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Sherwin-Williams (NYSE: SHW) raises 2026 outlook after strong Q2

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

The Sherwin-Williams Company reported strong second-quarter 2026 results, with consolidated Net sales of $6.79 billion, up 7.5% year over year. Net income was $843.6 million (12.4% of Net sales), and diluted EPS rose 14.3% to $3.43; adjusted diluted EPS was $3.70, up 9.5%.

EBITDA reached $1.43 billion, or 21.1% of Net sales, and Adjusted EBITDA increased 13.8%. Net operating cash improved 21%, free cash flow conversion was 86%, and the company returned $2.23 billion to shareholders in the first half, including dividends and repurchases of 5.6 million shares.

By segment, Paint Stores Group Net sales were $3.89 billion, up 5.1% with same-store sales up 4.2%; Consumer Brands Group grew 21.5% to $983.5 million aided by the Suvinil acquisition; Performance Coatings Group rose 6.3% to $1.91 billion.

Sherwin-Williams raised full-year 2026 guidance, now expecting consolidated Net sales up a mid to high-single digit percentage and diluted EPS of $10.92–$11.32 (adjusted $11.80–$12.20). Management cited cost inflation and announced an 8% Paint Stores Group price increase effective September 1 and restructuring actions targeting about $17 million of annual savings.

Positive

  • Net sales up 7.5% to $6.79 billion, with growth across all three reportable segments and contributions from the Suvinil acquisition.
  • Diluted EPS increased 14.3% to $3.43 and adjusted diluted EPS rose 9.5% to $3.70, indicating higher profitability versus the prior-year quarter.
  • Strong cash generation with $1.49 billion in Net operating cash in the first half of 2026, free cash flow conversion of 86% in Q2, and $2.23 billion returned to shareholders.
  • Raised 2026 outlook with diluted EPS guidance of $10.92–$11.32 and adjusted diluted EPS of $11.80–$12.20, alongside expected mid to high-single digit Net sales growth.

Negative

  • None.

Filing Explained

The filing leaves 24.0 million shares authorized for future repurchases; that is capacity, not a commitment or completed share reduction.

Sherwin-Williams reports that 24.0 million shares remained authorized for open-market repurchases at June 30, 2026; this is future capacity, not a committed purchase or completed reduction in shares.

Form 8-K is used to report specified material events, and this report furnishes the Item 2.02 results release rather than treating it as filed for Section 18 liability or incorporating it into another filing absent express reference.

The company had already repurchased 5.6 million shares during the first six months, while the separate authorization line shows the amount still available for potential future purchases.

The material follow-up is the authorization line in a later results filing or other company disclosure: it would show whether additional open-market repurchases are completed and how much authorization remains.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales $6,789.3 million Three months ended June 30, 2026; up 7.5% vs Q2 2025
Net income $843.6 million Q2 2026 net income; 12.4% of Net sales; up 11.8%
Diluted EPS $3.43 Q2 2026 diluted net income per share; up 14.3% vs Q2 2025
Adjusted diluted EPS $3.70 Q2 2026 adjusted diluted net income per share; up 9.5% vs Q2 2025
EBITDA $1,434.8 million Q2 2026 EBITDA; 21.1% of Net sales; up 13.8%
Net operating cash $1.49 billion Net operating cash generated in the first six months of 2026
Capital returned to shareholders $2.23 billion Dividends and share repurchases in the first six months of 2026
2026 diluted EPS guidance $10.92–$11.32 Full year 2026 diluted net income per share guidance including amortization and restructuring
Adjusted EBITDA financial
"Adjusted EBITDA and diluted earnings per share rose approximately 10% year over year"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow conversion financial
"free cash flow conversion in the quarter was 86%"
Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.
same-store sales financial
"Same-store sales represents Net sales from stores open more than twelve calendar months"
Same-store sales measure the revenue generated by stores that have been open for a certain period, typically a year, comparing their sales over different time frames. It helps assess whether a business is growing due to increased customer activity at existing locations rather than new stores. For investors, this figure indicates the health and performance of a company's core operations, independent of expansion efforts.
severance and other restructuring expenses financial
"diluted net income per share also included a charge of $0.07 per share related to severance and other restructuring expenses"
Severance and other restructuring expenses are the one-time costs a company incurs when it reorganizes operations, such as payouts to laid-off employees, facility closures, contract termination fees, asset write‑downs, and consultant or advisor fees. Investors care because these charges reduce current profit and cash flow but can signal a company is cutting costs or shifting strategy to improve future profitability — like paying movers and repairs to reorganize a household and lower monthly bills later.
Net sales $6,789.3 million up 7.5% vs Q2 2025
Net income $843.6 million up 11.8% vs Q2 2025
Diluted EPS $3.43 up 14.3% vs Q2 2025
Adjusted diluted EPS $3.70 up 9.5% vs Q2 2025
EBITDA $1,434.8 million up 13.8% vs Q2 2025
Guidance

For 2026, consolidated Net sales are expected to be up a mid to high-single digit percentage vs 2025; diluted EPS is guided to $10.92–$11.32 including $0.81 amortization and $0.07 restructuring per share, and adjusted diluted EPS to $11.80–$12.20.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did The Sherwin-Williams Company (SHW) perform in net sales in Q2 2026?
The Sherwin-Williams Company reported Q2 2026 Net sales of $6.79 billion, a 7.5% increase versus Q2 2025. Growth was driven by higher Net sales across all three segments, including contributions from the Suvinil acquisition and both pricing and volume gains.

What were SHW’s earnings per share results for Q2 2026?
Diluted net income per share in Q2 2026 was $3.43, up 14.3% from $3.00 a year ago. Adjusted diluted EPS was $3.70, a 9.5% increase from $3.38, reflecting higher profitability after excluding amortization and restructuring items.

What full-year 2026 guidance did Sherwin-Williams (SHW) provide?
For 2026, Sherwin-Williams expects consolidated Net sales to be up a mid to high-single digit percentage, with diluted EPS between $10.92 and $11.32. Adjusted diluted EPS is guided to $11.80–$12.20, excluding $0.81 amortization and $0.07 restructuring expense per share.

How much cash did SHW return to shareholders in the first half of 2026?
In the first six months of 2026, Sherwin-Williams returned $2.23 billion to shareholders through dividends and share repurchases. This included buybacks of 5.6 million shares of common stock, while 24.0 million shares remained authorized for future repurchases.

What were SHW’s segment results in Q2 2026?
In Q2 2026, Paint Stores Group Net sales were $3.89 billion, up 5.1% with same-store sales up 4.2%. Consumer Brands Group rose 21.5% to $983.5 million, and Performance Coatings Group increased 6.3% to $1.91 billion, with segment profits improving across all three.

What were Sherwin-Williams’ cash flow and free cash flow conversion metrics in Q2 2026?
For Q2 2026, Sherwin-Williams generated $1,347.5 million of Net operating cash and $1,239.1 million of free cash flow. With EBITDA of $1,434.8 million, free cash flow conversion was 86%, highlighting strong cash generation relative to earnings.
0000089800false00000898002026-07-282026-07-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026
THE SHERWIN-WILLIAMS COMPANY
(Exact Name of Registrant as Specified in Charter)
Ohio
1-04851
34-0526850
(State or other jurisdiction of incorporation)
(Commission file number)
(I.R.S. Employer Identification No.)
1 Sherwin Way
Cleveland,
Ohio
44113-2206
(Address of principal executive offices)
(Zip Code)
(216) 566-2000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, par value $0.33-1/3 per share
SHW
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.Results of Operations and Financial Condition.
On July 28, 2026, The Sherwin-Williams Company issued a press release announcing its financial results for the second quarter ended June 30, 2026 and certain other information. A copy of the press release is furnished with this Report as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly incorporated by specific reference in such filing.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Exhibit Description
99.1
Press Release of The Sherwin-Williams Company, dated July 28, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

THE SHERWIN-WILLIAMS COMPANY
July 28, 2026
By:
/s/ Stephen J. Perisutti
Name:
Stephen J. Perisutti
Title:
Senior Vice President - Deputy General Counsel and Assistant Secretary


        
shw-pressxreleasex1q2022.jpg
Exhibit 99.1
NEWS
 The Sherwin-Williams Company•1 Sherwin Way•Cleveland, Ohio 44113• (216) 566-2000








The Sherwin-Williams Company Reports 2026 Second Quarter Financial Results
CLEVELAND, July 28, 2026 - The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the second quarter ended June 30, 2026. All comparisons are to the second quarter of the prior year, unless otherwise noted.
SUMMARY

•Consolidated Net sales increased 7.5% to $6.79 billion in the quarter
◦Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 4.2% in the quarter
•Diluted net income per share increased 14.3% to $3.43 per share in the quarter compared to $3.00 per share in the second quarter of 2025
◦Adjusted diluted net income per share increased 9.5% to $3.70 per share in the quarter compared to $3.38 per share in the second quarter of 2025
•Net income increased 11.8% in the quarter to $843.6 million, or 12.4% of Net sales
•Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 13.8% to $1.43 billion, or 21.1% of Net sales
•Increasing full year 2026 diluted net income per share guidance in the range of $10.92 to $11.32 per share, including Valspar acquisition-related amortization expense of $0.81 per share and severance and other restructuring expenses of $0.07 per share
◦Increasing full year 2026 adjusted diluted net income per share guidance in the range of $11.80 to $12.20 per share
CEO REMARKS

“Sherwin-Williams delivered strong second quarter results and continued to outperform the market despite ongoing global uncertainty and no meaningful improvement in demand,” said Chair, President and Chief Executive Officer, Heidi G. Petz. “Sales improvement was driven by continued growth investments, new account wins and increased share of wallet, and exceeded guidance on a consolidated basis and across all three reportable segments. We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter. Adjusted EBITDA and diluted earnings per share rose approximately 10% year over year, and adjusted EBITDA margin grew 60 basis points to 21.5%. Net operating cash improved by 21% in the quarter, and free cash flow conversion in the quarter was 86%. We returned $1.46 billion to shareholders through dividends and share repurchases. Our team remains focused on executing our customer-centered strategy while controlling what we can control amidst a challenging macro-economic backdrop.”


1

SECOND QUARTER CONSOLIDATED RESULTS
(in millions, except per share data)

Three Months Ended June 30,
20262025$ Change% Change
Net sales$6,789.3$6,314.5$474.8 7.5 %
Income before income taxes$1,112.5$985.7$126.8 12.9 %
Percent to Net sales16.4%15.6%
Net income per share - diluted$3.43$3.00$0.43 14.3 %
Adjusted net income per share - diluted$3.70$3.38$0.32 9.5 %
Consolidated Net sales increased primarily due to higher Net sales in all reportable segments, inclusive of the October 2025 acquisition of Suvinil.
Income before income taxes increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs, an increase in employee-related costs, incremental selling, general and administrative (SG&A) expenses associated with Suvinil, higher costs in the Administrative function related to the new global headquarters and technology center and additional interest expense attributable to an increase in short-term borrowings and long-term debt.
Diluted net income per share included a charge of $0.20 per share for Valspar acquisition-related amortization expense in the second quarter of 2026 and 2025. In the second quarter of 2026 and 2025, diluted net income per share also included a charge of $0.07 and $0.18 per share, respectively, related to severance and other restructuring expenses.
SECOND QUARTER SEGMENT RESULTS
(in millions)

Paint Stores Group (PSG)
Three Months Ended June 30,
20262025$ Change % Change
Net sales$3,890.0 $3,702.2 $187.8 5.1 %
Same-store sales (1)
4.2%0.8%
Segment profit$957.6 $916.5 $41.1 4.5 %
Reported segment margin24.6%24.8%
(1)    Same-store sales represents Net sales from stores open more than twelve calendar months.
Net sales in PSG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, as well as low-single digit percentage sales volume growth. Net sales increased in all professional customer end markets, led by a double-digit percentage increase in protective and marine, a high-single digit percentage increase in commercial and a mid-single digit percentage increase in residential repaint. Segment profit increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs and increased costs to support higher sales, including investments in additional sales reps and stores.

2

Consumer Brands Group (CBG)
Three Months Ended June 30,
20262025$ Change % Change
Net sales$983.5 $809.4 $174.1 21.5 %
Segment profit$212.9 $164.2 $48.7 29.7 %
Reported segment margin21.6%20.3%
Adjusted segment profit (1)
$241.4 $181.4 $60.0 33.1 %
Adjusted segment margin24.5%22.4%
(1)    Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In CBG, Valspar acquisition-related amortization expense was $15.6 million and $15.5 million in the second quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $12.9 million and $1.7 million in the second quarter of 2026 and 2025, respectively.
Net sales in CBG increased primarily as a result of the acquisition of Suvinil, increased Net sales in North America and a 1.6% impact from favorable foreign currency translation. Segment profit increased primarily due to higher Net sales, favorable mix, supply chain efficiencies and benefits from foreign currency transaction gains and losses, partially offset by a moderate rise in raw material costs and incremental SG&A expenses associated with the Suvinil acquisition. Adjusted segment profit increased for these same reasons, including an increase in the expenses associated with targeted restructuring actions in the second quarter of 2026.
Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 160 and 190 basis points in the second quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 130 and 20 basis points in the second quarter of 2026 and 2025, respectively.

Performance Coatings Group (PCG)
Three Months Ended June 30,
20262025$ Change % Change
Net sales$1,913.8 $1,801.1 $112.7 6.3 %
Segment profit$273.3 $245.1 $28.2 11.5 %
Reported segment margin14.3%13.6%
Adjusted segment profit (1)
$332.0 $302.3 $29.7 9.8 %
Adjusted segment margin17.3%16.8%
(1)    Adjusted segment profit equals Segment profit excluding the impact of Valspar acquisition-related amortization expense and severance and other restructuring expenses. In PCG, Valspar acquisition-related amortization expense was $49.9 million and $49.0 million in the second quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $8.8 million and $8.2 million in the second quarter of 2026 and 2025, respectively.
Net sales in PCG increased primarily due to selling price increases, mainly attributable to product mix, which impacted Net sales by a low-single digit percentage, low-single digit percentage sales volume growth and a 2.0% impact from favorable foreign currency translation. Net sales increased in all businesses, led by General Industrial and Automotive Refinish, which each increased by a high-single digit percentage, and Packaging, Industrial Wood and Coil, which each increased by a mid-single digit percentage. Segment profit increased primarily due to higher Net sales, partially offset by a moderate rise in raw material costs and an increase in employee-related costs to support higher sales. Adjusted segment profit increased for these same reasons, including a modest increase in the expenses associated with targeted restructuring actions in the second quarter of 2026.
Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 260 and 270 basis points in the second quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 40 and 50 basis points in the second quarter of 2026 and 2025, respectively.
3

LIQUIDITY AND CASH FLOW

The Company generated $1.49 billion in Net operating cash and returned cash of $2.23 billion to our shareholders in the form of dividends and repurchases of 5.6 million shares of its common stock during the first six months of 2026. At June 30, 2026, the Company had remaining authorization to purchase 24.0 million shares of its common stock through open market purchases.
2026 GUIDANCE

Third QuarterFull Year
20262026
Net salesUp mid to high-single digit %Up mid to high-single digit %
Effective tax rateLow twenty percent
Diluted net income per share$10.92 -$11.32 
Adjusted diluted net income per share (1)
$11.80 -$12.20 
(1)    Excludes $0.81 per share of Valspar acquisition-related amortization expense and $0.07 per share of severance and other restructuring expenses.
“Our better than expected second quarter results reflect the power of our differentiated model, our focus on the customer and the decisive actions our teams are taking to grow share, manage costs and respond to this dynamic environment,” said Ms. Petz. “While customer sentiment and the leading indicators we track point to continued demand softness in the second half, we remain focused on the actions within our control. Our deep and experienced team is executing with urgency, driving share gains, improving productivity and maintaining discipline across the enterprise.
“During the second quarter, we took restructuring actions that are expected to generate approximately $17 million of annual savings, and we see additional opportunities to leverage our competitive advantages, simplify the business, improve execution and deliver greater value to our customers. At the same time, broad-based cost inflation continues across raw materials, energy, logistics and packaging, and we are responding with pricing actions across our businesses, including an announced 8% price increase in Paint Stores Group effective September 1.
“Against this backdrop, we expect third quarter 2026 consolidated Net sales to be up a mid to high-single digit percentage compared to the third quarter of 2025. We are raising our full year 2026 guidance, with consolidated Net sales expected to be up a mid to high-single digit percentage compared to full year 2025. Diluted net income per share is expected to be in the range of $10.92 to $11.32 per share, including acquisition-related amortization expense of $0.81 per share and severance and other restructuring expenses of $0.07 per share, compared to $10.26 per share in 2025. Full year 2026 adjusted diluted net income per share is expected to be in the range of $11.80 to $12.20 per share compared to $11.43 per share in 2025.
“We are pleased with our first-half performance and the momentum we are carrying into the second half of the year. Our updated outlook remains appropriately disciplined given the uncertain environment, but our confidence is grounded in the strength of our team, our customer relationships, our differentiated model and our proven ability to deliver.”
CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss its financial results for the second quarter, and its outlook for the third quarter and full year 2026, at 10:00 a.m. EDT on Tuesday, July 28, 2026. Heidi G. Petz, Sherwin-Williams’ Chair, President and Chief Executive Officer, along with other senior executives, will participate on the call.
4

The conference call will be webcast simultaneously in listen only mode. To listen to the webcast on the Sherwin-Williams website, click on https://investors.sherwin-williams.com/financials/quarterly-results/, then click on the webcast icon following the reference to the Q2 webcast. An archived replay of the webcast will be available at https://investors.sherwin-williams.com/financials/quarterly-results/ beginning approximately two hours after the call ends.

ABOUT THE SHERWIN-WILLIAMS COMPANY

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson’s® WaterSeal®, Cabot®, Suvinil® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, while the Company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.

5

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements are based upon management’s current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions and may relate to, among other things, anticipated future performance (including sales and earnings), expected growth, and future business plans. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “anticipate,” “aspire,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “strive,” “target,” “will,” or “would” or the negative thereof or comparable terminology.
Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions in the United States and worldwide; inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease and supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change); disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents; our ability to attract, retain, develop and progress a qualified global workforce; the loss of any of our largest customers; increased competition or failure to keep pace with developments in key competitive areas of our business; our ability to successfully integrate past and future acquisitions, into our existing operations; risks and uncertainties associated with our expansion into and our operations in South America, Asia, Europe and other foreign markets; policy changes affecting international trade, including import/export restrictions and tariffs; our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing and changes in carbon markets and carbon accounting rules; damage to our business, reputation, image or brands due to negative publicity; the infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade secrets or other confidential business information; a weakening of global credit markets or changes to our credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and environmental laws, regulations and requirements; our liability related to environmental investigation and remediation activities at some of our currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and our other reports filed with the SEC.
Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.
6

INVESTOR RELATIONS CONTACTS:

Jim Jaye                                
Senior Vice President, Investor Relations & Corporate Communications                
Direct: 216.515.8682
investor.relations@sherwin.com

Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766                        
investor.relations@sherwin.com                    

MEDIA CONTACT:

Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
7

The Sherwin-Williams Company and Subsidiaries
Statements of Consolidated Income (Unaudited)
(in millions, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net sales$6,789.3 $6,314.5 $12,456.2 $11,620.2 
Cost of goods sold3,451.3 3,196.2 6,337.7 5,942.8 
Gross profit3,338.0 3,118.3 6,118.5 5,677.4 
Percent to Net sales49.2 %49.4 %49.1 %48.9 %
Selling, general and administrative expenses2,103.7 2,011.6 4,073.3 3,805.4 
Percent to Net sales31.0 %31.9 %32.7 %32.7 %
Other general expense - net3.4 6.3 9.7 15.2 
Interest expense135.9 112.4 267.5 216.2 
Interest income(5.4)(2.4)(8.2)(5.7)
Other (income) expense - net(12.1)4.7 (16.1)7.6 
Income before income taxes1,112.5 985.7 1,792.3 1,638.7 
Income taxes268.9 231.0 414.0 380.1 
Net income$843.6 $754.7 $1,378.3 $1,258.6 
Net income per common share:
Basic$3.46 $3.04 $5.63 $5.06 
Diluted$3.43 $3.00 $5.58 $5.00 
Weighted average shares outstanding:
Basic243.9 248.4 244.8 248.9 
Diluted246.0 251.3 247.1 251.9 
8

The Sherwin-Williams Company and Subsidiaries
Business Segments (Unaudited)
(millions of dollars)
20262025
NetSegmentNetSegment
SalesProfit (Loss)SalesProfit (Loss)
Three Months Ended June 30:
Paint Stores Group$3,890.0 $957.6 $3,702.2 $916.5 
Consumer Brands Group983.5 212.9 809.4 164.2 
Performance Coatings Group1,913.8 273.3 1,801.1 245.1 
Administrative2.0 (331.3)1.8 (340.1)
Consolidated totals$6,789.3 $1,112.5 $6,314.5 $985.7 
Six Months Ended June 30:
Paint Stores Group$6,939.9 $1,516.4 $6,642.0 $1,457.7 
Consumer Brands Group1,891.8 410.1 1,571.6 296.1 
Performance Coatings Group3,619.6 505.7 3,403.1 457.8 
Administrative4.9 (639.9)3.5 (572.9)
Consolidated totals$12,456.2 $1,792.3 $11,620.2 $1,638.7 
 




9

The Sherwin-Williams Company and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(millions of dollars)
June 30,
20262025
Assets
Current assets:
Cash and cash equivalents$293.5 $269.8 
Accounts receivable, net3,571.2 3,111.9 
Inventories2,529.7 2,484.6 
Other current assets604.8 559.0 
Total current assets6,999.2 6,425.3 
Property, plant and equipment, net4,219.4 3,805.9 
Goodwill8,023.2 7,807.6 
Intangible assets3,803.7 3,543.4 
Operating lease right-of-use assets2,059.9 2,011.3 
Other assets1,846.0 1,770.1 
Total assets$26,951.4 $25,363.6 
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings$2,246.4 $1,706.7 
Accounts payable2,826.4 2,570.0 
Compensation and taxes withheld768.4 688.9 
Accrued taxes405.4 255.8 
Current portion of long-term debt1,498.4 1,150.7 
Current portion of operating lease liabilities486.5 480.7 
Other accruals1,395.5 1,343.6 
Total current liabilities9,627.0 8,196.4 
Long-term debt8,327.3 7,828.9 
Postretirement benefits other than pensions133.4 120.7 
Deferred income taxes757.2 560.9 
Long-term operating lease liabilities1,656.8 1,603.2 
Other long-term liabilities2,595.0 2,652.6 
Shareholders’ equity3,854.7 4,400.9 
Total liabilities and shareholders’ equity$26,951.4 $25,363.6 

10

Reconciliation of Non-GAAP Financial Measures

Management of the Company utilizes certain financial measures that are not in accordance with U.S. generally accepted accounting principles (US GAAP) to analyze and manage the performance of the business. Management provides non-GAAP information in reporting its financial results to give investors additional data to evaluate the Company’s operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with US GAAP.
Management believes that investors’ understanding of the Company’s operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related amortization and certain other adjustments. Valspar acquisition-related amortization expense is excluded from diluted net income per share due to its significance as a result of the purchase price assigned to finite-lived intangible assets at the date of acquisition and the related impact on underlying business performance and trends. While these intangible assets contribute to the Company’s revenue generation, the related revenue is not excluded. This adjusted diluted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for diluted earnings per share computed in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. The following tables reconcile diluted net income per share computed in accordance with US GAAP to adjusted diluted net income per share.
Year Ending
Three Months EndedSix Months EndedDecember 31, 2026
June 30, 2026June 30, 2026(after-tax guidance)
Pre-Tax
Tax
Effect (1)
After-TaxPre-Tax
Tax
Effect (1)
After-TaxLowHigh
Diluted net income per share$3.43 $5.58 $10.92 $11.32 
Acquisition-related amortization expense (2)
$.27 $.07 .20 $.53 $.13 .40 .81 .81 
Severance and other restructuring expenses.10 .03 .07 .10 .03 .07 .07 .07 
Adjusted diluted net income per share$3.70 $6.05 $11.80 $12.20 
Three Months EndedSix Months EndedYear Ended
June 30, 2025June 30, 2025December 31, 2025
Pre-Tax
Tax
Effect (1)
After-TaxPre-Tax
Tax
Effect (1)
After-TaxPre-Tax
Tax
Effect (1)
After-Tax
Diluted net income per share$3.00 $5.00 $10.26 
Acquisition-related amortization expense (2)
$.26 $.06 .20 $.51 $.13 .38 $1.03 $.25 .78 
Severance and other restructuring expenses.23 .05 .18 .31 .07 .24 .44 .10 .34 
Trademark impairment— — — — — — .07 .02 .05 
Adjusted diluted net income per share$3.38 $5.62 $11.43 
(1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted.
(2) Acquisition-related amortization expense, which is included within Selling, general and administrative expenses, consists of the amortization of intangible assets related to the Valspar acquisition. These intangible assets are primarily customer relationships and intellectual property and are being amortized over their remaining useful lives.

11

Management believes that investors’ understanding of the Company’s operating performance is enhanced by the disclosure of EBITDA, which is a non-GAAP financial measure defined as Net income before Interest expense, Income taxes, depreciation and amortization, as well as Adjusted EBITDA, which is a non-GAAP financial measure that excludes certain adjustments that management further believes enhances investors’ understanding of the Company’s operating performance. The reader is cautioned that the Company’s EBITDA and Adjusted EBITDA should not be compared to other entities unknowingly. Further, EBITDA and Adjusted EBITDA should not be considered alternatives to Net income as an indicator of operating performance. The following table reconciles Net income computed in accordance with US GAAP to EBITDA and Adjusted EBITDA, as applicable.
(millions of dollars)
Three MonthsThree MonthsSix Months
EndedEndedEnded
March 31, 2026June 30, 2026June 30, 2026
Net income$534.7 $843.6 $1,378.3 
Interest expense131.6 135.9 267.5 
Income taxes145.1 268.9 414.0 
Depreciation98.3 98.5 196.8 
Amortization88.5 87.9 176.4 
EBITDA$998.2 $1,434.8 $2,433.0 
Severance and other restructuring expenses— 23.8 23.8 
Adjusted EBITDA$998.2 $1,458.6 $2,456.8 
Three MonthsThree MonthsSix Months
EndedEndedEnded
March 31, 2025June 30, 2025June 30, 2025
Net income$503.9 $754.7 $1,258.6 
Interest expense103.8 112.4 216.2 
Income taxes149.1 231.0 380.1 
Depreciation79.9 79.3 159.2 
Amortization81.0 83.4 164.4 
EBITDA$917.7 $1,260.8 $2,178.5 
Severance and other restructuring expenses 19.3 59.0 78.3 
Adjusted EBITDA$937.0 $1,319.8 $2,256.8 


12

Management believes that investors’ understanding of the Company’s operating performance and ability to generate shareholder value is enhanced by the disclosure of free cash flow conversion. Free cash flow, which is a non-GAAP financial measure, is defined as Net operating cash less Capital expenditures. Free cash flow conversion, which is a non-GAAP financial measure, is defined as free cash flow divided by EBITDA, another non-GAAP financial measure discussed and reconciled above. The reader is cautioned that free cash flow and free cash flow conversion should not be compared to other entities unknowingly. Further, free cash flow and free cash flow conversion should not be considered alternatives to Net operating cash as determined in accordance with GAAP. The following table reconciles Net operating cash computed in accordance with US GAAP to free cash flow and free cash flow conversion.
(millions of dollars)
Three Months
Ended
June 30, 2026
Net operating cash$1,347.5 
Capital expenditures(108.4)
Free cash flow$1,239.1 
EBITDA$1,434.8 
Free cash flow conversion86 %
13


The Sherwin-Williams Company and Subsidiaries
Selected Information (Unaudited)
(millions of dollars, except store count data)
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Depreciation$98.5 $79.3 $196.8 $159.2 
Capital expenditures108.4 181.5 246.7 370.8 
Cash dividends197.5 197.9 394.6 398.3 
Amortization of intangibles87.9 83.4 176.4 164.4 
Significant components of Other general expense - net:
Provisions for environmental related matters - net$3.3 $0.4 $3.4 $3.5 
Loss (gain) on sale or disposition of assets0.1 (1.3)(1.8)(3.4)
Other — 7.2 8.1 15.1 
Significant components of Other (income) expense - net:
Investment gains$(9.7)$(6.3)$(6.4)$(9.5)
Foreign currency transaction related losses (gains) - net0.3 13.1 (5.5)23.1 
Other (1)
(2.7)(2.1)(4.2)(6.0)
Store Count Data:
Paint Stores Group - net new stores(6)20 (12)38 
Paint Stores Group - total stores4,841 4,811 4,841 4,811 
Consumer Brands Group - net new stores— (28)1 (22)
Consumer Brands Group - total stores308 312 308 312 
Performance Coatings Group - net new branches— — — — 
Performance Coatings Group - total branches317 324 317 324 
(1) Consists of items of revenue, gains, expenses and losses unrelated to the primary business purpose of the Company.


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Source: View Original Filing on SEC EDGAR

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