(Reuters) – Paint maker Sherwin-Williams on Thursday forecast current-year adjusted profit below analysts’ expectations, hurt by continued demand choppiness.
“We expect demand softness to persist in several end markets well into the second half of the year, if not into 2026,” said CEO Heidi Petz.
Factory activity in the U.S. ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China’s fragile economic recovery.
The chemical industry has also been struggling with sluggish demand recovery, resulting in lower prices, particularly in Europe due to a challenging regulatory landscape which has caused firms to reassess their strategies.
“We would expect initial stock weakness on the full-year 2025 guide miss, although we would expect shares to eventually be defended by those pointing to initial conservatism and general perception of Sherwin-Williams as quality in a weak materials tape,” said Barclays analyst Michael Leithead.
Shares of the company reversed course from premarket losses to rise up 2% late morning.
However, the Ohio-based company posted an adjusted profit of $2.09 per share for the fourth quarter ended Dec. 31, beating estimates of $2.06 per share, according to data compiled by LSEG, as it benefited from higher sales at its paint stores unit.
Net sales at paint stores, the company’s biggest segment, rose 3.4% to $3.04 billion during the reported period from a year ago.
The company expects full-year adjusted profit in the range of $11.65 per share to $12.05 per share, far below Wall Street expectations of $12.60 per share.
(Reporting by Pooja Menon in Bengaluru; Editing by Shailesh Kuber)
