AI Takeaway
Sherwin-Williams delivered modest revenue growth of 2.1% to $23.6B in FY2025, but net income declined 4.2% to $2.6B as higher SG&A expenses and increased debt weighed on profitability, while operating cash flow improved strongly by 9.5%.
Revenue
$23.57B
++2.06% YoY
EPS (Basic)
$10.37
-2.90% YoY
Gross Margin
48.8%
++0.38% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 2.1% year-over-year to $23.57B in FY2025 (from $23.10B in FY2024), reflecting continued demand across Sherwin-Williams' paint and coatings segments despite a challenging macroeconomic backdrop.
Source: Source: 10-K Income Statement
Gross profit rose 2.9% to $11.52B, with gross margin improving modestly to 48.85% from 48.47%, suggesting effective raw material cost management and pricing discipline even as cost of revenue grew 1.3% to $12.06B.
Source: Source: 10-K Income Statement
SG&A expenses increased 3.7% to $7.70B, outpacing revenue growth of 2.1%, which contributed to a 4.2% decline in net income to $2.57B and compressed the net margin to approximately 10.9%.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockSG&A expenses grew 3.7% to $7.70B, significantly outpacing revenue growth of 2.1%. If this trend continues, operating leverage will erode further, putting sustained pressure on net margins and earnings per share.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.23 versus the $2.18 analyst consensus — a +2.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $23.57B | $23.1B | +2.06% |
Cost of Revenue | $12.06B | $11.9B | +1.31% |
Gross Profit | $11.52B | $11.2B | +2.86% |
Net Income | $2.57B | $2.68B | -4.21% |
EPS (Basic) | $10.37 | $10.68 | -2.90% |
EPS (Diluted) | $10.26 | $10.55 | -2.75% |
SG&A Expense | $7.7B | $7.42B | +3.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.9B | $23.63B | +9.60% |
Current Assets | $6.01B | $5.4B | +11.23% |
Current Liabilities | $6.92B | $6.81B | +1.64% |
Stockholders' Equity | $4.6B | $4.05B | +13.50% |
Cash & Equivalents | $207.2M | $210.4M | -1.52% |
Long-Term Debt | $9.67B | $9.23B | +4.82% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.45B | $3.15B | +9.46% |
Investing Cash Flow | $-2.07B | $-1.2B | -72.72% |
Financing Cash Flow | $-1.38B | $-2.02B | +31.65% |
Dividends Paid | $789.8M | $723.4M | +9.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 48.8% | 48.5% | +0.38% |
Net Margin | 10.9% | — | — |
ROE | 55.9% | — | — |
ROA | 9.9% | — | — |
Current Ratio | $0.868 | — | — |
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Sherwin-Williams reported FY2025 revenue of $23.57B, up 2.1% year-over-year, but net income declined 4.2% to $2.57B due to rising SG&A expenses. Operating cash flow was a bright spot, growing 9.5% to $3.45B.
Diluted EPS dropped 2.7% to $10.26 in FY2025, primarily because SG&A expenses grew 3.7% to $7.70B, outpacing revenue growth of 2.1% and compressing net income by 4.2% to $2.57B.
Sherwin-Williams has strong cash generation with $3.45B in operating cash flow, but carries $9.67B in long-term debt and a current ratio of 0.87, meaning short-term liabilities exceed short-term assets. Stockholders' equity improved 13.5% to $4.60B, and ROE is a robust 55.9%.
Yes, Sherwin-Williams improved its gross margin slightly to 48.85% in FY2025 from 48.47% in FY2024, as gross profit grew 2.9% to $11.52B while cost of revenue grew at a slower pace of 1.3%.
Key risks include rising SG&A costs outpacing revenue growth, elevated long-term debt of $9.67B that could become more costly if interest rates rise, and a current ratio below 1.0 at 0.87 indicating tight short-term liquidity. Additionally, investing cash outflows nearly doubled to -$2.07B, suggesting significant capital commitments whose returns are yet to be realized.