Sherwin-Williams 8-K
PositiveEarningsGuidance raisedRestructuring
Suvinil acquisition and new account wins drive growth; FY2026 sales and EPS outlook rises despite soft demand and raw-material inflation.
Filed 2026-07-28 07:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Net sales rose 7.5% and net income rose 11.8%; management cited growth investments, new account wins and increased share of wallet, while noting continued demand softness and raw-material inflation. The company raised its FY2026 outlook for net sales and diluted EPS.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales | $6.79B | $6.31B | +7.5% |
| Net income | $844M | $755M | +11.8% |
| Diluted EPS | $3.43 | $3.00 | +14.3% |
| Adjusted diluted EPS, non-GAAP | $3.70 | $3.38 | +9.5% |
| Net operating cash flow | $1.35B | — | +21% |
| Free cash flow, non-GAAP | $1.24B | — | — |
- Paint Stores Group sales rose 5.1% to $3.89B; same-store sales increased to 4.2% from 0.8%. Segment profit rose 4.5% to $958M, as higher prices and volume were partly offset by raw-material and sales-support costs.
- Consumer Brands Group sales rose 21.5% to $984M and segment profit increased 29.7% to $213M, primarily reflecting the Suvinil acquisition and higher North American sales. Performance Coatings Group sales rose 6.3% to $1.91B and segment profit increased 11.5% to $273M, driven by pricing/mix, volume and favorable foreign currency translation.
- In H1, Sherwin-Williams generated $1.49B in net operating cash and returned $2.23B through dividends and repurchases, buying back 5.6M shares; 24.0M shares remained authorized for repurchase. Q2 diluted weighted-average shares were down 2.1% Y/Y. At 6/30/2026, cash was $294M and total debt was $12.1B, vs $10.7B a year earlier. Q2 restructuring actions are expected to generate ≈$17M of annual savings; an 8% Paint Stores Group price increase is set for 9/1/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales | Q3 2026 | Up mid-to-high-single-digit % Y/Y | — | — |
| Net sales | FY2026 | Up mid-to-high-single-digit % Y/Y | — | Raised |
| Effective tax rate | FY2026 | Low twenty percent | — | — |
| Diluted EPS, GAAP | FY2026 | $10.92-$11.32 | — | Raised |
| Adjusted diluted EPS, non-GAAP | FY2026 | $11.80-$12.20 | — | Raised |
FY2026 GAAP diluted EPS guidance includes $0.81 per share of Valspar acquisition-related amortization and $0.07 per share of severance and restructuring expenses; adjusted EPS excludes these amounts.
Investor Takeaways
- Watch whether Q3 and second-half sales sustain the guided growth range as management expects continued demand softness.
- Pricing actions and cost controls will be important to monitor against broad-based cost inflation and the expected restructuring savings.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3