Core Insights - Sherwin-Williams has completed the acquisition of BASF's Brazilian architectural paints business, Suvinil, enhancing its long-term growth strategy and presence in Latin America [1][8] Group 1: Acquisition Details - The acquisition of Suvinil aligns with Sherwin-Williams' long-term growth strategy and is expected to strengthen its Consumer Brands Group [2][8] - Suvinil generated approximately $525 million in revenues in 2024 and has a strong market presence in Brazil with innovative products [3] - The purchase price reflects a low-teens EBITDA multiple, and the company anticipates a net-debt-to-EBITDA ratio within the 2.0–2.5x target range by the end of 2025 [4] Group 2: Financial Impact - The acquisition is projected to increase consolidated sales by a low single-digit percentage in Q4 2025 compared to the previous year [4] - The immediate impact on earnings per share is expected to be immaterial due to closing costs and purchase accounting amortization [4] Group 3: Market Performance - Sherwin-Williams' shares have declined by 4.9% over the past year, slightly underperforming the industry average decline of 4.7% [6] - The company currently holds a Zacks Rank of 4 (Sell) [7]

Core Insights - The Sherwin-Williams Company (NYSE:SHW) is recognized as one of the 12 Best Dividend Aristocrat Stocks to invest in currently [1] - The company has a strong history of dividend payments, boasting a 46-year track record of dividend growth, with a current quarterly dividend of $0.79 per share and a dividend yield of 0.92% as of September 26 [3] Company Overview - Sherwin-Williams operates one of the largest paint store networks in North America, offering architectural paints, industrial coatings, and specialty resins [2] - The Paint Stores Group targets professional, contractor, and Do-It-Yourself customers, while other segments serve both retail and industrial clients, benefiting from a broad global reach and strong distribution [2] Strategic Focus - The company is focused on expanding its store count, product innovation, cost management, and workforce enhancement, while ensuring environmental compliance [4] - Strong supplier relationships, in-house development, and disciplined talent management are key components of the company's operational model, with store growth and R&D being critical for sales and earnings growth [4]

Financial Performance Overview - Sales decreased by 1.1% from $5,367.3 million in 1Q 2024 to $5,305.7 million in 1Q 2025[6] - Gross profit increased by 1.1% from $2,531.0 million in 1Q 2024 to $2,559.1 million in 1Q 2025[6] - Gross margin expanded by 100 basis points to 48.2% in 1Q 2025[6] - Adjusted EPS increased by 3.7% to $2.25 per share[8] - Adjusted EBITDA grew by 4.6% to $937.0 million, with Adjusted EBITDA margin expanding by 100 basis points to 17.7%[8] Segment Performance - Paint Stores Group (PSG) sales increased by 2.3% from $2,873.0 million in 1Q 2024 to $2,939.8 million in 1Q 2025[11] - Consumer Brands Group (CBG) sales decreased by 6.0% from $811.0 million in 1Q 2024 to $762.2 million in 1Q 2025[16] - Performance Coatings Group (PCG) sales decreased by 4.8% from $1,681.9 million in 1Q 2024 to $1,602.0 million in 1Q 2025[22] Liquidity and Debt - Cash position as of March 31, 2025 was $199.8 million[30] - Net credit available was $2,147.8 million as of March 31, 2025[30]