The Sherwin-Williams Company Reports 2024 Year-End and Fourth Quarter Financial Results

Core Insights - Sherwin-Williams reported strong fourth quarter results with consolidated net sales growing by 0.9% year-over-year to $5.30 billion, driven primarily by the Paint Stores Group [1][2] - The company achieved a record full-year net sales of $23.10 billion, with a gross margin expansion of 180 basis points to 48.5% [1][7] - Adjusted diluted earnings per share increased by 15.5% to $2.09 in the fourth quarter and by 9.5% to $11.33 for the full year [1][7] Financial Performance - Fourth quarter net sales were $5,297.2 million, up from $5,252.2 million, with a net income per diluted share of $1.90, a 36.7% increase from $1.39 [2][24] - Income before income taxes rose by 29.9% to $615.6 million, reflecting higher net sales and lower provisions for environmental matters [2][3] - For the full year, net income increased to $2,681.4 million, with diluted net income per share rising to $10.55 from $9.25 [24] Segment Performance - The Paint Stores Group saw net sales increase by 3.4% to $3,044.9 million, with segment profit rising by 6.9% to $606.4 million [5][6] - The Consumer Brands Group experienced a decline in net sales by 4.3% to $662.2 million, but adjusted segment profit increased by 9.8% to $82.0 million [6][9] - The Performance Coatings Group's net sales decreased by 1.6% to $1,589.0 million, while segment profit increased by 3.9% to $229.0 million [11][12] Cash Flow and Shareholder Returns - The company generated $3.15 billion in net operating cash, returning $2.46 billion to shareholders through dividends and share repurchases [14] - The company repurchased 5.2 million shares during the year and had authorization to purchase an additional 34.4 million shares [14] 2025 Guidance - For 2025, Sherwin-Williams expects consolidated net sales to increase by a low-single digit percentage, with diluted net income per share guidance in the range of $10.70 to $11.10 [15][16] - The company anticipates continued demand softness in several end markets but sees significant above-market growth opportunities [15][16]