Paintmaker Sherwin-Williams cuts 2025 profit forecast on weak demand
(Reuters) -Sherwin-Williams cut full-year adjusted profit forecast and missed second-quarter earnings estimate on Tuesday, hit by weak demand for its paint products.
A sharp drop in new U.S. home sales has pressured demand for construction-related coatings, materials and paints.
"Demand was softer than anticipated through June, and we do not see catalysts to change that trajectory at this time, causing us to adjust our full-year guidance downward," said CEO Heidi Petz.
Petz said on a post-earnings call that the company — one of the world's largest coating makers — expects weakness to persist in the second half of the year, with further deterioration possible.
Shares of the company fell 2.8% to $331.63.
Sherwin-Williams expects its 2025 adjusted per-share profit to be between $11.20 and $11.50, compared with its previous forecast of $11.65 to $12.05. Analysts on average expected $11.88, according to data compiled by LSEG.
The paintmaker cut its annual capital spending budget by roughly 19% to $730 million and said it expects a slight deflation in raw materials to result in flat full-year costs.
Petz said while lower costs would help, "these benefits are not enough to fully offset the impact of the softer demand environment (and) tariffs also remain a variable in this outlook."
Sherwin-Williams — which supplies paints, coatings and specialty materials under brands such as Valspar, Minwax and Purdy — reported a 4.1% decrease in sales of its consumer brands unit to $809.4 million during the quarter ended June 30.
Net sales in its paint stores segment rose to $3.7 billion from $3.62 billion a year earlier, boosted by higher selling prices.
The Ohio-based company posted an adjusted profit of $3.38 per share for the second quarter, compared with analysts' estimate of $3.81.
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