The Sherwin-Williams Company (SHW) Q4 2022 Earnings Call Transcript

The Sherwin-Williams Company (NYSE:SHW) Q4 2022 Results Conference Call January 26, 2023 11:00 AM ET

Company Participants

Jim Jaye - Senior Vice President, Investor Relations & Corporate Communications

Heidi Petz - President and Chief Operating Officer

John Morikis - Chairman and Chief Executive Officer

Al Mistysyn - Senior Vice President, Finance & Chief Financial Officer

Conference Call Participants

Christopher Parkinson - Mizuho Securities

Truman Patterson - Wolfe Research

Ghansham Panjabi - Robert W. Baird

David Begleiter - Deutsche Bank

Adam Baumgarten - Zelman

Kevin McCarthy - Vertical Research Partners

Jeff Zekauskas - JPMorgan

Michael Sison - Wells Fargo

Vincent Andrews - Morgan Stanley

Arun Viswanathan - RBC Capital Markets

John McNulty - BMO Capital

John Roberts - Credit Suisse

Josh Spector - UBS

Gregory Melich - Evercore ISI

Steve Byrne - Bank of America

Garik Shmois - Loop Capital Markets

Operator

Good morning. Thank you for joining the Sherwin-Williams Company's Review of Fourth Quarter 2022 results and our outlook for the first quarter and full year of 2023. With us on today's call are John Morikis, chairman and CEO; Al Mistysyn, CFO; Heidi Petz, President and COO; Jane Cronin, Senior Vice President, Corporate Controller; and Jim Jaye, Senior Vice President, Investor Relations and Communications.

This conference call is being webcast simultaneously in listen-only mode by Issuer Direct via the Internet at www.sherwin.com. An archived replay of this webcast will be available at www.sherwin.com, beginning approximately two hours after this conference call concludes. This conference call will include certain forward-looking statements as defined under the U.S. federal securities laws with respect to sales, earnings and other matters.

Any forward-looking statement speaks only as of the date on which the statement is made, and the company undertakes no obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise. A full declaration regarding forward-looking statements is provided in the company's earnings release transmitted earlier this morning. After the company's prepared remarks, we will open the session to questions.

I will now turn the call over to Jim Jaye.

Jim Jaye

Thank you, and good morning to everyone. Sherwin-Williams delivered strong fourth quarter results compared to the same period a year ago, including high single-digit percentage sales growth, significant year-over-year gross margin improvement, expanded adjusted operating margins in all three segments, strong double-digit diluted net income per share growth and strong EBITDA growth. Sales in our professional architectural end markets increased by a high-teens percentage.