Sherwin-Williams (NYSE:SHW) delivered fourth-quarter adjusted earnings ahead of market expectations, with revenue also edging past forecasts despite what management described as an environment of “continued demand choppiness.”
Shares were little changed in pre-market trading following the release, slipping just 0.03%.
Adjusted earnings per share for the quarter came in at $2.23, beating the consensus estimate of $2.16. Revenue totaled $5.6 billion, slightly above expectations of $5.57 billion and up 5.6% year over year.
“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 CEO Heidi G. Petz. The Suvinil deal contributed $164.5 million, accounting for 3.1% of revenue growth in the quarter.
By segment, the Paint Stores Group recorded a 2.7% increase in sales, with same-store sales rising 1.0%. Consumer Brands revenue surged 24.5%, largely reflecting the Suvinil acquisition, while the Performance Coatings Group posted a 3.3% increase in sales.
For the full year 2025, Sherwin-Williams reported adjusted EPS of $11.43, up modestly from $11.33 in 2024. Annual revenue rose 2.1% to $23.57 billion.
Looking ahead, the company offered a cautious outlook for 2026, guiding to adjusted EPS of $11.50 to $11.90, implying about 2.4% growth at the midpoint. First-quarter sales are expected to rise by a mid-single-digit percentage.
“We enter 2026 with a continuation of the softer-for-longer demand environment we have previously described,” Petz said. “We expect these conditions to persist well into the second half of the year based on current customer sentiment and the macroeconomic indicators we track.”
Sherwin-Williams generated $3.45 billion in operating cash flow in 2025 and returned $2.45 billion to shareholders through dividends and share repurchases.