Sherwin-Williams (SHW) Q4 2025 Earnings Transcript

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Thursday, January 29, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Heidi G. Petz

• Senior Vice President of Investor Relations — Jim Jaye

• Senior Vice President and Chief Financial Officer — Ben Meisenzoll

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Jim Jaye: Sherwin-Williams ended the twelvemonth with beardown 4th fourth results, driven by coagulated halfway show and inclusive of the archetypal afloat 4th of the Suvenil acquisition. Consolidated income successful the 4th fourth accrued by a mid-single-digit percentage, inclusive of a debased single-digit publication from Suvenil. Reported gross borderline was flattish twelvemonth implicit twelvemonth but expanded excluding the dilutive interaction of the Suvenil acquisition. SG&A arsenic a percent of income decreased twelvemonth implicit year, including severance and different restructuring expenses and Suvenil, reflecting our disciplined ongoing outgo power measures. Adjusted diluted nett income per stock successful the 4th accrued by 6.7%. Adjusted EBITDA successful the 4th grew 13.4% and expanded 120 ground points to 17.7% arsenic a percent of sales.

Free currency travel conversion successful the 4th was 90.1%. In presumption of our segments successful the 4th quarter, Paint Stores Group income accrued successful the scope we expected, led by precocious single-digit maturation successful protective and marine, against a precocious single-digit comp. Residential repaint remains solid, and maturation was conscionable somewhat beneath the mid-single-digit range, besides against a precocious single-digit comp. Group income included affirmative debased single-digit terms premix partially offset by a debased single-digit alteration successful volume. Segment borderline expanded 90 ground points to 20.8%. Consumer Brands Group income exceeded our expectations.

Sales from the Suvenil acquisition and affirmative debased single-digit FX were partially offset by terms premix and volume, some of which were down little than a percent point. Sales successful the underlying business, excluding Suvenil, were fundamentally flat, which was amended than we expected and drove the top-line beat. Adjusted conception borderline decreased, including a antagonistic interaction from Suvenil and related transaction closing costs and acquisition accounting items. Adjusted conception borderline accrued excluding these impacts. Within Performance Coatings Group, income were astatine the precocious extremity of expectations, led by spot successful packaging and car refinish.

Adjusted conception borderline improved 150 ground points to 19%, driven by caller concern wins, arsenic good arsenic bully power of SG&A, which was down mid-single digits. We besides continued our beardown outgo power efforts wrong the administrative segment, wherever SG&A was down a debased single-digit percent successful the quarter, including one-time restructuring costs of astir $2 million. Excluding these restructuring costs and the non-annualized caller gathering operating costs, administrative SG&A was down by a debased teens percentage, improving connected third-quarter results that were down debased treble digits, demonstrating our continued choky absorption of G&A costs. The descent platform accompanying our property merchandise this greeting provides much item connected fourth-quarter conception results.