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Sherwin-Williams Q3 2026 Earnings Report Highlights
Sherwin-Williams reports 7.9% sales growth with $3.63 adjusted diluted EPS as it navigates inflation and cost pressures.
In brief
Sherwin-Williams reports 7.9% sales growth with $3.63 adjusted diluted EPS as it navigates inflation and cost pressures. Sherwin-Williams reported $6.86 billion in Q3 sales, a 7.9% increase, with adjusted diluted EPS of $3.63, while managing inflation through staggered pricing and cost-saving initiatives. Originally…
Q3 Sales Performance
Sherwin-Williams reported consolidated net sales of $6.86 billion, a 7.9% increase driven by sales growth across all segments and mid-single digit price increases.
Adjusted Diluted EPS
Adjusted diluted EPS reached $3.63, a 1.1% increase reflecting top-line growth and disciplined cost management partially offset by higher raw material and supply chain costs.
Paint Stores Group
Paint Stores Group sales grew to $4.02 billion, increasing 4.7% due to mid-single digit price increases and low-single digit volume growth across all professional segments.
Same-Store Sales
Paint Stores Group same-store sales grew 3.9%, supported by momentum in protective and marine, commercial, and residential repaint end markets.
Consumer Brands Group
Consumer Brands Group sales increased to $937.4 million, a 21.7% rise primarily from the Suvinil acquisition and favorable foreign currency translation.
Performance Coatings Group
Performance Coatings Group sales reached $1.90 billion, rising 8.8% behind mid-single digit price increases and low-single digit volume growth led by General Industrial and Packaging.
Adjusted EBITDA
Adjusted EBITDA grew to $1.40 billion, up 3.3% year over year with an adjusted EBITDA margin of 20.5%.
Net Operating Cash
Net operating cash reached $2.59 billion year to date, driven by higher net income and lower use of cash for working capital compared to the prior year.
Shareholder Returns
The company returned $3 billion year to date through share repurchases of 7.1 million shares and quarterly dividends.
Net Debt to EBITDA
Net debt to adjusted EBITDA remained at 2.4x, maintained as part of a strong balance sheet while funding acquisitions and shareholder returns.
Full-Year EPS Guidance
Adjusted diluted EPS guidance narrowed to $11.85 to $12.15 for the full year, maintaining the $12.00 midpoint.
2027 Raw Material Inflation
Management expects 2027 raw material inflation to be in the low to mid single digit range, with the largest year-over-year impact in the first half of the year.
PSG Price Increase
PSG implemented an 8% price increase effective Sept. 1, 2026, with full realization expected to ramp up in the first half of 2027.
2027 Cost Savings
The company projects $75 million in cost savings for 2027, including $25 million from 2026 restructuring actions and additional fourth-quarter initiatives.
PSG Store Openings
PSG opened 57 gross new stores year to date, planning to return to its typical range of 80 to 100 net new stores in 2027.
SG&A Expense Ratio
SG&A expense ratio decreased to 30.2% of sales, a 50 basis point reduction from the prior year as management implemented organizational efficiencies.
The main idea
Sherwin-Williams reported $6.86 billion in Q3 sales, a 7.9% increase, with adjusted diluted EPS of $3.63, while managing inflation through staggered pricing and cost-saving initiatives.
