Sherwin-Williams Reports Slight Increase in Net Sales but Decline in Profitability for Q2 2025

The Sherwin-Williams Company reported its financial results for the second quarter and first half of 2025, revealing a slight increase in net sales but a decline in profitability compared to the previous year. For the three months ended June 30, 2025, the company achieved net sales of $6.315 billion, a 0.7% increase from $6.272 billion in the same period of 2024. However, net income fell to $754.7 million, down 15.1% from $889.9 million a year earlier, resulting in diluted earnings per share of $3.00, a decrease of 14.3% from $3.50 in the prior year.

In the first half of 2025, Sherwin-Williams reported net sales of $11.620 billion, a slight decline of 0.2% from $11.639 billion in the first half of 2024. The decrease in profitability was attributed to increased selling, general, and administrative expenses, which rose to $2.012 billion in the second quarter, up from $1.846 billion in the same period last year. The company noted that these expenses were driven by a broader restructuring initiative in response to softer demand and increased costs related to new store openings and marketing efforts.

Strategically, Sherwin-Williams has been active in acquisitions, completing the purchase of a European coil and industrial coatings company for approximately $80 million in March 2025, and a domestic regional floor covering provider in June 2025. Additionally, the company announced plans to acquire BASF's Brazilian decorative paints business for $1.15 billion, pending regulatory approval. These acquisitions are expected to enhance the company's market presence and product offerings.

Operationally, the company reported a 2.3% increase in net sales from its Paint Stores Group, driven by higher selling prices, while the Consumer Brands Group experienced a 4.1% decline due to soft demand in the DIY segment. The Performance Coatings Group's sales were effectively flat, with incremental sales from acquisitions offset by price decreases. The company also reported an increase in cash and cash equivalents to $269.8 million and total debt of $10.686 billion as of June 30, 2025.

Looking ahead, Sherwin-Williams anticipates continued challenges in the market, particularly in the second half of 2025, and plans to accelerate restructuring actions while maintaining its long-term growth strategy. The company remains committed to investing in customer relationships and expanding its market share, supported by a strong liquidity position and ongoing capital deployment strategies.