1) Strong Financial Performance
- Consolidated sales grew by a high single-digit percentage, exceeding guidance across all segments.
- Adjusted EBITDA increased by 10.5% to $1.5 billion, with an adjusted EBITDA margin of 21.5%.
- Free cash flow conversion was 86%, with $1.5 billion returned to shareholders through dividends and share repurchases.
- Net operating cash improved by 21% year-over-year, driven by increased net income and working capital.

2) Segment Highlights
- Paint Stores Group: Grew by a mid-single-digit percentage; volume increased low single digits. Segment profit grew mid-single digits with a margin of 24.6%.
- Consumer Brands Group: Sales exceeded expectations, driven by a mid-teens contribution from the Suvinil acquisition. Adjusted segment margin increased by 210 basis points to 24.5%.
- Performance Coatings Group: Sales growth in every division, with strong performance in general industrial and automotive refinish. Adjusted segment margin increased by 50 basis points to 26.4%.

3) Challenges and Headwinds
- Ongoing global uncertainty and lack of meaningful demand improvement remain a concern.
- Raw material inflation is expected to rise in the high single-digit range for the second half of the year, impacting margins.
- The DIY segment remains under pressure, with muted demand affecting growth.

4) Operational Strategies and Initiatives
- Continued focus on optimizing the store portfolio, with 57 closures and plans to open 80-100 new stores next year.
- An 8% price increase effective September 1st aims to offset raw material costs.
- Strong supplier relationships and disciplined supply chain execution are key competitive advantages.
- The integration of Suvinil is progressing well, with additional synergies identified.

5) Guidance and Outlook
- Full-year sales and adjusted EPS guidance have been raised, with consolidated sales expected to increase by a mid to high single-digit percentage.
- Adjusted diluted net income per share is now projected to be between $11.80 and $12.20.
- The company remains cautious about broader demand recovery but is confident in its ability to drive growth through strategic initiatives.

Bottom line: Sherwin-Williams demonstrated robust financial performance in Q2 2026, driven by strategic execution and segment growth, despite ongoing market challenges. The company is well-positioned to navigate inflationary pressures and maintain shareholder value through disciplined capital allocation and operational efficiency.