Sherwin-Williams Says Performance Coatings Margins Could Reach 20%
Sherwin-Williams said it sees additional margin and growth opportunities across its Performance Coatings Group as the company expands manufacturing capacity, distribution and technical-service capabilities.
Speaking during the company’s Sept. 24 Financial Community Presentation, Global Industrial President Karl Jorgenrud said Performance Coatings sales have grown at a mid-single-digit rate through an extended period of soft demand in many global end markets. Adjusted segment margins have improved by several hundred basis points into the high teens, and management said 20% margins are attainable for the portfolio.
Performance Coatings includes six businesses serving industrial markets and is supported by more than 1,500 technical-service representatives worldwide and more than 300 automotive refinish branches and industrial blending facilities. Sherwin-Williams said that network allows it to serve smaller and midsized manufacturers with locally produced custom batches and technical support.
The company also said its new manufacturing and distribution center in Statesville, North Carolina, is now fully operational. Sherwin-Williams is working from a 10-year capacity-planning roadmap as it prepares for eventual volume recovery across its markets.
Approximately 30% of Sherwin-Williams sales currently come from products with third-party sustainability-related certifications or declarations, according to management.
On the architectural side, the company plans to continue opening approximately 80 to 100 net new Paint Stores Group locations annually as it works toward a 6,000-store milestone.
Sherwin-Williams did not issue new 2026 financial guidance during the presentation. Management said the outlook provided with its July 28 second-quarter results remains unchanged. The company reported a 17.3% adjusted Performance Coatings segment margin in the second quarter of 2026.
The update gives coatings manufacturers following industrial coatings a clearer view of where the industry’s largest coatings producer sees opportunities for margin improvement, manufacturing capacity and customer-service investment.
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