Cleveland – – October 28, 2026 -- Sherwin-Williams (NYSE: SHW) lifted third-quarter consolidated net sales 7.9% to $6.86 billion, but net income fell 1.5% to $821.0 million, or 12.0% of sales, as raw material and supply chain costs weighed on margins.
Diluted earnings per share rose 0.9% to $3.38 from $3.35. Adjusted diluted EPS gained 1.1% to $3.63 from $3.59. EBITDA increased 3.4% to $1.39 billion, or 20.3% of sales, while adjusted EBITDA rose 3.3% to $1.40 billion, or 20.5% of sales.
Price increases and Suvinil acquisition drive sales growth
Selling price increases added a mid-single-digit percentage to net sales. The October 2025 acquisition of Suvinil also contributed, and all three reportable segments grew. Net sales at Paint Stores Group stores open more than twelve months rose 3.9%.
Gross margin absorbs raw material costs and Suvinil dilution
Higher raw material and supply chain costs and product mix cut into gross margin. Mix effects included dilution from Suvinil and faster growth in lower-margin segments. Excluding Suvinil, year-to-date gross margin is flat year over year, CEO Heidi G. Petz said. SG&A as a percentage of sales declined. Higher interest expense tied to increased debt added to Administrative costs, so pre-tax income rose only slightly.
Valspar acquisition-related amortization cost $0.21 per share, against $0.20 a year earlier. Severance and restructuring charges were $0.04 per share in both periods.
Paint Stores Group posts price and volume gains in all professional end markets
PSG sales rose on mid-single-digit price increases and low-single-digit volume growth. Protective and marine grew by a double-digit percentage, commercial by a high-single-digit percentage and residential repaint by a mid-single-digit percentage. Segment profit increased despite added costs for sales reps and stores.
Consumer Brands Group profit declines on Suvinil costs and soft North American demand
CBG sales grew on the Suvinil acquisition, favorable currency translation and positive mix, partly offset by soft demand in North America. Segment profit fell on higher raw material and supply chain costs, incremental Suvinil SG&A and unfavorable foreign currency transaction effects.
Performance Coatings Group grows in every business
PCG sales rose on mid-single-digit price increases and low-single-digit volume growth. General Industrial, Packaging and Coil each gained by a double-digit percentage. Industrial Wood and Automotive Refinish each rose by a low-single-digit percentage. Segment profit increased.
Company returns $749.0 million to shareholders in the quarter
Sherwin-Williams generated $2.59 billion in net operating cash in the first nine months of 2026. It returned $2.98 billion through dividends and repurchases of 7.1 million shares. Authorization remains for 22.5 million additional shares.
Full-year EPS guidance revised as demand stays muted
Diluted EPS guidance is now $10.92 to $11.22, against $10.26 in 2025. The range includes $0.82 per share of Valspar amortization and $0.11 per share of severance and restructuring. Adjusted diluted EPS guidance is narrowed to $11.85 to $12.15, against $11.43 in 2025.
The company expects fourth-quarter net sales to rise by a mid-single-digit percentage. It maintains full-year sales growth guidance of mid- to high-single digits. Petz said customer sentiment and leading indicators point to "muted demand" through the rest of the year and into 2027.