Sherwin-Williams' automotive refinish business, which supplies coatings to collision repair shops, posted high-single-digit percentage sales growth in the second quarter of 2026, contributing to broader gains in the company's Performance Coatings Group segment, according to the company's second-quarter financial results, released July 28.
The Cleveland-based coatings manufacturer reported consolidated net sales of $6.79 billion for the quarter ended June 30, up 7.5% from $6.31 billion a year earlier. Diluted net income per share rose 14.3% to $3.43, and adjusted diluted net income per share increased 9.5% to $3.70. Net income grew 11.8% to $843.6 million, or 12.4% of net sales.
Chair, President, and CEO Heidi Petz said the company delivered strong results "despite ongoing global uncertainty and no meaningful improvement in demand."
Automotive refinish drives Performance Coatings growth
Sherwin-Williams' Performance Coatings Group reported net sales of $1.91 billion, up 6.3% from $1.80 billion a year earlier. Segment profit rose 11.5% to $273.3 million, and reported segment margin expanded to 14.3% from 13.6%. Adjusted segment profit, which excludes acquisition-related amortization and restructuring charges, increased 9.8% to $332.0 million, with adjusted margin at 17.3%.
Every business line in the segment posted higher sales, the press release said. General Industrial and Automotive Refinish led the way with high-single-digit percentage gains, while Packaging, Industrial Wood, and Coil each grew in the mid-single digits. The company attributed the segment's sales increase to selling price increases tied mainly to product mix, low-single-digit volume growth, and a 2% favorable foreign currency impact.
The refinish growth builds on the first quarter, when automotive refinish also grew by a double-digit percentage, according to Sherwin-Williams' first-quarter results.
Pricing approach differs between paint stores and industrial businesses
Sherwin-Williams announced an 8% price increase in its Paint Stores Group, effective September 1, to offset broad-based cost inflation across raw materials, energy, logistics, and packaging, according to the press release. That increase applies to the company's paint store network rather than the Performance Coatings Group that includes automotive refinish.
Asked on the earnings call whether Performance Coatings pricing would follow a similar trajectory, Chief Financial Officer Ben Meisenzahl said the group's approach is "a little more surgical within PCG," with pricing actions rolled out by business unit or region rather than as a single across-the-board increase, given continued raw material inflation in the second half of the year.
Company raises full-year guidance
Sherwin-Williams raised its full-year 2026 guidance, now projecting diluted net income per share of $10.92 to $11.32, up from $10.26 in 2025, and adjusted diluted net income per share of $11.80 to $12.20, compared with $11.43 last year. The company expects consolidated net sales for both the third quarter and full year to increase by a mid to high single-digit percentage.
Sherwin-Williams generated $1.49 billion in net operating cash during the first six months of 2026 and returned $2.23 billion to shareholders through dividends and share repurchases over that period, according to the press release.
