Sherwin-Williams — Jul 22, 2025 release

SUMMARY • Consolidated Net sales increased 0.7% to $6.31 billion in the quarter ◦ Net sales from stores in the Paint Stores Group open more than twelve calendar months increased 0.8% in the quarter • Increased Selling, general and administrative expenses for broader restructuring initiative related to softer demand, sooner than anticipated building related costs and heightened growth investment related to incremental competitive opportunities • Diluted net income per share decreased 14.3% to $3.00 per share in the quarter compared to $3.50 per share in the second quarter of 2024 ◦ Adjusted diluted net income per share decreased 8.6% to $3.38 per share in the quarter compared to $3.70 per share in the second quarter of 2024 • Adjusting full year 2025 diluted net income per share guidance in the range of $10.11 to $10.41 per share, including acquisition-related amortization expense of $0.77 per share and severance and other restructuring expenses of $0.32 per share ◦ Adjusting full year 2025 adjusted diluted net income per share guidance in the range of $11.20 to $11.50 per share 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 12 th 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 increased our restructuring actions, resulting in pre-tax expenses of $59 million. Additionally, work on our new buildings project progressed faster than anticipated, resulting in approximately $40 million of pre-tax transition and related costs in the quarter, which we previously expected to begin occurring in our second half. Excluding restructuring costs, building costs, and acquisition-related amortization expense, SG&A costs increased by 3.8% in the quarter. This increase was driven primarily by continued deliberate, disciplined and targeted investments within the Paint Stores Group, where we have identified multiple heightened competitive opportunities. Non-operating costs were a