Sherwin-williams Company (the) Stock Earnings Reports

Sherwin-Williams reported a strong Q1 2026 despite soft end-market demand and heightened global uncertainty. Consolidated sales grew high single-digits (including a low-single-digit contribution from the Suvenil acquisition); gross margin expanded ~90 bps (fourteenth expansion in 15 quarters); adjusted diluted EPS rose mid-single-digits; adjusted EBITDA rose high-single-digits; net operating cash improved by $200M. The company returned $773M to shareholders in the quarter and finished with net debt / adjusted EBITDA of ~2.5x. Segment highlights: Paint Stores Group (PSG) grew mid single-digits with price/mix outpacing volume, opened 21 stores and closed 27, and expects 80–100 openings in 2026; Consumer Brands benefited from Suvenil and supply-chain improvements with ~34% flow-through; Performance Coatings Group grew slightly above mid-single-digits driven by new-account wins, notably strong automotive refinish and packaging. Management raised its 2026 raw-material inflation outlook to up low-to-mid single digits and increased its expectation for consolidated price/mix to the high end of the prior low-single-digit range, calling for targeted, customer/geography/end-market pricing and aggressive cost-out actions. They emphasized supply-security advantages (majority North America sales and regional sourcing), preparedness to implement further targeted price actions if needed, and continued focus on share gains in a “jump-ball” competitive environment. Full-year consolidated sales and earnings guidance remained unchanged.