8] Segment Performance - Paint Stores Group (PSG) sales increased by 2.3% from $2,873.0 million in 1Q 2024 to $2,939.8 million in 1Q 2025[11] - Consumer Brands Group (CBG) sales decreased by 6.0% from $811.0 million in 1Q 2024 to $762.2 million in 1Q 2025[16] - Performance Coatings Group (PCG) sales decreased by 4.8% from $1,681.9 million in 1Q 2024 to $1,602.0 million in 1Q 2025[22] Liquidity and Debt - Cash position as of March 31, 2025 was $199.8 million[30] - Net credit available was $2,147.8 million as of March 31, 2025[30]

Core Insights - Sherwin-Williams reported $5.31 billion in revenue for Q1 2025, a year-over-year decline of 1.2% [1] - The company's EPS for the same period was $2.25, up from $2.17 a year ago, indicating a positive trend in earnings despite revenue decline [1] - The reported revenue fell short of the Zacks Consensus Estimate of $5.35 billion, resulting in a surprise of -0.76% [1] - The EPS exceeded the consensus estimate of $2.18, delivering a surprise of +3.21% [1] Revenue and Segment Performance - Net sales for the Paint Stores Group reached $2.94 billion, slightly above the average estimate of $2.92 billion, reflecting a year-over-year increase of +2.3% [4] - Consumer Brands Group reported net sales of $762.20 million, which is a decline of -6% compared to the previous year [4] - Performance Coatings Group's net sales were $1.60 billion, below the average estimate of $1.65 billion, representing a year-over-year decrease of -4.8% [4] - Administrative net sales were reported at $1.70 million, significantly higher than the estimated $1.14 million, showing a year-over-year increase of +21.4% [4] Store Metrics - The Paint Stores Group added 18 new stores, surpassing the average estimate of 9 new stores [4] - The total number of stores in the Paint Stores Group reached 4,791, slightly above the average estimate of 4,782 [4] Segment Profitability - Segment profit for the Paint Stores Group was $541.20 million, exceeding the average estimate of $520.36 million [4] - Adjusted segment profit for the Performance Coatings Group was $264.70 million, below the average estimate of $283.62 million [4] - Adjusted segment profit for the Consumer Brands Group was $162.70 million, above the average estimate of $155.01 million [4] Stock Performance - Sherwin-Williams shares have returned -4.9% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Consolidated sales were within the guided range, with adjusted earnings per share growing by 3.7% to $2.25 per share [5][6] - Gross margin and gross profit dollars expanded, while SG&A expenses decreased due to effective spending control [5][6] - EBITDA margin in dollars expanded, and the company invested $352 million in share repurchases while increasing dividends by 10% [6] Business Line Data and Key Metrics Changes - Paint Stores Group sales grew by a low single-digit percentage, with price mix up by mid-single digits and volume down low single digits [8] - Protective and Marine sales increased by a high single-digit percentage, driven by sectors like oil and gas and high-performance flooring [8][10] - Consumer Brands Group sales were within expected range, with more than half of the decrease attributed to unfavorable foreign exchange [9] - Performance Coatings Group sales were below expectations, with decreases in Europe and North America by mid-single digits [11] Market Data and Key Metrics Changes - Residential repaint sales increased by a mid-single-digit percentage despite softness in existing home sales [8] - New residential sales increased by a low single-digit percentage, while commercial and property maintenance sales remained under pressure [8][9] - The company noted that approximately 80% of consolidated revenue is in the U.S., with less than 2% in China, minimizing tariff impacts [15] Company Strategy and Development Direction - The company is focused on delivering innovative solutions to enhance customer productivity and profitability [7] - Continued investment in growth is evident with plans to open 80 to 100 new stores throughout the year [10][101] - The acquisition of Souvenil is expected to close in the second half of the year, enhancing the company's position in Latin America [10][108] Management's Comments on Operating Environment and Future Outlook - Management expects demand in most end markets to remain choppy through the first half of 2025, with some markets not likely to gain momentum until 2026 [14][15] - The company is confident in its strategy and ability to adapt to market challenges, including inflation and supply chain issues [17] - Management reiterated full-year sales and earnings per share guidance, with an updated outlook expected in July [16][17] Other Important Information - The company is focused on simplification and digitization to drive efficiencies over time [13] - SG&A expenses in the administrative function decreased by a mid-teens percentage, contributing to overall cost control [13] Q&A Session Summary Question: Pricing environment and tariffs - Management indicated that raw material costs were flat year over year, but tariffs are expected to increase costs slightly in the second quarter [22][23] - The company is prepared to implement price increases if necessary to offset rising costs [26] Question: Price mix in Paint Stores Group - The price mix was predominantly driven by price increases, with effective implementation credited to the stores team [31] Question: COGS and gross margins - Gross margin improvement was attributed to selling price increases in the Paint Stores Group and supply chain efficiencies [37] Question: New residential end market outlook - Management remains optimistic about long-term growth in the new residential segment despite current market challenges [43] Question: Res repaint market trends - The residential repaint segment continues to perform well, with positive sentiment and activity despite a flat market [47] Question: Souvenil acquisition details - The acquisition is expected to enhance the company's market position in Latin America, with a strong leadership team and brand [106][108]

分组1 - Sherwin-Williams reported quarterly earnings of $2.25 per share, exceeding the Zacks Consensus Estimate of $2.18 per share, and showing an increase from $2.17 per share a year ago, representing an earnings surprise of 3.21% [1] - The company posted revenues of $5.31 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.76% and a decrease from $5.37 billion in the same quarter last year [2] - Over the last four quarters, Sherwin-Williams has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] 分组2 - The stock has lost approximately 2.3% since the beginning of the year, while the S&P 500 has declined by 6% [3] - The current consensus EPS estimate for the upcoming quarter is $3.85 on revenues of $6.38 billion, and for the current fiscal year, it is $11.80 on revenues of $23.52 billion [7] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Exhibit 99.1 NEWS | | | 101 W. Prospect | Cleveland, Ohio | | (216) 566- | | --- | --- | --- | --- | --- | --- | | The Sherwin-Williams Company | • | Avenue | • 44115 | • | 2000 | The Sherwin-Williams Company Reports 2025 First Quarter Financial Results CLEVELAND, April 29, 2025 - The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the first quarter ended March 31, 2025. All comparisons are to the first quarter of the prior year, unless otherwise noted. • Consolidated Net sales decr ...

Core Insights - Sherwin-Williams reported solid first quarter results despite a choppy demand environment, with consolidated sales within guidance, driven by gross margin expansion and effective cost control [1][3] - The company executed a consistent capital allocation strategy, investing $351.7 million in share repurchases and increasing dividends by 10.5% during the quarter [1][3] Sales Performance - Consolidated net sales decreased by 1.1% to $5.31 billion, primarily due to unfavorable currency translation and lower sales in the Performance Coatings and Consumer Brands Groups, partially offset by higher sales in the Paint Stores Group [3][7] - Paint Stores Group sales increased by 2.3% to $2.94 billion, with same-store sales up 1.2%, driven by selling price increases and growth in protective and marine segments [8][9] - Consumer Brands Group sales declined by 6.0% to $762.2 million, impacted by soft DIY demand in North America and unfavorable currency translation [10][11] - Performance Coatings Group sales decreased by 4.8% to $1.60 billion, with a high-single digit increase in Packaging sales offset by declines in other industrial businesses [12][13] Profitability Metrics - Income before income taxes increased by 2.0% to $653.0 million, with a segment margin expansion attributed to higher selling prices and effective cost control [3][4] - Diluted net income per share rose by 1.5% to $2.00, while adjusted diluted net income per share increased by 3.7% to $2.25 [7][8] - Adjusted EBITDA for the quarter increased by 4.6% to $937.0 million, representing 17.7% of net sales [7][36] Guidance and Outlook - The company reaffirmed its full-year 2025 diluted net income per share guidance in the range of $10.70 to $11.10, and adjusted diluted net income per share guidance of $11.65 to $12.05 [7][18] - For the second quarter of 2025, consolidated net sales are expected to be up or down a low-single digit percentage compared to the same period in 2024 [16][18] Capital Management - The company returned $552.1 million to shareholders through dividends and share repurchases during the first quarter of 2025 [15] - As of March 31, 2025, Sherwin-Williams had remaining authorization to purchase 33.4 million shares of its common stock [15]

Core Viewpoint - Sherwin-Williams is set to report its first-quarter 2025 results on April 29, with mixed performance in previous quarters and a notable share price increase compared to the industry [1]. Sales Estimates - The Zacks Consensus Estimate for Sherwin-Williams' sales in the upcoming quarter is $5,346.5 million, reflecting a decline of approximately 0.4% year-over-year [2]. - The Consumer Brands Group's estimated net sales are $761.4 million, indicating a year-over-year decrease of 6.1% [2]. - The Performance Coatings Group is expected to report sales of $1,645.9 million, which represents a 2.1% decline compared to the previous year [2]. - The Paint Stores Group is projected to achieve sales of $2,919.9 million, suggesting a 1.6% increase from the year-ago figure [3]. Factors Influencing Performance - Sherwin-Williams has been implementing aggressive cost-reduction strategies, streamlining its supply chain, and enhancing productivity, which are expected to support profit margins in the first quarter [4]. - Price increases and gains from acquisitions are likely to contribute positively to profitability [4]. - However, the Consumer Brands Group may face revenue challenges due to weakness in the DIY market, influenced by inflation and sluggish home sales in North America [5]. - The Performance Coatings Group is also experiencing demand softness in the general industrial sector, particularly in heavy equipment and transportation markets [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Sherwin-Williams this season, as the Earnings ESP is -1.04%, with the Most Accurate Estimate at $2.16 compared to the Zacks Consensus Estimate of $2.18 [8][9]. - Sherwin-Williams holds a Zacks Rank of 3, indicating a hold position [9].

Core Insights - Brand Finance released the "2025 Top 500 US Brands" list, showing a total brand value increase of 7.4% year-on-year, reaching $5.79 trillion, surpassing the US economic growth rate of 2.8% [1] Company Performance - Sherwin-Williams ranked 109th in the 2025 list, improving by 11 places from the previous year, and remains the most valuable paint brand in the US [2] - Sherwin-Williams has been on the US Top 500 Brands list for 12 consecutive years since its first appearance in 2014, with its highest rank being 103 [3] - The company also ranked 276th in the "2025 Global Top 500 Brands" list, climbing 25 places, and is the only paint brand on the global list [3][8] Financial Growth - Sherwin-Williams' revenue grew from $11.34 billion in 2015 to $23.10 billion in 2024, representing a 103.72% increase over nearly a decade, with a compound annual growth rate (CAGR) of 7.85% [7] - Net profit increased from $1.05 billion in 2015 to $2.68 billion in 2024, a growth of 154.36% with a CAGR of 15.18% [7] - In 2024, Sherwin-Williams achieved net sales of $23.10 billion, a slight increase of 0.2% year-on-year, with EBITDA of $4.49 billion, up 8.2% [7] Market Position - Sherwin-Williams holds a 11.13% global market share, maintaining its position as the largest paint manufacturer for eight consecutive years [7] - The company leads in both architectural and industrial coatings, ranking first in the "2024 Global Architectural Coatings Brand" list with $12.35 billion in sales [8] - Sherwin-Williams is also ranked fifth in both the global automotive and marine coatings brand lists [8] Brand Value - The brand's influence and value have significantly increased, as evidenced by its consistent ranking in Brand Finance's lists, being the only paint brand to appear in the "2025 Global Top 500 Brands" [8]

Core Viewpoint - Sherwin-Williams is expected to report quarterly earnings of $2.18 per share, reflecting a 0.5% increase year-over-year, with revenues projected at $5.38 billion, a 0.2% increase from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Net sales- Paint Stores Group' will reach $2.92 billion, a 1.6% increase from the year-ago quarter [5]. - 'Net sales- Consumer Brands Group' is projected at $761.41 million, reflecting a 6.1% decrease year-over-year [5]. - 'Net sales- Performance Coatings Group' is expected to be $1.65 billion, indicating a 2.1% decline from the previous year [5]. Store Metrics - The consensus estimate for 'Net New Stores - Paint Stores Group' is 9, compared to 7 in the same quarter last year [6]. - Analysts forecast the 'Number of Stores - Paint Stores Group' to reach 4,782, up from 4,701 in the same quarter of the previous year [6]. Segment Profit Estimates - 'Segment Profit- Paint Stores Group' is predicted to be $520.36 million, an increase from $493.20 million in the same quarter last year [7]. - 'Adjusted segment profit- Performance Coatings Group (PCG)' is expected to be $283.62 million, slightly down from $286.90 million year-over-year [7]. - 'Adjusted segment profit- Consumer Brands Group (CBG)' is projected at $155.01 million, down from $169.90 million in the previous year [8]. Stock Performance - Sherwin-Williams shares have decreased by 3.8% over the past month, compared to a 5.1% decline in the Zacks S&P 500 composite [9].

The Sherwin-Williams Company (NYSE: SHW ) is a supremely well-managed company that operates in the highly fragmented market of selling paint and coatings. As shown in the graph below, it has an incredible history ofI have been investing in the stock market since I was 17 years old, and over the 25+ years since I have learned the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good times and bad brings the greatest rewards. I believe the key to creating ...