Sherwin-Williams(US:SHW)2026-01-29 12:08Financial Performance - Consolidated Net sales increased 2.1% year-over-year to $23.57 billion, with Paint Stores Group sales growth led by protective & marine, residential repaint, and commercial segments [6]. - Adjusted diluted net income per share increased by 0.9% to $11.43, while diluted net income per share decreased by 2.7% to $10.26 for the full year 2025 [6]. - Net income for the year ended December 31, 2025, was $2,568.5 million, compared to $2,681.4 million in 2024, reflecting a decrease of 4.2% [29]. - The company reported a diluted net income per share of $10.26 for the year ended December 31, 2025, down from $10.55 in 2024 [29]. - Diluted net income per share for the year ended December 31, 2025, is projected to be between $10.70 and $11.10, with an adjusted diluted net income per share of $11.50 to $11.90 [38]. - The company reported a total EBITDA of $4,480.1 million for the year ended December 31, 2025, with an adjusted EBITDA of $4,608.9 million [40]. Sales and Revenue Growth - The Paint Stores Group reported net sales of $3.127 billion, a 2.7% increase, with same-store sales change of 1.0% [11]. - Consumer Brands Group net sales increased by 24.5% to $824.7 million, driven by the Suvinil acquisition and favorable foreign currency translation [12]. - Performance Coatings Group net sales increased by 3.3% to $1.642 billion, with segment profit rising by 6.8% [14]. - Net sales for Q4 2025 reached $5,595.9 million, a 5.6% increase from $5,297.2 million in Q4 2024 [29]. - The Paint Stores Group generated $3,127.1 million in net sales for Q4 2025, up from $3,044.9 million in Q4 2024 [31]. - The Consumer Brands Group's net sales for Q4 2025 were $824.7 million, a significant increase from $662.2 million in Q4 2024 [31]. Cash Flow and Shareholder Returns - Free cash flow conversion in the fourth quarter was 90.1%, with net operating cash growing 9% to $3.5 billion, representing 14.6% of net sales [4][6]. - The company returned $2.4 billion to shareholders through share repurchases and dividends, marking the 47th consecutive year of dividend increases [8]. - The company declared cash dividends of $789.8 million for the year ended December 31, 2025, compared to $723.4 million in 2024 [42]. Assets and Liabilities - Total assets increased to $25,901.7 million in 2025 from $23,632.6 million in 2024, marking a 9.6% growth [34]. - Current liabilities rose to $6,920.3 million in 2025, compared to $6,808.7 million in 2024 [34]. - Long-term debt increased to $9,320.7 million in 2025 from $8,176.8 million in 2024, indicating a 14.0% rise [34]. Store Expansion and Restructuring - The Paint Stores Group added 80 net new stores in 2025, bringing the total to 4,853 stores [42]. - The Consumer Brands Group experienced a net loss of 27 stores in 2025, maintaining a total of 307 stores [42]. - The Performance Coatings Group had a net loss of 7 branches, resulting in a total of 317 branches [42]. - The company incurred $111.0 million in severance and other restructuring expenses for the year ended December 31, 2025 [40]. Future Outlook - For 2026, the company expects diluted net income per share guidance in the range of $10.70 to $11.10, including acquisition-related amortization expense of $0.80 per share [6][20]. - The company anticipates a continuation of softer demand conditions into the second half of 2026, while aiming to outperform the market through innovative solutions [20].