Fiscal 2025 Fourth-Quarter and Year-End Results July 24, 2025 Forward-Looking Statements & Regulation G This presentation contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our ...

Sherwin-Williams shares fell Tuesday after the maker of paints and coatings missed profit forecasts and cut its outlook on soft demand and higher costs. https://t.co/KGuDiGZp2M ...

Core Insights - The Sherwin-Williams Company has reduced its adjusted earnings per share guidance for 2025 due to weaker-than-expected architectural sales volumes and ongoing supply chain inefficiencies, indicating a "softer for longer" demand environment [6][13][25] - The company has doubled its restructuring target to $105 million, with expected annualized savings of approximately $80 million from these initiatives, which are anticipated to impact results in the second half of 2025 and into 2026 [6][8][19] - Despite challenges, the Paint Stores Group has outperformed industry volume trends in new residential and commercial segments, suggesting market share gains [6][8][21] Financial Performance - The Paint Stores Group reported low single-digit percentage sales growth, with price mix up mid-single digits and volume down low single digits; 20 net new stores were opened in Q2 2025 [8][21] - Consumer Brands Group experienced sales declines across volume, price mix, and foreign exchange, all down by low single-digit percentages, reflecting ongoing softness in the North American DIY market [6][8][21] - Performance Coatings Group met sales expectations, with volume, acquisitions, and foreign exchange each up low single digits, but faced margin reductions due to increased costs and lack of prior-year asset sale gains [8][24] Cost Management and Capital Expenditures - SG&A expenses increased by 3.8% on an adjusted basis, primarily driven by the Paint Stores Group due to new stores and targeted marketing spend [6][8][43] - Capital expenditure guidance for 2025 was reduced by $170 million (approximately 20%) to $730 million, with a focus on cash preservation amid soft demand [6][8][28] - The company expects raw material costs to remain flat for 2025, with modest deflation in certain materials anticipated in the second half of the year [8][27] Market Outlook - The company anticipates continued turbulence in demand across various segments for the remainder of 2025, leading to a downward revision of full-year sales expectations [6][25][26] - Management believes they are at a major inflection point in the North American architectural coatings industry, emphasizing the importance of maintaining a disciplined strategy to achieve long-term growth [6][19][30] - The company is committed to investing in growth initiatives within the Paint Stores Group while controlling general and administrative spending [6][28][30]

Pre-market futures are inching higher once again this morning. We are devoid major economic reports ahead of today’s open, but have plenty of quarterly earnings results, as you can see below. The Dow and the S&P 500 are both currently up +9 points, while the Nasdaq is +4 points. Bond yields continue to shrink away: +4.36% on the 10-year, +3.84% on the 2-year, and it look like we’ll once again stop talking about the 30-year bond yield, which is down to +4.94%.Biggest Q2 Earnings Morning Thus FarSo many impor ...

Key Takeaways SHW posted adjusted Q2 EPS of $3.38, missing estimates despite a 0.7% rise in sales to $6.31B. Paint Stores net sales rose 2.3% on pricing gains, while Consumer Brands fell 4.1% on weak DIY demand. SHW returned $1.27B to shareholders in H1 and projects FY25 adjusted EPS of $11.20 to $11.50.The Sherwin-Williams Company (SHW) logged second-quarter 2025 earnings (as reported) of $3 per share, down around 14.3% from $3.50 in the year-ago quarter.Barring one-time items, adjusted earnings were $3. ...

Tuesday, July 22, 2025Pre-market futures are inching higher once again this morning. We are devoid major economic reports ahead of today’s open, but have plenty of quarterly earnings results, as you can see below. The Dow and the S&P 500 are both currently up +9 points, while the Nasdaq is +4 points. Bond yields continue to shrink away: +4.36% on the 10-year, +3.84% on the 2-year, and it look like we’ll once again stop talking about the 30-year bond yield, which is down to +4.94%. Biggest Q2 Earnings Mornin ...

Financial Data and Key Metrics Changes - Consolidated sales were within the guided range, with growth in the Paint Stores Group offset by softness in other segments [6][8] - Gross margin and gross profit dollars expanded for the twelfth consecutive quarter [7] - Adjusted earnings per share decreased due to higher non-operating costs and targeted growth investments [7][8] - The company returned $716 million to shareholders through share repurchases and dividends [7] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with price mix up by mid-single digits and volume down low single digits [16] - Protective and Marine sales increased by high single digits for the fourth consecutive quarter [16] - Consumer Brands Group sales were below expectations, with volume, price mix, and FX all down by similar low single-digit percentages [18] - Performance Coatings Group sales were in line with expectations, with volume, acquisitions, and FX up by low single-digit percentages [19] Market Data and Key Metrics Changes - The macroeconomic indicators suggest continued turbulence and a slowdown in demand across various segments and regions for the remainder of 2025 [8][21] - Customer sentiment reflects continued uncertainty and hesitancy to invest, with consumer confidence remaining mixed [21][22] Company Strategy and Development Direction - The company is committed to delivering above-market growth despite softening market conditions and is revising its full-year sales expectations downward in the Consumer Brands segment [22][24] - The company plans to continue investing aggressively in the Paint Stores Group while maintaining discipline around SG&A costs [13][25] - A focus on differentiated solutions to help customers become more productive and profitable is emphasized [25][112] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a choppy demand environment and indicated that further deterioration is possible, particularly in new residential, DIY, and coil coatings markets [10][32] - The company expects no help from the market for the remainder of the year but remains focused on market share gains [21][22] - Management expressed confidence in the company's strategy and ability to navigate near-term pressures while expanding its competitive moat [28] Other Important Information - The company is doubling its restructuring initiatives target to approximately $105 million, expecting annual savings of about $80 million [11][117] - Capital expenditures are being reduced by $170 million, moving from $900 million to $730 million [26][80] - The company is focused on opportunistic share repurchases and targeted acquisitions, with the Souvenir acquisition expected to close before the end of the year [27] Q&A Session Summary Question: What gives caution regarding potential deterioration in demand? - Management pointed to new residential, coil, and DIY markets as areas of concern due to volatility and uncertainty [31][33] Question: Which sub-segments in TSG will see the most share gains? - Management indicated opportunities in commercial, new residential, and property maintenance segments, with a focus on aggressive market share gains [36][38] Question: How should SG&A spending be viewed? - SG&A spending is primarily driven by targeted headcount additions and new store openings, with expectations for low single-digit increases in the second half of the year [45][49] Question: What is the outlook for the Consumer Brands Group? - The company noted store closures transitioning from company-owned to dedicated dealers, impacting sales and pricing [57][58] Question: How does product pricing impact market share and volume growth? - The company emphasizes value proposition over price alone, focusing on consistent quality and service to drive new account activity [111][112] Question: What is the magnitude of the restructuring program? - The restructuring program is expected to yield about $80 million in annual savings, with benefits anticipated in the second half of the year [117][118]

Financial Data and Key Metrics Changes - Consolidated sales were within the guided range, with growth in the Paint Stores Group offset by softness in other segments [4] - Gross margin expanded for the twelfth consecutive quarter, with gross profit dollars also increasing [5] - Adjusted earnings per share decreased due to higher non-operating costs and targeted growth investments [5][6] - The company returned $716 million to shareholders through share repurchases and dividends [5] Business Line Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with price mix up by mid-single digits and volume down low single digits [14] - Protective and Marine sales increased by high single digits for the fourth consecutive quarter [14] - Consumer Brands Group sales were below expectations, with volume, price mix, and FX all down by similar low single-digit percentages [16] - Performance Coatings Group sales were in line with expectations, with volume, acquisitions, and FX up by low single-digit percentages [17] Market Data and Key Metrics Changes - The macroeconomic indicators suggest continued turbulence and a slowdown in demand across various segments and regions [6][19] - Customer sentiment reflects uncertainty and hesitancy to invest, with consumer confidence remaining mixed [19][20] - The company expects no help from the market for the remainder of the year, leading to a downward revision of sales expectations in the Consumer Brands segment [20] Company Strategy and Development Direction - The company is committed to delivering above-market growth despite softening market conditions [6][20] - There is a focus on aggressive investments in the Paint Stores Group and maintaining discipline around SG&A costs [12][23] - The company is reducing CapEx spending for the year by approximately 20%, from $900 million to $730 million [24] - The company plans to continue opportunistically repurchasing shares and pursuing targeted acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current quarter was not perfect but emphasized a disciplined strategy for long-term outperformance [7] - The company is experiencing a choppy demand environment, particularly in new residential, DIY, and coil coatings markets [9][30] - Management expressed confidence in their strategy and the potential for significant market share gains when demand improves [12][40] Other Important Information - The company is doubling its restructuring initiatives target to approximately $105 million for the year, expecting annual savings of about $80 million [10][12] - The company is focused on controlling general and administrative spending while investing in growth initiatives [23] Q&A Session Summary Question: What gives caution regarding potential deterioration in demand? - Management pointed to new residential, coil, and DIY markets as areas of concern, noting volatility and challenges [30] Question: Which sub-segments in TSG might see the most share gains? - Management indicated opportunities in commercial, new residential, and property maintenance segments, with a focus on aggressive market share gains [35][36] Question: How should SG&A spending be viewed moving forward? - Management clarified that SG&A spending would be controlled tightly, with expectations of low single-digit increases in the second half of the year [48] Question: What role does product pricing play in market share growth? - Management emphasized that value proposition and service quality are prioritized over pricing in acquiring new customers [107] Question: What is the outlook for future growth? - Management expects to grow at a rate of 2.5% to 3% once demand improves, with a focus on maintaining market share during the downturn [70]

Dow Jones Industrial Average (DJI) member Sherwin-Williams Co (NYSE:SHW) reported a second-quarter profit miss of $3.38 per share earlier, while revenue came in slightly above estimates at $6.3 billion. The stock was last seen down 2.2% to trade at $333.87, after the paint company also lowered its full-year outlook amid softer demand.In response, Mizuho cut its price target to $385 from $400. Analysts lean bullish on SHW, with 17 of the 26 in coverage sporting a "buy" or better rating, while the 12-month co ...

Q2 2025 Results July 22, 2025 | ($ in millions, except per share data) | 2Q 2025 | 2Q 2024 | % Change | | --- | --- | --- | --- | | Sales | $6,314.5 | $6,271.5 | 0.7% | | Gross Profit | $3,118.3 | $3,063.4 | 1.8% | | Gross Margin | 49.4% | 48.8% | +60 bps | | Reported EPS | $3.00 | $3.50 | -14.3% | | Adjusted EPS (1) | $3.38 | $3.70 | -8.6% | | EBITDA (1) | $1,260.8 | $1,437.5 | -12.3% | | % of Sales | 20.0% | 22.9% | -290 bps | | Adjusted EBITDA (1) | $1,319.8 | $1,437.5 | -8.2% | | % of Sales | 20.9% | 22 ...