REPORTABLE SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

The Company reports its segment information in the same way that management internally organizes its business for assessing performance and making decisions regarding the allocation of resources in accordance with the Segment Reporting Topic of the ASC. The Company determined it has three reportable segments: Paint Stores Group, Consumer Brands Group and Performance Coatings Group (individually, a Reportable Segment and collectively, the Reportable Segments). Effective January 1, 2025, management realigned a nonsignificant high-performance flooring business to the Paint Stores Group from the Performance Coatings Group. Comparative segment information as of December 31, 2024 and 2023 has not been recast for this change. Factors considered in determining the three Reportable Segments of the Company include the nature of business activities, the management directly accountable to the Company’s Chief Operating Decision Maker (CODM) for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. The Company reports all other business activities within the Administrative function.

The Company’s CODM has been identified as the Chair, President and Chief Executive Officer because she has final authority over performance assessment and resource allocation decisions. Because of the diverse operations of the Company, the CODM regularly receives and uses discrete financial information about each Reportable Segment as well as select supplemental financial information about certain divisions, business units or subsidiaries of the Company. The CODM uses all such financial information for performance assessments and resource allocation decisions by comparing actual results versus forecasted and historical financial information and discussing observations with the broader leadership team responsible for managing the operations of each Reportable Segment on a monthly basis. This includes probing inquiries and consideration of relevant internal and external factors to drive meaningful insights and specific actions. The CODM evaluates the performance of and allocates resources to the Reportable Segments based on Segment profit or loss, which represents the segments’ Income before income taxes. The accounting policies of the Reportable Segments are the same as those described in Note 1.

The Paint Stores Group consisted of 4,853 company-operated specialty paint stores in the United States, Canada and the Caribbean region at December 31, 2025. Each store in this segment is engaged in servicing the needs of architectural and industrial paint contractors and do-it-yourself homeowners. These stores market and sell Sherwin-Williams® and other controlled brand architectural paint and coatings, protective and marine products, OEM product finishes and related products. The majority of these products are produced by manufacturing facilities in the Consumer Brands Group. In addition, each store sells select purchased associated products. The loss of any single customer would not have a material adverse effect on the business of this segment. During 2025, this segment opened 80 net new stores, consisting of 83 new stores opened and 3 stores closed. In 2024 and 2023, this segment opened 79 and 70 net new stores, respectively. In accordance with ASC 280-10-50-9, the Paint Stores Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment.

The Consumer Brands Group manufactures and supplies a broad portfolio of branded and private-label architectural paint, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives to retailers, including home centers and hardware stores, dedicated dealers and distributors throughout North America, Latin America and Europe. Sales and marketing of certain controlled brand and private-label products is performed by a direct sales staff. The products distributed through third-party customers are intended for resale to the ultimate end-user of the product. The Consumer Brands Group also consisted of 307 company-operated specialty paint stores in Latin America at December 31, 2025. Each store in this segment is engaged in servicing the needs of home, commercial and industrial projects to contractors and do-it-yourself customers in Latin America. These stores market and sell Sherwin-Williams® and other controlled brand architectural paint and coatings, protective and marine products, OEM product finishes and related products which are branded for the Latin America market. In addition, each store sells select purchased associated products. The Consumer Brands Group had sales to certain customers that, individually, may be a significant portion of the sales and related profitability of the segment. During 2025, the segment opened 13 new stores and closed 40 for a net closure of 27 stores. In 2024 and 2023, this segment opened 16 and 11 net new stores, respectively.

The Consumer Brands Group also supports the Company’s other businesses around the world with new product research and development, manufacturing, distribution and logistics. Approximately 63% of the total sales of the Consumer Brands Group in 2025 were intersegment transfers of products primarily sold through the Paint Stores Group. This segment incurred most of the Company’s capital expenditures related to ongoing environmental compliance measures, manufacturing capacity expansion, operational efficiencies and maintenance projects at sites currently in operation. In accordance with ASC 280-10-50-9, the Consumer Brands Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment.

The Performance Coatings Group develops and sells industrial coatings for wood finishing and general industrial (metal and plastic) applications, automotive refinish, protective and marine coatings, coil coatings, packaging coatings and performance-based resins and colorants worldwide. This segment licenses certain technology and trade names worldwide, including Sherwin-Williams® and other controlled brand products. These are distributed through the Paint Stores Group, this segment’s 317 company-operated branches, and by direct sales staff and outside sales representatives to retailers, dealers, jobbers, licensees and other third-party distributors. The Performance Coatings Group had sales to certain customers that, individually, may be a significant portion of the sales of the segment. However, the loss of any single customer would not have a material adverse effect on the overall profitability of the segment. During 2025, the segment opened 6 branches and closed 13 branches for a net closure of 7 branches. In 2024 and 2023, this segment added 2 and 5 net new branches, respectively. In accordance with ASC 280-10-50-9, the Performance Coatings Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment.

The Administrative function includes the administrative expenses and assets of the Company’s new global headquarters and research and development center. In addition, it includes the operations of a real estate management unit that is responsible for the ownership, management and leasing of non-retail properties held primarily for use by the Company, including the Company’s former and current global headquarters and former research and development center and disposal of idle facilities. The Administrative function’s remaining assets consist primarily of cash and cash equivalents, investments and noncurrent pension assets. Also included in the Administrative function was interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters and other expenses that were not directly associated with the Reportable Segments. Sales of this function represent external leasing revenue. The Administrative function did not include any significant foreign operations. Gains and losses from the sale of property were not a significant operating factor in determining the performance of the Administrative function.

Net sales of all consolidated foreign subsidiaries were $4.615 billion, $4.426 billion and $4.428 billion for 2025, 2024 and 2023, respectively.

Long-lived assets consisted of Property, plant and equipment, net, Goodwill, Intangible assets, net, Operating lease right-of-use assets, noncurrent pension assets and Other assets. The aggregate total of long-lived assets for the Company was $19.894 billion, $18.231 billion and $17.441 billion at December 31, 2025, 2024 and 2023, respectively. Long-lived assets of consolidated foreign subsidiaries totaled $4.794 billion, $3.405 billion and $3.586 billion at December 31, 2025, 2024 and 2023, respectively.

Total Assets of the Company were $25.902 billion, $23.633 billion and $22.954 billion at December 31, 2025, 2024 and 2023, respectively. Total assets of consolidated foreign subsidiaries were $7.237 billion, $5.208 billion and $5.718 billion, which represented 27.9%, 22.0% and 24.9% of the Company’s Total assets at December 31, 2025, 2024 and 2023, respectively.

No single geographic area outside the United States was significant relative to consolidated Net sales or consolidated long-lived assets. Export sales and sales to any individual customer were each less than 10 percent of consolidated sales to unaffiliated customers during all years presented.

In the reportable segment financial information that follows, Segment profit represents each segment’s Income before income taxes. Domestic intersegment transfers are primarily accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs for paint products. Non-paint domestic and all international intersegment transfers are primarily accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative function. In 2023, the absorbed manufactured cost standards utilized for domestic intersegment transfers were established inclusive of forecasted cost reductions from planned initiatives. Deviations from the forecasted cost reductions were recognized within the Consumer Brands Group. Due to the nature of the Company’s integrated manufacturing operations and centralized administrative and information technology support, a substantial amount of allocations are made to determine segment financial information. Expenses that are specifically identifiable to a certain Reportable Segment are allocated accordingly. For expenses that are not specifically identifiable to a certain Reportable Segment, an appropriate allocation base is identified, and expenses are allocated based on each segment’s respective share of the allocation base. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM and include intersegment expenses within the amounts shown. Identifiable assets were those directly identified with each Reportable Segment.

	2025
	Paint Stores Group			Consumer Brands Group			Performance Coatings Group			Administrative		Consolidated Totals
Net sales	$	13,605.9		$	3,166.4		$	6,795.2		$	6.8	$	23,574.3
Intersegment transfers	—			5,388.2			26.6			(5,414.8)		—
Total net sales and intersegment transfers	$	13,605.9		$	8,554.6		$	6,821.8		$	(5,408.0)	$	23,574.3
Cost of goods sold	$	5,954.5		$	7,128.0		$	4,412.3		$	(5,436.0)	$	12,058.8
Selling, general and administrative expenses	4,589.3			895.9			1,446.1			763.7		7,695.0
Interest expense	—			—			—			465.0		465.0
Other segment items (1)	0.6			21.1			20.7			(25.1)		17.3
Income before income taxes	$	3,061.5		$	509.6		$	942.7		$	(1,175.6)	$	3,338.2
Percent to Net sales	22.5		%	16.1		%	13.9		%	nm		14.2		%
Supplemental Information:
Identifiable assets	$	6,378.6		$	8,025.5		$	7,859.5		$	3,638.1	$	25,901.7
Capital expenditures	120.2			293.1			36.2			348.1		797.6
Depreciation (2)	90.2			185.3			19.0			45.8		340.3
Amortization (3)	5.6			71.8			258.3			0.9		336.6
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(1)    Other segment items includes Other general (income) expense - net, Impairment, Interest income and Other expense (income) - net. See Note 6 for further information on Impairment and Note 19 for further information on Other general (income) expense - net and Other expense (income) - net.

(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.

(3)    Amortization is recorded within Selling, general and administrative expenses.

	2024
	Paint Stores Group			Consumer Brands Group			Performance Coatings Group			Administrative		Consolidated Totals
Net sales	$	13,188.0		$	3,108.0		$	6,797.3		$	5.2	$	23,098.5
Intersegment transfers	—			5,304.3			56.8			(5,361.1)		—
Total net sales and intersegment transfers	13,188.0			8,412.3			6,854.1			(5,355.9)		23,098.5
Cost of goods sold	5,900.8			6,943.5			4,406.5			(5,347.4)		11,903.4
Selling, general and administrative expenses	4,405.6			863.1			1,443.0			710.4		7,422.1
Interest expense	—			1.4			—			414.3		415.7
Other segment items (1)	(21.0)			14.4			(23.3)			(64.6)		(94.5)
Income before income taxes	$	2,902.6		$	589.9		$	1,027.9		$	(1,068.6)	$	3,451.8
Percent to Net sales	22.0		%	19.0		%	15.1		%	nm		14.9		%
Supplemental Information:
Identifiable assets	$	5,878.0		$	6,854.7		$	7,847.4		$	3,052.5	$	23,632.6
Capital expenditures	141.3			290.3			15.2			623.2		1,070.0
Depreciation (2)	89.9			162.7			18.0			26.8		297.4
Amortization (3)	1.7			66.4			256.7			1.8		326.6
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(1)    Other segment items includes Other general (income) expense - net, Interest income and Other expense (income) - net. See Note 19 for further information on Other general (income) expense - net and Other expense (income) - net.

(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.

(3)    Amortization is recorded within Selling, general and administrative expenses.

	2023
	Paint Stores Group			Consumer Brands Group			Performance Coatings Group			Administrative		Consolidated Totals
Net sales	$	12,839.5		$	3,365.6		$	6,843.1		$	3.7	$	23,051.9
Intersegment transfers	—			5,234.0			197.8			(5,431.8)		—
Total net sales and intersegment transfers	12,839.5			8,599.6			7,040.9			(5,428.1)		23,051.9
Cost of goods sold	5,794.4			7,311.9			4,606.9			(5,419.4)		12,293.8
Selling, general and administrative expenses	4,211.5			882.3			1,415.5			556.1		7,065.4
Interest expense	—			—			—			417.5		417.5
Other segment items (1)	(27.2)			96.1			26.9			69.5		165.3
Income before income taxes	$	2,860.8		$	309.3		$	991.6		$	(1,051.8)	$	3,109.9
Percent to Net sales	22.3		%	9.2		%	14.5		%	nm		13.5		%
Supplemental Information:
Identifiable assets	$	5,745.3		$	6,631.8		$	8,266.6		$	2,310.7	$	22,954.4
Capital expenditures	111.4			309.6			32.6			434.8		888.4
Depreciation (2)	79.0			151.4			26.0			35.9		292.3
Amortization (3)	3.3			72.4			253.0			1.5		330.2
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(1)    Other segment items includes Other general (income) expense - net, Impairment, Interest income and Other expense (income) - net. See Notes 3 and 6 for further information on Impairment and Note 19 for further information on Other general (income) expense - net and Other expense (income) - net.

(2)    Depreciation is recorded within Cost of goods sold and Selling, general and administrative expenses.

(3)    Amortization is recorded within Selling, general and administrative expenses.