The Sherwin-Williams Company SHW logged first-quarter 2025 earnings (as reported) of $2 per share, up around 1.5% from $1.97 in the year-ago quarter.

Barring one-time items, adjusted earnings in the reported quarter were $2.25 per share, which beat the Zacks Consensus Estimate of $2.18.

Sherwin-Williams posted revenues of $5,305.7 million, down around 1.1% year over year. Also, the figure missed the Zacks Consensus Estimate of $5,346.5 million. 

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

SHW’s Segmental Review

The Paint Stores Group segment registered net sales of $2,939.8 million in the first quarter, up around 2.3% year over year. The figure beat the consensus estimate of $2,919.9 million. Net sales grew due to a mid-single-digit percentage rise in selling prices, partially offset by a low-single-digit decline in volume. Net sales climbed in professional-client end markets, with a high single-digit percentage increase in protection and marine, and a mid-single-digit increase in residential repaint.

Net sales in the Consumer Brands Group segment declined 6% year over year to $762.2 million, beating the Zacks Consensus Estimate of $761.4 million. Net sales declined due to weaker DIY demand in North America and an unfavorable currency translation in Latin America, accounting for approximately 3%. Segment profit fell due to lower net sales, slightly offset by effective cost control measures.

Net sales in the Performance Coatings Group decreased roughly 4.8% year over year to $1,602 million in the reported quarter, missing the Zacks Consensus Estimate of $1,645.9 million. Net sales declined due to adverse currency translation from Latin America. Despite a gain in packaging net sales due to an acquisition, other business units experienced declines.

SHW’s Financials

In the first quarter of 2025, SHW used $61.1 million in net operating cash due to seasonal increases in working capital requirements, which were largely offset by net income. Short-term borrowings were increased to fund the net operating cash usage. 

During the first quarter, the company returned $552.1 million to shareholders through dividends and the repurchase of 1 million shares of common stock. As of March 31, 2025, the company had the authorization to buy 33.4 million shares of its common stock through open market transactions.

SHW’s Outlook

The company forecasts its consolidated net sales for the second quarter of 2025 to be up or down by a low single-digit percentage year over year and up by a low single-digit percentage for full-year 2025. It expects full-year 2025 earnings per share to be in the range of $10.70 to $11.1 Full-year 2025 adjusted earnings per share is projected to be in the band of $11.65 to $12.05. The company expects an effective tax rate of low 20% for 2025.

SHW’s Price Performance

Shares of Sherwin-Williams have gained 8.4% in the past year compared with a 4.3% decline of the industry.

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SHW’s Zacks Rank & Key Picks

SHW currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Hawkins, Inc. HWKN, SSR Mining Inc. SSRM and Intrepid Potash, Inc. IPI. While HWKN carries a Zacks Rank #1 (Strong Buy), SSRM and IPI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is expected to report fiscal fourth-quarter results on May 21. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average.  

Intrepid Potash is slated to release first-quarter results on May 5. The consensus estimate for IPI’s first-quarter loss is pegged at 12 cents, stable over the past 60 days.

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The Sherwin-Williams Company (SHW) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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