The Sherwin-Williams Company Reports 2024 Year-End and Fourth Quarter Financial Results
Sherwin-Williams (NYSE: SHW) reported strong financial results for Q4 and full-year 2024. The company achieved record consolidated net sales of $23.10 billion for the year, with same-store sales in Paint Stores Group increasing 1.7%. Diluted net income per share rose 14.1% to $10.55, while adjusted diluted EPS grew 9.5% to $11.33.
Q4 performance showed consolidated net sales increase of 0.9% to $5.30 billion, with diluted EPS up 36.7% to $1.90. The Paint Stores Group led growth with a 3.4% sales increase, while Consumer Brands and Performance Coatings Groups experienced decreases. The company generated strong operating cash of $3.15 billion and returned $2.46 billion to shareholders through dividends and share repurchases.
For 2025, SHW projects net sales growth in low-single digits and adjusted diluted EPS guidance of $11.65-$12.05, representing 4.6% growth at midpoint. The company expects demand softness to persist in several markets through 2025.
Sherwin-Williams (NYSE: SHW) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. L'azienda ha raggiunto vendite nette consolidate record di 23,10 miliardi di dollari per l'anno, con un aumento del 1,7% delle vendite negli stessi negozi del Paint Stores Group. L'utile netto diluito per azione è aumentato del 14,1% a 10,55 dollari, mentre l'utile per azione diluito rettificato è cresciuto del 9,5% a 11,33 dollari.
Le performance del quarto trimestre hanno mostrato un aumento delle vendite nette consolidate dello 0,9% a 5,30 miliardi di dollari, con EPS diluito in crescita del 36,7% a 1,90 dollari. Il Paint Stores Group ha guidato la crescita con un aumento delle vendite del 3,4%, mentre i gruppi Consumer Brands e Performance Coatings hanno subito cali. L'azienda ha generato un forte flusso di cassa operativo di 3,15 miliardi di dollari e ha restituito 2,46 miliardi di dollari agli azionisti attraverso dividendi e riacquisti di azioni.
Per il 2025, SHW prevede una crescita delle vendite nette a una cifra bassa e una guida per l'EPS diluito rettificato di 11,65-12,05 dollari, che rappresenta una crescita del 4,6% a metà percorso. L'azienda si aspetta che la debolezza della domanda persista in diversi mercati fino al 2025.
Sherwin-Williams (NYSE: SHW) reportó resultados financieros fuertes para el cuarto trimestre y todo el año 2024. La compañía alcanzó ventas netas consolidadas récord de 23.10 mil millones de dólares para el año, con un aumento del 1.7% en las ventas en las mismas tiendas del grupo de Paint Stores. El ingreso neto diluido por acción aumentó un 14.1% a $10.55, mientras que el EPS diluido ajustado creció un 9.5% a $11.33.
El rendimiento del cuarto trimestre mostró un aumento de las ventas netas consolidadas del 0.9% a $5.30 mil millones, con un EPS diluido en aumento del 36.7% a $1.90. El grupo de Paint Stores lideró el crecimiento con un aumento de ventas del 3.4%, mientras que los grupos de Consumer Brands y Performance Coatings experimentaron disminuciones. La compañía generó un fuerte flujo de efectivo operativo de $3.15 mil millones y devolvió $2.46 mil millones a los accionistas a través de dividendos y recompra de acciones.
Para 2025, SHW proyecta un crecimiento en las ventas netas de un solo dígito bajo y una guía de EPS diluido ajustado de $11.65-$12.05, representando un crecimiento del 4.6% en el punto medio. La compañía espera que la suavidad en la demanda persista en varios mercados hasta 2025.
셔윈-윌리엄스 (NYSE: SHW)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고했습니다. 회사는 2024년 동안 231억 달러의 기록적인 총 매출을 달성했습니다, Paint Stores Group의 동종 매장 매출이 1.7% 증가했습니다. 희석된 주당 순이익은 14.1% 상승하여 10.55달러가 되었습니다, 조정된 희석 EPS는 9.5% 증가하여 11.33달러에 달했습니다.
4분기 실적은 총 매출이 0.9% 증가하여 53억 달러에 이르렀으며, 희석 EPS는 36.7% 증가하여 1.90달러에 달했습니다. Paint Stores Group은 3.4%의 매출 증가로 성장을 이끌었고, Consumer Brands 및 Performance Coatings Group은 감소를 경험했습니다. 회사는 31억 5천만 달러의 강력한 운영 현금을 창출했으며, 주주에게 24억 6천만 달러를 배당금과 자사주 매입을 통해 돌려주었습니다.
2025년을 위해 SHW는 순 매출 성장률을 저출력 단위로 예상하고 있으며, 조정된 희석 EPS의 가이던스는 11.65-12.05달러로 중간값에서 4.6% 증가할 예정입니다. 회사는 2025년까지 여러 시장에서 수요 약세가 지속될 것으로 예상하고 있습니다.
Sherwin-Williams (NYSE: SHW) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024. L'entreprise a atteint des ventes nettes consolidées record de 23,10 milliards de dollars pour l'année, avec une augmentation des ventes dans les mêmes magasins du Paint Stores Group de 1,7%. Le bénéfice net dilué par action a augmenté de 14,1% pour atteindre 10,55 dollars, tandis que l'EPS dilué ajusté a crû de 9,5% pour atteindre 11,33 dollars.
Les performances du quatrième trimestre ont montré une augmentation des ventes nettes consolidées de 0,9% à 5,30 milliards de dollars, avec un EPS dilué en hausse de 36,7% à 1,90 dollar. Le Paint Stores Group a mené la croissance avec une augmentation des ventes de 3,4%, tandis que les groupes Consumer Brands et Performance Coatings ont connu des baisses. L'entreprise a généré un solide flux de trésorerie opérationnel de 3,15 milliards de dollars et a restitué 2,46 milliards de dollars aux actionnaires par le biais de dividendes et de rachats d'actions.
Pour 2025, SHW prévoit une croissance des ventes nettes à un chiffre bas et une prévision de l'EPS dilué ajusté de 11,65 à 12,05 dollars, représentant une croissance de 4,6% au point médian. L'entreprise s'attend à ce que la faiblesse de la demande persiste dans plusieurs marchés jusqu'en 2025.
Sherwin-Williams (NYSE: SHW) hat starke Finanzzahlen für das vierte Quartal und das Gesamtjahr 2024 berichtet. Das Unternehmen erzielte rekordverdächtige konsolidierte Nettoumsätze von 23,10 Milliarden Dollar im Jahr, wobei die Umsatzsteigerung in den gleichen Geschäften der Paint Stores Group 1,7% betrug. Der verwässerte Nettogewinn pro Aktie stieg um 14,1% auf 10,55 Dollar, während das bereinigte verwässerte EPS um 9,5% auf 11,33 Dollar wuchs.
Die Leistung des vierten Quartals zeigte einen Anstieg der konsolidierten Nettoumsätze um 0,9% auf 5,30 Milliarden Dollar, während das verwässerte EPS um 36,7% auf 1,90 Dollar anstieg. Die Paint Stores Group führte das Wachstum mit einem Umsatzanstieg von 3,4% an, während die Gruppen Consumer Brands und Performance Coatings Rückgänge verzeichneten. Das Unternehmen erzielte einen starken operativen Cashflow von 3,15 Milliarden Dollar und gab 2,46 Milliarden Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück.
Für 2025 prognostiziert SHW ein Umsatzwachstum im niedrigen einstelligen Bereich und eine bereinigte verwässerte EPS-Schätzung von 11,65-12,05 Dollar, was einem Wachstum von 4,6% auf dem Mittelwert entspricht. Das Unternehmen erwartet, dass die Nachfrage in mehreren Märkten bis 2025 schwach bleibt.
- Record consolidated net sales of $23.10 billion in 2024
- 14.1% increase in diluted EPS to $10.55
- Strong operating cash flow of $3.15 billion (13.7% of net sales)
- $2.46 billion returned to shareholders via dividends and buybacks
- Gross margin expanded 180 basis points to 48.5%
- Paint Stores Group showed 3.4% sales growth in Q4
- Consumer Brands Group sales declined 4.3% in Q4
- Performance Coatings Group sales decreased 1.6% in Q4
- Expected demand softness through 2025
- Additional $100 million in transition costs expected for 2025
- Projected $40 million increase in interest expense for 2025
Insights
Sherwin-Williams' Q4 2024 results reveal a company effectively navigating market headwinds through strategic pricing and operational efficiency. The 180 basis point gross margin expansion to 48.5% demonstrates strong pricing power and cost management, particularly impressive given persistent input cost pressures.
The Paint Stores Group emerges as the primary growth engine, with residential repaint growing at high-single digits and new residential showing low-single digit growth. This outperformance versus market rates suggests market share gains in key segments. The 19.9% segment margin in PSG reflects the strength of their direct-to-market distribution model.
Looking ahead, management's conservative 2025 guidance (
- Additional
$100M in building transition costs $40M increase in interest expense from refinancing activities- Persistent demand softness expected through H2 2025
The projected low-single digit revenue growth for 2025 appears conservative but prudent, given macro uncertainties. However, the continued focus on margin expansion through price-cost discipline and efficiency gains positions the company well for potential upside if demand conditions improve.
The robust cash flow generation at 13.7% of net sales provides significant financial flexibility for both shareholder returns and strategic investments, supporting long-term competitive positioning despite near-term market challenges.
SUMMARY
- Consolidated Net sales increased in the year to a record
$23.10 billion - Net sales from stores in the Paint Stores Group open more than twelve calendar months increased
1.7% in the year
- Net sales from stores in the Paint Stores Group open more than twelve calendar months increased
- Diluted net income per share increased
14.1% to$10.55 $9.25 - Adjusted diluted net income per share increased
9.5% to$11.33 $10.35
- Adjusted diluted net income per share increased
- Diluted net income per share increased
36.7% to$1.90 15.5% to$2.09 - Generated Net operating cash of
$3.15 billion 13.7% of Net sales, in the year - Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) increased
6.0% in the year to$4.49 billion 19.4% of Net sales - Full year 2025 diluted net income per share guidance in the range of
$10.70 $11.10 $0.80 $0.15 - Full year 2025 adjusted diluted net income per share guidance in the range of
$11.65 $12.05
- Full year 2025 adjusted diluted net income per share guidance in the range of
CEO REMARKS
"Sherwin-Williams delivered strong fourth quarter results despite continued demand choppiness in the majority of our end markets," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Consolidated Net sales grew by a low-single digit percentage, and gross margin improved slightly year-over-year. We expanded adjusted segment margin in all three segments, and adjusted diluted earnings per share and EBITDA grew by double-digit percentages. In our architectural business, residential repaint significantly outgrew the market and increased by a high-single digit percentage as we continued to see a return on prior growth investments. We delivered low-single digit percentage growth in new residential driven by continued above-market growth. Sales in our industrial businesses were led by double-digit percentage growth in Packaging and low-single digit percentage growth in Coil. For the full year, Net sales grew slightly to a record
FOURTH QUARTER CONSOLIDATED RESULTS
Three Months Ended December 31, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 5,297.2 | $ 5,252.2 | $ 45.0 | 0.9 % | |||
Income before income taxes | $ 615.6 | $ 474.0 | $ 141.6 | 29.9 % | |||
As a % of Net sales | 11.6 % | 9.0 % | |||||
Net income per share - diluted | $ 1.90 | $ 1.39 | $ 0.51 | 36.7 % | |||
Adjusted net income per share - diluted | $ 2.09 | $ 1.81 | $ 0.28 | 15.5 % | |||
Consolidated Net sales increased primarily due to higher sales in the Paint Stores Group. This increase was partially offset by lower sales in the Consumer Brands and Performance Coatings Groups as well as
Income before income taxes increased primarily due to higher Net sales, lower provisions for environmental matters recorded in the Administrative function and higher other income. In addition, foreign currency losses specific to the devaluation of the Argentine peso (Argentine Devaluation) and impairment related to trademarks recorded in the fourth quarter of 2023 did not occur in the fourth quarter of 2024.
Diluted net income per share included a charge of
FOURTH QUARTER SEGMENT RESULTS
Paint Stores Group (PSG)
Three Months Ended December 31, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 3,044.9 | $ 2,944.6 | $ 100.3 | 3.4 % | |||
Same-store sales (1) | 2.0 % | 2.1 % | |||||
Segment profit | $ 606.4 | $ 567.3 | $ 39.1 | 6.9 % | |||
Reported segment margin | 19.9 % | 19.3 % | |||||
(1) Same-store sales represents net sales from stores open more than twelve calendar months. |
Net sales in PSG increased primarily due to selling price increases, which impacted Net sales by a low-single digit percentage, as well as low-single digit percentage sales volume growth. Net sales increased in residential repaint, protective and marine and new residential. PSG Segment profit increased due to growth in Net sales.
Consumer Brands Group (CBG)
Three Months Ended December 31, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 662.2 | $ 692.3 | $ (30.1) | (4.3) % | |||
Segment profit | $ 66.6 | $ 3.6 | $ 63.0 | nm | |||
Reported segment margin | 10.1 % | 0.5 % | |||||
Adjusted segment profit (1) | $ 82.0 | $ 74.7 | $ 7.3 | 9.8 % | |||
Adjusted segment margin | 12.4 % | 10.8 % | |||||
nm - not meaningful | |||||||
(1) | Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense, the Argentine Devaluation and impairment related to trademarks. In CBG, Valspar acquisition-related amortization expense was |
Net sales in CBG decreased primarily due to a
Acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 230 basis points in the fourth quarter of 2024 as compared to 240 basis points in the fourth quarter of 2023. In the fourth quarter of 2023, the loss related to the Argentine Devaluation and the impairment related to trademarks reduced Segment profit as a percent of Net sales by 450 basis points and 340 basis points, respectively.
Performance Coatings Group (PCG)
Three Months Ended December 31, | |||||||
2024 | 2023 | $ Change | % Change | ||||
Net sales | $ 1,589.0 | $ 1,614.2 | $ (25.2) | (1.6) % | |||
Segment profit | $ 229.0 | $ 220.3 | $ 8.7 | 3.9 % | |||
Reported segment margin | 14.4 % | 13.6 % | |||||
Adjusted segment profit (1) | $ 277.9 | $ 278.7 | $ (0.8) | (0.3) % | |||
Adjusted segment margin | 17.5 % | 17.3 % | |||||
(1) | Adjusted segment profit equals Segment Profit excluding the impact of Valspar acquisition-related amortization expense and the Argentine Devaluation. In PCG, Valspar acquisition-related amortization expense was |
Net sales in PCG decreased primarily due to a
Acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 310 basis points in the fourth quarter of 2024 compared to 300 basis points in the fourth quarter of 2023. In the fourth quarter of 2023, the loss related to the Argentine Devaluation reduced Segment profit as a percent of Net sales by 70 basis points.
LIQUIDITY AND CASH FLOW
The Company generated
2025 GUIDANCE
First Quarter | Full Year | ||||
2025 | 2025 | ||||
Net sales | Up or down low-single digit % | Up low-single digit % | |||
Effective tax rate | Low twenty percent | ||||
Diluted net income per share | - | ||||
Adjusted diluted net income per share (1) | - | ||||
(1) | Excludes |
"We enter 2025 with confidence in our differentiated strategy that continues to deliver innovative and productive solutions for our customers," said Ms. Petz. "We expect demand softness to persist in several end markets well into the second half of the year, if not into 2026. At the same time, we have significant above-market growth opportunities in every one of our businesses. We will pursue these opportunities aggressively and relentlessly, leveraging our world-class team, recent growth investments and unique assets. We will support our profitable above-market growth plans and further separate ourselves from our competitors by executing initiatives within our enterprise priorities, including talent, simplification, digitization, supply chain responsiveness and sustainability.
"Based on customer sentiment and the macro-economic indicators we see at this time, we expect first quarter 2025 consolidated Net sales will be up or down a low-single digit percentage compared to the first quarter of 2024 with the Paint Stores Group at or above the high end of that range. For the full year 2025, we expect consolidated Net sales to be up a low-single digit percentage with the Paint Stores Group at or above the high end of that range. We expect to see full-year gross margin expansion driven by price-cost discipline and efficiency gains. We will work to control spending tightly, and we expect growth in SG&A to moderate to a low-single digit level. Costs associated with the transition into our new buildings in the year are expected to be
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its financial results for the fourth quarter and full year 2024, and its outlook for the first quarter and full year 2025, at 10:00 a.m. EST on Thursday, January 30, 2025. Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer, along with other senior executives, will participate on the call.
The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q4 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®,
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements contained in this press release 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), expected growth, future business plans and the costs and potential liability for environmental-related matters and lead pigment and lead-based paint litigation. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "anticipate," "aspire," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "project," "seek," "should," "strive," "target," "will," or "would," or the negative thereof or comparable terminology.
Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions in
Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
INVESTOR RELATIONS CONTACTS:
Jim Jaye
Senior Vice President, Investor Relations & Corporate Communications
Direct: 216.515.8682
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
The Sherwin-Williams Company and Subsidiaries | |||||||
Statements of Consolidated Income (Unaudited) | |||||||
(in millions, except per share data) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 5,297.2 | $ 5,252.2 | $ 23,098.5 | $ 23,051.9 | |||
Cost of goods sold | 2,724.0 | 2,703.5 | 11,903.4 | 12,293.8 | |||
Gross profit | 2,573.2 | 2,548.7 | 11,195.1 | 10,758.1 | |||
Percent to Net sales | 48.6 % | 48.5 % | 48.5 % | 46.7 % | |||
Selling, general and administrative expenses | 1,882.9 | 1,855.9 | 7,422.1 | 7,065.4 | |||
Percent to Net sales | 35.5 % | 35.3 % | 32.1 % | 30.6 % | |||
Other general (income) expense - net | (7.9) | 27.2 | (38.8) | 67.1 | |||
Impairment | — | 23.9 | — | 57.9 | |||
Interest expense | 98.5 | 94.6 | 415.7 | 417.5 | |||
Interest income | (1.4) | (9.4) | (11.0) | (25.2) | |||
Other (income) expense - net | (14.5) | 82.5 | (44.7) | 65.5 | |||
Income before income taxes | 615.6 | 474.0 | 3,451.8 | 3,109.9 | |||
Income taxes | 135.5 | 117.8 | 770.4 | 721.1 | |||
Net income | $ 480.1 | $ 356.2 | $ 2,681.4 | $ 2,388.8 | |||
Net income per common share: | |||||||
Basic | $ 1.92 | $ 1.40 | $ 10.68 | $ 9.35 | |||
Diluted | $ 1.90 | $ 1.39 | $ 10.55 | $ 9.25 | |||
Weighted average shares outstanding: | |||||||
Basic | 249.8 | 254.0 | 251.0 | 255.4 | |||
Diluted | 253.2 | 256.9 | 254.1 | 258.3 | |||
The Sherwin-Williams Company and Subsidiaries | |||||||
Business Segments (Unaudited) | |||||||
(millions of dollars) | |||||||
2024 | 2023 | ||||||
Net | Segment | Net | Segment | ||||
Sales | Profit (Loss) | Sales | Profit (Loss) | ||||
Three Months Ended December 31: | |||||||
Paint Stores Group | $ 3,044.9 | $ 606.4 | $ 2,944.6 | $ 567.3 | |||
Consumer Brands Group | 662.2 | 66.6 | 692.3 | 3.6 | |||
Performance Coatings Group | 1,589.0 | 229.0 | 1,614.2 | 220.3 | |||
Administrative | 1.1 | (286.4) | 1.1 | (317.2) | |||
Consolidated totals | $ 5,297.2 | $ 615.6 | $ 5,252.2 | $ 474.0 | |||
Year Ended December 31: | |||||||
Paint Stores Group | $ 13,188.0 | $ 2,902.6 | $ 12,839.5 | $ 2,860.8 | |||
Consumer Brands Group | 3,108.0 | 589.9 | 3,365.6 | 309.3 | |||
Performance Coatings Group | 6,797.3 | 1,027.9 | 6,843.1 | 991.6 | |||
Administrative | 5.2 | (1,068.6) | 3.7 | (1,051.8) | |||
Consolidated totals | $ 23,098.5 | $ 3,451.8 | $ 23,051.9 | $ 3,109.9 | |||
The Sherwin-Williams Company and Subsidiaries | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(millions of dollars) | |||
December 31, | |||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 210.4 | $ 276.8 | |
Accounts receivable, net | 2,388.8 | 2,467.9 | |
Inventories | 2,288.1 | 2,329.8 | |
Other current assets | 513.5 | 438.4 | |
Total current assets | 5,400.8 | 5,512.9 | |
Property, plant and equipment, net | 3,533.2 | 2,836.8 | |
Goodwill | 7,580.1 | 7,626.0 | |
Intangible assets | 3,533.2 | 3,880.5 | |
Operating lease right-of-use assets | 1,953.8 | 1,887.4 | |
Other assets | 1,631.5 | 1,210.8 | |
Total assets | $ 23,632.6 | $ 22,954.4 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Short-term borrowings | $ 662.4 | $ 374.2 | |
Accounts payable | 2,253.2 | 2,315.0 | |
Compensation and taxes withheld | 842.8 | 862.7 | |
Accrued taxes | 174.3 | 197.4 | |
Current portion of long-term debt | 1,049.2 | 1,098.8 | |
Current portion of operating lease liabilities | 466.6 | 449.3 | |
Other accruals | 1,360.2 | 1,329.5 | |
Total current liabilities | 6,808.7 | 6,626.9 | |
Long-term debt | 8,176.8 | 8,377.9 | |
Postretirement benefits other than pensions | 120.7 | 133.2 | |
Deferred income taxes | 607.5 | 683.1 | |
Long-term operating lease liabilities | 1,558.3 | 1,509.5 | |
Other long-term liabilities | 2,309.4 | 1,908.0 | |
Shareholders' equity | 4,051.2 | 3,715.8 | |
Total liabilities and shareholders' equity | $ 23,632.6 | $ 22,954.4 | |
Regulation G Reconciliations
Management of the Company utilizes certain financial measures that are not in accordance with
Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company's revenue generation, the related revenue is not excluded. This adjusted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for earnings per share computed in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with US GAAP to adjusted diluted net income per share.
Year Ended | |||||||||||
Three Months Ended | Year Ended | December 31, 2025 | |||||||||
December 31, 2024 | December 31, 2024 | (after-tax guidance) | |||||||||
Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | Low | High | ||||
Diluted net income per share | $ 1.90 | $ 10.55 | $ 10.70 | $ 11.10 | |||||||
Acquisition-related amortization expense (2) | .25 | .06 | .19 | 1.02 | .24 | .78 | .80 | .80 | |||
Severance and other restructuring expenses | .15 | .15 | |||||||||
Adjusted diluted net income per share | $ 2.09 | $ 11.33 | $ 11.65 | $ 12.05 | |||||||
Three Months Ended | Year Ended | ||||||
December 31, 2023 | December 31, 2023 | ||||||
Pre-Tax | Tax Effect (1) | After-Tax | Pre-Tax | Tax Effect (1) | After-Tax | ||
Diluted net income per share | $ 1.39 | $ 9.25 | |||||
Items related to Restructuring Plan: | |||||||
Severance and other | $ — | $ — | — | $ .06 | $ .02 | .04 | |
Impairment of assets related to | — | — | — | .13 | .08 | .05 | |
Gain on divestiture of domestic aerosol business | — | — | — | (.08) | (.02) | (.06) | |
Discrete income tax expense related to | — | — | — | — | (.06) | .06 | |
Total | — | — | — | .11 | .02 | .09 | |
Impairment related to trademarks | .09 | .02 | .07 | .09 | .02 | .07 | |
Devaluation of the Argentine peso | .16 | — | .16 | .16 | — | .16 | |
Acquisition-related amortization expense (2) | .25 | .06 | .19 | 1.03 | .25 | .78 | |
Adjusted diluted net income per share | $ 1.81 | $ 10.35 | |||||
(1) | The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. |
(2) | Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives. |
Management believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before income taxes and Interest expense, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management further believes enhances investors' understanding of the Company's operating performance. The reader is cautioned that the Company's EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income or Net operating cash as an indicator of operating performance or as a measure of liquidity. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.
(millions of dollars) | |||||||||
Three Months | Three Months | Three Months | Three Months | Year | |||||
Ended | Ended | Ended | Ended | Ended | |||||
March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | December 31, 2024 | |||||
Net income | $ 505.2 | $ 889.9 | $ 806.2 | $ 480.1 | $ 2,681.4 | ||||
Interest expense | 103.0 | 110.8 | 103.4 | 98.5 | 415.7 | ||||
Income taxes | 134.8 | 283.5 | 216.6 | 135.5 | 770.4 | ||||
Depreciation | 71.1 | 71.8 | 74.4 | 80.1 | 297.4 | ||||
Amortization | 82.1 | 81.5 | 81.2 | 81.8 | 326.6 | ||||
EBITDA | $ 896.2 | $ 1,437.5 | $ 1,281.8 | $ 876.0 | $ 4,491.5 | ||||
Three Months | Three Months | Three Months | Three Months | Year | |||||
Ended | Ended | Ended | Ended | Ended | |||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2023 | |||||
Net income | $ 477.4 | $ 793.7 | $ 761.5 | $ 356.2 | $ 2,388.8 | ||||
Interest expense | 109.3 | 111.7 | 101.9 | 94.6 | 417.5 | ||||
Income taxes | 137.4 | 218.4 | 247.5 | 117.8 | 721.1 | ||||
Depreciation | 70.4 | 75.7 | 71.9 | 74.3 | 292.3 | ||||
Amortization | 83.7 | 83.0 | 83.5 | 80.0 | 330.2 | ||||
EBITDA | $ 878.2 | $ 1,282.5 | $ 1,266.3 | $ 722.9 | $ 4,149.9 | ||||
Restructuring expense | 0.9 | 8.7 | — | — | 9.6 | ||||
Impairment of assets related to | — | 34.0 | — | — | 34.0 | ||||
Gain on divestiture of domestic aerosol business | — | (20.1) | — | — | (20.1) | ||||
Impairment related to trademarks | — | — | — | 23.9 | 23.9 | ||||
Devaluation of the Argentine peso | — | — | — | 41.8 | 41.8 | ||||
Adjusted EBITDA | $ 879.1 | $ 1,305.1 | $ 1,266.3 | $ 788.6 | $ 4,239.1 |
The Sherwin-Williams Company and Subsidiaries | |||||||
Selected Information (Unaudited) | |||||||
(millions of dollars, except store count data) | |||||||
Three Months Ended | Year Ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Depreciation | $ 80.1 | $ 74.3 | $ 297.4 | $ 292.3 | |||
Capital expenditures | 300.0 | 319.5 | 1,070.0 | 888.4 | |||
Cash dividends | 179.8 | 155.3 | 723.4 | 623.7 | |||
Amortization of intangibles | 81.8 | 80.0 | 326.6 | 330.2 | |||
Significant components of Other general (income) expense - net | |||||||
Provisions for environmental related matters - net | $ 6.4 | $ 28.0 | $ (1.3) | $ 80.7 | |||
Gain on divestiture of businesses | — | — | — | (20.1) | |||
(Gain) loss on sale or disposition of assets | (24.7) | 9.0 | (49.9) | 0.9 | |||
Other | 10.4 | (9.8) | 12.4 | 5.6 | |||
Significant components of Other (income) expense - net | |||||||
Loss on extinguishment of debt | $ — | $ 12.8 | $ — | $ 12.8 | |||
Investment gains | (6.1) | (3.7) | (16.9) | (22.9) | |||
Net expense from banking activities | 4.4 | 4.1 | 15.7 | 15.0 | |||
Foreign currency transaction related (gains) losses - net (1) | (5.9) | 55.8 | 3.9 | 80.5 | |||
Other (2) | (6.9) | 13.5 | (47.4) | (19.9) | |||
Store Count Data | |||||||
Paint Stores Group - net new stores | 34 | 34 | 79 | 70 | |||
Paint Stores Group - total stores | 4,773 | 4,694 | 4,773 | 4,694 | |||
Consumer Brands Group - net new stores | 6 | 2 | 16 | 11 | |||
Consumer Brands Group - total stores | 334 | 318 | 334 | 318 | |||
Performance Coatings Group - net new branches | — | 4 | 2 | 5 | |||
Performance Coatings Group - total branches | 324 | 322 | 324 | 322 | |||
(1) The three months and year ended December 31, 2023 includes the | |||||||
(2) Consists of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company. | |||||||
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SOURCE The Sherwin-Williams Company
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