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SHW

SHERWIN WILLIAMS CO Q2 SALES UP 7.5%

SHERWIN WILLIAMS CO has recently released its 10-Q report. The Sherwin-Williams Company develops, manufactures, distributes and sells paint, coatings and related products to professional, industrial, commercial and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group and Performance Coatings Group, with business across North America, South America, the Caribbean, Europe, Asia and Australia.

In Item 2, Sherwin-Williams said consolidated net sales rose 7.5% in the second quarter to $6.789 billion and 7.2% in the first six months to $12.456 billion. The Paint Stores Group posted second-quarter sales of $3.890 billion, up 5.1%, with same-store sales at locations open more than 12 months up 4.2%; for the first half, segment sales were $6.940 billion, up 4.5%, and same-store sales rose 3.4%. Consumer Brands Group sales increased 21.5% in the quarter to $983.5 million and 20.4% year to date to $1.892 billion, driven mainly by the October 2025 Suvinil acquisition, which added 16.0% to quarterly growth and 16.6% to first-half growth. Performance Coatings Group sales rose 6.3% in the quarter to $1.914 billion and 6.4% in the first half to $3.620 billion, helped by price increases, volume growth and foreign currency.

Profitability also moved higher. Diluted net income per share increased 14.3% to $3.43 in the quarter from $3.00 a year earlier, while adjusted diluted EPS rose 9.5% to $3.70 from $3.38. For the first six months, diluted EPS climbed 11.6% to $5.58 and adjusted EPS increased 7.7% to $6.05. Income before income taxes reached $1.113 billion in the quarter, up from $985.7 million, and $1.792 billion for the half, up from $1.639 billion.

Gross profit in the quarter was $3.338 billion, compared with $3.118 billion a year earlier, while gross margin slipped to 49.2% from 49.4% because of the dilutive effect of Suvinil and higher raw material costs. SG&A rose to $2.104 billion from $2.012 billion, but fell to 31.0% of sales from 31.9% as sales growth outpaced expense growth. Interest expense increased to $135.9 million from $112.4 million, reflecting higher short-term borrowings, long-term debt and real estate financing tied to the new global headquarters.

Cash generation strengthened. Net operating cash was $1.487 billion in the first six months, up from $1.052 billion a year earlier. At June 30, 2026, Sherwin-Williams reported $293.5 million in cash and cash equivalents and $1.969 billion of unused capacity under its credit facilities. As a result of these announcements, the company's shares have moved 8.63% on the market, and are now trading at a price of $355.50. For the full picture, make sure to review SHERWIN WILLIAMS CO's 10-Q report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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