Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Commission file number 1-04851 THE SHERWIN-WILLIAMS COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Ohio 34-0526850 1 Sherwin Way (216) 566-2000 Registrant's telephone ...

Core Viewpoint - The Sherwin-Williams Company has declared a quarterly dividend of $0.80 per common share, marking the 47th consecutive year of dividend increases [1] Group 1: Dividend Announcement - The dividend is payable on March 13, 2026, to shareholders of record on March 2, 2026 [1]

Core Insights - Sherwin-Williams Company (SHW) reported fourth-quarter 2025 earnings of $1.92 per share, a 1.1% increase from $1.90 in the same quarter last year, with adjusted earnings of $2.23 per share surpassing the Zacks Consensus Estimate of $2.12 [1][8] - The company achieved revenues of $5,595.9 million, reflecting a year-over-year increase of 5.6%, and exceeded the Zacks Consensus Estimate of $5,546.2 million [1][8] Segment Performance - The Paint Stores Group segment recorded net sales of $3,127.1 million, a 2.7% increase year over year, but fell short of the Zacks Consensus Estimate of $3,151 million, with growth driven by higher selling prices [2] - The Consumer Brands Group saw net sales rise by 24.5% year over year to $824.7 million, surpassing the consensus estimate of $791 million, attributed to the acquisition of Suvinil and favorable foreign currency translation, although profits decreased due to restructuring costs [3] - The Performance Coatings Group's net sales increased by 3.3% year over year to approximately $1,642.1 million, beating the consensus estimate of $1,629 million, driven by acquisitions and favorable currency translation [4] Financial Overview - For the year, the company generated $3.45 billion in net operating cash and returned $2.45 billion to shareholders through dividends and stock repurchases of 4.8 million shares, with authorization to buy back 29.6 million shares of common stock as of December 31, 2025 [5] - For the first quarter and full-year 2026, the company anticipates net sales growth in the mid-single-digit percentage range, with projected net income per share between $10.7 and $11.1, and adjusted net income per share forecasted between $11.5 and $11.9 [6] Stock Performance - Sherwin-Williams shares have declined by 4.4% over the past year, compared to a 1.5% decline in the industry [7]

Financial Data and Key Metrics Changes - Consolidated sales in Q4 increased by a mid-single-digit percentage, with a low single-digit contribution from the Suvinil acquisition [4] - Adjusted diluted net income per share in the quarter increased by 6.7% [4] - Adjusted EBITDA grew 13.4% and expanded 100 basis points to 17.7% as a percentage of sales [4] - Free cash flow conversion in the quarter was 90.1% [4] - For the full year, net operating cash grew 9.4% to $3.5 billion, or 14.6% of sales [10] - Free cash flow for the year was $2.7 billion, with a conversion rate of 59% [11] Business Segment Data and Key Metrics Changes - Paint Stores Group sales increased, led by high single-digit growth in Protective and Marine, while Residential Repaint growth was slightly below the mid-single-digit range [6] - Consumer Brands Group sales exceeded expectations, driven by the Suvinil acquisition, but underlying sales were essentially flat [6][14] - Performance Coatings Group sales were at the high end of expectations, with adjusted segment margin improving 150 basis points to 19% [7] - Adjusted segment margin decreased in Consumer Brands due to the Suvinil impact and lower production to match softer demand [14] Market Data and Key Metrics Changes - The demand environment remains challenging, with existing home sales expected to be down at least in the mid-single-digit range [19] - The Architectural Billings Index has shown negative readings, but multifamily starts were positive for most of the second half of 2025 [20] - The U.S. manufacturing PMI ended at its lowest point in December, indicating a contracting environment [22] Company Strategy and Development Direction - The company focuses on creating opportunities and controlling costs while maintaining a disciplined approach to pricing and market share [10][30] - Investments in new stores and sales territories are planned, with expectations to open 80-100 net new stores in the U.S. and Canada in 2026 [27] - The company aims to continue delivering innovative solutions and outperforming the market despite challenging conditions [30] Management's Comments on Operating Environment and Future Outlook - Management anticipates a continued softer demand environment into 2026, with cautious consumer sentiment providing little support for recovery [18] - The company remains committed to its strategy of focusing on volume and share gains, even in a competitive environment [68] - Management expressed confidence in the Residential Repaint segment as a significant growth opportunity despite current market challenges [76] Other Important Information - The company reinstated its 401(k) matching program for eligible U.S. employees, effective February 1 [16] - The company plans to recommend an annual dividend increase of 1.3% to $3.20 per share, marking the 48th consecutive year of dividend increases [28] Q&A Session Summary Question: Can you provide more color on the Performance Coatings segment's margin outperformance? - Management attributed the margin outperformance to discipline, new business wins, and simplification efforts [33][34] Question: What is the SG&A outlook for 2026? - SG&A is expected to grow by a low single-digit percentage, factoring in the reinstatement of the 401(k) match and cost controls [39][40] Question: How do you view the impact of severe winter weather on current demand trends? - Management noted that weather impacts are typical and do not raise concerns for the current quarter [60][61] Question: Can you discuss the performance of packaging coatings and the potential for recovery? - Management indicated that while they have recovered from temporary share loss, there is still significant potential for growth, especially in regions like Asia and LATAM [64][66] Question: What are the expectations for the Consumer Brands segment moving forward? - Management expects challenges in the North American DIY market but remains optimistic about the Suvinil acquisition and its integration [80][82]

Financial Data and Key Metrics Changes - Consolidated sales in Q4 2025 increased by a mid-single-digit percentage, with a low single-digit contribution from the Suvinil acquisition [5][6] - Adjusted diluted net income per share increased by 6.7%, and adjusted EBITDA grew 13.4%, expanding 100 basis points to 17.7% as a percentage of sales [6] - Free cash flow conversion in the quarter was 90.1% [6] - For the full year, net operating cash grew 9.4% to $3.5 billion, or 14.6% of sales, with free cash flow at $2.7 billion and a conversion rate of 59% [11][12] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased, led by high single-digit growth in Protective and Marine, while Residential Repaint growth was slightly below the mid-single-digit range [7] - Consumer Brands Group sales exceeded expectations, driven by the Suvinil acquisition, although underlying sales were essentially flat [7][15] - Performance Coatings Group sales were at the high end of expectations, with adjusted segment margin improving 150 basis points to 19% [8] Market Data and Key Metrics Changes - The demand environment remains challenging, with existing home sales expected to be down at least in the mid-single-digit range in 2026 [21] - The Architectural Billings Index has shown negative readings, indicating a tough market for commercial segments [22] - The U.S. manufacturing PMI ended at its lowest point in December, reflecting a contraction in the industrial sector [23] Company Strategy and Development Direction - The company is focused on creating opportunities and controlling costs while making targeted investments to gain market share [10][11] - Plans to open 80-100 net new stores in the U.S. and Canada in 2026, along with continued investments in innovation and digital capabilities [29] - The company aims to maintain a disciplined approach to pricing while prioritizing volume to capture market share [68] Management's Comments on Operating Environment and Future Outlook - Management anticipates a continued soft demand environment into 2026, with cautious consumer sentiment providing little support for recovery [18][19] - The company remains confident in its ability to outperform the market despite challenging conditions, focusing on share gains and customer relationships [24][30] - Management highlighted the importance of controlling costs and maintaining operational discipline in a volatile market [31] Other Important Information - The company reinstated its 401(k) matching program for eligible U.S. employees, effective February 1, 2026 [17] - The company returned $2.5 billion to shareholders through share repurchases and dividends, marking the 47th consecutive year of dividend increases [12] Q&A Session Summary Question: Performance Coatings segment margin outperformance - Management attributed the margin outperformance to discipline and focus on new business wins, along with simplification efforts [34][35] Question: SG&A outlook for 2026 - SG&A is expected to grow by a low single-digit percentage, factoring in the reinstatement of the 401(k) match and cost control measures [39][41] Question: Price mix and January price increase - Management indicated that while there is a 7% price increase, the competitive environment necessitates a balanced approach between volume and pricing [52][53] Question: Impact of severe winter weather on demand trends - Management noted that weather impacts are typical and do not raise concerns for current demand trends [60][61] Question: Packaging coatings performance and recovery - Management confirmed recovery in packaging coatings and highlighted ongoing opportunities for customer conversions due to regulatory changes [64][65] Question: Focus on volumes versus price - Management emphasized a balanced approach, focusing on volume while maintaining pricing discipline in a competitive environment [68][69]

Core Insights - Sherwin-Williams reported $5.6 billion in revenue for Q4 2025, a year-over-year increase of 5.6% and a surprise of +0.9% over the Zacks Consensus Estimate of $5.55 billion [1] - The EPS for the quarter was $2.23, compared to $2.09 a year ago, representing a surprise of +5.1% over the consensus estimate of $2.12 [1] Financial Performance Metrics - The stock has returned +7.9% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - Sherwin-Williams holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Segment Performance - Net New Stores in the Paint Stores Group totaled 19, below the estimated average of 33 [4] - Total stores in the Paint Stores Group were 4,853, slightly below the average estimate of 4,867 [4] - Net Sales for the Paint Stores Group were $3.13 billion, compared to the estimated $3.15 billion, reflecting a +2.7% change year-over-year [4] - Net Sales for the Consumer Brands Group reached $824.7 million, exceeding the estimated $790.88 million, with a +24.5% change year-over-year [4] - Net Sales for the Performance Coatings Group were $1.64 billion, slightly above the estimated $1.63 billion, representing a +3.3% change year-over-year [4] - Administrative net sales were reported at $2 million, significantly higher than the average estimate of $1.04 million, marking an +81.8% year-over-year change [4] Profitability Metrics - Segment Profit for the Paint Stores Group was $649.5 million, surpassing the average estimate of $633.56 million [4] - Adjusted Segment Profit for the Performance Coatings Group was $312.8 million, exceeding the estimated $270.54 million [4] - Adjusted Segment Profit for the Consumer Brands Group was $87.3 million, slightly below the average estimate of $89.54 million [4]

Financial Data and Key Metrics Changes - Consolidated sales in Q4 2025 increased by a mid-single-digit percentage, with a low single-digit contribution from the Suvinil acquisition [3] - Adjusted diluted net income per share in the quarter increased by 6.7% [3] - Adjusted EBITDA in the quarter grew 13.4% and expanded 100 basis points to 17.7% as a percentage of sales [3] - Free cash flow conversion in the quarter was 90.1% [3] - Full-year net operating cash grew 9.4% to $3.5 billion, or 14.6% of sales [9] - Free cash flow for the year was $2.7 billion, with a conversion rate of 59% [10] - The company ended 2025 with a net debt to adjusted EBITDA ratio of 2.3x [11] Business Segment Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with high single-digit growth in Protective and Marine [11] - Consumer Brands Group sales grew by a low single-digit percentage, driven by the Suvinil acquisition, while underlying sales decreased by low single digits [12] - Performance Coatings Group sales were flat overall, with strength in packaging and auto refinish, and adjusted segment margin improved by 150 basis points to 19% [5][12] Market Data and Key Metrics Changes - The residential repaint segment remains a significant growth opportunity, despite a challenging demand environment [17] - The new residential market is expected to decline at least in the mid-single-digit range due to negative single-family starts [18] - The Architectural Billings Index has continued its long run of negative readings, indicating a challenging commercial segment [19] Company Strategy and Development Direction - The company focuses on creating opportunities and controlling costs amid a challenging operating environment [9] - Strategic investments continue, including the acquisition of Suvinil and the opening of a new global headquarters [10] - The company aims to outperform the market despite a difficult demand backdrop, emphasizing share gains and customer relationships [21][28] Management's Comments on Operating Environment and Future Outlook - The management anticipates a softer demand environment to persist into 2026, with cautious consumer sentiment providing little support for recovery [16] - The company remains committed to its customer-first strategy and is focused on winning new business and maintaining pricing discipline [28] - Management expressed confidence in the company's ability to navigate challenges and generate growth despite market conditions [27] Other Important Information - The company plans to open 80-100 net new stores in the U.S. and Canada in 2026 [26] - An annual dividend increase of 1.3% to $3.20 per share is recommended, marking the 48th consecutive year of dividend increases [26] Q&A Session Summary Question: Performance Coatings segment margin outperformance - Management attributed the margin outperformance to discipline and focus on SG&A control, with strong new business wins contributing to improved margins [32][34] Question: SG&A outlook for 2026 - SG&A is expected to grow by a low single-digit percentage, factoring in the reinstatement of the 401(k) match and cost control measures [37][40] Question: Impact of severe winter weather on demand trends - Management noted that weather impacts are typical and do not raise concerns for current demand trends [61] Question: Residential Repaint sales performance - Management indicated that while sales were up low single digits, they remain confident in the segment's potential for share gains [74][75] Question: Consumer Brands performance expectations - Management highlighted challenges in the North American DIY market but remains optimistic about the Suvinil acquisition and its integration [78][82]

Q4 and Full Year 2025 Results January 29, 2026 CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of federal securities laws. These forward-looking statements are based upon management's current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may discuss, among other things, anticipated future performance (including sales and earnings) ...

分组1 - Sherwin-Williams reported quarterly earnings of $2.23 per share, exceeding the Zacks Consensus Estimate of $2.12 per share, and showing an increase from $2.09 per share a year ago, resulting in an earnings surprise of +5.10% [1] - The company achieved revenues of $5.6 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.90%, and up from $5.3 billion year-over-year [2] - Sherwin-Williams shares have increased approximately 7.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The earnings outlook for Sherwin-Williams is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Sherwin-Williams was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $2.46 on revenues of $5.57 billion, and for the current fiscal year, it is $12.33 on revenues of $24.52 billion [7] 分组3 - The Chemical - Specialty industry, to which Sherwin-Williams belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial 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].