Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Sherwin-Williams Co., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net sales	23,574,300)	23,098,500)	23,051,900)	22,148,900)	19,944,600)
Cost of goods sold	(12,058,800)	(11,903,400)	(12,293,800)	(12,823,800)	(11,401,900)
Gross profit	11,515,500)	11,195,100)	10,758,100)	9,325,100)	8,542,700)
Selling, general and administrative expenses	(7,695,000)	(7,422,100)	(7,065,400)	(6,331,600)	(5,882,000)
Provisions for environmental matters, net	(15,300)	1,300)	(80,700)	7,100)	4,000)
Gain (loss) on divestiture of business	—)	—)	20,100)	—)	(111,900)
Gain (loss) on sale or disposition of assets	34,000)	49,900)	(900)	17,800)	6,100)
Other	(8,500)	(12,400)	(5,600)	—)	—)
Other general income (expense), net	10,200)	38,800)	(67,100)	24,900)	(101,800)
Impairment	(17,800)	—)	(57,900)	(15,500)	—)
Operating income	3,812,900)	3,811,800)	3,567,700)	3,002,900)	2,558,900)
Interest expense	(465,000)	(415,700)	(417,500)	(390,800)	(334,700)
Interest income	11,200)	11,000)	25,200)	8,000)	4,900)
Investment gains (losses)	9,900)	16,900)	22,900)	(9,700)	30,400)
Gain (loss) on extinguishment of debt	—)	—)	(12,800)	—)	1,400)
Net expense from banking activities	(16,400)	(15,700)	(15,000)	(12,200)	(10,300)
Foreign currency transaction related losses, net	(45,400)	(3,900)	(80,500)	(33,600)	(12,000)
Miscellaneous pension and benefit income (expense)	13,000)	13,100)	21,100)	(4,000)	(4,400)
Other income	30,600)	69,800)	48,500)	39,600)	29,000)
Other expense	(12,600)	(35,500)	(49,700)	(27,100)	(14,600)
Other income (expense), net	(20,900)	44,700)	(65,500)	(47,000)	19,500)
Income before income taxes	3,338,200)	3,451,800)	3,109,900)	2,573,100)	2,248,600)
Income taxes	(769,700)	(770,400)	(721,100)	(553,000)	(384,200)
Net income	2,568,500)	2,681,400)	2,388,800)	2,020,100)	1,864,400)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Net sales exhibited a generally increasing trend over the five-year period, rising from US$19,944.6 million in 2021 to US$23,574.3 million in 2025. However, the rate of growth slowed considerably between 2023 and 2025. Cost of goods sold mirrored this upward trend, though with some fluctuation, increasing from US$11,401.9 million in 2021 to US$12,058.8 million in 2025. Consequently, gross profit also increased, moving from US$8,542.7 million to US$11,515.5 million over the same period.

Operating income demonstrated consistent growth from 2021 to 2024, increasing from US$2,558.9 million to US$3,811.8 million. However, operating income remained relatively flat in 2025 at US$3,812.9 million, indicating a potential plateau in operational efficiency or market growth. Selling, general and administrative expenses increased steadily throughout the period, from US$5,882.0 million in 2021 to US$7,695.0 million in 2025, suggesting increased investment in these areas or rising operational costs.

Profitability: Gross profit margin improved from 42.8% in 2021 to 49.9% in 2023, before slightly declining to 48.8% in 2025. This suggests improved efficiency in production or sourcing of goods. Net income followed a similar pattern to operating income, increasing from US$1,864.4 million in 2021 to US$2,681.4 million in 2024, and then decreasing slightly to US$2,568.5 million in 2025. Net income margin increased from 9.3% in 2021 to 11.5% in 2024, then decreased to 10.9% in 2025.
Non-Operating Items: Several non-operating items exhibited significant fluctuations. Provisions for environmental matters were positive in 2021 and 2022, then became a substantial negative expense in 2023, before becoming a smaller negative expense in 2025. Gains or losses on divestitures and asset sales were also variable, impacting overall profitability in specific years. Other income (expense), net, showed considerable volatility, moving from a positive US$19.5 million in 2021 to a negative US$65.5 million in 2023, and then a positive US$44.7 million in 2024, before becoming negative again in 2025. Impairment charges were incurred in 2022, 2023, and 2025, representing significant non-cash expenses.
Interest and Other Expenses: Interest expense increased consistently from US$334.7 million in 2021 to US$465.0 million in 2025, likely reflecting increased borrowing or higher interest rates. Foreign currency transaction losses increased significantly from US$12.0 million in 2021 to US$80.5 million in 2023, before decreasing to US$3.9 million in 2024 and increasing again to US$45.4 million in 2025, indicating increased exposure to currency fluctuations. Other expense also increased over the period, from US$14.6 million to US$12.6 million.

Income before income taxes increased from US$2,248.6 million in 2021 to US$3,451.8 million in 2024, then decreased to US$3,338.2 million in 2025. Income taxes increased from US$384.2 million in 2021 to US$770.4 million in 2024, and then decreased slightly to US$769.7 million in 2025. The effective tax rate remained relatively stable, fluctuating between approximately 17% and 22% throughout the period.

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Sherwin-Williams Co. (NYSE:SHW)

Income Statement