AI Takeaway
SW (Sherwin-Williams) delivered strong FY2025 results with revenue surging 47.7% to $31.2B and net income more than doubling to $699M, driven by robust operating leverage and a 128.7% jump in operating cash flow to $3.4B.
Revenue
$31.18B
++47.70% YoY
EPS (Basic)
$1.34
++61.45% YoY
Gross Margin
19.4%
-0.49% YoY
Operating Income
$1.72B
++70.71% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 47.7% year-over-year to $31.2B in FY2025 from $21.1B in the prior year, reflecting significant top-line expansion likely driven by volume gains, pricing actions, and potential acquisitions or segment expansion.
Source: Source: 10-K Income Statement
Operating income rose 70.7% to $1.72B, outpacing revenue growth, which expanded operating margin by approximately 74 basis points to 5.51% from 4.77%, demonstrating improved cost efficiency at scale.
Source: Source: 10-K Income Statement
Net income surged 119.1% to $699M from $319M, with diluted EPS rising 62.2% to $1.33, reflecting both operational improvement and favorable below-the-line items relative to the prior year.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockLong-term debt stands at $13.2B against stockholders' equity of $18.3B, resulting in a debt-to-equity ratio of 1.46. This elevated leverage limits financial flexibility and increases sensitivity to interest rate changes, particularly in a higher-rate environment.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.34 versus the $0.52 analyst consensus — a -34.8% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $31.18B | $21.11B | +47.70% |
Cost of Revenue | $25.14B | $16.91B | +48.61% |
Gross Profit | $6.04B | $4.2B | +44.05% |
Operating Income | $1.72B | $1.01B | +70.71% |
Net Income | $699M | $319M | +119.12% |
EPS (Basic) | $1.34 | $0.83 | +61.45% |
EPS (Diluted) | $1.33 | $0.82 | +62.20% |
SG&A Expense | $3.82B | $2.74B | +39.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $45.16B | $43.76B | +3.19% |
Current Assets | $10.44B | $10.05B | +3.82% |
Total Liabilities | $26.8B | $26.37B | +1.63% |
Current Liabilities | $7.06B | $7.33B | -3.67% |
Stockholders' Equity | $18.33B | $17.36B | +5.57% |
Cash & Equivalents | $892M | $855M | +4.33% |
Long-Term Debt | $13.22B | $13.06B | +1.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.39B | $1.48B | +128.73% |
Investing Cash Flow | $-2.14B | $-2.11B | -1.37% |
Financing Cash Flow | $-1.3B | $607M | -313.84% |
Dividends Paid | $900M | $650M | +38.46% |
Share Buybacks | $0 | $27M | -100.00% |
D&A | $2.55B | $1.46B | +74.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 19.4% | 19.9% | -0.49% |
Operating Margin | 5.5% | 4.8% | +0.74% |
Net Margin | 2.2% | — | — |
ROE | 3.8% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $1.478 | — | — |
Debt to Equity | $1.462 | — | — |
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SW's revenue grew 47.7% year-over-year to $31.2B in FY2025, up from $21.1B in the prior year. This represents one of the company's strongest top-line growth rates and reflects significant business expansion.
The key takeaways from SW's FY2025 results include net income more than doubling to $699M, operating cash flow surging 128.7% to $3.4B, and operating margin expanding to 5.51%. However, gross margin edged slightly lower to 19.38% and the company carries $13.2B in long-term debt.
Yes, SW increased dividends paid by 38.5% to $900M in FY2025 compared to $650M in the prior year. The company did not repurchase any shares in FY2025, compared to $27M in buybacks the prior year, suggesting capital was prioritized toward dividends.
Based on the financial data, key risks include elevated leverage with $13.2B in long-term debt and a debt-to-equity ratio of 1.46, thin net margins of 2.24% that leave little buffer for adverse conditions, and slight gross margin compression as cost of revenue grew faster than revenue. These factors could pressure profitability if economic conditions weaken.
SW's financial health shows improvement in profitability and cash generation, with operating cash flow of $3.4B and a current ratio of 1.48 indicating adequate short-term liquidity. However, the balance sheet carries significant leverage at 1.46x debt-to-equity with $13.2B in long-term debt, and net margins remain thin at 2.24%, which are areas investors should monitor closely.