Total Revenue (Net Sales)

–1.1%

Q1 2025 net sales decreased from $5,367.3 million to $5,305.7 million (-1.1% YoY). This decline reflects weaker performances in multiple segments—with drops in the Consumer Brands Group, Performance Coatings Group, and consolidated foreign subsidiaries—not fully offset by the +2.3% increase in the Paint Stores Group. " "

Paint Stores Group

+2.3%

Revenue increased from $2,873.0 million in Q1 2024 to $2,939.8 million in Q1 2025. The improvement was primarily driven by selling price increases, which helped overcome a slight reduction in sales volume, supporting continued store expansion and strong consumer demand. " "

Consumer Brands Group

–6.0%

Revenue declined from $811.0 million to $762.2 million. The drop was mainly due to soft DIY demand in North America and unfavorable foreign currency translation impacts—factors that had also influenced previous period performance—resulting in a significant YoY decrease. " "

Performance Coatings Group

–4.7%

Revenue fell from $1,681.9 million to $1,602.0 million. The decline was driven by a mix of lower sales across most business units, unfavorable currency translation effects, and product mix issues, although partially offset by growth in packaging-related sales. " "

Geographic Performance – Consolidated Foreign Subsidiaries

–5.3%

Revenue decreased from $1,103 million to $1,045 million. This reduction was primarily due to lower net sales in Europe and Latin America, driven by unfavorable foreign currency translation impacts—a trend consistent with challenges seen in earlier periods. " "

Income Statement – Net Income

Essentially Flat

Net income remained nearly unchanged at $503.9 million versus $505.2 million. Improvements in gross margins and cost management helped offset declines in revenue segments and a slightly higher effective tax rate, leading to a very stable net income compared to the previous period. " "

Cash Flow – Net Operating Cash

Essentially Flat

Net operating cash usage was about –$61.1 million in Q1 2025 compared to –$58.9 million in Q1 2024. Despite variations in working capital needs, the operating cash flows remained largely stable, reflecting consistent operational performance over the periods. " "

Sales

Q2 2025

no prior guidance

Consolidated and segment sales to be essentially flat at the midpoint year-over-year " "

no prior guidance

EPS

FY 2025

$11.65 to $12.05 "

Reaffirmed from January guidance " "

no change

SG&A Expense

FY 2025

Expected to grow by a low single-digit percentage "

Projected to increase by a low single-digit percentage "

no change

Gross Margin

FY 2025

Expected to expand in FY 2025 "

Expects margin improvement in the second half of FY 2025 similar to the first half " "

no change

Sales

FY 2025

no prior guidance

Reaffirmed full-year sales guidance provided in January 2025 " "

no prior guidance

Volume Trends

FY 2025

no prior guidance

For Paint Stores Group, volume improvement expected from residential repaint and protective and marine segments; commercial and property maintenance volumes not expected to worsen "

no prior guidance

Suvinil Acquisition

FY 2025

no prior guidance

Acquisition of BASF's architectural business in Brazil expected to close in the second half, not included in full-year guidance " "

no prior guidance

Effective Price Execution and Margin Expansion

Consistently discussed in Q2, Q3, and Q4 (e.g., emphasis on broad price increases, improved price‐mix and gradual margin growth " " " )

Q1 2025 deepens the analysis with granular price adjustments, proactive pricing actions and noted margin expansion across segments " " "

Consistent focus with refined, more detailed execution strategies " "

Operational Efficiency and Cost Management

Highlighted in Q2–Q4 for SG&A control, global supply chain efficiencies, and simplified cost structures " " "

Q1 2025 reiterates SG&A spending reductions, enhanced digitization and continued simplification efforts to drive margins " "

Steady emphasis with continued operational discipline and further digitization " "

Store Network Expansion and New Store Openings

Regularly mentioned in Q2, Q3, and Q4 with plans for 80–100 new stores and notable year‐to‐date openings " " "

Q1 2025 reports 18 new stores opened and reaffirms the plan for 80–100 new stores, now leveraging an algorithm for location selection "

Consistent expansion with an added focus on technology‐enabled site selection " "

Strategic Acquisitions and Integration Risks

Touched on in Q4 with a general view that acquisitions are opportunistic; minimal discussion in Q3 and Q2 "

Q1 2025 provides detailed discussion of the Suvinil acquisition including integration approach and low perceived risks " " "

Emerging as a more detailed and higher‐profile topic in Q1 2025, reflecting proactive integration strategy " "

Tariff-related Cost Pressures and Raw Material Cost Inflation

Addressed in Q4 and Q3 with mention of tariff impacts on epoxy and moderate raw material inflation; Q2 focused more on raw material cost trends only " " "

Q1 2025 discusses manageable tariff effects, flat raw material costs year-over-year and a slight expected uptick in Q2, showing more granularity " "

Consistent but with increased detail regarding tariff impacts and future cost adjustments " "

Market Share Gains and New Account Wins

Recurring across Q2–Q4 with emphasis on capturing share amidst competitor disruptions and notable new account wins in various segments " " "

Q1 2025 highlights market share gains across protective, residential, and packaging segments, along with robust new account wins " " "

Continuing positive sentiment with a strong strategic push for capturing market share " "

Growth in Key Segments: Residential Repaint, Refinish, Packaging

Consistently discussed in Q2–Q4, with residential repaint and packaging growing (mid‐ to high-single digit) and mixed performance in auto/refinish due to FX and market softness " "

Q1 2025 reports mid-single-digit growth in residential repaint and packaging, while noting pressure on refinish from FX and soft core demand " " "

Steady growth in residential and packaging; refinish remains challenged by external factors " "

Regulatory Developments Impacting Coatings

Addressed in Q3 and Q4 (discussion on EFSA BPA ban, non-BPA epoxy compliance driven by European mandates) " "

Not mentioned at all in Q1 2025

Topic no longer featured in the current period, suggesting a shift in focus "

Increased Interest Expenses and Refinancing Challenges

Detailed in Q4 2024 with discussion on higher refinancing costs and increased interest burdens " "

Not mentioned in Q1 2025

Topic has dropped from current commentary, implying reduced focus or resolution of earlier concerns " "

Consumer Brands Group and DIY Market Softness

Consistent in Q2–Q4 with discussion on softer volume in DIY markets and FX headwinds, yet offset by margin improvements " " "

Q1 2025 similarly cites soft DIY demand in North America impacting sales while noting margin expansion in the Consumer Brands Group " "

Persistent challenge with consistent headwinds but gradual margin gains, reflecting cautious optimism " "

Sustainability of Long-Term Gross Margin Improvements amid Shifting Raw Material Tailwinds

Explored in Q2–Q4 with focus on how efficiency measures, improved price realization and a favorable mix supported margins despite raw material variability " " "

Q1 2025 reaffirms sustainable margin improvements using a mix of pricing strategies, cost control and digitization amid shifting raw material costs " " "

Consistent and central focus, with refinements in self-help levers and operational efficiency to maintain margins " "

Delayed Earnings Recovery in Commercial and Property Maintenance

Addressed across Q2–Q4 with acknowledgment of slow recoveries and long project cycles, including delays in CapEx recoveries " " "

Q1 2025 underscores that recovery in these segments will take 18–24 months, citing challenges like higher interest rates and prolonged project timelines "

Steady long-term concern, remaining a challenge with a continued extended recovery timeline "