Latest news with #Sherwin-Williams'
Yahoo
13-05-2025
- Business
- Yahoo
SHW Q1 Earnings Call: Resilient Margins Amid Soft Revenue and Choppy Demand
Paint and coating manufacturer Sherwin-Williams (NYSE:SHW) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 1.1% year on year to $5.31 billion. Its non-GAAP profit of $2.25 per share was 4.1% above analysts' consensus estimates. Is now the time to buy SHW? Find out in our full research report (it's free). Revenue: $5.31 billion vs analyst estimates of $5.39 billion (1.1% year-on-year decline, 1.6% miss) Adjusted EPS: $2.25 vs analyst estimates of $2.16 (4.1% beat) Adjusted EBITDA: $937 million vs analyst estimates of $910.9 million (17.7% margin, 2.9% beat) Management reiterated its full-year Adjusted EPS guidance of $11.85 at the midpoint Operating Margin: 14.3%, in line with the same quarter last year Free Cash Flow was -$450.8 million compared to -$525.2 million in the same quarter last year Locations: 5,115 at quarter end, up from 5,024 in the same quarter last year Organic Revenue was flat year on year, in line with the same quarter last year Market Capitalization: $89.32 billion Sherwin-Williams' Q1 results reflected a challenging demand landscape, with management describing the environment as 'choppy' and marked by continued softness in several end markets. CEO Heidi Petz pointed to low single-digit growth in the Paint Stores Group, underpinned by mid-single-digit price increases, with volume offsetting some of those gains. The Protective and Marine segment stood out, delivering high single-digit growth thanks to infrastructure and energy-related projects, while other divisions faced headwinds. Management emphasized tight cost controls, supply chain efficiencies, and strategic SG&A management as key factors supporting margins, even as revenue fell short of expectations. Looking ahead, management reiterated its full-year guidance, citing confidence in its ability to navigate volatility through ongoing operational improvements and targeted investments. Petz acknowledged persistent uncertainty related to tariffs and broader economic conditions, but reassured that most raw materials are sourced domestically, limiting the direct impact of new trade measures. The company's strategy centers on expanding its competitive moat, leveraging scale and digital investments, and pursuing above-market growth, particularly in areas like residential repaint and select infrastructure projects. Sherwin-Williams' management highlighted several key operational levers and market trends shaping the quarter's results, while also flagging persistent headwinds. The company's ability to drive margin expansion despite a softer top line was a central theme, with ongoing investments in growth and efficiency. Paint Stores Group price execution: Management credited mid-single-digit price increases for offsetting weak volumes, with disciplined implementation and customer engagement leading to strong price realization. The company expects the positive impact of pricing to diminish in coming quarters as prior increases become fully annualized. Protective and Marine momentum: The Protective and Marine division posted high single-digit growth, driven by energy, water, and infrastructure projects. Management reported market share gains and a healthy pipeline of upcoming projects, with new account wins contributing to the performance. Cost controls and digital efficiency: Tight SG&A management and ongoing supply chain improvements were cited as drivers of year-over-year margin expansion. Al Mistysyn, CFO, pointed to the benefits from digitization and simplification initiatives, notably in administrative functions where SG&A fell by a mid-teens percentage. Consumer and DIY headwinds: The Consumer Brands Group faced pressure from weak do-it-yourself (DIY) demand in North America and unfavorable currency exchange impacts. Management noted ongoing efforts with retail partners to stimulate end demand but characterized the segment as 'bumping around a bit.' Suvinil acquisition in Brazil: Leadership expressed optimism about the pending acquisition of BASF's Suvinil business, highlighting its strong market position in Latin America. The deal, expected to close in the second half of the year, is anticipated to complement Sherwin-Williams' existing regional presence and provide new growth avenues. Management expects the next several quarters to remain volatile, driven by continued macroeconomic uncertainty, evolving raw material costs, and the pace of recovery in key end markets. The company's strategic focus is on margin resilience, targeted investments, and expanding market share in core segments. Tariff and cost pressures: While direct exposure to tariffs is limited, management noted that new trade measures could drive low single-digit increases in raw material costs. The company plans to offset these with selective price adjustments and ongoing productivity initiatives. Store expansion and market share: The plan to open 80–100 new stores this year is expected to support growth in the Paint Stores Group, especially in residential repaint and protective segments where market share gains are being realized. Integration of Suvinil acquisition: The anticipated closing and integration of Suvinil in Brazil is viewed as a catalyst for accelerating growth in Latin America, with management citing operational synergies and cross-selling opportunities as likely contributors to future profitability. John McNulty (BMO): Asked about Sherwin-Williams' ability to pass through cost increases from tariffs. Management responded that while most raw materials are sourced domestically, selective price increases may be considered if tariffs persist. Vincent Andrews (Morgan Stanley): Queried about margin resilience despite volume declines. CFO Al Mistysyn attributed margin strength to supply chain efficiencies, positive price mix, and ongoing SG&A discipline. Ghansham Panjabi (Baird): Sought clarity on the outlook for new residential and incremental share gains. CEO Heidi Petz indicated that while the market remains pressured by high mortgage rates, Sherwin-Williams continues to strengthen partnerships and gain position for long-term growth. Kevin McCarthy (Vertical Research Partners): Inquired about the strategic rationale for acquiring Suvinil and its impact on guidance. Management highlighted Suvinil's strong market leadership and confirmed it is not yet included in guidance, pending deal closure. Emily Fusco (Deutsche Bank): Asked if DIY demand is worsening in North America. Management described the segment as remaining under pressure but not deteriorating further, with efforts ongoing to stimulate demand through retail partnerships. Looking ahead, the StockStory team will be monitoring (1) the pace of store openings and whether these translate into sustained market share gains, (2) the integration timeline and early impact of the Suvinil acquisition in Brazil, and (3) the company's ability to maintain or expand margins as raw material and tariff pressures evolve. The effectiveness of operational efficiency initiatives and the trajectory of end-market recovery, particularly in residential and infrastructure segments, will also be important signposts. Sherwin-Williams currently trades at a forward P/E ratio of 29.1×. Should you load up, cash out, or stay put? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. 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Yahoo
30-04-2025
- Business
- Yahoo
Wells Fargo upgrades Sherwin-Williams, highlighting ‘exceptional' execution
Wells Fargo upgraded Sherwin-Williams (SHW) to Overweight from Equal Weight with a price target of $420, up from $350. The firm noted the company's 'exceptional' execution, driving earnings growth despite anemic demand thanks to share gains and positive pricing momentum. The firm added that it is encouraged by Sherwin-Williams' share gains, new account wins, and efficiency/cost improvements across its segments, and believes these actions position the company as the premier name to own for a housing recovery. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on SHW: Disclaimer & DisclosureReport an Issue Sherwin-Williams upgraded to Overweight from Equal Weight at Wells Fargo Dow Jones Index Today: Earnings Season Boosts DIA Stock Early notable gainers among liquid option names on April 29th Sherwin-Williams reports Q1 adjusted EPS $2.25, consensus $2.16 Sherwin-Williams reaffirms FY25 adj. EPS view $11.65-$12.05, consensus $11.88
Reuters
29-04-2025
- Business
- Reuters
Paintmaker Sherwin-Williams beats first-quarter estimate, boosted by price hikes
April 28 (Reuters) - Sherwin-Williams (SHW.N), opens new tab on Tuesday beat the Wall Street estimate for first-quarter profit, helped by higher prices for its industrial paints, sending its shares up 4.7% before the bell. Sales of U.S. single-family homes increased more than expected in March as buyers rushed to take advantage of a decline in mortgage rates, boosting demand for products such as paints and adhesives. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. At Sherwin-Williams' paint stores group unit, serving architectural and industrial contractors and DIY homeowners, first-quarter net sales rose 2.3% to $2.94 billion. The results come amid a global choppy demand environment for the chemical industry, with companies bracing for impacts from U.S. President Donald Trump's tariffs. "We continue to expect demand softness to persist in several end markets well into the second half of the year," said CEO Heidi Petz. Sherwin-Williams, one of the largest paint and coating companies, reaffirmed its full-year adjusted profit forecast range of $11.65 to $12.05 per share, compared with analysts' estimate of $11.90 per share, according to data compiled by LSEG. Its rival, PPG Industries (PPG.N), opens new tab, is set to report results later on Tuesday. The company posted an adjusted profit of $2.25 per share for the quarter ending March 31, compared with the estimate of $2.16 per share.
Yahoo
09-04-2025
- Business
- Yahoo
Sherwin-Williams (NYSE:SHW) Reports Robust Earnings Despite Recent 7% Price Dip Over Last Quarter
Sherwin-Williams recently made headlines by amending its credit agreement, extending the maturity of borrowing commitments, a move showcasing its focus on long-term financial stability. Despite a robust earnings report and a 10.5% dividend increase, the company's stock price decreased by 7% over the last quarter. This aligns with broader market trends as significant volatility affected indices due to tariff uncertainties, with the market overall seeing a 12% drop. The financial moves by Sherwin-Williams indicate resilience, albeit not enough to counter the overarching market pressures. While strategic, these decisions mostly added weight to broader economic trends. Be aware that Sherwin-Williams is showing 2 risks in our investment analysis. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent amendment to Sherwin-Williams' credit agreement could impact its financial stability narrative by emphasizing a commitment to long-term resilience. This may bolster investor confidence in potential future revenue and earnings growth. Over the past five years, Sherwin-Williams achieved a total shareholder return of 94.87%, highlighting a strong performance in longer-term investments despite a recent quarterly share price decline of 7% amidst market volatility. Comparatively, it exceeded the US Chemicals industry over the past year, which returned a negative 17.9%. This financial maneuver aligns with their efforts to secure future success through strategic investments and price adjustments. However, macroeconomic challenges like rising costs and interest rates remain risks to their optimistic growth forecasts. While the company's revenue is expected to benefit from targeted price increases and market share expansions, the execution of these plans is crucial to achieving forecasted earnings growth. With a share price of US$322.81, the 23.7% discount from the bullish analysts' price target of US$423.0 suggests significant upside potential according to their positive assumptions. Gain insights into Sherwin-Williams' outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:SHW. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Boston Globe
28-03-2025
- Lifestyle
- Boston Globe
Waltham kitchen is a study in natural selections
2 The contractor, staircase: a new rail with balusters that pop out to facilitate getting furniture to the second floor. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up 3 Iridescent glass pendant lights by Arteriors warm and anchor the island. 'I love mixing refined elements with rustic ones for a more eclectic, curated point of view,' Oravec says. 'The luster finish gives off a golden glow when lit.' 4 A soapstone farmhouse sink from Vermont Soapstone Co. maintains the dark line of the lower cabinetry and infuses the earthy, natural vibe that the owners and designer prefer. 'Eco-friendliness and regional craftsmanship are core values of our firm and our clients,' Oravec says. 5 Oravec paired the rustic oak upper cabinetry and island with base cabinets in Sherwin-Williams' Mount Etna. Glass fronts keep the uppers from feeling dark and heavy. 'The blue/green finish is moody and dynamic, changing with the light,' the designer says. 6 The team refinished the original floor in a different shade than the cabinetry for some contrast. 'When you try to match two stains, you get a just-miss,' Oravec says. 'You want to go at least one shade lighter or darker.' Marni Elyse Katz is a contributing editor to the Globe Magazine. Follow her on Instagram
