The Sherwin-Williams Company (NYSE: SHW) reported first-quarter 2026 results April 28, posting consolidated net sales of $5.67 billion, up 6.8% from a year earlier, and adjusted diluted earnings per share of $2.35, up 4.4%.
Net income increased 6.1% to $534.7 million. EBITDA rose 8.8% to $998.2 million, or 17.6% of net sales. Diluted net income per share was $2.15, up 7.5% from $2.00 a year earlier. The Cleveland-based coatings company beat consensus estimates on revenue and adjusted EPS, and reaffirmed its full-year 2026 adjusted diluted EPS guidance of $11.50 to $11.90.
All three reportable segments posted year-over-year sales growth. Paint Stores Group (PSG) sales rose 3.7% to $3.05 billion, with same-store sales up 2.4%. Consumer Brands Group sales rose 19.2% to $908.3 million, including the contribution from the October 2025 Suvinil acquisition. Performance Coatings Group sales rose 6.5% to $1.71 billion.
Refinish posts double-digit growth as Sherwin cites share-of-wallet wins
Performance Coatings Group net sales increased on a 4.1% favorable foreign currency impact and low-single-digit volume growth, with automotive refinish growing by a double-digit percentage. General Industrial and Packaging grew by high-single-digit percentages, and Coil grew by a mid-single-digit percentage.
On the company's earnings call, CEO Heidi Petz said automotive refinish sales increased by a low-teens percentage driven by high-single-digit volume growth, with double-digit sales growth in every region. She attributed the performance to share-of-wallet gains and new account wins.
The refinish growth contrasts with commentary from AkzoNobel CEO Greg Poux-Guillaume, who said last week that U.S. refinish demand had stabilized at a trough but had not yet picked up.
PCG segment profit rose 9.3% to $232.4 million. Adjusted segment profit rose 6.3% to $281.5 million, with adjusted segment margin unchanged at 16.5%.
Suvinil acquisition lifts Consumer Brands; Paint Stores growth broad-based
PSG sales growth came from low-single-digit price increases and low-single-digit volume growth. Net sales increased in all but one professional customer end market, led by a double-digit increase in protective and marine and a mid-single-digit increase in residential repaint and commercial. New residential decreased by a low-single-digit percentage.
CBG sales growth was driven primarily by the Suvinil acquisition, a 2.4% favorable foreign currency impact, and increased sales in Europe, partially offset by soft DIY demand in North America.
Guidance reaffirmed amid continued demand softness
Sherwin-Williams reaffirmed its full-year 2026 guidance, with consolidated net sales expected to grow at a low- to mid-single-digit percentage and adjusted diluted EPS in the range of $11.50 to $11.90, an increase of 2.4% at the midpoint compared to 2025. For the second quarter, the company expects consolidated net sales to grow at a mid-single-digit percentage.
In prepared remarks, Petz said, "Sherwin-Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets." The company said it continues to expect little to no recovery in most end markets in 2026, with geopolitical events adding further demand uncertainty.
The company generated $139.1 million in net operating cash and returned $772.7 million to shareholders during the quarter through dividends and the repurchase of 1.6 million shares.
