- Company name
- Sherwin-Williams
- Sector
- Paints and coatings
- About
- Sherwin-Williams makes and sells paint, coatings and related products to professional, industrial, commercial and retail customers. It was founded in 1866. Its brands include Sherwin-Williams, Valspar, HGTV HOME by Sherwin-Williams, Dutch Boy, Krylon, Minwax, Cabot and Suvinil. It has three segments. The Paint Stores Group sells Sherwin-Williams products only through more than 5,400 company-operated stores and branches, and it gave $10.96 billion of the $19.32 billion of net sales in the first nine months of 2026. The Consumer Brands Group sells other brands through home centers, mass merchants and dealers. The Performance Coatings Group supplies coatings for construction, industrial, packaging and transportation customers in more than 120 countries. Net sales were $23.57 billion in 2025. The head office is in Cleveland, Ohio, and Heidi G. Petz is its chair, president and chief executive officer.
- Thesis
- Sherwin-Williams trades at a premium because investors pay for its network of more than 5,400 stores, its strong position with professional painters and a long record of growth in earnings and dividends. In 2025, it raised its dividend for the 47th year in a row. But demand is weak: the company says that its leading indicators point to muted demand for the rest of 2026 and into 2027, and adjusted diluted EPS rose only 1.1% in Q3 2026, to $3.63. Gross margin fell to 47.8% from 49.2% because of higher raw material and supply chain costs and the mix of Suvinil, which it bought in Brazil in October 2025. For the premium to be earned, three things must be true. The Paint Stores Group must keep winning customers while market volumes stay low; its same-store sales rose 3.9% in Q3 2026. Price increases and cost actions must protect the gross margin against inflation. Adjusted diluted EPS must reach the 2026 guidance of $11.85 to $12.15, and the 2027 guidance, expected with the Q4 2026 report in late January 2027, must show growth. If housing and repaint demand stay weak through 2027, the premium can shrink.
- Risks
- Demand depends on housing, repaint and construction activity. The company expects muted demand into 2027, and weak volumes can stop earnings growth.
Raw material and supply chain costs rose in 2026. Gross margin fell to 47.8% in Q3 2026 from 49.2% a year earlier, and price increases may not cover more inflation.
Debt rose to $11.80 billion at September 30, 2026, and $3.85 billion of it is short-term or due within one year. Shareholders' equity was only $3.98 billion after large buybacks, so higher interest rates raise costs quickly.
The Consumer Brands Group depends on large retail customers and on soft do-it-yourself demand in North America. Its adjusted segment margin fell to 18.3% in Q3 2026 from 23.3%.
Suvinil and other businesses outside the United States add exposure to Brazil and to changes in currency rates.
- Balance sheet
- Cash: $264M
Debt: $11.8B
Net debt: $11.5B
Interest cover: 8.0×
Undrawn credit line: $2.3B
Debt due within 12 months: $3.9B
Sherwin-Williams funds itself with senior notes, commercial paper and bank term loans. Total debt was $11.80 billion at September 30, 2026: $2.35 billion of short-term borrowings, $1.50 billion of long-term debt due within one year and $7.94 billion of other long-term debt. Short-term borrowings include $1.60 billion of commercial paper and a $750 million term loan that matures in September 2027. Cash was $264 million, and unused capacity under the credit agreements was $2.32 billion. In January 2026, the company repaid $350 million of 3.95% notes with commercial paper. Interest cover is income before income taxes plus interest expense, divided by interest expense, for the first nine months of 2026 ($3.26 billion against $407 million). Shareholders' equity was $3.98 billion. In the first nine months of 2026, the company paid $589 million of dividends at $0.80 per share each quarter and bought back 7.1 million shares. There were 241,588,072 shares outstanding on September 30, 2026.
As of 2026-09-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 results and 2026 guidance. Passed. Watch: Adjusted EPS above a year earlier and kept 2026 guidance pass; lower guidance fails. Outcome: Adjusted diluted EPS rose 1.1% to $3.63, and the company narrowed its 2026 guidance to $11.85 to $12.15 with the same midpoint.
Jan 28, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2026 adjusted EPS within $11.85 to $12.15 and 2027 guidance above it pass; flat or lower 2027 guidance fails.
Apr 2027 (estimate): Q1 2027 results: volumes and gross margin. Pending. Watch: Positive Paint Stores Group same-store sales and a stable gross margin pass; falling sales or margin fail.
- Recent events
- 2026-11-02: Sherwin-Williams added $75 million of commitments to its revolving credit agreement of November 2025. The new commitments mature on December 20, 2031.
2026-10-27: Sherwin-Williams reported Q3 2026 results. Net sales rose 7.9% to $6.86 billion, and Paint Stores Group same-store sales rose 3.9%. Diluted EPS was $3.38 and adjusted diluted EPS was $3.63, up 1.1%. Gross margin fell to 47.8% from 49.2%. The company narrowed its 2026 adjusted diluted EPS guidance to $11.85 to $12.15 from $11.80 to $12.20, and it said that leading indicators point to muted demand into 2027. It returned $749.0 million to shareholders in the quarter.
2026-09-24: Sherwin-Williams took a new $750 million 364-day term loan that matures on September 23, 2027, and a EUR 100 million term loan. It used them to repay and end its delayed draw term loan of August 2025.
2026-07-28: Sherwin-Williams reported Q2 2026 results. Net sales rose 7.5% to $6.79 billion, and Paint Stores Group same-store sales rose 4.2%. Diluted EPS rose 14.3% to $3.43, and adjusted diluted EPS rose 9.5% to $3.70. The company raised its 2026 adjusted diluted EPS guidance to $11.80 to $12.20. In June 2026, it bought a paint manufacturing business for about $75 million.
2026-04-28: Sherwin-Williams reported Q1 2026 results. Net sales rose 6.8% to $5.67 billion, and Paint Stores Group same-store sales rose 2.4%. Diluted EPS was $2.15 and adjusted diluted EPS was $2.35. The company kept its 2026 adjusted diluted EPS guidance of $11.50 to $11.90.
2026-01-29: Sherwin-Williams reported 2025 results. Net sales rose 2.1% to $23.57 billion. Diluted EPS was $10.26 and adjusted diluted EPS was $11.43, up 0.9%. Net operating cash was $3.45 billion, and the company returned $2.45 billion to shareholders. It gave 2026 adjusted diluted EPS guidance of $11.50 to $11.90.