Sherwin-Williams Reports Mixed Q1 Results In 'Choppy' Demand Environment

Sherwin-Williams Co SHW reported first-quarter financial results before the market open on Tuesday. Here’s a look at the key metrics from the quarter.

• Q1 Revenue: $5.31 billion, versus estimates of $5.4 billion

• Q1 Adjusted EPS: $2.25, versus estimates of $2.16 per share

Sherwin-Williams said total sales declined 1.1% year-over-year. Consumer Brands Group sales fell 6% year-over-year, primarily due to “soft” DIY demand in North America. Performance Coating Group sales were down 4.8% in the quarter. Paint Stores Group sales fared better, seeing 1.2% sales growth during the period, primarily driven by selling price increases.

The company returned $552.1 million to shareholders in the first quarter in the form of dividends and repurchases. Sherwin-Williams ended the period with $199.8 million in cash and cash equivalents.

“In a demand environment that remained choppy as we anticipated, Sherwin-Williams continued to execute our strategy and delivered solid first quarter results driven by gross margin expansion and good cost control,” said Heidi Petz, chair, president and CEO of Sherwin-Williams.

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Guidance: Sherwin-Williams expects second-quarter revenue to be up or down in the low-single digit percentage range. The company guided for full-year 2025 net sales growth in the low-single digit percentage range.

Sherwin-Williams also expects full-year adjusted earnings of $11.65 to $12.05 per share versus estimates of $11.90 per share, according to Benzinga Pro.

“We continue to expect demand softness to persist in several end markets well into the second half of the year. Regarding current tariffs, it’s important to remember that the largest portion of our revenue is in the United States, and the majority of our raw materials are sourced in the regions where we manufacture. In a macro-economic environment that remains turbulent, we are focused on being a source of stability and reliability for our customers, providing them with differentiated solutions that increase their productivity and profitability,” Petz said.

SHW Price Action: Sherwin-Williams shares were up 5.46% at $350.33 at the time of publication Tuesday, according to Benzinga Pro.

Photo: JHVEPhoto/Shutterstock.