Q2 2026 Sherwin-Williams Co Earnings Call Transcript
Key Points
- Sherwin-Williams Co (SHW) delivered strong top and bottom line growth in the quarter, with sales exceeding guidance across all three reportable segments.
- Consolidated sales grew by a high single-digit percentage, driven by strategic execution, new account wins, and prior growth investments.
- Adjusted EBITDA grew by 10.5% to $1.5 billion, with an adjusted EBITDA margin expansion of 60 basis points to 21.5% of sales.
- Net operating cash improved by 21%, driven by an increase in net income and working capital being a higher source of cash year-over-year.
- The company increased its full-year consolidated sales and EPS guidance based on strong first-half performance and momentum into the second half.
- Reported gross margin decreased slightly due to the dilutive impact of the Suvinil acquisition.
- SG&A expenses increased by a mid-single-digit percentage, driven by nonannualized Suvinil acquisition costs and higher employee service costs.
- The new residential market remains challenging, with single-family starts and completions being negative for five of the last six months.
- DIY demand remains muted, impacting the Consumer Brands Group, despite growth in the Pros Who Paint segment.
- Raw material inflation remains a concern, with expectations of high single-digit inflation in the second half of the year.
Good morning. Thank you for joining the Sherwin-Williams Company's review of second-quarter 2026 and our outlook for the third quarter and full year of 2026. With us on today's call are Heidi Petz, Chair, President and Chief Executive Officer; Ben Meisenzahl, Chief Financial Officer; Paul Lang, Chief Accounting Officer; and Jim Jaye, Senior Vice President and Investor Relations and Communications.
This conference call is being webcast simultaneously in listen-only mode by ACCESS Newswire via the Internet at www.sherwin.com. An archived replay of this webcast will be available at www.sherwin.com beginning approximately two hours after this conference call concludes.
This conference call will include certain forward-looking statements as defined under the US federal securities laws with respect to sales, earnings and other matters. Any forward-looking statement speaks only as of the date of which such statement is made and the company undertakes no obligation to
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