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The Sherwin-Williams Company recently released its financial results for the year-end and fourth quarter of 2024, ending on Dec. 31, 2024.
The company’s consolidated net sales in 2024 increased to $23.10 billion, a record number. This is primarily due to higher sales in the Paint Stores Group (PSG), which grew 1.7% in the year.
Net sales in the Consumer Brands Group (CBG) and Performance Coatings Group (PCG) both decreased, predominately due to impact from unfavorable foreign currency translation in Latin America.
The PSG added 79 new stores in 2024 and the CBG added 16.
Diluted net income per share increased 14.1% to $10.55 per share in 2024, up from $9.25 per share in 2023.
$3.15 billion of net operating cash was generated in the year, which was 13.7% of net sales. At the end of the fourth quarter, the Sherwin-Williams company had remaining authorization to purchase 34.4 million shares of its common stock through open market purchases.
“Sherwin-Williams delivered strong fourth quarter results despite continued demand choppiness in the majority of our end markets,” says Heidi G. Petz, chair, president and chief executive officer of Sherwin-Williams. “Consolidated net sales grew by a low-single digit percentage and gross margin improved slightly year-over-year. Sales in our industrial businesses were led by double-digit percentage growth in packaging and low-single digit percentage growth in coil. For the full year, net sales grew slightly to a record $23.10 billion, as above-market growth in the Paint Stores Group offset softness in our other segments, and gross margin expanded 180 basis points to 48.5%.”
Looking into 2025, the company is optimistic about growth.
“We enter 2025 with confidence in our differentiated strategy that continues to deliver innovative and productive solutions for our customers,” Petz says. “We expect demand softness to persist in several end markets well into the second half of the year, if not into 2026. At the same time, we have significant above-market growth opportunities in every one of our businesses. We will pursue these opportunities aggressively and relentlessly, leveraging our world-class team, recent growth investments and unique assets.”
