The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the second quarter ended June 30, 2024. All comparisons are to the second quarter of the prior year, unless otherwise noted.

SUMMARY

• Consolidated net sales increased 0.5% in the quarter to $6.27 billion
  • Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 2.4% in the quarter
• Diluted net income per share increased 14.0% to $3.50 per share in the quarter compared to $3.07 per share in the second quarter 2023
  • Adjusted diluted net income per share increased 12.5% to $3.70 per share in the quarter compared to $3.29 per share in the second quarter 2023
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 12.1% to $1.44 billion, or 22.9% of net sales
• Increasing full year 2024 diluted net income per share guidance to a range of $10.30 to $10.60 per share, including acquisition-related amortization expense of $0.80 per share
  • Increasing full year 2024 adjusted diluted net income per share guidance in the range of $11.10 to $11.40 per share

CEO REMARKS

"Led by strong performance in the Paint Stores Group, we continued to execute on our proven strategy across the Company to deliver consolidated sales within our expectations, gross margin expansion, EBITDA growth, and a 12.5% percent increase in adjusted diluted net income per share," said President and Chief Executive Officer, Heidi G. Petz. "We generated strong cash flow and continued to execute our disciplined capital allocation strategy, including returning $1.34 billion to our shareholders through dividends and share repurchases during the year.

"Paint Stores Group sales were up, at the midpoint of our guidance, against a double-digit comparison. Volume increased by a low-single digit percentage, and price realization increased from first quarter levels as expected. We are clearly seeing a return on last year's growth investments in residential repaint, where volume increased by a mid-single digit percentage in a down market. We're also encouraged by growth in new residential, where we expect continued momentum over the back half of the year. Consumer Brands Group sales continued to be impacted by soft North America DIY paint demand. Performance Coatings Group sales were led by growth in Industrial Wood and Coil. Auto Refinish sales increased by low-single digits in North America but were offset by softness in Latin America. Packaging sales were down less than expected, and General Industrial demand was soft in all regions. Despite the continued choppiness in the overall demand environment, all three of our reportable segments delivered sequential and year-over-year margin improvement."