By Rob Curran
Sherwin-Williams' first-quarter net income rose but the maker of house paint said demand from do-it-yourself customers remained weak and warned, it may continue raising prices to offset the inflationary impact of geopolitical upheaval and the related spike in energy costs.
The paint maker posted earnings of $534.7 million, or $2.15 a share, up from $503.9 million, or $2 a share, a year earlier.
Excluding certain one off items, Sherwin logged adjusted earnings of $2.35 a share, topping the average analyst target of $2.27 a share, as per FactSet.
Sales rose 6.8% to $5.67 billion, topping the mean Wall Street estimate of $5.56 billion.
The company's self-branded stores unit saw sales rise 3.7% to $3.05 billion. Sales at the consumer brands unit surged 19% to $908.3 million, as a boost from the acquisition of the Suvinil brand offset softness in the North American DIY market. Performance coatings sales rose 6.5% to $1.71 billion.
"Sherwin-Williams delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets," said Chair, Chief Executive and President Heidi Petz, in a statement.
Stubbornly high U.S. mortgage rates and home values have caused the housing market to slow, in turn weighing on construction activity.
For the second quarter, Sherwin-Williams targeted sales growth in the mid-single percentage digit range.
"We continue to expect little to no recovery in most end markets this year, given current customer sentiment and the leading indicators we monitor," said Petz, in a statement.
The company is anticipating raw-materials inflation due to the Iran war and the energy shock. For this reason, Sherwin-Williams is raising prices on select products, and anticipates aggregate price increases at the high end of prior projections. While Sherwin-Williams is trying to offset pressure from rising commodity prices with cost cuts elsewhere, the paint maker said it could still increase prices further.
For 2026, the paint maker reiterated its prior targeted earnings range between $10.70 and $11.10 a share, short of the average Wall Street target of $11.23 a share. Sherwin-Williams also backed its prior projection for adjusted earnings of $11.50-to-$11.90 a share, in line with the mean analyst estimate of $11.71 a share, as per FactSet. Sherwin also reiterated its projected sales growth in the low-to-mid percentage digits for the year.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
April 28, 2026 07:37 ET (11:37 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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