The Sherwin-Williams Company, founded in 1866, is engaged in the development, manufacture, distribution, and sale of paint, coatings, and related products. It primarily serves professional, industrial, commercial, and retail customers in North and South America, with additional operations in the Caribbean, Europe, Asia, and Australia. The company operates through three reportable segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. Sherwin-Williams is a leading manufacturer and retailer in the paint and coatings industry, competing with various local, regional, national, and international players.

• Employees: 64,088 (as of December 31, 2023)
• Geographic Footprint: Operations in North and South America, the Caribbean, Europe, Asia, and Australia
• Headquarters: Cleveland, Ohio
• Founded: 1866
• Number of locations/facilities: 4,694 company-operated specialty paint stores in the U.S., Canada, and the Caribbean; 318 specialty paint stores in Latin America; 224 branches in the U.S. and 98 branches internationally for Performance Coatings Group
• Revenue: $23.052 billion (FY2023)
• Key Subsidiaries/Brands: Sherwin-Williams®, Cabot®, Colorgin®, Dupli-Color®, Dutch Boy®, Geocel®, HGTV HOME® by Sherwin-Williams, Krylon®, Minwax®, Purdy®, Ronseal®, Thompson's® WaterSeal®, Valspar®, White Lightning®

• CEO: Heidi G. Petz
• CFO: Allen J. Mistysyn
• Board Chair: John G. Morikis
• Other Key Executives:
  • Mary L. Garceau - Senior Vice President – Chief Legal Officer and Secretary
  • James R. Jaye - Senior Vice President – Investor Relations and Corporate Communications
  • Gregory P. Sofish - Senior Vice President - Human Resources
  • Bryan J. Young - Senior Vice President – Corporate Strategy and Development
  • Justin T. Binns - President, Global Architectural
  • Karl J. Jorgenrud - President, Global Industrial
  • Todd D. Rea - President, Consumer Brands Group
  • Colin M. Davie - President & General Manager, Global Supply Chain Division, Consumer Brands Group

Key leaders have extensive experience within the company, with many having served in their current roles for several years.

• Annual Revenue: $23.052 billion (FY2023)
• Net Income: $2.388 billion
• Total Assets: $22.954 billion
• Key Financial Highlights: Net sales increased 4.1%; Diluted net income per share increased 19.8% to $9.25; Adjusted diluted net income per share increased to $10.35; Net operating cash of $3.522 billion; Adjusted EBITDA increased 17.5% to $4.239 billion

The company offers a wide range of products and services across its segments:

• Architectural Paints and Coatings: Sherwin-Williams® and other controlled brand architectural paints and coatings, protective and marine products, and OEM product finishes.
• Branded and Private-Label Products: Architectural paint, stains, varnishes, industrial products, wood finishes, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives.
• Industrial Coatings: Industrial coatings for wood finishing and general industrial applications, automotive refinish, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants.

The company operates through three reportable segments:

• Paint Stores Group: Consists of company-operated specialty paint stores in the United States, Canada, and the Caribbean region, which serve architectural and industrial paint contractors and do-it-yourself homeowners.
• Consumer Brands Group: Manufactures and distributes branded and private-label architectural paint, stains, varnishes, and other related products to retailers and distributors in North America, Latin America, and Europe.
• Performance Coatings Group: Develops and sells industrial coatings for wood finishing, general industrial, automotive refinish, protective and marine, coil, and packaging applications worldwide.

Approximately 61% of the Consumer Brands Group's sales in 2023 were intersegment transfers, primarily to the Paint Stores Group.

The company's strategy focuses on providing differentiated solutions to enable customers to increase productivity and profitability. Key initiatives include:

• Investing in customer-focused innovation
• Completing strategic acquisitions (e.g., SIC Holding GmbH)
• Reducing short-term borrowings and long-term debt
• Returning capital to shareholders through dividends and share repurchases
• Expanding its footprint by opening 80 to 100 new stores in the U.S. and Canada in 2024
• Pursuing acquisitions that align with long-term growth strategy

The company aims to seize profitable growth opportunities in its targeted end-markets while managing uncertainties in the marketplace.

Sherwin-Williams operates in the highly competitive paint and coatings industry. Key aspects of the competitive landscape include:

• Market Position: A leading manufacturer and retailer of paint, coatings, and related products.
• Key Competitors: Include other paint and wallpaper stores, mass merchandisers, home centers, independent hardware stores, and manufacturer-operated direct outlets.
• Industry Trends: The company faces competition based on product quality, innovation, breadth of product line, technical expertise, service, and price. The industry is also affected by economic conditions, including inflation, interest rates, and consumer spending.

• Economic Risks: Adverse changes in general business and economic conditions in the United States and worldwide may reduce demand for products and affect the company's results of operations, cash flow, liquidity, or financial condition.
• Financial Risks: Weakening of global credit markets or changes to credit ratings may adversely affect the company's operations, cash flow, and liquidity. The company also requires a significant amount of cash to service its debt.
• Operational Risks: Unexpected shortages and increases in the cost of raw materials and energy may adversely affect earnings or cash flow. Catastrophic events, adverse weather conditions, and natural disasters may temporarily reduce demand or disrupt supply chains.
• Competitive Risks: Increased competition or failure to keep pace with developments in key competitive areas may reduce sales, earnings, or cash flow.
• Cybersecurity Risks: Cybersecurity incidents and other disruptions to information technology systems may interfere with operations and result in the compromise or loss of critical and confidential information.