SHW · 10-Q · 2026Q1 · Full report

Interest Rates

SHERWIN WILLIAMS CO · 2026-04-28 · Importance 40 · Surprise 42

Interest expense increased $27.8 million in Q1 2026 versus Q1 2025, rising to $131.6 million, driven by higher long-term debt, increased short-term borrowings and interest costs associated with the new global headquarters and technology center. The Company previously used interest rate lock contracts in 2025 to hedge benchmark rate variability for long-term fixed rate debt issuances. Management highlights interest-rate related market risk alongside FX and commodity exposures and states it does not expect interest rate movement or hedging contract losses to have a material adverse effect on financial condition. The year-over-year increase in interest expense was a >10% change.

Key facts

• Consolidated Interest expense for the quarter ended March 31, 2026: $131.6 million (2.3% of Net sales) versus $103.8 million (1.9% of Net sales) in the quarter ended March 31, 2025, an increase of $27.8 million.
• The Company entered into interest rate lock contracts in 2025 to hedge variability in the benchmark interest rate for the 2025 issuance of long-term fixed rate debt.
• Interest expense increased $27.8 million in the quarter ended March 31, 2026 versus the quarter ended March 31, 2025 due to an increase in long-term debt and short-term borrowings and interest expense related to the new global headquarters and technology center.

Impact estimates