Sherwin-Williams Co.

Q2 performance: strong outperformance despite soft demand - Consolidated sales: high single-digit % growth (with low single-digit contribution from the Suvinil acquisition); sales exceeded guidance in all 3 reportable segments. - Gross margin: slightly down reported, but up excluding Suvinil’s dilutive impact; pricing actions helped offset raw material inflation. - Cash & profitability: Adjusted EBITDA up 10.5% to ~$1.5B, EBITDA margin +60 bps to 21.5%; net operating cash +21% (~$235M) and free cash flow conversion 86%.

Cost structure and earnings/capital return - SG&A: increased mid single-digit % but -90 bps as a % of sales; higher costs driven largely by non-annualized Suvinil acquisition costs and higher employee service costs tied to better Y/Y quarter profitability. - Restructuring: expects ~$17M annual savings, with ~half realized over the remainder of 2026. - Capital returns: accelerated share repurchases due to market volatility; dividends + buybacks total ~$1.5B in the quarter.

Outlook raised (no broad-based demand recovery assumed) - Company explicitly assumes no meaningful, broad demand rebound for the rest of 2026; growth must come from share gains, execution, and productivity/pricing levers. - Full-year consolidated sales guidance raised: now mid-to-high single-digit % growth. - Full-year adjusted EPS guidance raised: $11.80 to $12.20 (midpoint implies ~+0.10+ / dime type improvement vs earlier trajectory per CFO’s discussion). - Q3 and FY 2026 guidance rely on “momentum into 2H,” continued share gains, and disciplined price-cost management.