Sherwin-Williams' Q4 Earnings and Revenues Surpass Estimates

The Sherwin-Williams Company SHW reported fourth-quarter 2025 earnings of $1.92 per share, up around 1.1% from $1.90 in the year-ago quarter.

Barring one-time items, adjusted earnings were $2.23 per share, which beat the Zacks Consensus Estimate of $2.12.

Sherwin-Williams posted revenues of $5,595.9 million, up around 5.6% year over year. The figure beat the Zacks Consensus Estimate of $5,546.2 million.

The Sherwin-Williams Company Price, Consensus and EPS Surprise

The Sherwin-Williams Company price-consensus-eps-surprise-chart | The Sherwin-Williams Company Quote

SHW’s Q4 Segmental Review

The Paint Stores Group segment registered net sales of $3,127.1 million in the fourth quarter, up around 2.7% year over year. The figure missed the Zacks Consensus Estimate of $3,151 million. The segment's net sales grew, driven by higher selling prices. Profits also increased benefitting from favorable selling prices.

Net sales in the Consumer Brands Group increased 24.5% year over year to $824.7 million, beating the consensus estimate of $791 million. The segment's net sales increased due to the acquisition of Suvinil and the favorable impact of foreign currency translation. However, profits decreased due to spending on restructuring actions.

Net sales in the Performance Coatings Group went up 3.3% year over year to around $1,642.1 million in the reported quarter, beating the consensus estimate of $1,629 million. The segment's net sales increased, driven by a favorable impact from an acquisition and foreign currency translation.

Financials

During the year, the company generated $3.45 billion in net operating cash and returned $2.45 billion to its shareholders through dividends and stock repurchases of 4.8 million shares. As of Dec. 31, 2025, Sherwin-Williams had the authorization to buy back 29.6 million shares of its common stock through open market purchases.

Q1 & 2026 Outlook by Sherwin-Williams

For the first quarter and full-year 2026, the company anticipates net sales to be up by mid-single-digit and low to mid-single-digit percentage, respectively. The effective tax rate is expected to be in the low 20% range for 2026. Net income per share is projected to range between $10.7 and $11.1, while adjusted net income per share is forecasted in the band of $11.5 to $11.9 for the full year.

SHW’s Price Performance

Shares of Sherwin-Williams have lost 4.4% in the past year compared with the industry’s 1.5% decline.

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SHW’s Zacks Rank & Key Picks

SHW currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation ALB, Coeur Mining, Inc. CDE and Avino Silver & Gold Mines Ltd. ASM.

Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 53 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.28%. ALB sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in three of the last two quarters and missed once, with the average earnings surprise being 106.61%. CDE currently carries a Zacks Rank #1. 

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%. 

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

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