86 added · 95 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Net sales of all consolidated foreign subsidiaries increased to $4.615 billion in 2025 compared to $4.426 billion in 2024 primarily as a result of the higher Net sales in Latin America due to the October 2025 acquisition of Suvinil, partially offset by unfavorable foreign currency translation driven by Latin America.
Net sales in the Consumer Brands Group increased 1.9% in 2025 primarily due to the October 2025 acquisition of Suvinil, which contributed $164.5 million, or 5.3%, partially offset by 1.1% of unfavorable foreign currency translation driven by Latin America.
Consolidated Gross profit increased $320.4 million, or 2.9% in 2025 compared to the same period in 2024 primarily due to favorable selling prices in the Paint Stores Group, the acquisition of Suvinil within the Consumer Brands Group and moderating raw material costs, partially offset by unfavorable product mix within the Performance Coatings Group.
The Consumer Brands Group’s Gross profit decreased $42.2 million in 2025 compared to the same period in 2024 primarily due to lower sales volumes and unfavorable currency translation impact, partially offset by the impact from the October 2025 acquisition of Suvinil.
Consolidated SG&A increased by $272.9 million, or 3.7% in 2025 compared to the same period in 2024 primarily due to investments in long-term growth opportunities in the Paint Stores Group, including expenses to support net new store openings, costs related to the October 2025 Suvinil acquisition, costs related to the new global headquarters and research and development (R&D) center buildings, higher employee-related costs and other expenses associated with targeted restructuring actions.
For further information on impairment considerations, see Notes 3 and 6 to the consolidated financial statements in Item 8. 26 Table of Contents Interest expense increased $49.3 million in 2025 compared to 2024 primarily due to an increase in long-term debt, interest expense related to the new global headquarters and research and development center which were both placed into service in 2025 and an increase in short-term borrowings primarily to fund the October 2025 acquisition of Suvinil.
Goodwill and Intangible Assets Goodwill, which represents the excess of cost over the fair value of net assets acquired in business combinations, increased $456.5 million to $8.037 billion at December 31, 2025, due to purchase accounting allocations of $306.8 million, primarily related to the Suvinil acquisition, and foreign currency translation rate fluctuations and other adjustments of $149.7 million.
Intangible assets increased $432.9 million to $3.966 billion at December 31, 2025 due to purchase price accounting allocations of $643.4 million, primarily related to the Suvinil acquisition, foreign currency translation rate fluctuations and other adjustments of $104.0 million and capitalization of software of $39.9 million, offset by amortization of finite-lived intangible assets of $336.6 million and trademark impairment of $17.8 million.
Net investing cash usage increased $870.0 million to a usage of $2.066 billion in 2025 from a usage of $1.196 billion in 2024 primarily due to an increase in cash used for the Suvinil acquisition in the current year, partially offset by a decrease in capital expenditures.
The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA as calculated by management for the years indicated below: 2025 2024 Net income $ 2,568.5 $ 2,681.4 Interest expense 465.0 415.7 Income taxes 769.7 770.4 Depreciation 340.3 297.4 Amortization 336.6 326.6 EBITDA 4,480.1 4,491.5 Severance and other restructuring expenses 111.0 — Trademark impairment 17.8 — Adjusted EBITDA $ 4,608.9 $ 4,491.5 Free Cash Flow After Dividends Free cash flow after dividends is a non-GAAP financial measure defined as Net operating cash, as shown in the Statements of Consolidated Cash Flows, less the amount reinvested in the business for capital expenditures and the return on investment to its shareholders by the payments of cash dividends.
Year Ended December 31, 2025 Pre-Tax Tax Effect (1) After-Tax Diluted net income per share $ 10.26 Acquisition-related amortization expense (2) $ 1.03 $ .25 .78 Severance and other restructuring expenses .44 .10 .34 Trademark impairment .07 .02 .05 Adjusted diluted net income per share $ 11.43 Year Ended December 31, 2024 Pre-Tax Tax Effect (1) After-Tax Diluted net income per share $ 10.55 Acquisition-related amortization expense (2) $ 1.02 $ .24 .78 Adjusted diluted net income per share $ 11.33 (1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.
Year Ended December 31, 2025 Paint Stores Group Consumer Brands Group Performance Coatings Group Administrative Total Net sales $ 13,605.9 $ 3,166.4 $ 6,795.2 $ 6.8 $ 23,574.3 Income before income taxes $ 3,061.5 $ 509.6 $ 942.7 $ (1,175.6) $ 3,338.2 Percent to Net sales 22.5 % 16.1 % 13.9 % nm 14.2 % Acquisition-related amortization expense (1) 62.0 196.3 258.3 Severance and other restructuring expenses 39.1 17.9 54.0 111.0 Trademark impairment 17.8 17.8 Adjusted segment profit $ 3,061.5 $ 610.7 $ 1,174.7 $ (1,121.6) $ 3,725.3 Percent to Net sales 22.5 % 19.3 % 17.3 % nm 15.8 % Year Ended December 31, 2024 Paint Stores Group Consumer Brands Group Performance Coatings Group Administrative Total Net sales $ 13,188.0 $ 3,108.0 $ 6,797.3 $ 5.2 $ 23,098.5 Income before income taxes $ 2,902.6 $ 589.9 $ 1,027.9 $ (1,068.6) $ 3,451.8 Percent to Net sales 22.0 % 19.0 % 15.1 % nm 14.9 % Acquisition-related amortization expense (1) 63.8 196.3 260.1 Adjusted segment profit $ 2,902.6 $ 653.7 $ 1,224.2 $ (1,068.6) $ 3,711.9 Percent to Net sales 22.0 % 21.0 % 18.0 % nm 16.1 % nm - not meaningful (1) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition.
No longer disclosed
Diluted net income per share for 2023 included acquisition-related amortization expense of $0.78 per share, severance and other expense of $0.04 per share, expenses related to the divestiture of the China architectural business of $0.11 per share, impairment related to trademarks of $0.07 per share and expense related to the devaluation of the Argentine peso of $0.16 per share.
The following table summarizes EBITDA and Adjusted EBITDA as calculated by management for the years indicated below: Year Ended December 31, 2024 2023 Net income $ 2,681.4 $ 2,388.8 Interest expense 415.7 417.5 Income taxes 770.4 721.1 Depreciation 297.4 292.3 Amortization 326.6 330.2 EBITDA $ 4,491.5 $ 4,149.9 Restructuring expense — 9.6 Impairment related to Restructuring Plan — 34.0 Gain on divestiture of domestic aerosol business — (20.1) Impairment related to trademarks — 23.9 Devaluation of the Argentine peso — 41.8 Adjusted EBITDA $ 4,491.5 $ 4,239.1 Free Cash Flow After Dividends Free cash flow after dividends is a non-GAAP financial measure defined as Net operating cash, as shown in the Statements of Consolidated Cash Flows, less the amount reinvested in the business for capital expenditures and the return on investment to its shareholders by the payments of cash dividends.
Year Ended December 31, 2024 Pre-Tax Tax Effect (1) After-Tax Diluted net income per share $ 10.55 Acquisition-related amortization expense (2) $ 1.02 $ .24 .78 Adjusted diluted net income per share $ 11.33 Year Ended December 31, 2023 Pre-Tax Tax Effect (1) After-Tax Diluted net income per share $ 9.25 Items related to Restructuring Plan: Severance and other $ .06 $ .02 .04 Impairment of assets related to China divestiture .13 .08 .05 Gain on divestiture of domestic aerosol business (.08) (.02) (.06) Discrete income tax expense related to China divestiture (1) — (.06) .06 Total .11 .02 .09 Impairment related to trademarks .09 .02 .07 Devaluation of the Argentine peso .16 — .16 Acquisition-related amortization expense (2) 1.03 .25 .78 Adjusted diluted net income per share $ 10.35 (1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.
Year Ended December 31, 2024 Paint Stores Group Consumer Brands Group Performance Coatings Group Administrative Total Net sales $ 13,188.0 $ 3,108.0 $ 6,797.3 $ 5.2 $ 23,098.5 Income before income taxes $ 2,902.6 $ 589.9 $ 1,027.9 $ (1,068.6) $ 3,451.8 as a percent of Net sales 22.0 % 19.0 % 15.1 % nm 14.9 % Acquisition-related amortization expense (1) 63.8 196.3 260.1 Adjusted segment profit $ 2,902.6 $ 653.7 $ 1,224.2 $ (1,068.6) $ 3,711.9 as a percent of Net sales 22.0 % 21.0 % 18.0 % nm 16.1 % Year Ended December 31, 2023 Paint Stores Group Consumer Brands Group Performance Coatings Group Administrative Total Net sales $ 12,839.5 $ 3,365.6 $ 6,843.1 $ 3.7 $ 23,051.9 Income before income taxes $ 2,860.8 $ 309.3 $ 991.6 $ (1,051.8) $ 3,109.9 as a percent of Net sales 22.3 % 9.2 % 14.5 % nm 13.5 % Items related to Restructuring Plan: Severance and other 14.2 (0.2) 1.3 15.3 Impairment of assets related to China divestiture 6.9 27.1 34.0 Gain on divestiture of domestic aerosol business (20.1) (20.1) Total — 21.1 (0.2) 8.3 29.2 Impairment related to trademarks 23.9 23.9 Devaluation of the Argentine peso 30.8 11.0 41.8 Acquisition-related amortization expense (1) 69.3 196.8 266.1 Adjusted segment profit $ 2,860.8 $ 454.4 $ 1,199.2 $ (1,043.5) $ 3,470.9 as a percent of Net sales 22.3 % 13.5 % 17.5 % nm 15.1 % nm -not meaningful (1) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition.
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See notes to consolidated financial statements. 49 Table of Contents THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31, 2024 2023 2022 Assets Current assets: Cash and cash equivalents $ 210.4 $ 276.8 $ 198.8 Accounts receivable, net 2,388.8 2,467.9 2,563.6 Inventories 2,288.1 2,329.8 2,626.5 Other current assets 513.5 438.4 518.8 Total current assets 5,400.8 5,512.9 5,907.7 Property, plant and equipment, net 3,533.2 2,836.8 2,207.0 Goodwill 7,580.1 7,626.0 7,583.2 Intangible assets 3,533.2 3,880.5 4,002.0 Operating lease right-of-use assets 1,953.8 1,887.4 1,866.8 Other assets 1,631.5 1,210.8 1,027.3 Total Assets $ 23,632.6 $ 22,954.4 $ 22,594.0 Liabilities and Shareholders’ Equity Current liabilities: Short-term borrowings $ 662.4 $ 374.2 $ 978.1 Accounts payable 2,253.2 2,315.0 2,436.5 Compensation and taxes withheld 842.8 862.7 784.5 Accrued taxes 174.3 197.4 197.4 Current portion of long-term debt 1,049.2 1,098.8 0.6 Current portion of operating lease liabilities 466.6 449.3 425.3 Other accruals 1,360.2 1,329.5 1,138.3 Total current liabilities 6,808.7 6,626.9 5,960.7 Long-term debt 8,176.8 8,377.9 9,591.0 Postretirement benefits other than pensions 120.7 133.2 139.3 Deferred income taxes 607.5 683.1 681.6 Long-term operating lease liabilities 1,558.3 1,509.5 1,512.9 Other long-term liabilities 2,309.4 1,908.0 1,606.4 Shareholders’ equity: Common stock - $ 0.33 -1/3 par value: 251.3 , 254.5 and 258.9 million shares outstanding at December 31, 2024, 2023 and 2022, respectively 92.5 91.8 91.2 Other capital 4,576.2 4,193.6 3,963.9 Retained earnings 7,246.3 5,288.3 3,523.2 Treasury stock, at cost ( 6,988.6 ) ( 5,233.6 ) ( 3,775.6 ) Accumulated other comprehensive loss ( 875.2 ) ( 624.3 ) ( 700.6 ) Total shareholders’ equity 4,051.2 3,715.8 3,102.1 Total Liabilities and Shareholders’ Equity $ 23,632.6 $ 22,954.4 $ 22,594.0 See notes to consolidated financial statements. 50 Table of Contents THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS (in millions) Year Ended December 31, 2024 2023 2022 Operating Activities Net income $ 2,681.4 $ 2,388.8 $ 2,020.1 Adjustments to reconcile Net income to Net operating cash: Depreciation 297.4 292.3 264.0 Non-cash lease expense 460.5 452.7 416.9 Amortization of intangible assets 326.6 330.2 317.1 Gain on divestiture of business — ( 20.1 ) — Loss on extinguishment of debt — 12.8 — Impairment — 57.9 15.5 Provisions for environmental-related matters - net ( 1.3 ) 80.7 ( 7.1 ) Provisions for restructuring — 15.3 47.3 Deferred income taxes ( 74.9 ) ( 88.9 ) ( 144.8 ) Other postretirement benefit plan net cost ( 17.0 ) ( 15.8 ) ( 1.6 ) Stock-based compensation expense 138.1 115.9 99.7 Amortization of non-traded investments 75.0 65.4 38.5 (Gain) loss on sale or disposition of assets ( 49.9 ) 0.9 ( 10.7 ) Other 6.1 7.0 43.9 Change in working capital accounts: (Increase) decrease in accounts receivable ( 10.7 ) 85.6 ( 200.2 ) (Increase) decrease in inventories ( 32.9 ) 323.4 ( 666.7 ) Increase (decrease) in accounts payable 21.8 ( 241.1 ) 46.6 Decrease in accrued taxes ( 14.3 ) ( 8.9 ) ( 38.1 ) (Decrease) increase in accrued compensation and taxes withheld ( 7.9 ) 75.7 65.8 Decrease in refundable income taxes 0.8 25.8 47.6 Other ( 20.7 ) 306.7 32.5 Change in operating lease liabilities ( 460.7 ) ( 453.4 ) ( 405.3 ) Costs incurred for environmental-related matters ( 24.1 ) ( 35.3 ) ( 23.8 ) Other ( 140.1 ) ( 251.7 ) ( 37.3 ) Net operating cash 3,153.2 3,521.9 1,919.9 Investing Activities Capital expenditures ( 1,070.0 ) ( 888.4 ) ( 644.5 ) Acquisitions of businesses, net of cash acquired ( 78.9 ) ( 264.7 ) ( 1,003.1 ) Proceeds from divestiture of business — 103.7 — Proceeds from sale of assets 11.6 70.1 33.2 Other ( 59.0 ) ( 60.0 ) 6.8 Net investing cash ( 1,196.3 ) ( 1,039.3 ) ( 1,607.6 ) Financing Activities Net increase (decrease) in short-term borrowings 288.6 ( 603.9 ) 214.4 Proceeds from long-term debt 848.7 — 999.7 Payments of long-term debt ( 1,100.0 ) ( 136.4 ) ( 260.3 ) Payments for credit facility and debt iss
Asset impairment of $34.0 million related to the divestiture of the China architectural business and impairment related to trademarks of $23.9 million primarily related to a trademark in Europe were recorded in 2023.
These decreases were partially offset by low-single digit volume growth, inclusive of the acquisition of SIC Holding GmbH in 2023 and the acquisition of a metal packaging coatings business in 2024.
See Note 19 to the consolidated financial statements in Item 8 for additional information. 26 Table of Contents There was no impairment in 2024.
The Company generated $3.153 billion in Net operating cash and invested $1.014 billion in capital expenditures and approximately $80 million in the acquisition of a metal packaging coatings business.
Litigation and Other Contingent Liabilities In the course of its business, the Company is subject to a variety of claims and lawsuits, including, but not limited to, litigation relating to product liability and warranty, personal injury, environmental, intellectual property, commercial, contractual and antitrust claims.
Additionally, due to the uncertainties involved, any potential liability determined to be attributable to the Company arising out of such litigation may have a material adverse effect on the Company’s results of operations, liquidity or financial condition.
The resulting quantitative impairment test performed as of October 1, 2024 did not result in any trademark impairment.