# The Sherwin-Williams Company (SHW) Q2 2025 Financial Results Summary
The Sherwin-Williams Company (NYSE: SHW) reported its financial results for the second quarter ended June 30, 2025, on July 22, 2025. Below is a summary of key financial metrics and highlights from the report.
### Financial Highlights
– **Consolidated Net Sales**:
– Increased by **0.7%** to **$6.31 billion** from **$6.27 billion** in Q2 2024.
– **Sales from Paint Stores Group**:
– Same-store sales rose by **0.8%** in the quarter.
– **Income before Income Taxes**:
– Decreased by **16.0%** to **$985.7 million** compared to **$1.17 billion** in the previous year.
– **Net Income per Share**:
– Decreased by **14.3%** to **$3.00 per share** from **$3.50 per share** in Q2 2024.
– Adjusted diluted net income per share decreased by **8.6%** to **$3.38 per share** from **$3.70 per share** in Q2 2024.
– **Diluted Net Income Guidance for Full Year 2025**:
– Adjusted down to a range of **$10.11 to $10.41 per share**, compared to **$10.55** per share in 2024.
– Adjusted diluted net income per share guidance set at **$11.20 to $11.50 per share**, down from **$11.33** per share in 2024.
### Expense Highlights
– **Selling, General and Administrative (SG&A) Expenses**:
– Increased by **3.8%**, driven by restructuring initiatives and support for growth investments in competitive opportunities.
– **Pre-Tax Restructuring Expenses**:
– Totaled **$59 million**, attributed to heightened restructuring actions due to anticipated softer demand.
– **Total Cash Returned to Shareholders**:
– Approximately **$716 million** returned through dividends and share repurchases in Q2.
### Segment Results
– **Paint Stores Group (PSG)**:
– Net sales increased by **2.3%** to **$3.70 billion**.
– Segment profit increased by **1.0%** to **$916.5 million**.
– Reported segment margin decreased to **24.8%** from **25.1%**.
– **Consumer Brands Group (CBG)**:
– Net sales decreased by **4.1%** to **$809.4 million**.
– Segment profit decreased by **19.7%** to **$164.2 million**.
– Reported segment margin decreased to **20.3%** from **24.2%**.
– **Performance Coatings Group (PCG)**:
– Net sales remained flat, with a decrease of **0.3%** to **$1.80 billion**.
– Segment profit decreased by **18.7%** to **$245.1 million**.
– Reported segment margin decreased to **13.6%** from **16.7%**.
### Dividend and Share Repurchase
– The company returned **$716 million** to shareholders including cash dividends of **$79.3 million** during the quarter.
– A total of **2.5 million shares** were repurchased.
– An authorization remains for the purchase of an additional **32.0 million shares** of common stock.
### Outlook and Guidance
– For the third quarter of 2025, consolidated net sales expected to fluctuate by **low-single digits** compared to Q3 2024.
– The effective tax rate is anticipated to remain in the **low twenty percent** range.
### CEO Remarks
– CEO Heidi G. Petz stated that the company managed to execute its strategy despite softer demand trends and emphasized the importance of restructuring initiatives to navigate the current climate.
– The Paint Stores Group saw growth in protective and marine sales, as well as in residential repaint.
Sherwin-Williams remains committed to addressing the challenges presented by market demands while investing in competitive opportunities to drive future growth.
### The Sherwin-Williams Company and Subsidiaries
### Condensed Consolidated Statements of Income
**(in millions, except per share data)**
| Three Months Ended | Six Months Ended | |
|---|---|---|
| June 30, 2025 | June 30, 2024 | |
| Net sales | $6,314.5 | $11,620.2 |
| Cost of goods sold | $3,196.2 | $5,942.8 |
| Gross profit | $3,118.3 | $5,677.4 |
| As a percent of Net sales | 49.4% | 48.9% |
| Selling, general and administrative expenses | $112.4 | $216.2 |
| Income before income taxes | $985.7 | $1,638.7 |
| Income taxes | $231.0 | $380.1 |
| Net income | $754.7 | $1,258.6 |
| Net income per common share: | ||
| Basic | $3.04 | $5.06 |
| Diluted | $3.00 | $5.00 |
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### The Sherwin-Williams Company and Subsidiaries
### Condensed Consolidated Balance Sheets
**(in millions of dollars)**
| Assets | June 30, 2025 | June 30, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $269.8 | $200.0 |
| Accounts receivable, net | $3,111.9 | $3,048.1 |
| Inventories | $2,484.6 | $2,289.1 |
| Other current assets | $559.0 | $513.4 |
| Total current assets | $6,425.3 | $6,050.6 |
| Property, plant and equipment, net | $3,805.9 | $3,136.6 |
| Goodwill | $7,807.6 | $7,606.9 |
| Intangible assets | $3,543.4 | $3,692.8 |
| Operating lease right-of-use assets | $2,011.3 | $1,890.8 |
| Other assets | $1,770.1 | $1,356.3 |
| Total assets | $25,363.6 | $23,734.0 |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities: | ||
| Short-term borrowings | $1,706.7 | $1,358.3 |
| Accounts payable | $2,570.0 | $2,493.9 |
| Compensation and taxes withheld | $688.9 | $708.6 |
| Current portion of long-term debt | $1,150.7 | $849.7 |
| Total current liabilities | $8,196.4 | $7,466.6 |
| Long-term debt | $7,828.9 | $8,130.8 |
| Shareholders’ equity | $4,400.9 | $3,751.8 |
| Total liabilities and shareholders’ equity | $25,363.6 | $23,734.0 |
