SHW · 10-Q · 2026Q1

SHERWIN WILLIAMS CO

Filed 2026-04-28 · Consumer

Ranked Events

• Working Capital and ReceivablesImportance 89 · Surprise 82
  Net working capital improved by $802.1 million year-over-year to a deficit of $1.035 billion at March 31, 2026, driven by a $460.0 million increase in current assets and a $342.1 million decrease in current…
• Net Working CapitalImportance 89 · Surprise 82
  Net working capital improved by $802.1 million year-over-year to a deficit of $1.035 billion at March 31, 2026 compared to a deficit of $1.837 billion at March 31, 2025.,The change was driven by a $460.0 million increase in current assets (including a $379.0 million increase in accounts receivable and $105.9 million increase in other current assets) and a $342.1 million decrease in current liabilities led by a $1.151 billion reduction in the current portion of long-term debt.,Offsets included increases in short-term borrowings of $578.1 million, accounts payable of $90.5 million and other accruals of $54.3 million; the Company’s current ratio was 0.86 at March 31, 2026.
• Acquisition / SuvinilImportance 81 · Surprise 76
  The October 2025 acquisition of Suvinil materially contributed to Consumer Brands Group Net sales and was cited as a primary driver of the 19.2% increase in that segment’s Q1 2026 Net sales to $908.3 million.,Goodwill increased $295.0 million year-over-year and intangible assets increased $392.2 million since March 31, 2025, primarily reflecting purchase price allocation adjustments and capitalized software related to the Suvinil acquisition (purchase price allocation adjustments cited at $202.3 million for goodwill drivers and $626.0 million for intangible asset allocations over twelve months).,The Suvinil acquisition also contributed to incremental SG&A and COGS in Q1 2026 and is referenced across the MD&A as a material driver of revenue, asset and expense movements.
• Capital Expenditures and PP&EImportance 78 · Surprise 58
  Net property, plant and equipment increased $68.5 million in Q1 2026 and $542.5 million over the 12 months since March 31, 2025, reflecting capital expenditures and Suvinil purchase price allocation adjustments.,Capital expenditures were $118.7 million in Q1 2026 and $683.7 million over the twelve months since March 31, 2025, including spending to finalize the new global headquarters and technology center and investments in manufacturing capacity expansion and new/renovated stores.,Buildings increased $52.5 million in Q1 2026 and $1.523 billion over the twelve months due primarily to the new global headquarters and technology center being placed into service; core capex is targeted at ~2% of Net sales in 2026.
• Revenue Performance and MixImportance 75 · Surprise 76
  Consolidated Net sales increased by 6.8% in Q1 2026 to $5,666.9 million, driven by higher Net sales across all reportable segments and a 1.7% benefit from favorable foreign currency translation.,Paint Stores Group sales were $3,049.9 million, up 3.7% year-over-year driven primarily by selling price increases (low-single digit impact) and low-single digit sales volume growth, with comparable-store sales up 2.4%.,Consumer Brands Group Net sales increased 19.2% to $908.3 million primarily due to the October 2025 Suvinil acquisition (material impact) and a 2.4% currency tailwind, while Performance Coatings Group Net sales rose 6.5% to $1,705.8 million led by Automotive Refinish and General Industrial gains.
• Capital Expenditures TrendsImportance 64 · Surprise 42
  Net property, plant and equipment increased $68.5 million in Q1 2026 and $542.5 million in the twelve months since March 31, 2025, driven by capital expenditures of $118.7 million in Q1 and $683.7 million over the…
• Real Estate FinancingImportance 64 · Surprise 42
  The Company entered a sale-leaseback/real estate financing for its new global headquarters (transaction closed December 2022) that did not qualify as an asset sale for US GAAP and thus remains on the balance sheet as…
• Income Tax Rate ChangesImportance 64 · Surprise 68
  Deferred income taxes increased $179.4 million from March 31, 2025, primarily due to accelerated domestic research and development deductions recognized as a result of U.S. tax reform legislation referred to as the One…
• Outstanding IndebtednessImportance 64 · Surprise 42
  At March 31, 2026 the Company reported total debt outstanding of $11.700 billion and cash and cash equivalents of $216.9 million, resulting in net debt of $11.483 billion. Short-term borrowings increased to $2,376.6…
• Capital Return ProgramImportance 64 · Surprise 42
  The Company returned $772.7 million to shareholders in Q1 2026 via dividends and share repurchases and repurchased 1.6 million shares in the quarter. During Q1 2026 treasury stock activity totaled $623.5 million, and…
• Acquisition / Partnership / DivestitureImportance 63 · Surprise 76
  The Company completed the October 2025 acquisition of Suvinil which materially increased Consumer Brands Group sales in Q1 2026. Consumer Brands Group Net sales rose $146.1 million (19.2%) in the three months ended…
• Consumer Brands Volume ShiftImportance 63 · Surprise 76
  The Consumer Brands Group reported a 19.2% increase in Net sales in Q1 2026, principally reflecting the October 2025 acquisition of Suvinil and a 2.4% benefit from favorable foreign currency translation. Sales also…
• Operating Cash Flow ImprovementImportance 63 · Surprise 64
  Net operating cash for the three months ended March 31, 2026 was a source of $139.1 million compared to a usage of $61.1 million in the same period in 2025. The twelve-month period ended March 31, 2026 shows Net…
• Consumer Brands Profitability ImprovementImportance 60 · Surprise 74
  Income before income taxes for the Consumer Brands Group increased materially, with the segment's income rising $65.3 million (49.5%) year-over-year in Q1 2026; gross profit increased $99.8 million. Management…
• Manufacturing Capacity & CapexImportance 58 · Surprise 42
  Net property, plant and equipment increased $68.5 million in Q1 2026 and $542.5 million over the twelve months since March 31, 2025, reflecting $118.7 million of capital expenditures in the quarter plus purchase…
• Headcount / RestructuringImportance 53 · Surprise 82
  Severance and other restructuring expenses were $19.3 million in Q1 2025 but there were no severance and other restructuring expenses recorded in Q1 2026, representing a year-over-year reduction of 100%.,Diluted net income per share in Q1 2025 included severance and other restructuring charges of $0.06 per share; Q1 2026 did not include such charges, improving comparability of operating results.,Adjusted EBITDA for Q1 2026 excluded severance and other restructuring, resulting in Adjusted EBITDA of $998.2 million versus $937.0 million in Q1 2025 (which included $19.3 million of such charges).
• Operating Expense TrendsImportance 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.
• Paint Stores Demand TrendsImportance 49 · Surprise 32
  Net sales in the Paint Stores Group increased 3.7% in Q1 2026, driven primarily by selling price increases (a low-single digit percentage impact) and low-single digit sales volume growth. Sales rose in all but one…
• Liquidity and Cash PositionImportance 49 · Surprise 6
  The Company reported cash and cash equivalents of $216.9 million at March 31, 2026 and $2.443 billion of unused capacity under its credit facilities as disclosed in the OUTLOOK.,Total debt, net of cash, was $11.483 billion at March 31, 2026 and the Company stated it expects to remain in compliance with financing covenants while maintaining sufficient short-term borrowing capacity.,Management stated the Company has sufficient cash on hand and available borrowing capacity to fund current operating requirements.
• Geographic Revenue ShiftImportance 47 · Surprise 48
  Net sales of consolidated foreign subsidiaries increased to $1.279 billion in Q1 2026 from $1.045 billion in Q1 2025, an increase driven by higher net sales across all regions and led by Latin America (inclusive of the…

Revenue by Product (in millions)