Sherwin-Williams(US:SHW)2025-10-28 11:05Financial Performance - Consolidated net sales increased by 3.2% to $6.36 billion in Q3 2025 compared to $6.16 billion in Q3 2024[6] - Diluted net income per share rose by 5.3% to $3.35 per share, while adjusted diluted net income per share increased by 6.5% to $3.59 per share[6] - Adjusted EBITDA for the quarter increased by 6.0% to $1.36 billion, representing 21.4% of net sales[6] - Net income for Q3 2025 was $833.1 million, up from $806.2 million in Q3 2024, representing a 3.1% increase[27] - Diluted net income per share for the three months ended September 30, 2025, was $3.35, compared to $3.18 for the same period in 2024, reflecting a year-over-year increase of 5.3%[36] - Adjusted diluted net income per share for the nine months ended September 30, 2025, was $9.20, up from $9.24 in the same period of 2024, indicating a slight decrease of 0.4%[36] - EBITDA for the nine months ended September 30, 2025, was $3,523.1 million, an increase from $3,615.5 million in the same period of 2024, representing a decline of 2.6%[38] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,615.8 million, compared to $3,615.5 million in the same period of 2024, showing a marginal increase of 0.1%[38] Sales Performance by Segment - The Paint Stores Group net sales grew by 5.1% to $3.84 billion, with same-store sales increasing by 3.6%[11] - Consumer Brands Group net sales decreased by 2.6% to $770.1 million, impacted by soft DIY demand in North America and Latin America[12] - Performance Coatings Group net sales increased by 1.7% to $1.75 billion, driven by low-single digit percentage sales volume growth and favorable foreign currency translation[13] - The Paint Stores Group generated net sales of $3,836.8 million in Q3 2025, an increase from $3,650.2 million in Q3 2024[29] - The Consumer Brands Group reported net sales of $770.1 million in Q3 2025, down from $790.5 million in Q3 2024[29] - The Performance Coatings Group achieved net sales of $1,750.0 million in Q3 2025, slightly up from $1,720.0 million in Q3 2024[29] Shareholder Returns and Guidance - The company returned $864 million to shareholders through share repurchases and dividends during the quarter[5] - Full year 2025 diluted net income per share guidance narrowed to a range of $10.16 to $10.36, including acquisition-related amortization and restructuring expenses[16] - The company expects consolidated net sales to increase by a low-single digit percentage in 2025, with adjusted diluted net income per share projected between $11.25 and $11.45[16] Asset and Liability Changes - Total assets increased to $26,206.4 million as of September 30, 2025, compared to $23,968.3 million in 2024[33] - Current liabilities rose to $7,473.5 million in Q3 2025, up from $7,218.1 million in Q3 2024[33] - Long-term debt increased to $9,318.1 million in Q3 2025, compared to $8,175.3 million in Q3 2024[33] Store Expansion and Environmental Provisions - The Paint Stores Group added 23 net new stores in the three months ended September 30, 2025, compared to 19 in the same period of 2024, an increase of 21.1%[40] - The Consumer Brands Group experienced a net loss of 8 stores in the three months ended September 30, 2025, compared to a gain of 3 stores in the same period of 2024[40] - The company reported a provision for environmental-related matters of $10.6 million for the three months ended September 30, 2025, compared to $2.8 million in the same period of 2024, an increase of 278.6%[40] - The total number of Paint Stores Group stores reached 4,834 as of September 30, 2025, up from 4,739 in the same period of 2024, indicating a growth of 2.0%[40] Future Outlook - The company anticipates continued growth in sales and earnings, driven by strategic initiatives and market expansion efforts[22] - The Suvinil acquisition, completed on October 1, is expected to contribute a low-single digit percentage increase to consolidated net sales in Q4 2025[16]