Sherwin-Williams reported second-quarter 2026 net sales of $6.79 billion, representing a 7.5% increase from $6.31 billion in the prior-year period, as sales improved across all three of the company’s reportable segments.
The increase reflected organic growth, pricing actions, new customer wins, and the contribution of Suvinil, which Sherwin-Williams acquired in October 2025. Management said sales exceeded its expectations on a consolidated basis and within each operating segment despite continued softness in overall demand.
Net income increased 11.8% to $843.6 million and represented 12.4% of sales. Income before taxes rose 12.9% to $1.11 billion, compared with $985.7 million in the second quarter of 2025.
Diluted earnings per share increased 14.3% to $3.43 from $3.00. Adjusted diluted earnings per share rose 9.5% to $3.70, compared with $3.38 in the prior-year quarter.
Reported earnings included $0.20 per share of Valspar acquisition-related amortization expense, unchanged from the prior-year quarter. Results also included $0.07 per share of severance and restructuring expenses, compared with $0.18 per share a year earlier.
Quarterly EBITDA increased 13.8% to $1.43 billion, equivalent to 21.1% of net sales. Adjusted EBITDA and adjusted earnings per share both increased by approximately 10%, while adjusted EBITDA margin expanded by 60 basis points to 21.5%.
The increase in income was partially offset by moderate raw material inflation, higher employee-related costs, and incremental selling, general, and administrative expenses associated with Suvinil. Sherwin-Williams also incurred higher costs related to its new global headquarters and technology center, as well as additional interest expense from increased borrowings.
The Paint Stores Group generated net sales of $3.89 billion, increasing 5.1% from $3.70 billion. Same-store sales from locations open for more than 12 months increased 4.2%, compared with growth of 0.8% in the prior-year quarter.
Paint Stores Group growth was primarily driven by mid-single-digit pricing and low-single-digit volume growth. Sales increased across all professional customer categories, led by double-digit growth in protective and marine coatings, high-single-digit growth in commercial markets and mid-single-digit growth in residential repaint.
Segment profit increased 4.5% to $957.6 million. The reported segment margin declined slightly to 24.6% from 24.8% as higher revenue was partially offset by raw material inflation and investments in additional sales representatives and stores.
The Consumer Brands Group reported net sales of $983.5 million, an increase of 21.5% from $809.4 million. Growth was primarily driven by the Suvinil acquisition, higher North American sales, and a 1.6% benefit from favorable currency translation.
Consumer Brands segment profit rose 29.7% to $212.9 million, while reported margin expanded to 21.6% from 20.3%. Adjusted segment profit increased 33.1% to $241.4 million, and adjusted margin reached 24.5%, compared with 22.4% a year earlier.
The improvement reflected higher sales, favorable product mix, supply chain efficiencies and currency transaction benefits. These gains were partially offset by raw material inflation and additional administrative expenses associated with Suvinil.
Performance Coatings Group sales increased 6.3% to $1.91 billion from $1.80 billion. Growth reflected low-single-digit pricing, low-single-digit volume expansion and a 2% benefit from currency translation.
Sales increased across all Performance Coatings businesses. General Industrial and Automotive Refinish each produced high-single-digit growth, while Packaging, Industrial Wood and Coil each recorded mid-single-digit increases.
Performance Coatings segment profit increased 11.5% to $273.3 million, and reported margin expanded to 14.3% from 13.6%. Adjusted segment profit rose 9.8% to $332 million, with adjusted margin improving to 17.3% from 16.8%.
Sherwin-Williams generated $1.49 billion in net operating cash during the first six months of 2026. The company returned $2.23 billion to shareholders through dividends and the repurchase of 5.6 million shares during the period.
The company had remaining authorization to repurchase an additional 24 million shares as of June 30, 2026. During the second quarter alone, Sherwin-Williams returned approximately $1.46 billion to shareholders through dividends and share repurchases.
Sherwin-Williams raised its full-year 2026 diluted earnings guidance to between $10.92 and $11.32 per share. The forecast includes $0.81 per share of Valspar acquisition-related amortization and $0.07 per share of severance and restructuring expenses.
Adjusted diluted earnings are now expected to range from $11.80 to $12.20 per share, compared with $11.43 in 2025. Full-year consolidated sales are expected to increase by a mid to high-single-digit percentage.
For the third quarter, Sherwin-Williams also expects consolidated net sales to rise by a mid to high-single-digit percentage compared with the same period of 2025. Management cautioned that customer sentiment and other indicators continue to point to softness in demand during the second half of the year.
The company completed restructuring actions during the second quarter that are expected to produce approximately $17 million in annual savings. Management said it continues to identify opportunities to simplify operations, increase productivity and improve execution.
Sherwin-Williams is also responding to inflation across raw materials, energy, logistics and packaging through additional pricing actions. These measures include an announced 8% price increase within the Paint Stores Group, effective September 1, 2026.
KEY QUOTE:
“Our better than expected second quarter results reflect the power of our differentiated model and our focus on the customer.”
Heidi G. Petz, Chair, President and CEO of Sherwin-Williams
