Sherwin-Williams Earns $2.6814 Billion in Net Profit in 2024

On January 30, Sherwin-Williams announced its financial performance for 2024, achieving a net sales figure of $23.0985 billion, reflecting a modest 0.2% year-on-year increase. This growth was primarily driven by low single-digit volume increases and price hikes, although it was partially offset by unfavorable foreign exchange rates. The company reported an EBITDA of $4.4915 billion, marking an 8.2% increase, while pre-tax income rose by 11% to $3.4518 billion. The net profit reached $2.6814 billion, up 12.25% from the previous year.

In the fourth quarter of 2024, Sherwin-Williams recorded a net sales figure of $5.2972 billion, which is a 0.9% increase compared to the same period last year. This growth was mainly attributed to increased sales in the Paint Stores Group, although it was offset by declines in the Consumer Brands Group and Performance Coatings Group, along with a 1.3% negative impact from foreign currency translation.

Pre-tax income for the fourth quarter was $615.6 million, a significant 29.9% increase, driven by higher net sales, reduced environmental provisions in administrative functions, and increased other income. Notably, the foreign exchange losses related to the depreciation of the Argentine peso recorded in the fourth quarter of 2023 did not recur in 2024.

Despite ongoing instability in demand across most end markets, Heidi G. Petz, the company’s Chair, President, and CEO, stated, “Sherwin-Williams achieved strong fourth-quarter results. The slight increase in net sales and a slight improvement in gross margin year-on-year reflect our resilience. We expanded adjusted segment profit margins across all three divisions, with double-digit percentage growth in adjusted diluted earnings per share and EBITDA. Our residential repainting business significantly outperformed the market, showing high single-digit growth as we continue to see returns from previous growth investments.”

The Paint Stores Group (PSG) reported net sales of $3.0449 billion in the fourth quarter, up 3.4%, primarily due to price increases and low single-digit volume growth. Sales in residential repainting, protective, marine, and new residential segments all contributed positively.

Conversely, the Consumer Brands Group (CBG) saw a 4.3% decline in net sales, largely due to a 5.5% negative impact from unfavorable foreign currency translation in Latin America, although this was partially offset by moderate volume growth and price increases.

The Performance Coatings Group (PCG) reported net sales of $1.589 billion, down 1.6%, primarily due to a 1.7% negative impact from foreign currency translation. Low single-digit volume growth was offset by price declines, mainly due to product mix changes.

Sherwin-Williams generated $3.15 billion in net operating cash and returned $2.46 billion to shareholders through dividends and stock buybacks. As of December 31, 2024, the company had authorization to repurchase 34.4 million shares of common stock.

Looking ahead to 2025, Petz expressed confidence in the company’s differentiated strategy, which aims to provide innovative and effective solutions for customers. However, she noted that demand weakness in several end markets is expected to persist into the second half of the year, if not until 2026. The company anticipates a low single-digit percentage increase in consolidated net sales for the first quarter of 2025 compared to the same period in 2024.

Sherwin-Williams' 2024 results reflect a resilient performance amid challenging market conditions, with a focus on maintaining growth and profitability in the coming years.