SHW · 10-Q · 2026Q1 · Full report

Operating Expense Trends

SHERWIN WILLIAMS CO · 2026-04-28 · Importance 51 · Surprise 50

Consolidated SG&A increased $175.8 million in Q1 2026 versus Q1 2025, rising to $1,969.6 million (34.8% of Net sales) primarily from higher employee-related costs, additional marketing/advertising, incremental SG&A from the Suvinil acquisition, costs tied to the new global headquarters and unfavorable FX translation.,Paint Stores Group SG&A rose $64.0 million due to costs to support higher sales including employee and marketing spending; Consumer Brands SG&A rose $41.6 million primarily from Suvinil integration and support costs.,Administrative SG&A increased $37.7 million in Q1 2026 driven primarily by expenditures related to the new global headquarters and technology center.

Key facts

• Administrative function Income before income taxes for the quarter ended March 31, 2026: $(308.6) million versus $(232.8) million in the quarter ended March 31, 2025, a $(75.8) million deterioration (32.6%).
• Consolidated Selling, general and administrative expenses (SG&A) for the quarter ended March 31, 2026: $1,969.6 million (34.8% of Net sales) versus $1,793.8 million (33.8% of Net sales) in the quarter ended March 31, 2025, an increase of $175.8 million.
• Paint Stores Group SG&A increased $64.0 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 primarily due to increased costs to support higher sales including higher employee-related costs and marketing and advertising.
• Other general expense - net decreased $2.6 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 primarily due to a decrease in site specific environmental-related accruals.
• Consumer Brands Group SG&A increased $41.6 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 primarily due to incremental SG&A from the Suvinil acquisition and higher employee-related and marketing costs.
• Performance Coatings Group SG&A increased $32.5 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 primarily due to higher employee-related costs.
• Administrative function SG&A increased $37.7 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 primarily due to costs related to the new global headquarters and technology center.
• Consolidated SG&A increased due to higher employee-related costs, marketing and advertising, incremental SG&A from the Suvinil acquisition, higher costs related to the new global headquarters and technology center and unfavorable foreign currency translation.

Impact estimates