FOURTH QUARTER CONSOLIDATED RESULTS (in millions, except per share data) Three Months Ended December 31, CEO REMARKS "Sherwin-Williams delivered strong fourth quarter results driven by solid core performance amid continued demand choppiness, and inclusive of the first full quarter of the Suvinil acquisition," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Consolidated Net sales were at the high end of our guidance, adjusted EBITDA improved by a low-teens percentage and adjusted diluted n ...

Core Viewpoint - The Sherwin-Williams Company has appointed Benjamin E. Meisenzahl as the new Chief Financial Officer (CFO), effective January 1, 2026, following a deliberate succession process aimed at ensuring continued profitable growth and financial excellence [1][2]. Company Leadership Transition - Benjamin E. Meisenzahl, who has 22 years of experience with Sherwin-Williams, will take over from Allen J. Mistysyn, who is retiring after 35 years with the company [1][2]. - Meisenzahl has held various roles, including Senior Vice President – Finance, where he led key corporate functions and was a business partner to the CEO [1][2]. - The transition is designed to maintain a strong leadership team, with an average of 26 years of experience among senior leaders [2]. Acknowledgment of Previous Leadership - The company expressed gratitude for Allen J. Mistysyn's leadership during challenging times, including significant acquisitions and the global pandemic, noting that the market capitalization more than tripled during his tenure [1][2]. Company Background - Sherwin-Williams, founded in 1866, is a global leader in manufacturing and distributing paint and coatings, with a wide range of well-known brands [4][5]. - The company operates over 5,400 stores and serves various customer segments, including professional, industrial, and retail [5].

Core Insights - Sherwin-Williams is experiencing a challenging demand environment, leading to adjustments in their restructuring initiatives and financial guidance for 2025 [1][16][17] Financial Performance - Consolidated net sales for the second quarter of 2025 were $6.31 billion, a 0.7% increase from $6.27 billion in the same quarter of 2024 [3][6] - Income before income taxes decreased by 16.0% to $985.7 million compared to $1.17 billion in the prior year [3][4] - Diluted net income per share fell by 14.3% to $3.00, down from $3.50 in the second quarter of 2024 [3][5][6] - Adjusted diluted net income per share decreased by 8.6% to $3.38 from $3.70 year-over-year [3][6] Segment Performance Paint Stores Group (PSG) - Net sales increased by 2.3% to $3.70 billion, driven by selling price increases and a high-single digit percentage growth in protective and marine sales [7][8] - Segment profit rose by 1.0% to $916.5 million, with a reported segment margin of 24.8% [7][8] Consumer Brands Group (CBG) - Net sales decreased by 4.1% to $809.4 million, primarily due to soft DIY demand in North America and unfavorable foreign exchange impacts [9][10] - Segment profit fell by 19.7% to $164.2 million, with a reported segment margin of 20.3% [9][10] Performance Coatings Group (PCG) - Net sales were effectively flat at $1.80 billion, with a slight decrease of 0.3% compared to the previous year [11][12] - Segment profit decreased by 18.7% to $245.1 million, with a reported segment margin of 13.6% [11][12] Cash Flow and Shareholder Returns - The company generated $1.05 billion in net operating cash and returned $1.27 billion to shareholders through dividends and share repurchases in the first half of 2025 [14] - During the second quarter, the company returned $716 million to shareholders [1][14] Guidance and Outlook - The company expects third quarter 2025 consolidated net sales to be up or down a low-single digit percentage compared to the third quarter of 2024 [15][17] - Full year 2025 diluted net income per share is projected to be in the range of $10.11 to $10.41, reflecting a decrease from $10.55 in 2024 [15][17]