10-QPeriod: Q2 FY2026

SHERWIN WILLIAMS CO Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 28, 2026For Securities:SHW

Summary

The Sherwin-Williams Company (SHW) reported a solid performance for the quarter and six months ended June 30, 2026. Consolidated Net sales saw a notable increase of 7.5% for the quarter and 7.2% year-to-date, driven by growth across all reportable segments, including contributions from recent acquisitions like Suvinil. Diluted net income per share also demonstrated strong growth, increasing by 14.3% for the quarter and 11.6% year-to-date. The company generated substantial operating cash flow, totaling $1.487 billion year-to-date, and continued its commitment to shareholder returns through dividends and significant share repurchases. While facing some inflationary pressures in raw materials and logistics, Sherwin-Williams is actively managing these through pricing strategies and cost-out initiatives. The company maintains a strong liquidity position, providing confidence in its ability to fund operations and pursue its growth strategy, including potential acquisitions.

Key Highlights

  • 1Consolidated Net sales increased 7.5% to $6.789 billion in Q2 2026 and 7.2% to $12.456 billion year-to-date, driven by all reportable segments and acquisitions.
  • 2Diluted net income per share rose significantly, up 14.3% to $3.43 in Q2 2026 and 11.6% to $5.58 year-to-date, reflecting improved profitability.
  • 3Paint Stores Group saw a 5.1% net sales increase in Q2 2026, with comparable store sales up 4.2%, indicating steady performance in its core retail channel.
  • 4Consumer Brands Group experienced robust 21.5% net sales growth in Q2 2026, largely attributed to the Suvinil acquisition and favorable foreign currency impacts.
  • 5Strong operating cash flow generation of $1.487 billion year-to-date demonstrates effective working capital management and operational efficiency.
  • 6Significant share repurchases totaling $1.837 billion year-to-date underscore the company's commitment to returning capital to shareholders.
  • 7The company maintains a healthy liquidity position with $293.5 million in cash and cash equivalents and $1.969 billion in unused credit facilities.

Frequently Asked Questions

The primary drivers for the increase in Net Sales were higher sales in all reportable segments, including the impact of the October 2025 acquisition of Suvinil, alongside selling price increases and sales volume growth across segments. Favorable foreign currency translation also contributed to the growth, particularly in the Consumer Brands and Performance Coatings segments.

Sherwin-Williams is addressing inflationary pressures in raw materials, energy, logistics, and packaging by focusing on securing incremental volume, implementing balanced and decisive pricing actions, and executing cost-out initiatives across all its businesses. This proactive approach aims to maintain productivity and profitability for both the company and its customers.

The company employs a disciplined capital deployment strategy focused on driving value for customers and returns for shareholders. This includes pursuing business acquisitions that align with its long-term growth strategy and returning value through dividends and share repurchases. Sherwin-Williams maintains a strong liquidity position to support these activities.

The company is involved in various legal proceedings and environmental matters. Notably, there are ongoing environmental investigations and remediation activities at several sites, including the Gibbsboro, New Jersey site. The company is also defending against lead pigment and lead-based paint litigation. While the company accrues for estimated costs and believes its current accruals are appropriate, significant uncertainties exist, and future liabilities could materially impact results if they exceed current estimates. The company is also facing a lawsuit from the State of Texas related to environmental regulations at a facility in Garland, Texas. Investors should refer to Notes 8 and 9 for detailed disclosures on these matters.