Adjusted segment margin improved 150 basis points to 19%, driven by new business wins, as well as good control of SG&A, which was down mid-single digits. We also continued our strong cost control efforts within the administrative segment, where SG&A was down a low single-digit percentage in the quarter, including one-time restructuring costs of approximately $2 million. Excluding these restructuring costs and the non-annualized new building operating costs, administrative SG&A was down by a low teens percen ...

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]

The Sherwin-Williams Company (NYSE:SHW) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsBen Meisenzahl - VP of Investor RelationsChris Parkinson - Managing DirectorDavid Begleiter - DirectorGarik Shmois - Managing DirectorGreg Melich - Senior Managing DirectorHeidi G. Petz - Chair, President, and CEOJim Jaye - Head of Investor Relations and CommunicationsJohn Roberts - Managing DirectorJosh Spector - Executive Director of Chemicals Equity ResearchKevin McCarthy - PartnerVincent Andrew ...

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) ...

Wall Street analysts expect Sherwin-Williams (SHW) to post quarterly earnings of $2.12 per share in its upcoming report, which indicates a year-over-year increase of 1.4%. Revenues are expected to be $5.55 billion, up 4.7% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company annou ...

Core Insights - Interest rates are declining, with the 30-year fixed mortgage average approaching a critical threshold of 6%, which could stimulate demand in Sherwin-Williams' Paint Stores segment [1][5] - The company is facing a challenging environment due to a sluggish housing market and flat home sales, impacting consumer spending on paint [1][2] - Despite a year-to-date decline of approximately 4% in Sherwin-Williams shares, the S&P 500 has risen by 15%, indicating underperformance [2] Financial Performance - Sherwin-Williams has a strong history of dividend increases, marking its 47th consecutive year of growth, with a recent 10.5% hike [3][10] - The company has repurchased over 53 million shares in the last decade, representing over 20% of outstanding shares, which supports earnings per share and share price [3] - In the most recent quarter, Sherwin-Williams reported year-over-year earnings and revenue growth of 3.3% and 3.2%, respectively [5][8] Historical Context - Since its IPO in 1965, Sherwin-Williams has experienced a remarkable 115,000% increase in share price, with net income rising from $1.06 million in Q2 1965 to $754.7 million in Q2 2025, equating to a 7,200% increase when adjusted for inflation [4] Market Outlook - The Federal Reserve is expected to announce further interest rate cuts, which could provide relief to Sherwin-Williams in the coming weeks [6][7] - The company has previously paused its 401(k) match during economic downturns, indicating a strategic response to challenging market conditions [9] Investment Considerations - Despite current challenges, Sherwin-Williams is viewed as a long-term hold due to its strong dividend growth and historical performance [11] - The company is on the verge of achieving Dividend King status, a milestone reached by only 55 out of approximately 53,000 publicly traded companies [10]

Core Viewpoint - Wickes Group is experiencing mixed analyst ratings, with target prices ranging from GBX 195 to GBX 250, indicating varied investor sentiment towards the stock [1]. Analyst Ratings - Citigroup lowered the target price from GBX 202 to GBX 200 and set a "neutral" rating [1] - Canaccord Genuity Group and Shore Capital both reiterated a "buy" rating with a target price of GBX 250 [1] - Deutsche Bank downgraded the stock to a "sell" rating, reducing the target price from GBX 205 to GBX 195 [1] - The consensus rating for Wickes Group is "Hold" with an average target price of GBX 223.75 [1] Financial Performance - Wickes Group reported earnings per share of GBX 15.10 for the last quarter [4] - The company has a return on equity of 19.39% and a net margin of 2.01% [4] - Analysts expect the company to post earnings per share of approximately 16.23 for the current year [4] Company Profile - Wickes is a prominent home improvement retailer in the UK, operating 228 stores and employing 7,400 staff [5] - The company offers a wide range of products, including kitchens, bathrooms, paint, tools, and timber [5] - Wickes operates in the £27 billion UK Home Improvement market, indicating a significant growth opportunity [5] Stock Performance - Wickes Group's stock reached a new 52-week high of GBX 243 during trading, closing at GBX 240.50 [7] - The stock had a previous close of GBX 239, with a trading volume of 82,496 shares [7]

Market Opportunity and Strategy - The Home Depot has a massive total addressable market (TAM) of approximately $1.1 trillion[4, 6, 32], with over $900 billion remaining as an opportunity[4] - The company's strategy focuses on driving its core and culture[4, 11, 17], delivering a frictionless interconnected customer experience[4, 13, 19], and winning the Pro customer segment[4, 15, 27] - The Home Depot's total market share is approximately 15%[6, 127] Competitive Advantages and Operations - The company possesses distinct competitive advantages including its associates and culture, scale and premier real estate, brand, digital and interconnected capabilities, product authority, and supply chain[4, 7, 8, 9] - The Home Depot operates over 2,350 stores across North America[36, 122], with approximately 470,000 associates[36] - Approximately 90% of the stores are owned by the company[36] Pro Customer Focus - The Pro total addressable market is approximately $600 billion[6, 127], with approximately 50% of the market opportunity representing Pros working on complex projects[128] - The company has over 9 million Pro customers[122] and is focused on providing a unified, cross-category experience to save Pros time and money[131] - Pros on The Home Depot trade credit are increasing their spending by approximately 30% on average[141] Digital and Delivery Capabilities - The Home Depot has approximately $25 billion in annual online sales[97] and over 6 billion website and store visits annually[97, 100] - The company has approximately 16,000 delivery assets[97] and is focused on optimizing fulfillment across all assets to better serve customers[108] - Over 55% of deliveries are same or next-day for in-stock SKUs, representing a 3x+ increase from 2022[107] Financial Outlook - The company reaffirms its fiscal year 2025 guidance, including total sales growth of approximately 3%, a gross margin of approximately 332%, and an adjusted operating margin of approximately 130%[169] - The company anticipates net interest expense of approximately $23 billion and adjusted diluted EPS down approximately -5%[169] - The company estimates approximately $22 billion of pent-up demand created over the last 2 years[181]

Financial Performance - The company delivered positive comp sales growth[3] - Gross margin was 34.2%, a +50 basis points increase compared to the prior year[3] - Operating margin was 11.9%, a -65 basis points decrease compared to the prior year[3] - Adjusted operating margin was 12.4%, a +10 basis points increase compared to the prior year[3] - Diluted EPS was $2.88, a -3.7% decrease compared to the prior year[3] - Adjusted diluted EPS was $3.06, a +5.9% increase compared to the prior year[3] - The company returned $673 million to shareholders through dividends[3] Sales Trends - Overall comp sales increased by +0.4%[3] - Comp transactions increased by +2.5%[5] - Comp average ticket decreased by -2.6% to $106.26[5] - Online sales growth decreased by -3.0%[5] Strategic Initiatives - The company closed on the acquisition of Foundation Building Materials[1,6]