The Sherwin-Williams Company

What they do

Sherwin-Williams develops, manufactures, and sells paint, coatings, and related products. Its Paint Stores Group operates 4,853 company-operated specialty paint stores in the U.S., Canada, and the Caribbean. The Consumer Brands Group sells branded and private-label products to retailers and also operates 307 stores in Latin America. The Performance Coatings Group serves industrial, protective, and marine customers globally.

Revenue drivers

• Paint Stores Group — Largest segment, with Q2 2026 net sales of $3.89 billion (57% of total). Revenue driven by same-store sales growth of 4.2%, helped by selling price increases.
• Consumer Brands Group — Sells architectural paints and coatings through retailers; about 63% of its 2025 sales were intersegment transfers to Paint Stores. Also includes Latin America stores.
• Performance Coatings Group — Serves industrial, protective, and marine markets; contributed to Q2 2026 sales growth. Specific segment revenue not shown in excerpts.

Recent performance

In Q2 2026, consolidated net sales rose 7.5% to $6.79 billion, with diluted EPS up 14.3% to $3.43. Adjusted diluted EPS increased 9.5% to $3.70. Net income was $843.6 million, or 12.4% of sales. Sales growth was driven by all segments, including the Suvinil acquisition. For the first half, net sales were $12.46 billion and net income was $1.38 billion.

Strategy

Management emphasizes customer-centered strategy, growth investments, and new account wins. They are implementing pricing actions to offset raw material inflation. The company is investing in a new global headquarters and technology center. They are returning cash to shareholders, with $1.46 billion returned in Q2 2026 via dividends and share repurchases. The Valspar acquisition and Suvinil are part of portfolio expansion.

Risks

• Economic sensitivity — Adverse global economic conditions can reduce demand for paint and coatings, impacting results.
• Raw material inflation — Rising raw material costs pressured gross margin, partially offset by pricing actions, but could continue to pressure profitability.
• Customer concentration — Consumer Brands Group has significant sales to certain customers; loss of a major customer could materially harm the segment.
• Geopolitical and supply chain — Operations in more than 120 countries expose the company to tariffs, sanctions, conflicts (e.g., Russia-Ukraine), and supply chain disruptions.

Outlook

Management raised full-year 2026 diluted EPS guidance to a range of $10.92 to $11.32 (including Valspar amortization of $0.81 and severance/restructuring of $0.07). Adjusted diluted EPS guidance is now $11.80 to $12.20. This reflects confidence despite ongoing global uncertainty and no meaningful demand improvement.