Particle.news
Download on the App Store

Sherwin-Williams Beats Q1 Estimates, Signals Cautious Year With Mid-Single-Digit Q2 Outlook

CEO Heidi Petz expects little to no recovery in most end markets this year.

A can of Ronseal varnish, a Sherwin-Williams brand, is seen on a shelf inside a DIY retail store in Manchester, Britain, June 14, 2024. REUTERS/Phil Noble/ File Photo

Overview

  • Sherwin-Williams, which reported Tuesday, posted adjusted earnings of $2.35 per share and $5.66 billion in sales, topping LSEG estimates on both metrics.
  • Executives projected mid-single-digit sales growth for the second quarter driven by selective price increases and recent acquisitions such as Suvinil, with full-year EPS guidance unchanged.
  • Management is rolling out targeted price increases by end market and region to protect margins as Middle East supply disruptions push up raw material, energy, and logistics costs.
  • Performance was uneven by segment, with consumer brands up 19.2% on contributions from the Suvinil deal and Europe, while paint stores rose 3.7% helped by higher prices.
  • Petz warned that demand will likely stay soft through 2026, citing weak DIY activity tied to high mortgage rates and a slow housing market.