Key Highlights

  • Net sales rose 7.9% to USD 6.860 billion, and Paint Stores Group same-store sales rose 3.9%.
  • Diluted EPS rose 0.9% to USD 3.38, while adjusted diluted EPS rose 1.1% to USD 3.63.
  • Gross margin narrowed to 47.8% from 49.2%, as raw material and supply chain costs offset higher sales.
  • Year-to-date net operating cash reached USD 2.591 billion, and the company repurchased USD 2.357 billion of stock.

Sales Growth Across Segments

Sherwin-Williams (NYSE:SHW) filed its quarterly report for the period ended Sept. 30 on Tuesday. Consolidated net sales rose 7.9% to USD 6.860 billion from USD 6.358 billion. Selling price increases contributed a mid-single digit percentage, currency added 0.3% and acquisitions and divestitures added 2.6%, including the October 2025 acquisition of Suvinil.

Paint Stores Group sales rose 4.7% to USD 4.016 billion on mid-single digit pricing and low-single digit volume growth. Sales rose in all professional end markets, led by a double-digit gain in protective and marine, a high-single digit gain in commercial and a mid-single digit gain in residential repaint. Same-store sales rose 3.9%, and non-paint products rose 3.8%.

Consumer Brands Group sales rose 21.7% to USD 937.4 million, with acquisitions contributing 21.5 points, plus favorable currency and mix, partly offset by soft demand in North America. Performance Coatings Group sales rose 8.8% to USD 1.903 billion, led by double-digit gains in General Industrial, Packaging and Coil.

Margins and Earnings

Gross profit rose to USD 3.277 billion from USD 3.126 billion, and gross margin fell to 47.8% from 49.2% on higher raw material and supply chain costs. Selling, general and administrative expenses were USD 2.069 billion, or 30.2% of sales, compared with 30.7%. Interest expense rose to USD 139.3 million from USD 117.2 million. Income taxes were USD 242.5 million, compared with USD 227.4 million.

Net income was USD 821.0 million, compared with USD 833.1 million. Diluted EPS rose to USD 3.38 from USD 3.35, helped by a lower diluted share count of 242.8 million versus 249.0 million. Adjusted diluted EPS rose to USD 3.63 from USD 3.59.

Nine-Month Results and Capital Return

For the nine months, net sales rose 7.4% to USD 19.316 billion, and Paint Stores Group same-store sales rose 3.6%. Net income was USD 2.199 billion, up from USD 2.092 billion. Diluted EPS rose 7.3% to USD 8.95, and adjusted diluted EPS rose 5.1% to USD 9.67 from USD 9.20. Gross margin was 48.6% against 49.0%.

Net operating cash was USD 2.591 billion compared with USD 2.359 billion. The company bought back 7.1 million shares for USD 2.357 billion at an average price of USD 331.99, compared with 4.45 million shares for USD 1.538 billion. In the third quarter alone it repurchased 1.5 million shares for USD 520.1 million, and 22.5 million shares remain under the authorization. Cash dividends were USD 588.9 million, at USD 0.80 per share each quarter.

Balance Sheet and Outlook Language

Cash was USD 264.2 million, with USD 2.322 billion of unused credit facility capacity. Total debt was USD 11.795 billion, up from USD 10.871 billion at year end, and net of cash was USD 11.531 billion. In January the company repaid USD 350.0 million of 3.95% senior notes using commercial paper. Short-term borrowings were USD 2.354 billion.

The filing describes a softer-for-longer demand environment in which new customer wins and share-of-wallet gains drove sales. Management cited cost reductions, efficiency gains and measured pricing actions to address inflationary pressure. The filing did not provide numeric guidance.

Coatings Demand Markers to Follow

Tracking points include Paint Stores same-store sales against 3.9%, gross margin relative to 47.8%, and North America consumer demand, which the filing describes as soft. Further items are Suvinil's contribution as it laps its acquisition, interest expense against USD 139.3 million, and the pace of buybacks after USD 520.1 million in the quarter.