The Sherwin-Williams Company (SHW) Q1 2026 earnings summary

Executive summary

• Consolidated net sales rose 6.8% year-over-year to $5.67 billion for Q1 2026, with growth across all segments and the Suvinil acquisition contributing.

• Diluted net income per share increased 7.5% to $2.15, with adjusted diluted EPS up 4.4% to $2.35.

• EBITDA increased 8.8% to $998.2 million, or 17.6% of net sales.

• Net operating cash improved by $200 million to $139.1 million, with $773 million returned to shareholders via buybacks and dividends.

• Growth was achieved despite global uncertainty, demand softness, and inflationary pressures.

Financial highlights

• Gross profit margin expanded to 49.1% from 48.2% year-over-year, with gross profit up 8.7% to $2.78 billion.

• SG&A expenses rose 9.8% to $1.97 billion, reflecting growth investments and the Suvinil acquisition.

• Capital expenditures were $138.3 million in Q1, down 26.9% from the prior year.

• Shareholders’ equity stood at $4.43 billion, up $301 million from Q1 2025.

• Cash and cash equivalents at quarter-end were $216.9 million.

Outlook and guidance

• Full-year 2026 adjusted diluted EPS guidance reaffirmed at $11.50–$11.90; diluted EPS guidance at $10.70–$11.10.

• Net sales expected to increase low to mid-single digits for the full year; Q2 net sales expected up mid-single digits.

• Raw material costs expected up low to mid-single digits, with greater impact in the second half.

• Capital expenditures for 2026 forecast at $550 million, targeting about 2% of net sales.

• Management expects little to no recovery in most end markets in 2026, with continued pricing actions and cost controls.