The Sherwin-Williams Company reported third-quarter results for the period ended Sept. 30, 2025. Consolidated net sales rose 3.2% to $6.36 billion. Diluted net income per share increased 5.3% to $3.35 compared to $3.18 in the prior-year quarter. Adjusted diluted net income per share was $3.59 versus $3.37 a year ago. Net income was $833.1 million, or 13.1% of net sales. Adjusted EBITDA increased 6.0% to $1.36 billion, or 21.4% of net sales.

Chair, President and Chief Executive Officer Heidi G. Petz said the company executed its strategy in a demand environment that remains softer for longer. “Throughout the quarter, we continued to serve our customers, invest for success, control our costs, take advantage of a unique competitive environment, and execute on our enterprise priorities,” Petz said. She added that Sherwin-Williams expanded gross margin, kept SG&A growth in the low single digits inclusive of targeted growth investments and restructuring, and returned $864 million to shareholders through repurchases and dividends in the quarter.

Segment Performance

Paint Stores Group net sales rose 5.1% to $3.84 billion. Same-store sales from stores open more than 12 months increased 3.6%. Growth was led by protective and marine in the double digits, with mid single-digit gains in residential repaint and commercial. Segment profit increased to $954.3 million with reported margin of 24.9%.

Consumer Brands Group net sales decreased 2.6% to $770.1 million on softer DIY demand in North America and Latin America, partly offset by Europe. Reported segment margin was 20.4%. Adjusted segment profit was $179.3 million, with adjusted margin of 23.3%, reflecting a favorable mix shift and cost control. Valspar acquisition-related amortization reduced margin by 200 basis points, and severance and other restructuring reduced margin by 90 basis points.

Performance Coatings Group net sales increased 1.7% to $1.75 billion on low single-digit volume growth, contributions from acquisitions and favorable foreign currency, partly offset by an unfavorable region and business mix. Performance was led by Packaging, including acquisition benefits, and Automotive Refinish. Reported segment margin was 13.7%. Adjusted segment profit was $294.9 million with adjusted margin of 16.9%.

Consolidated Results Detail

Income before income taxes rose 3.7% to $1.06 billion, or 16.7% of net sales. Results reflected leverage on higher Paint Stores Group sales, offset in part by increased investments in long-term growth and costs tied to the new global headquarters and R&D buildings recorded in Administrative. Diluted EPS included acquisition-related amortization of $0.20 per share and $0.04 per share of severance and other restructuring expenses.

Credit: Sherwin-Williams

Liquidity and Capital Allocation

During the first nine months of 2025 the company generated $2.36 billion in net operating cash and returned $2.13 billion to shareholders through dividends and repurchases of 4.5 million shares. At Sept. 30, 2025, authorization remained to repurchase 30.0 million shares through open-market purchases.

Store and Branch Counts

At quarter end, Paint Stores Group operated 4,834 company-owned stores, a net increase of 61 year to date. Consumer Brands Group operated 304 stores, a net decrease of 30 year to date. Performance Coatings Group operated 324 branches.

Outlook and Guidance

For the fourth quarter, Sherwin-Williams expects consolidated net sales to be up a low to mid single-digit percentage year over year and continues to expect a low twenty percent effective tax rate. For full-year 2025, the company narrowed diluted net income per share guidance to $10.16 to $10.36, which includes $0.77 per share of acquisition-related amortization and $0.32 per share of severance and other restructuring expenses. Adjusted diluted net income per share is expected to be $11.25 to $11.45. The outlook includes the Suvinil acquisition that closed Oct. 1, which is expected to increase fourth-quarter consolidated net sales by a low single-digit percentage with an immaterial impact to diluted EPS given one-time closing costs and purchase accounting.

“Our strategy continues to resonate with professional painting contractors and manufacturers who are increasingly looking for partners that can provide them with predictability and reliability,” Petz said. “We’re focused on providing customers with differentiated solutions that make them more productive and profitable. This is even more valuable at a time when competitive offerings are highly inconsistent. We have a deep and experienced team, we know what works and we’re investing in it, and we continue to assess, adapt and control what we can control. We remain confident our approach is the right one to continue winning near-term, and it leaves us well positioned for when the demand cycle eventually turns.”