Sherwin-Williams Co ( SHW ) shares are seeing blue skies on Tuesday after the company reported third-quarter FY25 results.

Earnings Details

The American paints and coatings company reported quarterly adjusted earnings per share of $3.38, below the Wall Street view of $3.81. 

Quarterly revenue of $6.36 billion beat the analyst consensus of $6.20 billion. 

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Consolidated net sales increased 3.2% year over year (Y/Y) in the quarter and remained at the high end of the guided range.

Quarterly gross profit increased to $3.126 billion from $3.028 billion a year ago.

Gross margin in the quarter under review expanded to 49.2% from 49.1% a year ago.

Adjusted EBITDA rose 6.0% Y/Y to $1.36 billion, with an adjusted EBITDA margin of 21.4% in the quarter.

The company returned $864 million to shareholders through share repurchases and dividends in the quarter. 

Sherwin-Williams ( SHW ) exited the quarter with cash and equivalents worth $241.5 million.

Segment Details

Net sales from stores in the Paint Stores Group that have been open for more than 12 calendar months rose 3.6% Y/Y in the quarter. This was led by protective and marine, residential repaint and commercial businesses.

Also, net sales in Performance Coatings Group rose 1.7% Y/Y, aided by sales volume growth, incremental sales from acquisitions, and favorable foreign currency translation.

However, net sales in Consumer Brands Group fell 2.6% Y/Y on weak DIY demand in North America and Latin America.

Management Commentary

Chair and CEO Heidi G. Petz said, “Sherwin-Williams delivered solid third quarter results, as we continued to execute our strategy in a demand environment that remains softer for longer as we have previously described.”

Outlook

The company narrowed its full-year 2025 adjusted EPS guidance to $11.25–$11.45, down from $11.20–$11.50. The new midpoint is slightly ahead of the $11.32 consensus estimate.

It now expects consolidated net sales to be up low-single digit compared (vs. up or down by a low single-digit percentage prior) in the year.

For the fourth quarter, the company expects net sales to be up in the low to mid-single-digit percentages.

”This full year guidance includes the Suvinil acquisition, which closed on October 1, and which we expect will increase the Company’s consolidated net sales by a low-single digit percentage in the fourth quarter, with an immaterial impact to diluted net income per share in the fourth quarter given one-time transaction closing costs and purchase accounting items,” Petz added,

Price Action: Sherwin-Williams ( SHW ) shares were up 5.19% at $353.51 at the last check on Tuesday.

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