Direct Answer
Sherwin-Williams (NYSE: SHW) reported total net sales of $23.049 billion in fiscal year 2024, approximately flat compared with $23.052 billion in FY2023. Net income was $2.169 billion and diluted EPS was $8.67 on a GAAP basis, with adjusted diluted EPS of approximately $11.33. The company generated approximately $2.8 billion in free cash flow and raised its quarterly dividend for the 46th consecutive year, maintaining its Dividend Aristocrat status. Revenue growth was held back primarily by housing market weakness and soft residential repaint volumes tied to elevated mortgage rates throughout 2024.
Revenue by segment (FY2023 vs. FY2024)
| Segment | FY2023 (approx.) | FY2024 (approx.) | Description |
|---|---|---|---|
| Paint Stores Group | ~$12.4B | ~$12.3B | Company-operated retail paint stores (U.S., Canada, Latin America) |
| Consumer Brands Group | ~$3.7B | ~$3.6B | Valspar, Minwax, Krylon, sold through home improvement retailers |
| Performance Coatings Group | ~$7.0B | ~$7.1B | Industrial, automotive, protective, and marine coatings globally |
| Total net sales | ~$23.1B | $23.049B | Consolidated net sales |
The Paint Stores Group is the largest segment by revenue and the highest-margin segment. It operates approximately 4,900 company-owned retail paint stores where professional painters, contractors, and property managers purchase directly from Sherwin-Williams, often under long-standing account relationships. Because Sherwin-Williams owns the retail channel, it captures both the manufacturing margin and the retail margin on every sale through this segment.
The Consumer Brands Group sells branded paint and coatings products through third-party retailers including The Home Depot and Lowe's. Sherwin-Williams does not control the shelf space or the end customer relationship in this channel, which contributes to lower margins compared with the company-owned store model. Brands in this segment include Valspar (acquired in 2017), Minwax wood finishing products, Krylon spray paint, and others.
The Performance Coatings Group serves industrial end markets globally, including automotive original equipment manufacturers, general industrial manufacturers, packaging manufacturers, and infrastructure and marine applications. This segment benefits from international diversification and is less directly tied to U.S. residential construction activity than the Paint Stores Group.
Source: Sherwin-Williams: Form 10-K SEC Filings (CIK 0000089089)
Key financial metrics (FY2023 vs. FY2024)
| Metric | FY2023 | FY2024 |
|---|---|---|
| Total net sales | $23.052B | $23.049B |
| Net income (GAAP) | ~$2.0B | $2.169B |
| Diluted EPS (GAAP) | ~$7.86 | $8.67 |
| Adjusted diluted EPS (non-GAAP) | ~$10.22 | ~$11.33 |
| Free cash flow (approx.) | ~$2.4B | ~$2.8B |
| Quarterly dividend per share | $0.6055 | $0.7150 |
| Annualized dividend per share | $2.42 | $2.86 |
| Consecutive years of dividend increases | 45 | 46 |
GAAP diluted EPS of $8.67 in FY2024 increased from approximately $7.86 in FY2023, reflecting improved net income despite roughly flat revenue. Adjusted diluted EPS of approximately $11.33 excludes acquisition-related amortization and other non-recurring items and is the figure management uses to communicate underlying operating performance. The gap between GAAP and adjusted EPS is primarily driven by amortization of intangible assets from the $11.3 billion Valspar acquisition in 2017.
Free cash flow of approximately $2.8 billion in FY2024 represents a meaningful improvement from the prior year, driven in part by working capital discipline and the relatively capital-light nature of the Paint Stores model. Sherwin-Williams returns capital to shareholders through both dividends and share repurchases. The company has increased its dividend for 46 consecutive years, qualifying it as a Dividend Aristocrat under the S&P 500 criterion of 25 or more consecutive years of increases. It is approaching the 50-year threshold that defines a Dividend King.
Paint Stores Group and the Pro painter channel
The Paint Stores Group is the strategic and financial center of Sherwin-Williams. Its approximately 4,900 company-operated stores are concentrated in the United States, with additional locations in Canada and Latin America. The stores operate under the Sherwin-Williams brand and serve a customer base dominated by professional painting contractors, property maintenance teams, and commercial contractors.
The professional painter channel, often called the "Pro" segment, accounts for the majority of Paint Stores Group volume. Pro customers buy in higher quantities than do-it-yourself consumers, visit stores more frequently, and tend to be less price-sensitive because paint is a relatively small share of a contractor's overall project cost. Repeat Pro business creates a recurring revenue dynamic that is more predictable than retail consumer paint sales.
Sherwin-Williams reinforces the Pro relationship through contractor loyalty programs, delivery services, and in-store color-matching support that home improvement retailers are not positioned to replicate at the same depth. This creates switching costs: a contractor who has a long-standing account relationship with a local Sherwin-Williams store, knows the staff, and uses the store's tinting equipment regularly is not easily displaced by a price promotion at a competing retailer.
The company-owned store model also gives Sherwin-Williams pricing flexibility that branded products sold through third-party retailers do not have. Sherwin-Williams can adjust pricing at the store level without negotiating with a retail partner, making it possible to pass through raw material cost increases, including titanium dioxide and other pigment and resin inputs, more directly than the Consumer Brands Group can.
Housing cycle sensitivity and FY2024 headwinds
Sherwin-Williams revenue, and in particular Paint Stores Group volume, is sensitive to the pace of existing home sales and residential renovation activity. Paint is often purchased when homeowners buy or sell a home, when rental properties turn over, or when homeowners undertake planned improvement projects. When mortgage rates rise sharply and suppress existing home sales, the repaint market contracts.
In FY2024, 30-year fixed mortgage rates remained elevated relative to the 2020 and 2021 lows, and existing home sales in the United States were at multi-decade lows as homeowners with locked-in low-rate mortgages chose not to sell. This reduced residential repaint demand, particularly in the do-it-yourself segment. Professional repaint demand was more resilient, because contractors serving commercial property, multifamily rental, and the new construction market are less directly tied to the existing home sales cycle.
The do-it-yourself paint category softened more than the Pro segment in FY2024, and this dynamic affected the Consumer Brands Group more than the Paint Stores Group. DIY paint sold through home improvement retailers declined as consumers pulled back on discretionary home improvement spending.
Sherwin-Williams management cited volume recovery as a priority for 2025 and beyond, with the view that pent-up residential repaint demand would eventually be released as the housing market adjusted, either through mortgage rate declines or gradual normalization of transaction volumes. Price increases from 2021 through 2023, taken in response to significant raw material inflation, had been substantially absorbed by FY2024, reducing the price-mix tailwind that had supported revenue in prior years.
The Valspar acquisition in 2017, at $11.3 billion the largest acquisition in Sherwin-Williams history, was fully integrated by FY2024 and the Performance Coatings Group benefited from industrial demand in automotive coatings and general industrial end markets during the year.
Frequently Asked Questions
What was Sherwin-Williams net sales in fiscal year 2024?
Sherwin-Williams reported total net sales of $23.049 billion in fiscal year 2024 (calendar year ending December 31, 2024), approximately flat compared with net sales of $23.052 billion in FY2023. Revenue growth was suppressed by housing market weakness and soft do-it-yourself paint demand during the year.
What are Sherwin-Williams three business segments?
Sherwin-Williams reports three operating segments. The Paint Stores Group operates approximately 4,900 company-owned retail paint stores in the U.S., Canada, and Latin America and generated approximately $12.3 billion in FY2024 revenue. The Consumer Brands Group sells Valspar, Minwax, Krylon, and other brands through home improvement retailers and generated approximately $3.6 billion. The Performance Coatings Group sells industrial, automotive, protective, and marine coatings globally and generated approximately $7.1 billion.
Why is the Paint Stores Group important to Sherwin-Williams profitability?
The Paint Stores Group is the highest-margin segment and the core of Sherwin-Williams competitive advantage. Company-owned stores give Sherwin-Williams direct relationships with professional painters and contractors, pricing control, and the ability to service Pro customers quickly. The Pro painter channel historically accounts for the majority of Paint Stores Group volume and carries higher margins than the do-it-yourself segment, because professional painters are less price-sensitive and purchase in larger quantities on a repeat basis.
How does the housing market affect Sherwin-Williams revenue?
Sherwin-Williams revenue, particularly in the Paint Stores Group, is sensitive to housing market activity. Existing home sales drive residential repaint demand, since homeowners paint more frequently when buying, selling, or renovating. When mortgage rates rise and existing home sales slow, residential repaint volume declines. In FY2024, elevated mortgage rates suppressed existing home sales and held back volume growth in the Paint Stores Group, even as professional painter demand remained more resilient than do-it-yourself demand.