Sherwin-Williams Q3 Sales Up 3.2%, Boosted by Strategic Acquisitions

TL;DR

**SHW is painting a bullish picture with solid Q3 growth and a massive Brazilian acquisition, signaling aggressive market expansion.**

AI Summary

Sherwin-Williams (SHW) reported a strong third quarter for 2025, with net sales increasing to $6,358.2 million, up 3.2% from $6,162.5 million in Q3 2024. Net income also saw a healthy rise to $833.1 million, an increase of 3.3% from $806.2 million in the prior year's third quarter. Diluted EPS grew to $3.35 from $3.18, a 5.3% improvement. For the nine months ended September 30, 2025, net sales reached $17,978.4 million, a modest 1.0% increase from $17,801.3 million in the same period of 2024, though net income for the nine months decreased by 5.0% to $2,091.7 million from $2,201.3 million. The company completed two acquisitions in 2025: a domestic regional floor covering provider in June and a European coil and industrial coatings company for approximately $80 million in March. Post-period, in October 2025, SHW acquired BASF SE's Brazilian decorative paints business, Suvinil, for $1.150 billion, funded primarily by a delayed draw term loan. This strategic acquisition is expected to bolster the Consumer Brands Group.

Why It Matters

This filing shows Sherwin-Williams is actively pursuing growth through strategic acquisitions, notably the $1.150 billion purchase of Suvinil, which expands its footprint in the Latin American decorative paints market. This move could significantly impact competitors like PPG Industries and AkzoNobel in emerging markets. For investors, the consistent increase in net sales and net income for the quarter, alongside a robust acquisition strategy, suggests continued market leadership and potential for long-term value. Employees and customers of acquired businesses will see integration into a global leader, potentially bringing new opportunities and product offerings. The funding of the Suvinil acquisition through a delayed draw term loan indicates a disciplined approach to capital allocation.

Risk Assessment

Risk Level: medium — The company's total liabilities increased significantly, with short-term borrowings rising to $1,846.9 million at September 30, 2025, from $662.4 million at December 31, 2024, and long-term debt increasing to $9,318.1 million from $8,176.8 million over the same period. This increase in debt, largely to fund the $1.150 billion Suvinil acquisition, introduces higher financial leverage and interest rate risk, as interest expense already rose to $117.2 million for Q3 2025 from $103.4 million in Q3 2024.

Analyst Insight

Investors should monitor the integration of the Suvinil acquisition and its impact on Sherwin-Williams' international growth and profitability. While the debt increase is notable, the strategic rationale for market expansion is strong. Consider holding SHW for long-term growth, but be aware of potential short-term volatility due to integration costs and increased leverage.

Financial Highlights

debt To Equity

N/A

revenue

$6,358.2M

operating Margin

N/A

total Assets

N/A

total Debt

$9,318.1M

net Income

$833.1M

eps

$3.35

gross Margin

49.2%

cash Position

N/A

revenue Growth

+3.2%

Revenue Breakdown

Key Numbers

• $6,358.2M — Net Sales (Up 3.2% from $6,162.5M in Q3 2024)
• $833.1M — Net Income (Up 3.3% from $806.2M in Q3 2024)
• $3.35 — Diluted EPS (Up 5.3% from $3.18 in Q3 2024)
• $17,978.4M — Nine-Month Net Sales (Up 1.0% from $17,801.3M in 9M 2024)
• $2,091.7M — Nine-Month Net Income (Down 5.0% from $2,201.3M in 9M 2024)
• $1.150B — Suvinil Acquisition Price (Funded by delayed draw term loan in October 2025)
• $1,846.9M — Short-term borrowings (Increased from $662.4M at Dec 31, 2024)
• $9,318.1M — Long-term debt (Increased from $8,176.8M at Dec 31, 2024)
• 247,893,513 — Shares Outstanding (As of September 30, 2025)
• 49.2% — Gross Profit Margin (For Q3 2025, up from 49.1% in Q3 2024)

Key Players & Entities

• SHERWIN WILLIAMS CO (company) — registrant
• BASF SE (company) — seller of Suvinil
• Suvinil (company) — Brazilian decorative paints business acquired by SHW
• New York Stock Exchange (regulator) — exchange where SHW Common Stock is registered
• $6,358.2 million (dollar_amount) — Net sales for Q3 2025
• $833.1 million (dollar_amount) — Net income for Q3 2025
• $1.150 billion (dollar_amount) — Purchase price of Suvinil acquisition
• $1,846.9 million (dollar_amount) — Short-term borrowings at September 30, 2025
• $9,318.1 million (dollar_amount) — Long-term debt at September 30, 2025
• $3.35 (dollar_amount) — Diluted EPS for Q3 2025

FAQ

Risk Factors

• Increased Debt Levels [medium — financial]: The company's long-term debt increased from $8,176.8M at December 31, 2024, to $9,318.1M as of September 30, 2025. Short-term borrowings also rose significantly from $662.4M to $1,846.9M in the same period. This increase is largely due to funding acquisitions, including the $1.150 billion Suvinil acquisition.
• Integration of Acquisitions [medium — operational]: Sherwin-Williams has completed several acquisitions, including a European coil and industrial coatings company for approximately $80 million and BASF SE's Brazilian decorative paints business, Suvinil, for $1.150 billion. The successful integration of these businesses is crucial for realizing expected synergies and growth.
• Competition in Coatings Industry [medium — market]: The company operates in a highly competitive global coatings industry. Intense competition can impact pricing, market share, and profitability, requiring continuous innovation and efficient operations to maintain market position.
• Environmental Regulations [low — regulatory]: The coatings industry is subject to various environmental regulations concerning volatile organic compounds (VOCs), hazardous materials, and waste disposal. Compliance with these evolving regulations can lead to increased costs and operational adjustments.

Industry Context

Sherwin-Williams operates in the highly competitive global paints and coatings industry. Key trends include a growing demand for sustainable and low-VOC products, driven by environmental regulations and consumer preferences. The industry is also characterized by consolidation, with companies like Sherwin-Williams actively pursuing strategic acquisitions to expand market reach and product portfolios, particularly in emerging markets and specialized segments.

Regulatory Implications

The company faces ongoing scrutiny regarding environmental regulations, particularly concerning VOC emissions and the use of hazardous materials in paint formulations. Compliance with these regulations, such as those from the EPA in the US and similar bodies globally, requires continuous investment in R&D and manufacturing process adjustments, potentially impacting costs and product development timelines.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 / Nine Months Reporting Period — Provided key financial results including net sales of $6,358.2M for Q3 and $17,978.4M for the nine months, with net income of $833.1M for Q3 and $2,091.7M for the nine months.
• 2025-10-01: Post-period Acquisition of Suvinil — Acquisition of BASF SE's Brazilian decorative paints business for $1.150 billion, funded by a delayed draw term loan, expected to strengthen the Consumer Brands Group.
• 2025-06-01: Acquisition of Domestic Regional Floor Covering Provider — Completed acquisition to expand domestic offerings, contributing to overall growth strategy.
• 2025-03-01: Acquisition of European Coil and Industrial Coatings Company — Acquired for approximately $80 million, expanding the company's European presence and product portfolio.

Glossary

Diluted EPS

Earnings per share (EPS) calculated by dividing net income by the total number of outstanding common shares, including all dilutive potential common shares such as stock options and convertible securities. (Indicates the company's profitability on a per-share basis, reflecting the impact of all potential share issuances. SHW reported $3.35 for Q3 2025, up from $3.18 in Q3 2024.)

Gross Profit Margin

The percentage of revenue that exceeds the cost of goods sold. It is calculated as (Revenue - Cost of Goods Sold) / Revenue. (Measures the company's efficiency in producing its goods and its pricing power. SHW's gross profit margin was 49.2% for Q3 2025, a slight increase from 49.1% in Q3 2024.)

AOCI

Accumulated Other Comprehensive Income (Loss), which represents unrealized gains and losses that have not yet been recognized in the income statement. (Includes items like foreign currency translation adjustments and unrealized gains/losses on cash flow hedges, impacting the company's equity but not its net income directly. For Q3 2025, AOCI saw a net gain of $7.8 million.)

Delayed Draw Term Loan

A type of loan that allows a borrower to draw down funds over a specified period, rather than receiving the entire amount upfront. Often used for specific projects or acquisitions. (This was the primary funding source for the $1.150 billion Suvinil acquisition, indicating a strategic use of debt financing for growth.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Sherwin-Williams reported a 3.2% increase in net sales to $6,358.2 million and a 3.3% rise in net income to $833.1 million, with diluted EPS growing by 5.3% to $3.35. However, for the nine-month period, net sales saw only a 1.0% increase to $17,978.4 million, and net income decreased by 5.0% to $2,091.7 million, indicating some pressure on profitability over the longer term. The company has also significantly increased its debt load to fund strategic acquisitions, a key change from the previous filing period.

Key Financial Figures

• $0.33 — registered Common Stock, par value of $0.33-1/3 per share SHW New York Stock Exchan

Filing Documents

• shw-20250930.htm (10-Q) — 1550KB
• shw-2025930_10qxexh311.htm (EX-31.1) — 10KB
• shw-2025930_10qxexh312.htm (EX-31.2) — 11KB
• shw-2025930_10qxexh321.htm (EX-32.1) — 6KB
• shw-2025930_10qxexh322.htm (EX-32.2) — 6KB
• 0000089800-25-000126.txt ( ) — 8555KB
• shw-20250930.xsd (EX-101.SCH) — 50KB
• shw-20250930_cal.xml (EX-101.CAL) — 75KB
• shw-20250930_def.xml (EX-101.DEF) — 201KB
• shw-20250930_lab.xml (EX-101.LAB) — 634KB
• shw-20250930_pre.xml (EX-101.PRE) — 433KB
• shw-20250930_htm.xml (XML) — 1571KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 2

Management's Discussion and Analysis of Results of Operations and Financial Condition

Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43

Other Information

Item 5. Other Information 44

Exhibits

Item 6. Exhibits 45

SIGNATURES

SIGNATURES 46

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED) (in millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net sales $ 6,358.2 $ 6,162.5 $ 17,978.4 $ 17,801.3 Cost of goods sold 3,232.7 3,135.0 9,175.5 9,179.4 Gross profit 3,125.5 3,027.5 8,802.9 8,621.9 Percent to Net sales 49.2 % 49.1 % 49.0 % 48.4 % Selling, general and administrative expenses 1,952.8 1,893.7 5,758.2 5,539.2 Percent to Net sales 30.7 % 30.7 % 32.0 % 31.1 % Other general (income) expense - net ( 4.7 ) 0.7 10.5 ( 30.9 ) Interest expense 117.2 103.4 333.4 317.2 Interest income ( 2.6 ) ( 2.6 ) ( 8.3 ) ( 9.6 ) Other expense (income) - net 2.3 9.5 9.9 ( 30.2 ) Income before income taxes 1,060.5 1,022.8 2,699.2 2,836.2 Income taxes 227.4 216.6 607.5 634.9 Net income $ 833.1 $ 806.2 $ 2,091.7 $ 2,201.3 Net income per common share: Basic $ 3.38 $ 3.22 $ 8.43 $ 8.76 Diluted $ 3.35 $ 3.18 $ 8.34 $ 8.65 Weighted average shares outstanding: Basic 246.2 250.6 248.0 251.4 Diluted 249.0 253.9 250.9 254.6 See notes to condensed consolidated financial statements. 2 THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED) (in millions) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Net income $ 833.1 $ 806.2 $ 2,091.7 $ 2,201.3 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (1) 10.4 106.1 293.2 ( 35.8 ) Pension and other postretirement benefit adjustments: Amounts reclassified from AOCI (2) ( 3.2 ) ( 4.5 ) ( 10.0 ) ( 13.4 ) Unrealized net gains on cash flow hedges: Amounts recognized in AOCI (3) 1.6 — 4.7 — Amounts reclassified from AOCI (4) ( 1.0 ) ( 0.9 ) ( 2.8 ) ( 2.7 ) Other comprehensive income (loss), net of tax 7.8 100.7 285.1 ( 51.9 ) Comprehensive income $ 840.9 $ 906.9 $ 2,376.8 $ 2,149.4 (1)