Sherwin-Williams' automotive refinish business grew sales by a low-single-digit percentage in the third quarter of 2026, according to the company's Oct. 27 earnings release. That compares with high-single-digit growth in the second quarter and double-digit growth in the first, as reported in the company's April 28 release.
Refinish was among the slower-growing businesses in the Performance Coatings Group, where net sales rose 8.8% to $1.9 billion. General Industrial, Packaging, and Coil each grew by a double-digit percentage, and Industrial Wood matched refinish with a low-single-digit gain.
Petz described uneven refinish demand by shop size
Answering an analyst's question about demand on the company's earnings call, Chair, President, and CEO Heidi Petz said the refinish business is still growing. She said large shops have been stable but mostly flat this year, medium-size shops are down by a mid-single-digit percentage, and small shops remain under pressure. New business wins are offsetting that softness, she said.
Petz also said the refinish business would see what she called a temporary share shift, and that the company is very confident it will win that business back in the short term. When another analyst asked where the shift was happening and what caused it, Petz said it was a single, isolated situation and did not elaborate.
Across the Performance Coatings Group, Petz said new business wins are at record highs and that she expects volume growth in the segment to continue.
Performance Coatings profit rose as costs climbed
Selling price increases lifted Performance Coatings Group net sales by a mid-single-digit percentage, and volume grew by a low-single-digit percentage, according to the release. Segment profit rose 6.2% to $255.2 million, with higher raw material, supply chain, and employee-related costs partially offsetting the sales gain, the company said. Reported segment margin slipped to 13.4% from 13.7%, and adjusted segment margin fell to 16.2% from 16.9%.
Sherwin-Williams expects muted demand into 2027
Consolidated net sales rose 7.9% to $6.86 billion, and adjusted diluted earnings per share (EPS) increased 1.1% to $3.63. The company narrowed its full-year adjusted EPS guidance to $11.85 to $12.15, keeping the $12 midpoint from the $11.80 to $12.20 range it issued in July.
"Customer sentiment and the leading indicators we track point to muted demand over the remainder of the year and into 2027," Petz said in the release.
On the call, Petz said Sherwin-Williams expects raw material inflation in the low to mid single digits in 2027, weighted toward the first half, and about $75 million in cost savings next year.
Refinish grew more slowly than most other Performance Coatings businesses in the quarter, and Petz said new business wins were offsetting softness in the core business.
