Sherwin-Williams forecasts 2026 profit below estimates as weak demand persists

Reuters
01/29
Sherwin-Williams forecasts 2026 profit below estimates as weak demand persists

Jan 29 (Reuters) - Sherwin-Williams SHW.N on Thursday forecast annual profit below estimates for 2026, as soft construction and industrial activity continued to pressure the paint and coatings maker's core markets.

The broader chemicals and coatings sector has struggled amid slow demand recovery that has weighed on pricing and volumes. A sharp downturn in U.S. manufacturing late last year, with December factory activity sinking to a 14-month low and new orders contracting, impacted demand from industrial customers.

Sherwin-Williams expects first-quarter sales to rise in the mid-single digits from a year ago, but CEO Heidi Petz warned that soft demand may "persist well into the second half of the year based on current customer sentiment and the macroeconomic indicators."

The company expects full-year adjusted profit of $11.50 to $11.90, below Wall Street expectations of $12.42, according to data compiled by LSEG.

The Ohio-based company's adjusted profit of $2.23 per share for the quarter ended December 31 beat estimates of $2.16 per share.

Fourth-quarter net sales rose 5.7% from last year to $5.60 billion.

Peer PPG Industries PPG.N flagged similar demand concerns on Tuesday after missing quarterly profit estimates.

(Reporting by Sumit Saha in Bengaluru; Editing by Jonathan Ananda)

((Sumit.Saha@thomsonreuters.com;))

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