Core Insights - Sherwin-Williams reported revenue of $6.31 billion for the quarter ended June 2025, a year-over-year increase of 0.7% [1] - The company's EPS for the same period was $3.38, down from $3.70 a year ago, indicating a decline [1] - Revenue exceeded the Zacks Consensus Estimate of $6.28 billion by 0.49%, while EPS fell short of the consensus estimate of $3.76 by 10.11% [1] Financial Performance Metrics - Net New Stores in the Paint Stores Group were 20, matching analyst estimates [4] - The total number of Paint Stores remained at 4,811, consistent with analyst expectations [4] - Net sales for the Paint Stores Group reached $3.7 billion, slightly above the estimated $3.69 billion, reflecting a 2.3% increase year-over-year [4] - Consumer Brands Group net sales were $809.4 million, below the estimated $821.32 million, showing a decline of 4.1% year-over-year [4] - Performance Coatings Group net sales were $1.8 billion, exceeding the average estimate of $1.77 billion, but representing a 0.3% decrease year-over-year [4] - Administrative net sales were reported at $1.8 million, significantly higher than the estimated $0.97 million, marking a 100% increase year-over-year [4] - Segment profit for the Paint Stores Group was $916.5 million, below the average estimate of $948.97 million [4] - Adjusted segment profit for the Performance Coatings Group was $302.3 million, lower than the estimated $335.91 million [4] - Adjusted segment profit for the Consumer Brands Group was $181.4 million, compared to the average estimate of $212.74 million [4] Stock Performance - Sherwin-Williams shares have returned -0.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 5.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance Overview - Sales increased by 0.7% to $6,314.5 million compared to $6,271.5 million in 2Q 2024[7] - Gross profit increased by 1.8% to $3,118.3 million compared to $3,063.4 million in 2Q 2024[7] - Gross margin expanded by 60 bps to 49.4%[7] - Reported EPS decreased by 14.3% to $3.00, while adjusted EPS decreased by 8.6% to $3.38[7] - EBITDA decreased by 12.3% to $1,260.8 million, representing 20.0% of sales[7] - Adjusted EBITDA decreased by 8.2% to $1,319.8 million, representing 20.9% of sales[7] Segment Performance - Paint Stores Group (PSG) sales increased by 2.3% to $3,702.2 million[11] - Consumer Brands Group (CBG) sales decreased by 4.1% to $809.4 million[17] - Performance Coatings Group (PCG) sales decreased by 0.3% to $1,801.1 million[23] Guidance - Third Quarter 2025 sales are expected to be up or down low-single digit percentage[36] - Full Year 2025 sales are expected to be up or down low-single digit percentage[36]

Core Viewpoint - Sherwin-Williams reported quarterly earnings of $3.38 per share, missing the Zacks Consensus Estimate of $3.76 per share, representing a -10.11% earnings surprise [1] - The company posted revenues of $6.31 billion for the quarter, slightly surpassing the Zacks Consensus Estimate by 0.49% [2] Financial Performance - Earnings per share (EPS) for the same quarter last year was $3.70, indicating a year-over-year decline [1] - Over the last four quarters, Sherwin-Williams has surpassed consensus EPS estimates two times [2] - The company has topped consensus revenue estimates just once over the last four quarters [2] Stock Performance - Sherwin-Williams shares have increased by approximately 0.4% since the beginning of the year, compared to the S&P 500's gain of 7.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.58 on revenues of $6.33 billion, and for the current fiscal year, it is $11.76 on revenues of $23.41 billion [7] - The outlook for the industry, particularly the Chemical - Specialty sector, is favorable, ranking in the top 32% of over 250 Zacks industries [8] Industry Context - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5] - RPM International, another company in the same industry, is expected to report quarterly earnings of $1.60 per share, reflecting a year-over-year change of +2.6% [9]

Sherwin-Williams warns of continued demand slump, cuts full-year forecast https://t.co/md8UNxphDK ...

[Company Overview & Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20%26%20Q2%202025%20Highlights) The company navigated volatile Q2 2025 demand, achieving gross margin expansion and accelerating restructuring efforts despite mixed segment performance [CEO Remarks](index=1&type=section&id=CEO%20Remarks) CEO Heidi G. Petz noted strategic execution in a volatile market, achieving gross margin expansion and accelerating restructuring actions - The company continued strategic execution in a volatile demand environment, achieving **12 consecutive quarters of gross margin expansion**[4](index=4&type=chunk) - Accelerated and increased restructuring actions in response to soft demand, resulting in **$59 million in pre-tax charges**[4](index=4&type=chunk) - Paint Stores Group saw high single-digit sales growth in protective and marine coatings for the fourth consecutive quarter, with mid-single-digit growth in residential repaint sales[4](index=4&type=chunk) - Consumer Brands Group sales declined due to soft North American DIY demand and unfavorable Latin American currency exchange rates[6](index=6&type=chunk)[7](index=7&type=chunk) - The company returned **$716 million to shareholders** through dividends and share repurchases[4](index=4&type=chunk) [Q2 2025 Summary Highlights](index=1&type=section&id=Q2%202025%20Summary%20Highlights) Consolidated net sales grew 0.7% to $6.31 billion, while diluted and adjusted diluted EPS declined, leading to revised full-year guidance 2025 Second Quarter Key Financial Highlights | Metric | Q2 2025 (USD) | Change (YoY) | | :--------------------------------- | :----------------: | :----------: | | Consolidated Net Sales | $6.31 billion | +0.7% | | Diluted Net Income Per Share | $3.00 | -14.3% | | Adjusted Diluted Net Income Per Share | $3.38 | -8.6% | - Selling, general and administrative (SG&A) expenses increased due to broader restructuring initiatives, accelerated building-related costs, and increased growth investments to address competitive opportunities[5](index=5&type=chunk) Fiscal Year 2025 Diluted Net Income Per Share Guidance | Metric | FY 2025 Guidance Range (USD) | | :------------------------- | :----------------: | | Diluted Net Income Per Share | $10.11 - $10.41 | | Adjusted Diluted Net Income Per Share | $11.20 - $11.50 | [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Consolidated financial performance in Q2 and H1 2025 showed mixed results, with slight sales growth but declining profitability due to increased operating costs [Second Quarter Consolidated Results](index=3&type=section&id=Second%20Quarter%20Consolidated%20Results) Consolidated net sales grew 0.7% to $6.3145 billion, but pre-tax income and diluted EPS declined due to increased employee costs and new facility expenses 2025 Second Quarter Consolidated Results | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change ($ Millions) | Change (%) | | :----------------------- | :----------------: | :----------------: | :--------: | :--------: | | Net Sales | $6,314.5 | $6,271.5 | $43.0 | 0.7% | | Pre-tax Income | $985.7 | $1,173.4 | $(187.7) | (16.0)% | | Diluted Net Income Per Share | $3.00 | $3.50 | $(0.50) | (14.3)% | | Adjusted Diluted Net Income Per Share | $3.38 | $3.70 | $(0.32) | (8.6)% | - Pre-tax income decreased primarily due to increased employee-related costs and expenses associated with the new global headquarters and R&D facility, partially offset by net sales growth[8](index=8&type=chunk) - Diluted net income per share includes **$0.20 per share** for acquisition-related amortization and **$0.18 per share** for severance and other restructuring charges in Q2 2025[9](index=9&type=chunk) [Statements of Consolidated Income (Detailed)](index=9&type=section&id=Statements%20of%20Consolidated%20Income%20%28Detailed%29) Net sales slightly increased in Q2 2025, but a significant rise in SG&A expenses led to a decline in net income and EPS, despite a marginal improvement in gross margin Consolidated Statements of Income Summary (Q2 2025 vs Q2 2024) | Metric (Millions USD) | Q2 2025 | Q2 2024 | Change (%) | | :---------------------- | :--------------: | :--------------: | :------: | | Net Sales | 6,314.5 | 6,271.5 | 0.7% | | Cost of Goods Sold | 3,196.2 | 3,208.1 | -0.4% | | Gross Profit | 3,118.3 | 3,063.4 | 1.8% | | Gross Profit as % of Net Sales | 49.4% | 48.8% | +0.6 pp | | Selling, General & Administrative Expenses | 2,011.6 | 1,845.7 | 9.0% | | SG&A as % of Net Sales | 31.9% | 29.4% | +2.5 pp | | Pre-tax Income | 985.7 | 1,173.4 | -16.0% | | Net Income | 754.7 | 889.9 | -15.2% | | Diluted Net Income Per Share | $3.00 | $3.50 | -14.3% | Consolidated Statements of Income Summary (H1 2025 vs H1 2024) | Metric (Millions USD) | H1 2025 | H1 2024 | Change (%) | | :---------------------- | :------------: | :------------: | :------: | | Net Sales | 11,620.2 | 11,638.8 | -0.2% | | Cost of Goods Sold | 5,942.8 | 6,044.4 | -1.7% | | Gross Profit | 5,677.4 | 5,594.4 | 1.5% | | Gross Profit as % of Net Sales | 48.9% | 48.1% | +0.8 pp | | Selling, General & Administrative Expenses | 3,805.4 | 3,645.5 | 4.4% | | SG&A as % of Net Sales | 32.7% | 31.3% | +1.4 pp | | Pre-tax Income | 1,638.7 | 1,813.4 | -9.6% | | Net Income | 1,258.6 | 1,395.1 | -9.8% | | Diluted Net Income Per Share | $5.00 | $5.47 | -8.5% | [Segment Performance](index=3&type=section&id=Segment%20Performance) This section details the financial performance of each business segment for Q2 and H1 2025, highlighting varied sales and profit trends across groups [Paint Stores Group (PSG)](index=3&type=section&id=Paint%20Stores%20Group%20%28PSG%29) PSG net sales increased 2.3% to $3.7022 billion, driven by higher selling prices, while segment profit grew 1.0% despite increased costs PSG Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change ($ Millions) | Change (%) | | :-------------------- | :----------------: | :----------------: | :--------: | :--------: | | Net Sales | $3,702.2 | $3,619.9 | $82.3 | 2.3% | | Same-Store Sales Change | 0.8% | 2.4% | - | - | | Segment Profit | $916.5 | $907.1 | $9.4 | 1.0% | | Reported Segment Margin | 24.8% | 25.1% | - | - | - Net sales growth was primarily due to higher selling prices (mid-single-digit percentage impact), partially offset by low single-digit sales volume declines[10](index=10&type=chunk) - Protective and marine coatings sales achieved **high single-digit growth**, and residential repaint sales saw **mid-single-digit growth**[10](index=10&type=chunk) [Consumer Brands Group (CBG)](index=4&type=section&id=Consumer%20Brands%20Group%20%28CBG%29) CBG net sales declined 4.1% to $809.4 million due to soft North American DIY demand and unfavorable foreign currency, resulting in a 19.7% drop in segment profit CBG Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change ($ Millions) | Change (%) | | :-------------------- | :----------------: | :----------------: | :--------: | :--------: | | Net Sales | $809.4 | $844.3 | $(34.9) | (4.1)% | | Segment Profit | $164.2 | $204.4 | $(40.2) | (19.7)% | | Reported Segment Margin | 20.3% | 24.2% | - | - | | Adjusted Segment Profit | $181.4 | $220.4 | $(39.0) | (17.7)% | | Adjusted Segment Margin | 22.4% | 26.1% | - | - | - Net sales decline was primarily due to soft North American DIY demand and an approximate **2% unfavorable foreign currency impact** from Latin America, partially offset by net sales growth in Europe[11](index=11&type=chunk) - Segment profit decreased due to lower net sales and supply chain inefficiencies from reduced production volumes[11](index=11&type=chunk) [Performance Coatings Group (PCG)](index=4&type=section&id=Performance%20Coatings%20Group%20%28PCG%29) PCG net sales remained flat at $1.8011 billion, with acquisition gains offset by lower prices, leading to an 18.7% decline in segment profit PCG Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change ($ Millions) | Change (%) | | :-------------------- | :----------------: | :----------------: | :--------: | :--------: | | Net Sales | $1,801.1 | $1,806.4 | $(5.3) | (0.3)% | | Segment Profit | $245.1 | $301.5 | $(56.4) | (18.7)% | | Reported Segment Margin | 13.6% | 16.7% | - | - | | Adjusted Segment Profit | $302.3 | $350.5 | $(48.2) | (13.8)% | | Adjusted Segment Margin | 16.8% | 19.4% | - | - | - Performance was driven by double-digit growth in Packaging (including an acquisition) and Coil businesses, offset by declines in all other business units[12](index=12&type=chunk) - Segment profit decreased due to higher costs to support sales, increased foreign currency transaction losses, and the absence of asset sale gains from Q2 2024[12](index=12&type=chunk) [Business Segments (Detailed Tables)](index=10&type=section&id=Business%20Segments%20%28Detailed%20Tables%29) Detailed segment data reveals PSG's growth in sales and profit, while CBG and PCG faced declines in both sales and profit during Q2 and H1 2025 Q2 2025 Business Segment Performance (Millions USD) | Segment | Net Sales | Segment Profit (Loss) | | :---------------------- | :--------: | :--------------: | | Paint Stores Group | 3,702.2 | 916.5 | | Consumer Brands Group | 809.4 | 164.2 | | Performance Coatings Group | 1,801.1 | 245.1 | | Administrative | 1.8 | (340.1) | | **Consolidated Total** | **6,314.5** | **985.7** | H1 2025 Business Segment Performance (Millions USD) | Segment | Net Sales | Segment Profit (Loss) | | :---------------------- | :------------: | :--------------: | | Paint Stores Group | 6,642.0 | 1,457.7 | | Consumer Brands Group | 1,571.6 | 296.1 | | Performance Coatings Group | 3,403.1 | 457.8 | | Administrative | 3.5 | (572.9) | | **Consolidated Total** | **11,620.2** | **1,638.7** | [Financial Position and Cash Flow](index=4&type=section&id=Financial%20Position%20and%20Cash%20Flow) This section outlines the company's liquidity, cash flow, and balance sheet changes, highlighting capital returns and shifts in assets and liabilities [Liquidity and Cash Flow](index=4&type=section&id=Liquidity%20and%20Cash%20Flow) The company generated $1.05 billion in net operating cash flow in H1 2025 and returned $1.27 billion to shareholders through dividends and share repurchases - The company generated **$1.05 billion in net operating cash flow** in the first half of 2025[13](index=13&type=chunk) - **$1.27 billion was returned to shareholders** through dividends and the repurchase of **2.5 million shares** of common stock[13](index=13&type=chunk) - As of June 30, 2025, the company was authorized to repurchase an additional **32 million shares** of common stock through open market purchases[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $25.36 billion by June 30, 2025, driven by property, plant, and equipment and goodwill, alongside a rise in total liabilities and shareholder equity Condensed Consolidated Balance Sheets Summary (Millions USD) | Metric | June 30, 2025 | June 30, 2024 | Change ($ Millions) | Change (%) | | :-------------------------- | :--------------: | :--------------: | :--------: | :--------: | | **Assets** | | | | | | Cash and Cash Equivalents | 269.8 | 200.0 | 69.8 | 34.9% | | Total Current Assets | 6,425.3 | 6,050.6 | 374.7 | 6.2% | | Property, Plant and Equipment, Net | 3,805.9 | 3,136.6 | 669.3 | 21.3% | | Goodwill | 7,807.6 | 7,606.9 | 200.7 | 2.6% | | Total Assets | 25,363.6 | 23,734.0 | 1,629.6 | 6.9% | | **Liabilities and Shareholders' Equity** | | | | | | Total Current Liabilities | 8,196.4 | 7,466.6 | 729.8 | 9.8% | | Long-Term Debt | 7,828.9 | 8,130.8 | (301.9) | -3.7% | | Other Long-Term Liabilities | 2,652.6 | 2,106.7 | 545.9 | 25.9% | | Shareholders' Equity | 4,400.9 | 3,751.8 | 649.1 | 17.3% | | Total Liabilities and Shareholders' Equity | 25,363.6 | 23,734.0 | 1,629.6 | 6.9% | [2025 Outlook and Guidance](index=5&type=section&id=2025%20Outlook%20and%20Guidance) This section provides the company's updated financial outlook and guidance for full year and Q3 2025, reflecting market conditions and strategic responses [Full Year and Third Quarter 2025 Guidance](index=5&type=section&id=Full%20Year%20and%20Third%20Quarter%202025%20Guidance) The company revised its full-year guidance, projecting low single-digit net sales changes and adjusted diluted EPS between $11.20 and $11.50 Q3 and Full Year 2025 Guidance | Metric | Q3 2025 | Full Year 2025 (USD) | | :------------------------- | :----------------: | :----------------: | | Net Sales | Low single-digit % increase or decrease | Low single-digit % increase or decrease | | Effective Tax Rate | - | Low twenties % | | Diluted Net Income Per Share | - | $10.11 - $10.41 | | Adjusted Diluted Net Income Per Share | - | $11.20 - $11.50 | - The company lowered its full-year guidance due to weaker-than-expected demand in June and no current catalysts for a trend change[14](index=14&type=chunk) - The company will continue to aggressively address the "long-term soft" market environment, including doubling previously announced restructuring initiatives[14](index=14&type=chunk) - Full-year 2025 adjusted diluted net income per share is projected to be **$11.20 to $11.50**, representing a **0.2% increase at the midpoint** compared to **$11.33 in 2024**[15](index=15&type=chunk) [Non-GAAP Financial Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, including adjusted diluted EPS and adjusted EBITDA, to their most directly comparable GAAP measures [Adjusted Diluted Net Income Per Share Reconciliation](index=12&type=section&id=Adjusted%20Diluted%20Net%20Income%20Per%20Share%20Reconciliation) The company provides adjusted diluted EPS, a non-GAAP metric, to better reflect operational performance by excluding acquisition-related amortization and restructuring charges - Management believes that disclosing diluted net income per share, excluding Valspar acquisition-related amortization and certain other adjustments, enhances investors' understanding of the company's operating performance[33](index=33&type=chunk) Adjusted Diluted Net Income Per Share Reconciliation (Q2 2025) | Metric | Pre-tax ($) | After-tax Impact ($) | After-tax ($) | | :-------------------------- | :-------: | :----------: | :-------: | | Diluted Net Income Per Share | - | - | 3.00 | | Acquisition-Related Amortization | 0.26 | 0.06 | 0.20 | | Severance and Other Restructuring Charges | 0.23 | 0.05 | 0.18 | | **Adjusted Diluted Net Income Per Share** | - | - | **3.38** | Fiscal Year 2025 Adjusted Diluted Net Income Per Share Guidance Reconciliation | Metric | Low ($) | High ($) | | :-------------------------- | :-----: | :-----: |\ | Diluted Net Income Per Share | 10.11 | 10.41 | | Acquisition-Related Amortization | 0.77 | 0.77 | | Severance and Other Restructuring Charges | 0.32 | 0.32 | | **Adjusted Diluted Net Income Per Share** | **11.20** | **11.50** | [EBITDA and Adjusted EBITDA Reconciliation](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The company presents EBITDA and Adjusted EBITDA, non-GAAP metrics, to provide a clearer view of core business profitability by excluding specific non-operating items - EBITDA is defined as net income before net interest expense, income taxes, depreciation, and amortization[35](index=35&type=chunk) - Adjusted EBITDA further excludes certain adjustments that management believes enhance investors' understanding of the company's operating performance, such as severance and other restructuring charges[35](index=35&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (Q2 2025) | Metric (Millions USD) | Q2 2025 | | :-------------------------- | :--------------: | | Net Income | 754.7 | | Interest Expense | 112.4 | | Income Taxes | 231.0 | | Depreciation | 79.3 | | Amortization | 83.4 | | **EBITDA** | **1,260.8** | | Severance and Other Restructuring Charges | 59.0 | | **Adjusted EBITDA** | **1,319.8** | [Selected Financial and Operational Data](index=14&type=section&id=Selected%20Financial%20and%20Operational%20Data) This section provides key financial and operational data, including depreciation, capital expenditures, cash dividends, intangible asset amortization, and segment store count changes [Key Financial Metrics and Store Count](index=14&type=section&id=Key%20Financial%20Metrics%20and%20Store%20Count) The company reported key financial metrics for Q2 and H1 2025, alongside store count changes, showing PSG growth and CBG reduction Selected Financial Metrics (Millions USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------- | :--------------: | :--------------: | :----------: | :----------: | | Depreciation | 79.3 | 71.8 | 159.2 | 142.9 | | Capital Expenditures | 181.5 | 250.9 | 370.8 | 534.7 | | Cash Dividends | 197.9 | 178.6 | 398.3 | 361.1 | | Amortization of Intangible Assets | 83.4 | 81.5 | 164.4 | 163.6 | Store Count Data | Segment | Net New Stores (Q2 2025) | Total Stores (Q2 2025) | | :---------------------- | :------------------: | :------------------: | | Paint Stores Group | 20 | 4,811 | | Consumer Brands Group | (28) | 312 | | Performance Coatings Group | — | 324 | - Paint Stores Group added a net of **20 new stores** in Q2 2025, bringing the total to **4,811**[38](index=38&type=chunk) - Consumer Brands Group saw a net reduction of **28 stores** in Q2 2025, decreasing its total to **312**[38](index=38&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides background on The Sherwin-Williams Company, a cautionary statement regarding forward-looking information, and conference call details [About The Sherwin-Williams Company](index=6&type=section&id=About%20The%20Sherwin-Williams%20Company) Founded in 1866, Sherwin-Williams is a global leader in paints and coatings, serving diverse customers through its extensive brand portfolio and distribution network - Founded in **1866**, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings, and related products[19](index=19&type=chunk) - The company's portfolio includes well-known brands such as Sherwin-Williams, Valspar, HGTV HOME by Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson's WaterSeal, and Cabot[19](index=19&type=chunk) - Sherwin-Williams brand products are sold exclusively through **over 5,400 company-operated stores and branches**, while other brands are sold through major retailers, home centers, and independent paint dealers[19](index=19&type=chunk) [Cautionary Statement Regarding Forward-Looking Information](index=7&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This press release contains forward-looking statements based on management's current expectations, subject to risks and uncertainties that could cause actual results to differ materially - Certain statements in this press release constitute "forward-looking statements" under federal securities laws, based on management's current expectations, forecasts, estimates, assumptions, and beliefs about future events and conditions[20](index=20&type=chunk) - Forward-looking statements are inherently subject to risks, uncertainties, and other factors, many beyond the company's control, that could cause actual results to differ materially from such statements and historical results, performance, and experience[21](index=21&type=chunk) - These risks include, but are not limited to, macroeconomic conditions, inflation, supply chain disruptions, rising raw material costs, increased competition, cybersecurity incidents, foreign currency fluctuations, and changes in laws and regulations[21](index=21&type=chunk) [Conference Call and Contact Information](index=5&type=section&id=Conference%20Call%20and%20Contact%20Information) The company will host a conference call on July 22, 2025, to discuss Q2 financial results, Q3 and full-year outlook, with investor relations and media contacts provided - The company will host a conference call on **July 22, 2025, at 10:00 AM EDT**, to discuss Q2 financial results and the Q3 and full-year outlook[16](index=16&type=chunk) - The conference call will be webcast in a listen-only mode and accessible via the company's investor relations website[17](index=17&type=chunk) - Investor Relations contacts are Jim Jaye and Eric Swanson, and the Media contact is Julie Young[24](index=24&type=chunk)

CEO REMARKS "Sherwin-Williams continued to execute on our consistent and disciplined strategy in a demand environment that remained choppy as we anticipated," said Chair, President and Chief Executive Officer, Heidi G. Petz. "Consolidated sales were within our guided range, and we delivered gross margin expansion for the 12th consecutive quarter. Given the demand softness in the quarter, which we expect will continue if not deteriorate in the second half of the year, we aggressively accelerated and increase ...

Core Viewpoint - Sherwin-Williams Company (SHW) is positioned favorably for an upcoming earnings report, with positive earnings estimate revisions indicating potential for an earnings beat [1][5]. Earnings Estimate Revisions - Recent activity shows analysts have raised their earnings estimates for SHW, which is typically a precursor to positive earnings surprises [2]. - The Most Accurate Estimate for the current quarter stands at $3.81 per share, surpassing the broader Zacks Consensus Estimate of $3.76 per share, indicating a positive trend [3]. Zacks Earnings ESP - SHW has a Zacks Earnings ESP of +1.32%, suggesting a favorable outlook heading into the earnings season [3]. - A positive Zacks Earnings ESP has historically led to positive surprises and outperformance in the market, with a 70% success rate in producing positive surprises over the past decade [4]. Investment Consideration - With a Zacks Rank of 3 (Hold) and a positive Earnings ESP, SHW is a stock that investors may want to consider prior to the earnings announcement [5]. - The recent revisions in earnings estimates imply that positive results may be forthcoming for Sherwin-Williams [5].

Core Insights - Wall Street analysts expect Sherwin-Williams (SHW) to report quarterly earnings of $3.76 per share, reflecting a year-over-year increase of 1.6% [1] - Revenues are projected to be $6.29 billion, which is a slight increase of 0.2% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - Analysts predict 'Net sales- Paint Stores Group' to be $3.68 billion, representing a year-over-year increase of 1.6% [4] - 'Net sales- Consumer Brands Group' is expected to reach $826.14 million, indicating a decline of 2.2% year over year [4] - 'Net sales- Performance Coatings Group' is estimated at $1.77 billion, suggesting a decrease of 1.7% from the previous year [4] Store Metrics - The 'Net New Stores - Paint Stores Group' is projected to reach 20, up from 19 in the same quarter last year [5] - The expected 'Number of Stores - Paint Stores Group' is 4,811, compared to 4,720 a year ago [5] Profit Estimates - 'Segment Profit- Paint Stores Group' is anticipated to be $946.70 million, an increase from $907.10 million in the same quarter last year [6] - 'Adjusted segment profit- Performance Coatings Group (PCG)' is expected to be $337.39 million, down from $350.50 million year over year [6] - 'Adjusted segment profit- Consumer Brands Group (CBG)' is projected at $213.90 million, compared to $220.40 million in the previous year [7] Stock Performance - Over the past month, Sherwin-Williams shares have returned +2.5%, while the Zacks S&P 500 composite has changed by +4.2% [7] - Based on its Zacks Rank 2 (Buy), SHW is expected to outperform the overall market in the upcoming period [7]

Group 1 - The Sherwin-Williams Company (NYSE: SHW) has been reiterated with a Sell rating due to its high stock valuation [1] - Since the rating was issued in October 2024, the stock price has significantly underperformed compared to the S&P 500 [1] - The current weak housing market is expected to impact the company's performance negatively [1]

Core Insights - Sherwin-Williams is strategically expanding its operations in China, with four modern production bases and four specialized laboratories established to meet diverse market demands [1] Group 1: Sustainable Development and Innovation - The company is actively investing in green product development and technological innovation, launching products that align with sustainable development goals [2] - The recently introduced EB series electron beam curing paint utilizes a groundbreaking "instant curing" technology, which is more energy-efficient and environmentally friendly compared to traditional methods, consuming only 1%-5% of the energy [2] - Sherwin-Williams has established the world's first paint odor evaluation center to address consumer sensitivity to odors in wood coatings, collaborating with industry associations to develop standards for odor evaluation [2][3] Group 2: Industry Applications and Collaborations - The company has successfully applied water-based coatings in the Shanghai Metro, marking the first fully water-based coating line in the city, with plans for future applications in new metro lines [5] - In the food packaging sector, Sherwin-Williams has introduced BPA-free coatings, significantly reducing carbon emissions by 75% during the recycling of metal food packaging, with major brands like Coca-Cola and Budweiser adopting this technology [5] - The company has partnered with leading universities and research institutions in China to advance core technologies in environmentally friendly materials [3] Group 3: Commitment to Shanghai - Shanghai is a key focus for Sherwin-Williams in its Asia strategy, with the establishment of its Asia headquarters and a long history of operations in the city since 1930 [6][9] - The company has seen significant growth in Shanghai, benefiting from an optimized business environment that supports investment and operational stability [9]