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14:00
Jul 28 ◎

SHW FY2026 Q2 Watch

The Sherwin-Williams Company (SHW) FY2026 Q2 Earnings Call

AKZOY LOW N/A NPCPF PPG ▾

Heidi Petz

Sherwin-Williams walked away from its bid for Akzo Nobel's decorative coatings business due to lack of engagement and pricing discipline, indicating a potential for future asset sales by Akzo Nobel at lower valuations.

"there was an opportunity at the right price, at the right time, at the right value that would have been something that would absolutely have been complementary to our strategy. Having said that, I think timing is everything, value is"

AKZOY WATCH

Heidi Petz

Sherwin-Williams sees continued share gains in the Pro segment through its strategic partnerships with Lowe's and Menards, supporting these retailers' pro-focused growth strategies.

"We've got, obviously, our very strategic partnerships, Lowe's and Menards and others. But this is a growing segment, still a small base, but the fundamentals are intact there."

LOW WATCH N/A WATCH

Heidi Petz

Sherwin-Williams partnered with Nippon Paint on a joint bid for Akzo Nobel assets but both walked away, highlighting the difficulty of executing large-scale M&A in the coatings sector.

"mid-quarter you and Nippon made a bid for AXO and then, you know, relatively quickly thereafter pulled that bid."

NPCPF WATCH

Heidi Petz

The raw material inflation outlook has been revised upward for H2 to high single digits, and the September price increase is designed to offset this, signaling a pricing power dynamic that could affect competitors. — Sherwin's ability to delay price increases and pass through costs indicates strong pricing power in architectural paints, but this could pressure smaller competitors and value-segment players who may not be able to fully offset input cost inflation.

"Inflation remains a variable we are actively managing. Our supplier relationships are strong and continue to be a competitive advantage, and we do not expect raw material availability to be an issue for us. At the same time, we are not"

PPG WATCH AXTA WATCH

Heidi Petz

Sherwin-Williams' protective and marine business is growing at a mid-teens rate for the eighth consecutive quarter, driven by data center construction, semiconductor fabs, and manufacturing onshoring, highlighting strong demand in these specific industrial verticals. — This signals sustained, secular growth in the construction and maintenance of large-scale industrial facilities, which benefits companies providing HVAC, electrical, and other infrastructure for these buildouts.

"Protective and Marine continued its momentum as sales increased by a mid-teens percentage versus a high single-digit comparison. It was the eighth straight quarter of at least high single-digit growth in this business. Data centers,"

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Heidi Petz

Despite a challenging demand environment, Sherwin-Williams raised full-year sales and EPS guidance, driven by strong execution, share gains, and disciplined pricing, indicating bullish sentiment.

"We remain focused on being our own catalyst for growth, which means taking share, serving customers better than anyone else, and creating opportunities regardless of the demand backdrop."

SHW WATCH

HIGH

14:00
Apr 28 ◎

SHW FY2026 Q1 Watch

The Sherwin-Williams Company (SHW) FY2026 Q1 Earnings Call

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Heidi Petz

Management maintained full-year EPS and revenue guidance despite raising the raw material inflation outlook, offsetting higher price expectations with slightly weaker volume assumptions. The tone is cautiously confident with a focus on share gains, but no upgrade.

"The consolidated sales and earnings guidance for the full year are unchanged, though our deck outlines some adjustments in the mix of volume, price, and FX."

SHW WATCH

Jim Jay

Raw material inflation is expected to hit P&L more materially in Q2 and H2, exiting the year at the high end of the low-to-mid single-digit range, as feedstock price increases flow through contracts with a lag. Industrial segments in APAC/EMEA see it first, then North American architectural. — The delayed pass-through means Sherwin's own margins will compress before price increases catch up, but also signals rising input costs for industrial gas suppliers and competing coatings makers who are not as contractually insulated.

"sustained inflation in these commodities typically takes about a quarter or two before we begin seeing an impact in our P&L"

LIN WATCH APD WATCH PPG WATCH

Ben Meisenzahl

Consumer Brands segment margin improved to 34.3% flow-through, driven by global supply chain efficiencies and premium mix, not reallocation of costs. This is a structural improvement in a business that has typically had lower margins. — Suggests internal cost-out programs are yielding durable margin gains that competitors may not have, widening Sherwin's competitive advantage in the DIY/architectural space.

"There is no reallocation. I know back in 2023, we talked about how we had that fixed cost allocation between the businesses. Nothing here."

AKZOY WATCH

Jim Jay

The packaging segment's strong growth (high single digits) is not just a regulatory one-off. The BPA ban in Europe (EFSA) and similar moves in Asia and LATAM still have a lot of room to run, positioning Sherwin for multi-year conversion-led growth. — Global regulatory shifts in food-contact coatings are a durable share-shift catalyst that Sherwin is capitalizing on, potentially at the expense of other coatings suppliers with less advanced BPA-NI technology.

"if you look at Asia and LATAM, there's still a lot of room to run in those regions as well."

AXTA WATCH

HIGH

15:00
Jan 29 ◎

SHW FY2025 Q4 Watch

The Sherwin-Williams Company (SHW) FY2025 Q4 Earnings Call

SHW PPG AXTA ▾

Heidi Petz

Guidance is cautious with a 'softer for longer' demand environment, but management expects modest growth driven by share gains and cost discipline, despite a challenging macro.

"In summary, for the third year in a row, the market is not going to give us much help. And for the third year in a row, we expect to outperform the market and grow sales and earnings per share."

SHW WATCH

Heidi Petz

The 7% price increase on Jan 1 is expected to realize Low-single-digit given management's willingness to sacrifice price for volume in a 'jump ball' competitive environment. — Indicates a price war in the paint industry, with Sherwin-Williams prioritizing market share over price realization, which will pressure competitors like PPG to defend their share.

"I would frame it more as a jump ball environment, to be honest with you. And so we're going to continue to be, as you would expect, extremely aggressive as it relates to chasing volume right now."

PPG WATCH

Heidi Petz

Sherwin-Williams is aggressively pursuing new accounts in Performance Coatings Group (PCG) despite weak industrial demand, with strong wins in industrial wood and general industrial. — Demonstrates that Sherwin-Williams is taking market share from competitors like Axalta in the industrial coatings space, even in a flat market.

"Our industrial wood and general industrial divisions had the strongest new account growth in the group last year, We expect these wins to drive low single-digit growth in both of these divisions, even as core demand remains very weak."

AXTA WATCH

HIGH

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