Sherwin-Williams raises profit forecast, expects higher prices to drive growth

July 28 (Reuters) - Sherwin-Williams raised its annual profit forecast on Tuesday, betting on gains from price hikes even as the paintmaker grapples with muted demand across most end-markets.

The U.S.-Israeli war on Iran, now in its fifth month, has led to supply chain disruptions and pushed up costs for raw materials, energy and logistics, prompting companies to raise product prices to protect their margins.

Here are more details:

One of the world's largest coating companies, Sherwin-Williams supplies paints, coatings and specialty materials.

In the second quarter, Sherwin-Williams benefited from the impact of price hikes, which helped boost net sales by 7.5% to $6.79 billion.

The Ohio-based company posted an adjusted profit of $3.70 per share for the three months ended June 30, compared with analysts' average estimate of $3.52.

• CEO Heidi Petz said the company would increase prices at its Paint Stores Group segment by 8%, effective September 1, in response to inflation across raw materials, energy, logistics and packaging.
• Sherwin-Williams now expects 2026 adjusted profit per share of $11.80 to $12.20, compared with its prior forecast of $11.50 to $11.90.
• The company said its forecast also reflected the impact of restructuring actions during the second quarter, which are expected to result in annual savings of $17 million.
• It also forecast net sales growth in the mid-to-high single-digit percentage range in 2026, compared with its earlier expectations of low-to-mid single-digit growth.