The 1 Sherwin Clevelan… (216)
Exhibit 99.1 NEWS The 1 Sherwin Clevelan… (216) Sherwin… • Way • Ohio • 566-2000 Company 44113
The Sherwin-Williams Company Reports 2026 Third Quarter Financial Results CLEVELAND, October 27, 2026 - The Sherwin-Williams Company (NYSE: SHW) announced its financial results for the third quarter ended September 30, 2026. All comparisons are to the third quarter of the prior year, unless otherwise noted.
◦ Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 3.9% in the quarter
Diluted net income per share increased 0.9% to $3.38 per share in the quarter compared to $3.35 per share in the third quarter of 2025
Adjusted diluted net income per share increased 1.1% to $3.63 per share in the quarter compared to $3.59 per share in the third quarter of 2025
• Net income decreased 1.5% in the quarter to $821.0 million, or 12.0% of Net sales
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the quarter increased 3.4% to $1.39 billion, or 20.3% of Net sales
◦ Adjusted EBITDA in the quarter increased 3.3% to $1.40 billion, or 20.5% of Net sales
• Revising full year 2026 diluted net income per share guidance in the range of $10.92 to $11.22 per share, including Valspar acquisition-related amortization expense of $0.82 per share and severance and other restructuring expenses of $0.11 per share
◦ Narrowing full year 2026 adjusted diluted net income per share guidance in the range of $11.85 to $12.15 per share
“Sherwin-Williams third quarter performance demonstrated the resilience of our Company and the strength of our strategy in a challenging demand environment. Despite muted underlying market volumes, we continued to win new customers, increase share-of-wallet and deliver sales growth across all three reportable segments, at or above our guidance, supported by the differentiated value and productivity our solutions deliver to customers. At the same time, we took disciplined pricing and cost actions to address inflationary pressures, thoughtfully timed with our customers in mind,” said Chair, President and Chief Executive Officer, Heidi G. Petz. “Gross margin was primarily impacted in the quarter by higher raw material and supply chain related costs and by mix, including dilution from Suvinil and higher growth in lower margin reportable segments. Excluding the dilutive impact of the Suvinil acquisition, our year-to- date gross margin is flat compared to the prior year. SG&A as a percent of sales decreased in the quarter, as we continue to identify and implement efficiencies throughout our Company. Adjusted EBITDA and adjusted diluted earnings per share both grew over last year’s third quarter levels. We returned $749.0 million to shareholders in the quarter through dividends and share repurchases. Our team remains focused on serving our customers and controlling what we can control to continue top and bottom-line growth.” 1
Consolidated Net sales increased primarily due to higher Net sales in all reportable segments, inclusive of the October 2025 acquisition of Suvinil, and selling price increases, which impacted Net sales by a mid-single digit percentage.
Income before income taxes increased slightly due to an increase in Net sales, partially offset by higher raw material and supply chain related costs, incremental selling, general and administrative (SG&A) expenses associated with Suvinil and higher costs in the Administrative function related to additional interest expense attributable to an increase in debt.
Diluted net income per share included a charge of $0.21 and $0.20 per share for Valspar acquisition-related amortization expense in the third quarter of 2026 and 2025, respectively. Diluted net income per share also included a charge of $0.04 per share related to severance and other restructuring expenses in both the third quarter of 2026 and 2025.
(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 higher raw material and supply chain related costs and increased costs to support higher sales, including investments in additional sales reps and stores. 2 Consumer Brands Group (CBG)
(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 $15.5 million and $15.6 million in the third quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $9.7 million and $6.4 million in the third quarter of 2026 and 2025, respectively.
Net sales in CBG increased primarily as a result of the acquisition of Suvinil, favorable foreign currency translation and a positive shift in mix, partially offset by soft demand in North America. Segment profit decreased primarily due to higher raw material and supply chain costs, incremental SG&A expenses associated with the Suvinil acquisition and unfavorable foreign currency transaction gains and losses, partially offset by higher Net sales. Adjusted segment profit decreased for these same reasons.
Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 170 and 200 basis points in the third quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 100 and 90 basis points in the third quarter of 2026 and 2025, respectively. Performance Coatings Group (PCG)
(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 $49.8 million and $49.5 million in the third quarter of 2026 and 2025, respectively, and severance and other restructuring expenses were $3.7 million and $5.1 million in the third quarter of 2026 and 2025, respectively.
Net sales in PCG increased primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, and low-single digit percentage sales volume growth. Net sales increased in all businesses, led by General Industrial, Packaging and Coil, which each increased by a double digit percentage, and Industrial Wood and Automotive Refinish, which each increased by a low-single digit percentage. Segment profit increased primarily due to higher Net sales, partially offset by higher raw material and supply chain related costs and an increase in employee-related costs to support higher sales. Adjusted segment profit increased for these same reasons, including a slight decrease in the expenses associated with targeted restructuring actions in the third quarter of 2026.
Valspar acquisition-related amortization expense reduced Segment profit as a percent of Net sales by 260 and 290 basis points in the third quarter of 2026 and 2025, respectively. Severance and other restructuring expenses reduced Segment profit as a percent of Net sales by 20 and 30 basis points in the third quarter of 2026 and 2025, respectively. 3
The Company generated $2.59 billion in Net operating cash and returned cash of $2.98 billion to our shareholders in the form of dividends and repurchases of 7.1 million shares of its common stock during the first nine months of 2026. At September 30, 2026, the Company had remaining authorization to purchase 22.5 million shares of its common stock through open market purchases.
Fourth Quarter Full Year 2026 2026 Up mid-single Up mid to Net sales digit % high-single digit % Effective tax Low twenty rate percent Diluted net income per $10.92 - $11.22 share Adjusted diluted net $11.85 - $12.15 income per share(1)
(1) Excludes $0.82 per share of Valspar acquisition-related amortization expense and $0.11 per share of severance and other restructuring expenses incurred through September 30, 2026.
“Customer sentiment and the leading indicators we track point to muted demand over the remainder of the year and into 2027. As we navigate this environment, our focus remains clear: win in the marketplace, serve our customers, offset inflation, reduce costs and continue to deliver profitable growth and shareholder value,” said Ms. Petz.
“Against this backdrop, we expect fourth quarter 2026 consolidated Net sales to increase by a mid-single digit percentage compared to the fourth quarter of 2025, resulting in us maintaining our full year 2026 sales guidance where consolidated Net sales are 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 $11.22 per share, including acquisition-related amortization expense of $0.82 per share and severance and other restructuring expenses of $0.11 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 $11.85 to $12.15 per share compared to $11.43 per share in 2025. We remain highly confident in our ability to deliver through current conditions while building an even stronger Sherwin-Williams for the future.”
The Company will host a conference call to discuss its financial results for the third quarter, and its outlook for the fourth quarter and full year 2026, at 10:00 a.m. EDT on Tuesday, October 27, 2026. Heidi G. Petz, Sherwin-Williams’ Chair, President and Chief Executive Officer, along with other senior executives, will participate on the call.
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 Q3 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. 4
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
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 CONTACT: Jim Jaye
The Sherwin-Williams Company and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (millions of dollars) Assets September 30, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 264.2 $ 241.5 Accounts receivable, net 3,598.1 3,122.3 Inventories 2,547.0 2,276.3 Other current assets 618.1 506.0 Total current assets 7,027.4 6,146.1 Property, plant and equipment, 4,225.6 3,913.2 net Goodwill 7,975.5 7,794.1 Intangible assets 3,744.3 3,466.2 Operating lease right-of-use 2,101.5 1,989.5 assets Other assets 1,887.1 2,897.3 Total Assets $ 26,961.4 $ 26,206.4 Liabilities and Shareholders’ Equity Current liabilities: Short-term borrowings $ 2,353.6 $ 1,846.9 Accounts payable 2,895.3 2,441.6 Compensation and taxes withheld 817.4 709.4 Accrued taxes 300.4 254.6 Current portion of long-term 1,498.8 350.5 debt Current portion of operating lease 487.6 479.8 liabilities Other accruals 1,495.8 1,390.7 Total current liabilities 9,848.9 7,473.5 Long-term debt 7,942.7 9,318.1 Postretirement benefits other than 134.0 120.7 pensions Deferred income taxes 742.4 657.2 Long-term operating lease 1,699.1 1,582.3 liabilities Other long-term liabilities 2,617.6 2,629.3 Shareholders’ equity 3,976.7 4,425.3 Total Liabilities and Shareholders’ $ 26,961.4 $ 26,206.4 Equity
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.
(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.
The Sherwi… Company and Subsid… Select… Inform… (Unaud… (milli… of dollar… except store count data) Deprec… Capital expend… Cash divide… Amorti… of intang… Signif… compon… of Three Nine Other Months Months general Ended 99.2 82.8 Ended 296.0 242.0 expense September 128.7 196.4 Septemb… 375.4 567.2 (incom… 30, 194.3 195.7 30, 588.9 594.0 - net: 2026 88.3 2025 84.1 2026 264.7 2025 248.5 ────────────────────────────────────────────────────────────────────────────── Provis… for enviro… $ -0.1 $ 10.6 $ 3.3 $ 14.1 related matters - net Loss (gain) on sale or 2.4 -23.8 0.6 -27.2 dispos… of assets Other 2.9 8.5 11.0 23.6 Signif… compon… of Other expense (incom… - net: Invest… losses $ — $ 3.9 $ -6.4 $ -5.6 (gains) Foreign curren… transa… 16.6 6.6 11.1 29.7 related losses - net Other(… -10.6 -8.2 -14.8 -14.2 Store Count Data: Paint Stores Group - 12 23 — 61 net new stores Paint Stores Group - 4,853 4,834 4,853 4,834 total stores Consum… Brands Group - 2 -8 3 -30 net new stores Consum… Brands Group - 310 304 310 304 total stores Perfor… Coatin… Group - — — — — net new branch… Perfor… Coatin… Group - 317 324 317 324 total branch… (1)Con… of items of revenu… gains, expens… and losses unrela… to the primary busine… purpose of the Compan…
Full text with the tables
Exhibit
99.1
NEWS
The 1 Sherwin Clevelan… (216)
Sherwin… • Way • Ohio • 566-2000
Company 44113
The Sherwin-Williams Company Reports 2026 Third Quarter Financial Results
CLEVELAND, October 27, 2026 - The Sherwin-Williams Company (NYSE: SHW) announced
its financial results for the third quarter ended September 30, 2026. All
comparisons are to the third quarter of the prior year, unless otherwise noted.
SUMMARY
• Consolidated Net sales increased 7.9% to $6.86 billion in the quarter
◦ Net sales from stores in the Paint Stores Group open more than twelve calendar
months increased 3.9% in the quarter
•
Diluted net income per share increased 0.9% to $3.38 per share in the quarter
compared to $3.35 per share in the third quarter of 2025
◦
Adjusted diluted net income per share increased 1.1% to $3.63 per share in the
quarter compared to $3.59 per share in the third quarter of 2025
• Net income decreased 1.5% in the quarter to $821.0 million, or 12.0% of Net
sales
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the
quarter increased 3.4% to $1.39 billion, or 20.3% of Net sales
◦ Adjusted EBITDA in the quarter increased 3.3% to $1.40 billion, or 20.5% of
Net sales
• Revising full year 2026 diluted net income per share guidance in the range of
$10.92 to $11.22 per share, including Valspar acquisition-related amortization
expense of $0.82 per share and severance and other restructuring expenses of
$0.11 per share
◦ Narrowing full year 2026 adjusted diluted net income per share guidance in the
range of $11.85 to $12.15 per share
CEO REMARKS
“Sherwin-Williams third quarter performance demonstrated the resilience of our
Company and the strength of our strategy in a challenging demand environment.
Despite muted underlying market volumes, we continued to win new customers,
increase share-of-wallet and deliver sales growth across all three reportable
segments, at or above our guidance, supported by the differentiated value and
productivity our solutions deliver to customers. At the same time, we took
disciplined pricing and cost actions to address inflationary pressures,
thoughtfully timed with our customers in mind,” said Chair, President and Chief
Executive Officer, Heidi G. Petz. “Gross margin was primarily impacted in the
quarter by higher raw material and supply chain related costs and by mix,
including dilution from Suvinil and higher growth in lower margin reportable
segments. Excluding the dilutive impact of the Suvinil acquisition, our year-to-
date gross margin is flat compared to the prior year. SG&A as a percent of sales
decreased in the quarter, as we continue to identify and implement efficiencies
throughout our Company. Adjusted EBITDA and adjusted diluted earnings per share
both grew over last year’s third quarter levels. We returned $749.0 million to
shareholders in the quarter through dividends and share repurchases. Our team
remains focused on serving our customers and controlling what we can control to
continue top and bottom-line growth.”
1
THIRD QUARTER CONSOLIDATED RESULTS
(in millions, except per share data)
Three
Months
Ended
Septe…
30, $ %
2026 2025 Chan… Change
──────────────────────────────────────────────────────────────────────────────
Net $ 6,86… $ 6,358… $ 501.8 7.9 %
sales
Inco…
befo… $ 1,06… $ 1,060… $ 3.0 0.3 %
inco…
taxes
Perc…
to 15.5% 16.7%
Net
sales
Net
inco…
per $ 3.38 $ 3.35 $ 0.03 0.9 %
share
-
dilu…
Adju…
net
inco…
per $ 3.63 $ 3.59 $ 0.04 1.1 %
share
-
dilu…
Consolidated Net sales increased primarily due to higher Net sales in all
reportable segments, inclusive of the October 2025 acquisition of Suvinil, and
selling price increases, which impacted Net sales by a mid-single digit
percentage.
Income before income taxes increased slightly due to an increase in Net sales,
partially offset by higher raw material and supply chain related costs,
incremental selling, general and administrative (SG&A) expenses associated with
Suvinil and higher costs in the Administrative function related to additional
interest expense attributable to an increase in debt.
Diluted net income per share included a charge of $0.21 and $0.20 per share for
Valspar acquisition-related amortization expense in the third quarter of 2026
and 2025, respectively. Diluted net income per share also included a charge of
$0.04 per share related to severance and other restructuring expenses in both
the third quarter of 2026 and 2025.
THIRD QUARTER SEGMENT RESULTS
(in millions)
Paint Stores Group (PSG)
Three
Months
Ended
Septe… $ %
30, 2026 2025 Chan… Change
──────────────────────────────────────────────────────────────────────────────
Net $ 4,01… $ 3,836… $ 179.0 4.7 %
sales
Same… 3.9% 3.6%
sale…
Segm… $ 974.3 $ 954.3 $ 20.0 2.1 %
prof…
Repo…
segm… 24.3% 24.9%
marg…
(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 higher raw material and supply
chain related costs and increased costs to support higher sales, including
investments in additional sales reps and stores.
2
Consumer Brands Group (CBG)
Three
Months
Ended
Septe… $ %
30, 2026 2025 Change Change
──────────────────────────────────────────────────────────────────────────────
Net $ 937.4 $ 770.1 $ 167.3 21.7 %
sales
Segm… $ 146.2 $ 157.3 $ -11.1 -7.1 %
prof…
Repo…
segm… 15.6% 20.4%
marg…
Adju…
segm… $ 171.4 $ 179.3 $ -7.9 -4.4 %
prof…
Adju…
segm… 18.3% 23.3%
marg…
(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 $15.5 million and $15.6 million in the third quarter of 2026 and 2025,
respectively, and severance and other restructuring expenses were $9.7 million
and $6.4 million in the third quarter of 2026 and 2025, respectively.
Net sales in CBG increased primarily as a result of the acquisition of Suvinil,
favorable foreign currency translation and a positive shift in mix, partially
offset by soft demand in North America. Segment profit decreased primarily due
to higher raw material and supply chain costs, incremental SG&A expenses
associated with the Suvinil acquisition and unfavorable foreign currency
transaction gains and losses, partially offset by higher Net sales. Adjusted
segment profit decreased for these same reasons.
Valspar acquisition-related amortization expense reduced Segment profit as a
percent of Net sales by 170 and 200 basis points in the third quarter of 2026
and 2025, respectively. Severance and other restructuring expenses reduced
Segment profit as a percent of Net sales by 100 and 90 basis points in the third
quarter of 2026 and 2025, respectively.
Performance Coatings Group (PCG)
Three
Months
Ended
Septe… $ %
30, 2026 2025 Chan… Change
──────────────────────────────────────────────────────────────────────────────
Net $ 1,90… $ 1,750… $ 153.3 8.8 %
sales
Segm… $ 255.2 $ 240.3 $ 14.9 6.2 %
prof…
Repo…
segm… 13.4% 13.7%
marg…
Adju…
segm… $ 308.7 $ 294.9 $ 13.8 4.7 %
prof…
Adju…
segm… 16.2% 16.9%
marg…
(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 $49.8 million and $49.5 million in the third quarter of 2026 and 2025,
respectively, and severance and other restructuring expenses were $3.7 million
and $5.1 million in the third quarter of 2026 and 2025, respectively.
Net sales in PCG increased primarily due to selling price increases, which
impacted Net sales by a mid-single digit percentage, and low-single digit
percentage sales volume growth. Net sales increased in all businesses, led by
General Industrial, Packaging and Coil, which each increased by a double digit
percentage, and Industrial Wood and Automotive Refinish, which each increased by
a low-single digit percentage. Segment profit increased primarily due to higher
Net sales, partially offset by higher raw material and supply chain related
costs and an increase in employee-related costs to support higher sales.
Adjusted segment profit increased for these same reasons, including a slight
decrease in the expenses associated with targeted restructuring actions in the
third quarter of 2026.
Valspar acquisition-related amortization expense reduced Segment profit as a
percent of Net sales by 260 and 290 basis points in the third quarter of 2026
and 2025, respectively. Severance and other restructuring expenses reduced
Segment profit as a percent of Net sales by 20 and 30 basis points in the third
quarter of 2026 and 2025, respectively.
3
LIQUIDITY AND CASH FLOW
The Company generated $2.59 billion in Net operating cash and returned cash of
$2.98 billion to our shareholders in the form of dividends and repurchases of
7.1 million shares of its common stock during the first nine months of 2026. At
September 30, 2026, the Company had remaining authorization to purchase 22.5
million shares of its common stock through open market purchases.
2026 GUIDANCE
Fourth Quarter Full Year
2026 2026
Up mid-single Up mid to
Net sales digit % high-single
digit %
Effective tax Low twenty
rate percent
Diluted net
income per $10.92 - $11.22
share
Adjusted
diluted net $11.85 - $12.15
income per
share(1)
(1) Excludes $0.82 per share of Valspar acquisition-related amortization expense
and $0.11 per share of severance and other restructuring expenses incurred
through September 30, 2026.
“Customer sentiment and the leading indicators we track point to muted demand
over the remainder of the year and into 2027. As we navigate this environment,
our focus remains clear: win in the marketplace, serve our customers, offset
inflation, reduce costs and continue to deliver profitable growth and
shareholder value,” said Ms. Petz.
“Against this backdrop, we expect fourth quarter 2026 consolidated Net sales to
increase by a mid-single digit percentage compared to the fourth quarter of
2025, resulting in us maintaining our full year 2026 sales guidance where
consolidated Net sales are 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 $11.22 per share, including acquisition-related
amortization expense of $0.82 per share and severance and other restructuring
expenses of $0.11 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
$11.85 to $12.15 per share compared to $11.43 per share in 2025. We remain
highly confident in our ability to deliver through current conditions while
building an even stronger Sherwin-Williams for the future.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss its financial results for the
third quarter, and its outlook for the fourth quarter and full year 2026, at
10:00 a.m. EDT on Tuesday, October 27, 2026. Heidi G. Petz, Sherwin-Williams’
Chair, President and Chief Executive Officer, along with other senior
executives, will participate on the call.
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 Q3 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.
4
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 CONTACT:
Jim Jaye
Senior Vice President, Investor
Relations & Corporate Communications
Sherwin-Williams
Direct: 216.515.8682
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate
Communications
Sherwin-Williams
Direct: 216.515.8849
corporatemedia@sherwin.com
7
The
She…
Com…
and
Sub…
Sta…
of
Con…
Inc…
(Un…
(in
mil…
exc…
per
sha…
dat…
Net
sal…
Cost
of
goo…
sold
Gro…
pro…
Per…
to
Net
sal…
Sel…
gen…
and
adm…
exp…
Per…
to
Net
sal…
Oth…
gen…
exp…
(in…
-
net
Int…
exp…
Int…
inc…
Oth…
exp…
(in…
-
net
Inc… 6,86… 6,35… 19,3… 17,…
bef… 3,58… 3,23… 9,92… 9,1…
inc… 3,27… 3,12… 9,39… 8,8…
tax… 47.8 49.2 48.6 49.0
Inc… 2,06… 1,95… 6,14… 5,7…
tax… 30.2 30.7 31.8 32.0
Net 5.2 (4.7) 14.9 10.5
inc… Three 139.3 117.2 Nine 406.8 333…
Net Mont… (5.9) (2.6) Mon… (14.… (8.…
inc… Ended 6.0 2.3 End… (10.… 9.9
per Sept… 1,06… 1,06… Sep… 2,85… 2,6…
com… 30, 242.5 % 227.4 % 30, 656.5 % 607… %
sha… 2026 821.0 % 2025 833.1 % 2026 2,19… % 2025 2,0… %
──────────────────────────────────────────────────────────────────────────────
Bas… $ 3.41 $ 3.38 $ 9.03 $ 8.43
Dil… $ 3.38 $ 3.35 $ 8.95 $ 8.34
Wei…
ave…
sha…
out…
Bas… 240.7 246.2 243.5 248…
Dil… 242.8 249.0 245.7 250…
8
The
Sher…
Comp…
and
Subs…
Busi…
Segm…
(Una…
(mil…
of
doll…
Three
Mont…
Ended 2026 Segme… 2025 Segment
Sept… Net Profit Net Profit
30: Sales (Loss) Sales (Loss)
──────────────────────────────────────────────────────────────────────────────
Paint
Stor… $ 4,015… $ 974.3 $ 3,836… $ 954.3
Group
Cons…
Bran… 937.4 146.2 770.1 157.3
Group
Perf…
Coat… 1,903… 255.2 1,750… 240.3
Group
Admi… 3.5 -312.2 1.3 -291.4
Cons… $ 6,860… $ 1,063… $ 6,358… $ 1,060…
tota…
Nine
Mont…
Ended
Sept…
30:
Paint
Stor… $ 10,95… $ 2,490… $ 10,47… $ 2,412…
Group
Cons…
Bran… 2,829… 556.3 2,341… 453.4
Group
Perf…
Coat… 5,522… 760.9 5,153… 698.1
Group
Admi… 8.4 -952.1 4.8 -864.3
Cons… $ 19,31… $ 2,855… $ 17,97… $ 2,699…
tota…
9
The Sherwin-Williams Company
and Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
(millions of dollars)
Assets September 30,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 264.2 $ 241.5
Accounts receivable, net 3,598.1 3,122.3
Inventories 2,547.0 2,276.3
Other current assets 618.1 506.0
Total current assets 7,027.4 6,146.1
Property, plant and equipment, 4,225.6 3,913.2
net
Goodwill 7,975.5 7,794.1
Intangible assets 3,744.3 3,466.2
Operating lease right-of-use 2,101.5 1,989.5
assets
Other assets 1,887.1 2,897.3
Total Assets $ 26,961.4 $ 26,206.4
Liabilities and Shareholders’
Equity
Current liabilities:
Short-term borrowings $ 2,353.6 $ 1,846.9
Accounts payable 2,895.3 2,441.6
Compensation and taxes withheld 817.4 709.4
Accrued taxes 300.4 254.6
Current portion of long-term 1,498.8 350.5
debt
Current portion of operating
lease 487.6 479.8
liabilities
Other accruals 1,495.8 1,390.7
Total current liabilities 9,848.9 7,473.5
Long-term debt 7,942.7 9,318.1
Postretirement benefits other
than 134.0 120.7
pensions
Deferred income taxes 742.4 657.2
Long-term operating lease 1,699.1 1,582.3
liabilities
Other long-term liabilities 2,617.6 2,629.3
Shareholders’ equity 3,976.7 4,425.3
Total Liabilities and
Shareholders’ $ 26,961.4 $ 26,206.4
Equity
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.
…
…
T… … …
M… … …
E… … …
──────────────────────────────────────────────────────────────────────────────
S… … …
3… … …
2… …
P… T… A… … … … … …
E… …
…
…
… $ 3… $ 8… $ 1… $ 1…
…
…
…
… $ .… $ .… .… $ .… $ .… .… .… .…
…
…
…
… .… .… .… .… .… .… .… .…
…
…
…
…
… $ 3… $ 9… $ 1… $ 1…
…
…
…
… … … … D…
… … … … … 3…
… … … … … 2…
──────────────────────────────────────────────────────────────────────────────
… … … … … … … … …
… … …
$ … $ 8… $ 1…
$ … $ … … $ … $ … .… $ 1… $ .… .…
… … … … … .… .… .… .…
— — — — — — .… .… .…
$ … $ 9… $ 1…
(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.
(mil… Three March Three June Three Septe… Nine Septe…
of Months 31, Months 30, Months 30, Mont… 30,
doll… Ended 2026 Ended 2026 Ended 2026 Ended 2026
──────────────────────────────────────────────────────────────────────────────
Net $ 534.7 $ 843.6 $ 821.0 $ 2,199…
inco…
Inte… 131.6 135.9 139.3 406.8
expe…
Inco… 145.1 268.9 242.5 656.5
taxes
Depr… 98.3 98.5 99.2 296.0
Amor… 88.5 87.9 88.3 264.7
EBIT… $ 998.2 $ 1,434… $ 1,390… $ 3,823…
Seve…
and
other — 23.8 13.1 36.9
rest…
expe…
Adju… $ 998.2 $ 1,458… $ 1,403… $ 3,860…
EBIT…
Three Three Three Nine
Months Months Months Mont…
Ended Ended Ended Ended
March June Septe… Sept…
31, 30, 30, 30,
2025 2025 2025 2025
Net $ 503.9 $ 754.7 $ 833.1 $ 2,091…
inco…
Inte… 103.8 112.4 117.2 333.4
expe…
Inco… 149.1 231.0 227.4 607.5
taxes
Depr… 79.9 79.3 82.8 242.0
Amor… 81.0 83.4 84.1 248.5
EBIT… $ 917.7 $ 1,260… $ 1,344… $ 3,523…
Seve…
and
other 19.3 59.0 14.4 92.7
rest…
expe…
Adju… $ 937.0 $ 1,319… $ 1,359… $ 3,615…
EBIT…
12
The
Sherwi…
Company
and
Subsid…
Select…
Inform…
(Unaud…
(milli…
of
dollar…
except
store
count
data)
Deprec…
Capital
expend…
Cash
divide…
Amorti…
of
intang…
Signif…
compon…
of Three Nine
Other Months Months
general Ended 99.2 82.8 Ended 296.0 242.0
expense September 128.7 196.4 Septemb… 375.4 567.2
(incom… 30, 194.3 195.7 30, 588.9 594.0
- net: 2026 88.3 2025 84.1 2026 264.7 2025 248.5
──────────────────────────────────────────────────────────────────────────────
Provis…
for
enviro… $ -0.1 $ 10.6 $ 3.3 $ 14.1
related
matters
- net
Loss
(gain)
on sale
or 2.4 -23.8 0.6 -27.2
dispos…
of
assets
Other 2.9 8.5 11.0 23.6
Signif…
compon…
of
Other
expense
(incom…
- net:
Invest…
losses $ — $ 3.9 $ -6.4 $ -5.6
(gains)
Foreign
curren…
transa… 16.6 6.6 11.1 29.7
related
losses
- net
Other(… -10.6 -8.2 -14.8 -14.2
Store
Count
Data:
Paint
Stores
Group - 12 23 — 61
net new
stores
Paint
Stores
Group - 4,853 4,834 4,853 4,834
total
stores
Consum…
Brands
Group - 2 -8 3 -30
net new
stores
Consum…
Brands
Group - 310 304 310 304
total
stores
Perfor…
Coatin…
Group - — — — —
net new
branch…
Perfor…
Coatin…
Group - 317 324 317 324
total
branch…
(1)Con…
of
items
of
revenu…
gains,
expens…
and
losses
unrela…
to the
primary
busine…
purpose
of the
Compan…
13