The Sherwin-Williams Company (NYSE: SHW): Corporate Profile & Financials
Source: The Sherwin-Williams Company Form 10-K 2025
The Sherwin-Williams Company is a global industrial and retail titan dedicated to the development, manufacture, distribution, and sale of paint, coatings, and related products. Serving professional contractors, industrial manufacturers, commercial entities, and do-it-yourself (DIY) retail customers, the enterprise operates predominantly across North and South America, with an expanding operational footprint extending into the Caribbean, Europe, Asia, and Australia.
- Paint Stores Group ($13605.9): Operates company-owned specialty retail stores across North America and the Caribbean, servicing architectural paint contractors, industrial maintenance accounts, OEM product finishers,…
- Consumer Brands Group ($3166.4): Produces architectural paints, wood stains, aerosols, caulks, and adhesives distributed via home centers, hardware stores, independent dealers, and dedicated distributors across North…
- Performance Coatings Group ($6795.2): Develops and markets highly engineered industrial coatings for general industrial (metal and plastic), industrial wood, automotive refinish, protective and marine, coil, and packaging…
- Administrative Function ($6.8): Captures corporate administrative expenses, headquarters and R&D facility costs, interest expense, investment income, non-traded investment amortization, idle facility maintenance, and…
📋 Quick Facts / Company Snapshot: The Sherwin-Williams (NYSE: SHW)
| Metric / Feature | Company Disclosed Detail |
|---|---|
| Official Company Name | The Sherwin-Williams Company |
| Ticker Symbol | SHW |
| Primary Exchange | New York Stock Exchange |
| Principal Executive Offices | 1 Sherwin Way, Cleveland, Ohio 44113-2206 |
| Telephone Number | (216) 566-2000 |
| State of Incorporation | Ohio |
| I.R.S. Employer Identification No. | 34-0526850 |
| Industry / Sector | Paint, Coatings, and Related Products Manufacturing & Retail |
| Founded | 1866 (Incorporated in Ohio in 1884) |
| Total Global Workforce | 64,249 employees (approximately 73% based in the United States) |
| Key Operating Regions | North America, South America, Caribbean, Europe, Asia, Australia |
| Company-Operated Store / Branch Count | 5,477 facilities (4,853 Paint Stores, 307 Consumer Brands Latin America stores, 317 Performance Coatings branches) |
| Chief Executive Officer | Heidi G. Petz (Chair, President and Chief Executive Officer) |
| Chief Financial Officer | Benjamin E. Meisenzahl (Senior Vice President – Finance and Chief Financial Officer) |
| Chief Accounting Officer | J. Paul Lang (Senior Vice President – Enterprise Finance and Chief Accounting Officer) |
| Parent Company | The Sherwin-Williams Company (Ultimate Parent) |
| Principal Legal Subsidiaries | Sherwin-Williams Canada Inc., Sherwin-Williams Luxembourg S.à r.l., Oskar Nolte GmbH, Klumpp Coatings GmbH, Suvinil |
| Auditor | Ernst & Young LLP (Auditor since 1908; PCAOB ID: 42) |
| Common Shares Outstanding | 247,774,767 shares (at January 31, 2026, net of treasury shares) |
| External Corporate Website | investors.sherwin.com |
1. Corporate Identity: The Sherwin-Williams Overview & History
The Big Picture
The Sherwin-Williams Company is a global industrial and retail titan dedicated to the development, manufacture, distribution, and sale of paint, coatings, and related products. Serving professional contractors, industrial manufacturers, commercial entities, and do-it-yourself (DIY) retail customers, the enterprise operates predominantly across North and South America, with an expanding operational footprint extending into the Caribbean, Europe, Asia, and Australia.
The company structures its operations into three primary reportable operating segments—the Paint Stores Group, the Consumer Brands Group, and the Performance Coatings Group—complemented by a centralized Administrative function. This architecture allows Sherwin-Williams to leverage integrated manufacturing and research infrastructure while executing targeted distribution strategies tailored to specific customer end-markets.
- Record top-line performance: Consolidated net sales reached a record $23,574.3 million in fiscal year 2025, representing a 2.1% increase over 2024.
- Expansive workforce: Supported by a dedicated workforce of 64,249 employees globally, with approximately 73% based in the United States.
- Robust profit generation: Achieved net income of $2,568.5 million and diluted net income per share of $10.26 for the year ended December 31, 2025.
The Founders & Their Legacy
Sherwin-Williams traces its operational origins back to 1866 when Henry Sherwin and Edward Williams laid the foundation for modern architectural coatings. The partnership was formally incorporated under the laws of the State of Ohio in 1884. From its initial roots in Cleveland, Ohio, the founders established a corporate framework focused on technical innovation, product quality, and direct customer distribution.
The guiding principles established during the company’s early era continue to shape its culture today. The organization operates around seven core values: integrity, people, service, quality, performance, innovation, and growth. These values serve as the operational bedrock for maintaining client relationships and advancing technical capabilities across global coatings markets.
The Journey: History & Evolution
Over its 160-year history, Sherwin-Williams transformed from a regional paint manufacturer into an international coating conglomerate. A defining catalyst in its modern expansion was the acquisition of The Valspar Corporation, which expanded its global packaging, industrial, and retail coatings presence. In recent years, strategic capital deployment has prioritized both organic retail store expansion and targeted bolt-on acquisitions.
In October 2025, the company completed a major international expansion by acquiring BASF SE’s Brazilian decorative paints business, known broadly as Suvinil, for a purchase price of $1,148.0 million. This transaction added leading architectural paint brands, distribution networks, and two manufacturing plants in Brazil. Additionally, during 2025, the enterprise substantially completed construction of its new global headquarters and research and development facility in Cleveland, Ohio, modernizing its technological and administrative infrastructure.
- Suvinil acquisition footprint: Added approximately $525 million in annualized sales, contributing $164.5 million to consolidated net sales between October and December 2025.
- German industrial wood coatings integration: Enhanced European wood finishing capabilities through the late-2023 acquisition of SIC Holding GmbH (Oskar Nolte GmbH and Klumpp Coatings GmbH) for approximately $290 million.
- Divestiture of non-core operations: Strategic portfolio pruning included the sale of a domestic aerosol business in April 2023 (generating a pre-tax gain of $20.1 million) and the China architectural business in the third quarter of 2023.
The Corporate Umbrella
The corporate hierarchy of Sherwin-Williams operates as an integrated ecosystem where specialized manufacturing units feed direct-to-consumer and professional sales channels. The Administrative function oversees centralized real estate, treasury, governance, legal, and legal contingency reserves, maintaining ownership and leasing arrangements for corporate facilities.
The business model combines company-operated specialty retail stores with direct industrial sales representatives and third-party distribution partnerships. Intersegment transfers are utilized extensively, allowing the Consumer Brands Group to manufacture architectural products that are subsequently marketed and sold through the Paint Stores Group’s extensive retail network.
2. The Business Engine: The Sherwin-Williams Business Model & Revenue Segments
The Core Divisions
Sherwin-Williams organizes its operational reporting into three distinct reportable segments alongside the Administrative function. Management evaluates segment performance based on Segment Profit, defined as Income before income taxes.
| Segment Name | 2025 External Net Sales ($ M) | 2024 External Net Sales ($ M) | 2023 External Net Sales ($ M) | 2025 Segment Profit ($ M) | 2024 Segment Profit ($ M) | 2023 Segment Profit ($ M) | Latest YoY (%) |
|---|---|---|---|---|---|---|---|
| Paint Stores Group | 13605.9 | 13188.0 | 12839.5 | 3061.5 | 2902.6 | 2860.8 | +3.17% |
| Consumer Brands Group | 3166.4 | 3108.0 | 3365.6 | 509.6 | 589.9 | 309.3 | +1.88% |
| Performance Coatings Group | 6795.2 | 6797.3 | 6843.1 | 942.7 | 1027.9 | 991.6 | -0.03% |
| Administrative Function | 6.8 | 5.2 | 3.7 | -1175.6 | -1068.6 | -1051.8 | +30.77% |
The operational profiles of these reportable business segments are structured as follows:
- Paint Stores Group: Operates company-owned specialty retail stores across North America and the Caribbean, servicing architectural paint contractors, industrial maintenance accounts, OEM product finishers, and DIY homeowners. Intersegment sales transfers are negligible.
- Consumer Brands Group: Produces architectural paints, wood stains, aerosols, caulks, and adhesives distributed via home centers, hardware stores, independent dealers, and dedicated distributors across North America, Latin America, and Europe. Also operates specialty paint stores in Latin America. Intersegment product transfers to the Paint Stores Group totaled $5,388.2 million in 2025 (representing approximately 63% of total group production value).
- Performance Coatings Group: Develops and markets highly engineered industrial coatings for general industrial (metal and plastic), industrial wood, automotive refinish, protective and marine, coil, and packaging applications worldwide. Intersegment sales totaled $26.6 million in 2025.
- Administrative Function: Captures corporate administrative expenses, headquarters and R&D facility costs, interest expense, investment income, non-traded investment amortization, idle facility maintenance, and environmental remediation liabilities. External revenue represents commercial real estate leasing income.
The Global Product Catalog
The company’s offering spans thousands of formulations tailored to protective, decorative, and industrial applications. Raw materials utilized across product lines consist of resins, latexes, pigments (notably titanium dioxide), solvents, specialized additives, and metal or plastic containers. Petrochemical derivatives, particularly propylene feedstocks, represent a major primary input cost component.
Product categories include interior and exterior architectural paints, clear wood finishes, floor coverings, high-performance maintenance coatings, marine protective barriers, coil application polymers, advanced beverage can linings, automotive refinish lacquers, and application sundries such as spray pumps, brushes, and caulks.
The Names You Know
Customer recognition of owned and licensed trademarks represents a core commercial asset. Each reportable division leverages established brand identities:
- Paint Stores Group Flagships: Sherwin-Williams®, Duration®, Emerald®, SuperPaint®, Cashmere®, ProMar®, Duration®, Latitude®, Loxon®, SuperDeck®, Painters Edge Plus®, and Gallery Series™.
- Consumer Brands Trademarks: Valspar®, Minwax®, Krylon®, Purdy®, Cabot®, Dutch Boy®, HGTV HOME® by Sherwin-Williams, Thompson’s® WaterSeal®, Dupli-Color®, Ronseal®, Suvinil®, Geocel®, and White Lightning®.
- Performance Coatings Brands: Fluropon®, Firetex®, Macropoxy®, Acrolon®, Sher-Wood®, Polane®, Powdura®, ValPure®, EcoDex®, Envirolastic®, House of Kolor®, ICA®, Inver®, Sayerlack®, Oskar Nolte™, and Klumpp Coatings™.
Mapping the Global Reach
While the business generates the vast majority of its sales within North America, international operations across Latin America, Europe, Asia, and Australia provide substantial exposure to global industrial and commercial markets.
| Geographic Metric ($ M) | 2025 Disclosed Value | 2024 Disclosed Value | 2023 Disclosed Value | Latest YoY (%) |
|---|---|---|---|---|
| Consolidated Foreign Subsidiary Net Sales | 4615.0 | 4426.0 | 4428.0 | +4.27% |
| Domestic & Other Non-Foreign Net Sales | 18959.0 | 18673.0 | 18623.9 | +1.53% |
| Consolidated Foreign Long-Lived Assets | 4794.0 | 3405.0 | 3586.0 | +40.79% |
| Total Consolidated Long-Lived Assets | 19894.0 | 18231.0 | 17441.0 | +9.12% |
| Consolidated Foreign Total Assets | 7237.0 | 5208.0 | 5718.0 | +38.96% |
| Total Consolidated Assets | 25901.7 | 23632.6 | 22954.4 | +9.60% |
Regional revenue distribution shows that North America (United States, Canada, and the Caribbean) accounts for approximately 80% of consolidated net sales, while the EMEAI region (Europe, Middle East, Africa, and India) contributes slightly under 10%. The remaining global regions account for the residual sales balance.
The Brick & Mortar Footprint
The company maintains a massive global property footprint encompassing retail stores, commercial branches, manufacturing plants, and distribution centers.
- Paint Stores Network: 4,853 specialty paint stores operating at December 31, 2025 across the US, Canada, and Caribbean. Divisionally, this includes Mid Western (1,219), Southeastern (1,232), Southwestern (1,210), Eastern (929), and Canada (263). The group added 80 net new stores in 2025 (83 opened, 3 closed).
- Consumer Brands Latin America Retail: 307 company-operated stores in Mexico (190), Chile (47), Ecuador (33), Brazil (26), and Uruguay (11). Net store count decreased by 27 in 2025 (13 opened, 40 closed).
- Performance Coatings Branches: 317 dedicated branches worldwide (218 in the US and 99 internationally, including 46 across Europe, 23 in Canada, 11 in Chile, and 5 in Mexico). Net branch count decreased by 7 in 2025 (6 opened, 13 closed).
- Consumer Brands Manufacturing & Distribution Facilities: Operates 95 manufacturing facilities (48 in the US, 19 in Europe, 14 in Latin America, 9 in Asia, 3 in Canada, 1 in Africa, 1 in Jamaica) and 68 distribution facilities (25 in the US, 16 in Europe, 15 in Latin America, 8 in Asia, 2 in Canada, 1 in Africa, 1 in Jamaica).
- Performance Coatings Facilities: Operates 11 manufacturing plants (9 in Europe, 1 in Latin America, 1 in the US) and 8 distribution hubs (6 in Europe, 1 in Australia, 1 in Latin America).
3. The Financial Health: The Sherwin-Williams (FY 2025) Audited Financial Statements
Earnings, Expenses & Profits: The Sherwin-Williams Income Statement
The Consolidated Statements of Income outline top-line revenue performance, raw material input cost trends, selling expenses, and ultimate net profitability across the three-year comparative period.
| Consolidated Income Statement Line Item (in $ millions) | 2025 | 2024 | 2023 | Latest YoY (%) |
|---|---|---|---|---|
| Net sales | 23574.3 | 23098.5 | 23051.9 | +2.06% |
| Cost of goods sold | 12058.8 | 11903.4 | 12293.8 | +1.31% |
| Gross profit | 11515.5 | 11195.1 | 10758.1 | +2.86% |
| Selling, general and administrative expenses | 7695.0 | 7422.1 | 7065.4 | +3.68% |
| Other general (income) expense – net | -10.2 | -38.8 | 67.1 | -73.71% |
| Impairment | 17.8 | 0.0 | 57.9 | N/M |
| Interest expense | 465.0 | 415.7 | 417.5 | +11.86% |
| Interest income | -11.2 | -11.0 | -25.2 | +1.82% |
| Other expense (income) – net | 20.9 | -44.7 | 65.5 | N/M |
| Income before income taxes | 3338.2 | 3451.8 | 3109.9 | -3.29% |
| Income taxes | 769.7 | 770.4 | 721.1 | -0.09% |
| Net income | 2568.5 | 2681.4 | 2388.8 | -4.21% |
Key non-GAAP operational earnings metrics tracked by executive leadership provide additional operational context:
- EBITDA & Adjusted EBITDA: EBITDA reached $4,480.1 million in 2025 compared to $4,491.5 million in 2024. Excluding pre-tax severance/restructuring expenses of $111.0 million and trademark impairment of $17.8 million, 2025 Adjusted EBITDA totaled $4,608.9 million.
- Adjusted Diluted EPS: Diluted net income per share was $10.26 in 2025. Adjusted diluted net income per share rose 0.9% to $11.43 after adding back $0.78 per share of Valspar acquisition-related intangible amortization, $0.34 per share of restructuring charges, and $0.05 per share of trademark impairments.
- Gross Margin Expansion: Consolidated gross profit margin reached 48.8% of Net sales in 2025, expanding by 30 basis points over 48.5% in 2024 due to selling price increases in the Paint Stores Group and moderating raw material input costs.
Assets, Debts & Equity: The Sherwin-Williams Balance Sheet
The Consolidated Balance Sheets highlight the capital structure, working capital positions, tangible and intangible asset bases, and debt obligations of the organization.
| Consolidated Balance Sheet Line Item (in $ millions) | 2025 | 2024 | 2023 | Latest YoY (%) |
|---|---|---|---|---|
| Cash and cash equivalents | 207.2 | 210.4 | 276.8 | -1.52% |
| Accounts receivable, net | 2791.2 | 2388.8 | 2467.9 | +16.85% |
| Inventories | 2318.2 | 2288.1 | 2329.8 | +1.32% |
| Other current assets | 690.8 | 513.5 | 438.4 | +34.53% |
| Total current assets | 6007.4 | 5400.8 | 5512.9 | +11.23% |
| Property, plant and equipment, net | 4137.4 | 3533.2 | 2836.8 | +17.10% |
| Goodwill | 8036.6 | 7580.1 | 7626.0 | +6.02% |
| Intangible assets | 3966.1 | 3533.2 | 3880.5 | +12.25% |
| Operating lease right-of-use assets | 1995.2 | 1953.8 | 1887.4 | +2.12% |
| Other assets | 1759.0 | 1631.5 | 1210.8 | +7.81% |
| Total Assets | 25901.7 | 23632.6 | 22954.4 | +9.60% |
| Short-term borrowings | 1200.5 | 662.4 | 374.2 | +81.23% |
| Accounts payable | 2354.2 | 2253.2 | 2315.0 | +4.48% |
| Compensation and taxes withheld | 839.4 | 842.8 | 862.7 | -0.40% |
| Accrued taxes | 187.4 | 174.3 | 197.4 | +7.52% |
| Current portion of long-term debt | 350.1 | 1049.2 | 1098.8 | -66.63% |
| Current portion of operating lease liabilities | 479.8 | 466.6 | 449.3 | +2.83% |
| Other accruals | 1508.9 | 1360.2 | 1329.5 | +10.93% |
| Total current liabilities | 6920.3 | 6808.7 | 6626.9 | +1.64% |
| Long-term debt | 9320.7 | 8176.8 | 8377.9 | +13.99% |
| Postretirement benefits other than pensions | 129.8 | 120.7 | 133.2 | +7.54% |
| Deferred income taxes | 765.3 | 607.5 | 683.1 | +25.98% |
| Long-term operating lease liabilities | 1591.5 | 1558.3 | 1509.5 | +2.13% |
| Other long-term liabilities | 2575.8 | 2309.4 | 1908.0 | +11.54% |
| Total shareholders’ equity | 4598.3 | 4051.2 | 3715.8 | +13.50% |
| Total Liabilities and Shareholders’ Equity | 25901.7 | 23632.6 | 22954.4 | +9.60% |
Analysis of debt structure and capital metrics reveals the following specifics:
- Total Debt Position: Total debt outstanding (including Short-term borrowings, Current portion of long-term debt, and Long-term debt) reached $10,871.3 million at December 31, 2025, up $982.9 million from $9,888.4 million in 2024.
- Net Debt Leverage Ratio: Net debt (Total debt less Cash and cash equivalents) stood at $10,664.1 million, representing 2.4 times 2025 EBITDA (within management’s target leverage range of 2.0 to 2.5 times).
- Working Capital Deficit: Net working capital recorded a deficit of $912.9 million at year-end 2025, representing an improvement of $495.0 million compared to a deficit of $1,408.0 million at December 31, 2024. Total available borrowing capacity under credit facilities stood at $3,649.0 million.
Cash Flow & Capital Allocation: The Sherwin-Williams Cash Flow Statement
The Statements of Consolidated Cash Flows display the internal cash generation capabilities, capital investments, acquisition payments, and shareholder return distributions.
| Consolidated Cash Flow Line Item (in $ millions) | 2025 | 2024 | 2023 | Latest YoY (%) |
|---|---|---|---|---|
| Net operating cash | 3451.6 | 3153.2 | 3521.9 | +9.46% |
| Capital expenditures | -797.6 | -1070.0 | -888.4 | -25.46% |
| Acquisitions of businesses, net of cash acquired | -1211.3 | -78.9 | -264.7 | +1435.23% |
| Proceeds from divestiture of business | 0.0 | 0.0 | 103.7 | N/M |
| Proceeds from sale of assets | 10.7 | 11.6 | 70.1 | -7.76% |
| Other investing activities | -68.1 | -59.0 | -60.0 | +15.42% |
| Net investing cash | -2066.3 | -1196.3 | -1039.3 | +72.72% |
| Net increase (decrease) in short-term borrowings | 537.4 | 288.6 | -603.9 | +86.21% |
| Proceeds from long-term debt | 1499.2 | 848.7 | 0.0 | +76.65% |
| Payments of long-term debt | -1050.0 | -1100.0 | -136.4 | -4.55% |
| Payments for credit facility and debt issuance costs | -13.5 | -8.6 | 0.0 | +56.98% |
| Payments of cash dividends | -789.8 | -723.4 | -623.7 | +9.18% |
| Proceeds from stock options exercised | 140.6 | 242.0 | 111.6 | -41.90% |
| Treasury stock purchased | -1656.4 | -1738.8 | -1432.0 | -4.74% |
| Proceeds from real estate financing transactions | 40.7 | 244.2 | 306.5 | -83.33% |
| Other financing activities | -86.8 | -69.8 | -46.7 | +24.36% |
| Net financing cash | -1378.6 | -2017.1 | -2424.6 | -31.65% |
| Effect of exchange rate changes on cash | -9.9 | -6.2 | 20.0 | +59.68% |
| Net (decrease) increase in cash and cash equivalents | -3.2 | -66.4 | 78.0 | -95.18% |
The enterprise generated strong cash flows that supported balanced capital allocation priorities:
- Operating Cash Efficiency: Net operating cash increased 9.5% in 2025 to $3,451.6 million, representing 14.6% of Net sales.
- Free Cash Flow Generation: Non-GAAP Free Cash Flow After Dividends (Net operating cash less Capital expenditures and Cash dividends) surged 37.1% to $1,864.2 million in 2025 compared to $1,359.8 million in 2024.
- Capital Returned to Shareholders: Total cash returned to shareholders reached $2,446.2 million in 2025, comprising $1,656.4 million spent to repurchase 4.8 million treasury shares and $789.8 million in cash dividend distributions.
Funding the Future: R&D and Expansion Spending
Sherwin-Williams continues to channel capital into formulation chemistry, digital platforms, operational efficiency, and footprint expansion.
Research and development costs, charged directly to Cost of goods sold, totaled $224.8 million in 2025, $217.3 million in 2024, and $196.6 million in 2023. These investments support product development initiatives focused on lower-VOC formulations, ultra-durable industrial wood coatings, anti-corrosive marine barriers, and sustainable non-BPA packaging linings.
Capital expenditures totaled $797.6 million in 2025 (down from $1,070.0 million in 2024), driven by the final construction phase of the new global headquarters and state-of-the-art R&D center in Cleveland, Ohio. Core capital expenditures for ongoing store openings, IT digitization, and manufacturing productivity projects are targeted at approximately 2% of Net sales for fiscal year 2026.
4. The Corporate Family Tree: The Sherwin-Williams Subsidiaries & Acquisitions
Subsidiaries, Associates, & Shared Ventures
The company maintains a global network of operating subsidiaries, holding entities, and specialized joint ventures to facilitate local manufacturing and compliance across international jurisdictions.
- Sherwin-Williams Canada Inc.: Operating arm managing store retail operations, logistics, and dealer distribution throughout Canadian provinces.
- Sherwin-Williams Luxembourg S.à r.l.: European financing and holding vehicle facilitating international cross-border financing and treasury functions.
- Suvinil (Brazil Decorative Paints): Newly acquired operating entity in Brazil, managing manufacturing assets in the Northeast and Southeast regions and distributing decorative paints nationwide.
- SIC Holding GmbH (Oskar Nolte GmbH & Klumpp Coatings GmbH): German operating entities specializing in foil coatings and radiation-cured industrial wood finishes for board, furniture, and flooring applications.
Strategic Investments & Minority Stakes
To optimize its domestic effective tax structure, Sherwin-Williams invests as a limited partner in U.S. affordable housing, historic renovation, and solar real estate equity partnerships (Non-Traded Investments). These entities are variable interest entities (VIEs) in which the company is not the primary beneficiary and consequently does not consolidate.
Accounted for using the proportional amortization method under ASC 323, the carrying value of Non-Traded Investments included in Other assets was $826.1 million at December 31, 2025, $744.0 million at year-end 2024, and $675.0 million at year-end 2023. Amortization of these investments totaled $104.0 million in 2025, generating $128.3 million in total income tax credits and associated tax benefits.
5. Power & Control: The Sherwin-Williams Executive Leadership & Ownership
The Brain Trust: Board of Directors & Executive Leadership
Governance and strategic oversight are executed by executive management and an independent Board of Directors consisting of three standing committees: the Audit Committee, the Compensation and Management Development Committee, and the Nominating and Corporate Governance Committee.
Key executive officers leading the enterprise include:
- Heidi G. Petz (Chair, President and Chief Executive Officer): Leads overall corporate strategic strategy, operations, and global growth initiatives. Appointed President and CEO in January 2024 and assumed the role of Chair of the Board in 2025.
- Benjamin E. Meisenzahl (Senior Vice President – Finance and Chief Financial Officer): Manages global financial operations, capital structure, investor relations, internal controls, and enterprise financial strategy.
- J. Paul Lang (Senior Vice President – Enterprise Finance and Chief Accounting Officer): Oversees financial reporting, accounting policy, compliance, internal audit, and global tax functions.
- Chief Information Security Officer (CISO): Leads the global cybersecurity program, risk mitigation, and NIST framework compliance (reporting directly to the CFO).
Who Owns the Stock?
Sherwin-Williams maintains a widely distributed shareholding base dominated by institutional investors, employee savings plans, and corporate trusts.
- Total Shares Outstanding: 247,774,767 shares of common stock (net of treasury shares) at January 31, 2026.
- Employee Savings Plan Holdings: The Sherwin-Williams Company Defined Contribution Savings Plan held 14,886,577 shares at December 31, 2025, representing 6.0% of total voting shares outstanding.
- Revocable Executive Benefit Trust: Holds 1,426,883 shares of common stock to accumulate assets for funding non-qualified executive deferred compensation liabilities.
- Treasury Share Retirement: In the fourth quarter of 2025, the Board retired 29.5 million common shares held in treasury stock, reducing Retained earnings by $7.996 billion and Treasury stock by $8.584 billion.
6. Strategic Outlook: The Sherwin-Williams Growth Catalysts & Key Risks
Competitive Advantages & Economic Moats
The company maintains significant competitive advantages rooted in direct distribution scale, proprietary formulation technology, brand equity, and vertical integration.
In North America, the Paint Stores Group’s network of 4,853 dedicated company-operated stores creates a formidable competitive moat. Direct delivery to job sites, localized inventory availability, professional credit terms, and expert technical advice create high switching costs for painting contractors. Furthermore, vertical integration allows the Consumer Brands Group to capture manufacturing efficiencies while supplying high-margin architectural products directly through controlled retail stores.
What Could Go Wrong? Key Challenges & Business Risks
The company faces several operational, legal, macroeconomic, and regulatory risk factors outlined in Item 1A:
- Cyclical Real Estate & Housing Sensitivity: High mortgage interest rates, suppressed existing home sales volume, and delays in non-residential construction projects directly pressure architectural paint demand.
- Raw Material Volatility & Tariff Exposure: Supply chain disruptions or price inflation in petrochemical feedstocks (propylene, ethylene, resins, solvents, titanium dioxide) can compress margins if price increases cannot be passed along promptly. Evolving international tariff policies present additional cost risks.
- Legacy Lead Pigment & Environmental Litigation: The company remains a defendant in ongoing toxic tort and public nuisance lawsuits stemming from historical manufacturing of lead pigments (including Wisconsin risk-contribution personal injury cases). Environmental remediation at historic sites—most notably the Gibbsboro, New Jersey Superfund site—presents long-term liability exposure. Total environmental accruals stood at $277.6 million at December 31, 2025, with potential unaccrued exposures estimated up to an additional $87.9 million.
- Cybersecurity & IT Transformation: Ongoing enterprise digital transformation initiatives introduce risk of operational disruptions, data breaches, or ransomware attacks, despite alignment with NIST 2.0 standards.
- Firetex Product & False Advertising Litigation: In July 2024, a third-party testing agency modified product listings for Firetex FX9502 intumescent steel coatings. In September 2025, competitor Carboline Global Inc. filed a Lanham Act false advertising lawsuit regarding the product. The company is also addressing software estimation issues related to Firetex dry film thickness recommendations.
The Next Chapter: Growth & Expansion Initiatives
Management’s multi-year operating strategy, titled Success by Design, focuses on driving above-market revenue growth, expanding gross margins, and maximizing return on invested capital.
Strategic growth priorities for 2026 and beyond include:
- Store Footprint Expansion: Plan to open 80 to 100 net new stores in the United States and Canada during 2026.
- Latin American Integration: Complete operational integration, distribution synergy capture, and brand management for the newly acquired Suvinil business in Brazil.
- Enterprise Efficiency & Restructuring: Realize cost savings from targeted 2025 restructuring programs, which incurred $111.0 million in pre-tax severance and restructuring costs to streamline administrative support and industrial group operating models.
- Capital Deployment & Dividends: Maintain a 47-year track record of annual dividend growth. On January 26, 2026, the Board increased the quarterly dividend to $0.80 per share ($3.20 per share annualized), reflecting a 31% payout of 2025 diluted net income per share.
The Verdict: Strategic Outlook & Conclusion
Sherwin-Williams enters 2026 positioned as a resilient coatings leader. While high mortgage rates and choppy industrial end-market demand create short-term top-line head-winds, the business model continues to demonstrate high cash generation, pricing power, and disciplined cost control. Controlled expansion of the retail store network, coupled with strategic acquisitions like Suvinil and investments in modern R&D facilities, provides a solid foundation for long-term shareholder value creation.
❓ Frequently Asked Questions: The Sherwin-Williams Company
What was The Sherwin-Williams Company’s revenue and net income in FY 2025?
In FY 2025, The Sherwin-Williams Company (NYSE: SHW) reported total revenue of $23.57 B ((▲ 2.1%) compared to $23.10 B in the prior fiscal year). Gross profit stood at $11.52 B (gross margin of 48.85 %). Operating profit was $3.34 B and bottom-line net income was $2.57 B.
Is The Sherwin-Williams Company profitable and generating positive cash flow in FY 2025?
Yes, The Sherwin-Williams Company was profitable in FY 2025, recording net profit of $2.57 B (PAT margin: 10.90 %). On a cash basis, the company generated $3.45 B in cash flow from operating activities and invested $797.60 M in capital expenditures, resulting in free cash flow of $2.65 B. Return on Equity (ROE) was 55.86 % and Cash ROE was 75.06 %.
How much debt, assets, and equity does The Sherwin-Williams Company hold?
As of FY 2025, The Sherwin-Williams Company held $25.90 B in total assets, $21.30 B in total liabilities, and $4.60 B in total stockholders’ equity. Total debt stood at $10.87 B (debt-to-equity ratio of 2.36x). Net working capital was -$912.90 M with a current ratio of 0.87x.
Who is the CEO and CFO of The Sherwin-Williams Company?
The Chief Executive Officer (CEO) of The Sherwin-Williams Company is Heidi G. Petz (Chair, President and Chief Executive Officer). The Chief Financial Officer (CFO) is Benjamin E. Meisenzahl (Senior Vice President – Finance and Chief Financial Officer).
Where is The Sherwin-Williams Company headquartered and when was it founded?
The Sherwin-Williams Company is headquartered in 1 Sherwin Way, Cleveland, Ohio 44113-2206. The company traces its founding/incorporation to Ohio. Total disclosed workforce/headcount is 64,249 employees (approximately 73% based in the United States). Its official corporate website is investors.sherwin.com.
Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.