The Sherwin-Williams Company (SHW) investor relations material

Strategic Investments and Market Positioning

• Opened new global headquarters and technology center, reinforcing commitment to talent, innovation, and customer experience.

• Operating in a $200 billion global coatings market, with over 64,000 employees in 120+ countries and 2026 sales expected to surpass $25 billion.

• Aggressively expanding store footprint, aiming for 80-100 net new stores annually, targeting 6,000 locations, and ~500 net new stores and 16 acquisitions since 2018.

• Leveraging acquisitions, such as Suvinil, and divesting non-core businesses to optimize the portfolio.

• Controlled distribution, pricing effectiveness, data-driven insights, and a premium asset portfolio maintain competitive advantage.

Industry and Market Outlook

• Global paint and coatings industry projected at $195 billion in 2025, with growth across all regions and a positive volume CAGR forecast for 2027-2030.

• U.S. housing undersupply, easing mortgage lock-in, and demographic trends support long-term demand for new construction, remodeling, and maintenance.

• Deferred maintenance and pent-up demand in residential and industrial sectors signal recovery.

• Industrial macro environment remains choppy, but infrastructure buildout, reshoring, and AI/data center projects offer growth opportunities.

• Record homeowner equity and aging housing stock drive repair and repaint activity.

Operational Excellence and Innovation

• Supply chain is a key differentiator, with AI-driven planning, automated distribution, and strategic procurement partnerships.

• R&D and digital tools, such as AI-powered sales tools, Ask Henry AI, and Color Expert app, enhance customer service and productivity.

• Ongoing simplification efforts include SKU, raw material, and formula rationalization, especially in Europe.

• Sustainability focus, with ~30% of sales from products with third-party sustainability certifications, expected to grow.

• Controlled distribution model and targeted sales reps enhance productivity and market share in key segments.