SHW 8-K — Smart Summary

Sherwin-Williams reported Q1 2026 financial results for the quarter ended March 31, 2026, with consolidated net sales increasing 6.8% to $5.67 billion and diluted EPS rising 7.5% to $2.15. The company reaffirmed its full year 2026 guidance for both diluted net income per share and adjusted diluted net income per share.

• Net sales increased 6.8% to $5,666.9 million vs. $5,305.7 million in Q1 2025
• Gross profit increased to $2,780.5 million (49.1% of Net sales) vs. $2,559.1 million (48.2% of Net sales) in Q1 2025, a 90 basis point margin expansion
• SG&A expenses increased to $1,969.6 million (34.8% of Net sales) vs. $1,793.8 million (33.8% of Net sales) in Q1 2025
• Income before income taxes increased 4.1% to $679.8 million vs. $653.0 million in Q1 2025
• Net income increased 6.1% to $534.7 million, or 9.4% of Net sales, vs. $503.9 million in Q1 2025
• Diluted net income per share increased 7.5% to $2.15 vs. $2.00 in Q1 2025; Adjusted diluted net income per share increased 4.4% to $2.35 vs. $2.25 in Q1 2025
• EBITDA increased 8.8% to $998.2 million (17.6% of Net sales) vs. $917.7 million in Q1 2025
• Net operating cash generated was $139.1 million in Q1 2026

• Paint Stores Group (PSG): Net sales $3,049.9 million, +3.7% YoY; same-store sales +2.4%; segment profit $558.8 million, +3.3%; segment margin 18.3% vs. 18.4%
• Consumer Brands Group (CBG): Net sales $908.3 million, +19.2% YoY (driven by Suvinil acquisition, favorable FX of 2.4%, and higher Europe sales); segment profit $197.2 million, +49.5%; segment margin 21.7% vs. 17.3%; adjusted segment profit $212.8 million, +30.8%; adjusted segment margin 23.4% vs. 21.3%
• Performance Coatings Group (PCG): Net sales $1,705.8 million, +6.5% YoY (including 4.1% favorable FX impact); segment profit $232.4 million, +9.3%; segment margin 13.6% vs. 13.3%; adjusted segment profit $281.5 million, +6.3%; adjusted segment margin 16.5% vs. 16.5%
• PSG end market highlights: double-digit % increase in protective and marine; mid-single digit % increase in residential repaint and commercial; new residential decreased by a low-single digit %
• PCG end market highlights: Automotive Refinish up double-digit %; General Industrial and Packaging up high-single digit %; Coil up mid-single digit %

• Returned $772.7 million to shareholders in Q1 2026 via dividends and share repurchases
• Cash dividends paid: $197.1 million in Q1 2026 vs. $200.4 million in Q1 2025
• Repurchased 1.6 million shares of common stock during Q1 2026
• Remaining share repurchase authorization: 28.0 million shares as of March 31, 2026
• Cash and cash equivalents: $216.9 million at March 31, 2026 vs. $199.8 million at March 31, 2025
• Short-term borrowings: $2,376.6 million at March 31, 2026 vs. $1,798.5 million at March 31, 2025
• Long-term debt: $9,323.1 million at March 31, 2026 vs. $7,827.1 million at March 31, 2025
• Capital expenditures: $138.3 million in Q1 2026 vs. $189.3 million in Q1 2025

• Heidi G. Petz, Chair, President and CEO: "Sherwin-Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets. Our growth investments and relentless focus on new accounts and share of wallet continued to yield results, as sales exceeded guidance on a consolidated basis and in all three reportable segments."
• Heidi G. Petz, Chair, President and CEO: "We continue to expect little to no recovery in most end markets this year, given current customer sentiment and the leading indicators we monitor. Geopolitical events are adding further demand uncertainty, along with potential inflation related to raw materials, energy, logistics and packaging."

• Q2 2026: Consolidated Net sales expected up a mid-single digit % vs. Q2 2025
• Full Year 2026: Consolidated Net sales expected up low to mid-single digit % vs. 2025
• Full Year 2026: Diluted net income per share guidance reaffirmed at $10.70–$11.10, including $0.80 per share of Valspar acquisition-related amortization expense
• Full Year 2026: Adjusted diluted net income per share guidance reaffirmed at $11.50–$11.90 (midpoint +2.4% vs. 2025 adjusted EPS of $11.43)
• Full year effective tax rate expected at low twenty %
• Consolidated price/mix for the year expected to move upward to the high end of prior low-single digit range guidance
• Full year SG&A expected to increase by a low-single digit percentage