Financial Analysis

PENSION, HEALTH CARE AND OTHER POSTRETIREMENT BENEFITS The Company provides pension benefits to substantially all full-time domestic employees and certain foreign employees through primarily noncontributory defined contribution or defined benefit pension plans and health care and life insurance benefits to certain domestic and foreign active employees and eligible retirees. Health Care Plans The Company provides certain domestic health care plans that are contributory and contain cost-sharing features such as deductibles and coinsurance. There were 31,472, 32,283 and 31,327 active employees covered by the benefits under these plans at December 31, 2025, 2024 and 2023, respectively. The cost of these benefits for active employees, which includes claims incurred but not reported, amounted to $425.4 million, $382.6 million and $363.2 million for 2025, 2024 and 2023, respectively. Defined Contribution Pension Plans The Companys annual contribution for its domestic defined contribution pension plan was $105.2 million, $103.5 million and $97.8 million for 2025, 2024 and 2023, respectively. The contribution percentage ranges from two percent to seven percent of compensation for covered employees based on an age and service formula. Assets in employee accounts of the domestic defined contribution pension plan are invested in various investment funds as directed by the participants. These investment funds did not own a significant number of shares of the Companys common stock for any …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

DEBT Long-Term Debt The table below summarizes the carrying value of the Companys outstanding debt, net of capitalized debt issuance costs, discounts and premiums: Due Date 2025 2024 2023 3.45% Senior Notes 2027 $ 1,497.5 $ 1,495.7 $ 1,493.9 4.50% Senior Notes 2047 1,234.5 1,233.7 1,233.0 2.95% Senior Notes 2029 796.5 795.5 794.6 3.80% Senior Notes 2049 544.0 543.7 543.6 2.30% Senior Notes 2030 498.0 497.6 497.1 4.30% Senior Notes 2028 497.1 2.20% Senior Notes 2032 496.1 495.5 494.8 4.50% Senior Notes 2030 495.5 5.15% Senior Notes 2035 495.4 3.30% Senior Notes 2050 494.8 494.6 494.3 2.90% Senior Notes 2052 492.4 492.1 491.9 4.80% Senior Notes 2031 445.7 445.0 4.55% Senior Notes 2028 398.4 397.6 4.55% Senior Notes 2045 395.6 395.4 395.2 3.95% Senior Notes 2026 350.1 351.6 353.1 4.00% Senior Notes 2042 297.3 297.2 297.0 4.40% Senior Notes 2045 241.8 241.3 240.9 0.53% to 8.00% Promissory Notes Through 2026 0.1 0.2 0.9 3.45% Senior Notes 2025 399.8 399.4 4.25% Senior Notes 2025 399.5 398.6 3.30% Senior Notes 2025 250.0 249.9 4.05% Senior Notes 2024 598.8 3.125% Senior Notes 2024 499.7 Total (1) 9,670.8 9,226.0 9,476.7 Less amounts due within one year 350.1 1,049.2 1,098.8 Long-term debt $ 9,320.7 $ 8,176.8 $ 8,377.9 (1) Net of capitalized debt issuance costs of $53.6 million, $48.6 million and $49.3 million and net of discounts and premiums of $25.7 million, $26.0 million and $25.2 million at December 31, 2025, 2024 and 2023, respectively. Maturities of long-term debt are as foll …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION At the Annual Meeting of Shareholders on April 16, 2025, the Companys shareholders approved The Sherwin-Williams Company 2025 Equity and Incentive Compensation Plan (the 2025 Plan). The 2025 Plan became effective as of the approval date and replaced The Sherwin-Williams Company 2006 Equity and Performance Incentive Plan (Amended and Restated as of October 13, 2023), The Sherwin-Williams Company 2006 Stock Plan for Nonemployee Directors and The Sherwin-Williams Company 2007 Executive Annual Performance Bonus Plan (Amended and Restated as of October 13, 2023). The 2025 Plan authorizes the Board of Directors, or a committee of the Board of Directors, to issue or transfer up to the aggregate of 21,969,555 shares of common stock, plus any shares relating to awards that expire, are forfeited or canceled. The Company will issue new shares upon exercise of option rights (options) and vesting of restricted stock units (RSUs). The 2025 Plan permits the granting of options, appreciation rights, restricted stock, RSUs, performance shares and performance units to eligible employees and members of the Board of Directors who are not employees of the Company. Shares available for future grants under the 2025 Plan were 21,067,821 at December 31, 2025. Now replaced, The Sherwin-Williams Company 2006 Equity and Performance Incentive Plan and The Sherwin-Williams Company 2006 Stock Plan for Nonemployee Directors (collectively, the 2006 Plans) authorized the Board of Dire …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures Topic of the ASC applies to the Companys financial and non-financial assets and liabilities. The guidance applies when other standards require or permit the fair value measurement of assets and liabilities. Under the guidance, assets and liabilities measured at fair value are categorized as follows: Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs Level 3: Significant unobservable inputs There were no assets and liabilities measured at fair value on a recurring basis classified as Level 3 at December 31, 2025, 2024 and 2023. Except for the acquisition-related fair value measurements, assets held for sale prior to the 2023 divestiture of the China architectural business described in Note 3 and the goodwill and trademark quantitative impairment tests described in Note 6, there were no assets or liabilities measured at fair value on a nonrecurring basis. The following table summarizes the Companys assets and liabilities measured at fair value on a recurring basis, categorized using the fair value hierarchy. December 31, 2025 December 31, 2024 December 31, 2023 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Assets: Deferred compensation plan $ 101.0 $ 101.0 $ $ 98.6 $ 98.6 $ $ 84.7 $ 84.7 $ Net investment hedges 48.9 48.9 $ 101.0 $ 101.0 $ $ 147.5 $ 98.6 $ 48.9 $ 84.7 $ 84.7 $ Liabilities: Net investment hedges $ 122.6 $ $ 122.6 $ $ $ $ …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS In 2025, the Company completed three acquisitions, which resulted in the recognition of Goodwill of $307.0 million and Intangible assets of $642.9 million. The acquisition of Suvinil accounted for $247.8 million and $608.7 million of the total Goodwill and Intangible assets recognized, respectively. Of the total intangibles acquired, $342.8 million were finite-lived intangibles and $300.1 million were indefinite-lived intangibles. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 19 years. In 2024, the Company completed the acquisition of a metal packaging coatings business, which resulted in the recognition of Goodwill of $20.9 million and finite-lived intangibles of $27.9 million. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 15 years. In 2023, the Company completed the acquisition of SIC Holding, which resulted in the recognition of Goodwill of $181.3 million and finite-lived intangibles of $110.8 million. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 15 years. See Note 3 for further information related to the acquisitions and divestitures. In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill at the reporting unit level and indefinite-lived intangible assets are tested for impairment annually. In addition, interim impairment te …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES On July 4, 2025, U.S. tax reform legislation known as the One Big Beautiful Bill Act (the Tax Act) was signed into law. Key provisions of the Tax Act relevant to the Companys operations include immediate expensing of certain domestic capital expenditures and domestic research and development costs, and the ability to accelerate previously capitalized domestic research and development costs beginning in 2025. Other changes, which are primarily related to U.S. international tax provisions, begin in 2026. The Tax Act did not materially change the Companys effective tax rate for 2025. The Company has reflected the effects of the Tax Act in the consolidated financial statements for the year ending December 31, 2025, in accordance with the Income Taxes Topic of the ASC. Significant components of the provisions for income taxes were as follows: 2025 2024 2023 Current: Federal $ 374.0 $ 558.0 $ 553.4 Foreign 157.3 155.1 147.6 State and local 85.2 132.2 109.0 Total current 616.5 845.3 810.0 Deferred: Federal 170.6 (54.8) (39.9) Foreign (44.0) (15.8) (51.5) State and local 26.6 (4.3) 2.5 Total deferred 153.2 (74.9) (88.9) Total provisions for income taxes $ 769.7 $ 770.4 $ 721.1 The reconciliation of the statutory federal income tax rate to the effective tax rate for the current year in accordance with the adoption of ASU 2023-09 is as follows: 2025 Statutory federal income tax rate $ 701.0 21.0 % Effect of: State and local income taxes (1) 103.2 3.2 Foreign tax effects 41 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LITIGATION In the course of its business, the Company is subject to a variety of actual and potential claims, lawsuits, and other proceedings, including, but not limited to, litigation relating to product liability and warranty, raw materials used in our products, personal injury, environmental (including alleged natural resource damages), intellectual property, commercial, contractual and antitrust claims, that are inherently subject to many uncertainties regarding the possibility of a loss to the Company. Uncertainties to which litigation is inherently subject include, among other things, costs, unpredictable court or jury decisions that could affect other litigation against the Company and encourage an increase in the number and nature of future claims and proceedings, and differing laws and regulations in jurisdictions where the Company operates. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur confirming the incurrence of a liability or the avoidance or reduction of a liability. In accordance with the Contingencies Topic of the ASC, the Company accrues for contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. In the event that a loss contingency is ultimately determined to be significantly higher than currently accrued, the recording of the additional liability may result in a material …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

LEASES The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating and finance lease agreements. Operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of operating lease liabilities and Long-term operating lease liabilities and finance leases are included in Other assets, Other accruals and Other long-term liabilities on the Consolidated Balance Sheets. The majority of the operating lease ROU asset and lease liability balances are related to the retail operations of the Paint Stores Group. The majority of the finance lease ROU asset and lease liability balances are related to a distribution facility within the Consumer Brands Group. Most leases include one or more options to renew. The exercise of lease renewal options is at the Companys discretion and is not reasonably certain at lease commencement. Operating and finance lease ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Most leases do not contain an incremental borrowing rate which is readily determinable from their associated contract. Therefore, the Company uses its estimated incremental borrowing rate on a collateralized basis which is derived from information available at the lease commencement date, giving consideration to publicly available credit rating data, other risk characteristics and the term of the lease in determining the present value of lease …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-12, Codification Improvements. This ASU clarifies existing guidance and makes incremental improvements to 33 issues identified within various ASC topics. This ASU is effective for fiscal years beginning after December 15, 2026, with early adoption on an issue-by-issue basis permitted. The Company elected to early adopt Issue 10: Clarify Methods to Account for Treasury Stock effective December 31, 2025. This issue clarifies the accounting for retirement of treasury shares. See the Statements of Consolidated Shareholders Equity for further information. The Company is evaluating the impact of adopting the remaining issues within ASU 2025-12. Effective December 31, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures on a prospective basis. This ASU enhances income tax disclosures by providing information to better assess how an entitys operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE The Company manufactures and sells paint, stains, supplies, equipment and floor covering through company-operated stores, branded and private label products through retailers and a broad range of industrial coatings directly to global manufacturing customers through company-operated branches. A large portion of the Companys revenue is recognized at a point in time and made to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. These sales are paid for at the time of sale in cash, credit card or on account with the vast majority of customers having terms between 30 and 60 days, not to exceed one year. Many customers who purchase on account take advantage of early payment discounts offered by paying within 30 days of being invoiced. The Company estimates variable consideration for these sales on the basis of both historical information and current trends to estimate the expected amount of discounts to which customers are likely to be entitled. The remaining revenue is governed by long-term supply agreements and related purchase orders (contracts) that specify shipping terms and aspects of the transaction price including rebates, discounts and other sales incentives, such as advertising support. Contracts are at standalone pricing. The performance obligation in these contracts is determined by each of the individual purchase orders and the respective stated quantities, with revenue being recognized at a point in time wh …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 Companys 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 Companys 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 inform …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ACCOUNTING POLICIES Consolidation The consolidated financial statements included in this report have been prepared by management of The Sherwin-Williams Company (herein referred to as the Company). These statements include the accounts of the Company and all consolidated subsidiaries. Intercompany accounts and transactions have been eliminated. The Companys share of earnings or losses from nonconsolidated affiliates is included in the consolidated financial statements using the equity method of accounting when the Company is able to exercise significant influence over the operating and financial decisions of the affiliate. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (US GAAP) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those amounts. Nature of Operations The Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America, with additional operations in the Caribbean region, Europe, Asia and Australia. Cash Equivalents Management considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable and Allowance fo …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Capital Stock At December 31, 2025, there were 900,000,000 shares of common stock and 30,000,000 shares of serial preferred stock authorized for issuance. Of the authorized serial preferred stock, 3,000,000 shares are designated as cumulative redeemable serial preferred stock. There we no shares of serial preferred stock issued during 2025, 2024 or 2023. Effective April 16, 2025, the Companys shareholders approved The Sherwin-Williams Company 2025 Equity and Incentive Compensation Plan (2025 Plan). The 2025 Plan replaces The Sherwin-Williams Company 2006 Equity and Performance Incentive Plan (2006 Plan) (Amended and Restated as of October 13, 2023), The Sherwin-Williams Company 2006 Stock Plan for Nonemployee Directors and The Sherwin-Williams Company 2007 Executive Annual Performance Bonus Plan (Amended and Restated as of October 13, 2023). The number of shares of common stock authorized for issuance under the 2025 Plan is 21,969,555. An aggregate of 28,832,770, 13,603,814 and 15,830,386 shares of common stock at December 31, 2025, 2024 and 2023, respectively, were reserved for the exercise and future grants of option rights and future grants of restricted stock and restricted stock units collectively under the 2025 Plan and 2006 Plan. See Note 14 for further information related to stock-based compensation. Shares outstanding shown in the following table included 1,426,883 shares of common stock held in a revocable trust at December 31, 2025, 2024 and 202 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

PENSION AND OTHER POSTRETIREMENT BENEFITS The following table summarizes the components of the Companys net periodic pension and benefit (credit) cost for domestic and foreign defined benefit pension plans and domestic other postretirement benefits: Domestic Defined Benefit Pension Plan Foreign Defined Benefit Pension Plans Domestic Other Postretirement Benefits 2026 2025 2026 2025 2026 2025 Three Months Ended June 30: Service cost $ 0.7 $ 0.7 $ 1.4 $ 1.1 $ $ 0.1 Interest cost 1.3 1.3 3.7 3.1 1.4 1.7 Expected return on assets (2.5) (2.4) (3.0) (2.6) Amortization of prior service cost (credit) 0.4 0.5 (3.6) Amortization of actuarial gains (0.7) (0.5) (0.2) (0.3) (0.8) (0.6) Net periodic pension and benefit (credit) cost $ (0.8) $ (0.4) $ 1.9 $ 1.3 $ 0.6 $ (2.4) Six Months Ended June 30: Service cost $ 1.4 $ 1.4 $ 2.7 $ 2.2 $ $ 0.2 Interest cost 2.6 2.6 7.2 6.2 2.8 3.4 Expected return on assets (5.0) (4.8) (6.0) (5.2) Amortization of prior service cost (credit) 0.8 1.0 (7.2) Amortization of actuarial gains (1.4) (1.0) (0.5) (0.6) (1.6) (1.2) Net periodic pension and benefit (credit) cost $ (1.6) $ (0.8) $ 3.4 $ 2.6 $ 1.2 $ (4.8) Service cost is recorded in Cost of goods sold and Selling, general and administrative expenses. All other components are recorded in Other (income) expense - net. For further details on the Companys pension and other postretirement benefits, see Note 8 to the Consolidated Financial Statements in the Companys Annual Report on Form 10-K for the year ende …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes the Companys outstanding debt: June 30, December 31, June 30, 2026 2025 2025 Long-term debt (including current portion) $ 9,825.7 $ 9,670.8 $ 8,979.6 Short-term borrowings 2,246.4 1,200.5 1,706.7 Total debt outstanding $ 12,072.1 $ 10,871.3 $ 10,686.3 Long-Term Debt The Companys long-term debt primarily consists of senior notes and periodically, amounts borrowed under its credit agreements. In January 2026, the Company repaid the principal of $350.0 million related to the Companys 3.95% senior notes using commercial paper. For further details on the Companys long-term debt, see the Credit Agreements section below and Note 7 to the Consolidated Financial Statements in the Companys Annual Report on Form 10-K for the year ended December 31, 2025. Credit Agreements In June 2026, the Company amended its amended and restated credit agreement dated as of August 2, 2021, to extend the maturity of $200.0 million of commitments available for borrowing and issuing letters of credit under the credit agreement from June 20, 2026 to June 20, 2031. In February 2026, the Company amended its amended and restated credit agreement dated as of November 17, 2025, to extend the maturity of $75.0 million of commitments available for borrowing and issuing letters of credit under the credit agreement from June 20, 2026 to December 20, 2030. In June 2026, the Company borrowed $500.0 million on this credit agreement for general corporate purposes. At June 30, 2026, t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures Topic of the ASC applies to the Companys financial and non-financial assets and liabilities. The guidance applies when other standards require or permit the fair value measurement of assets and liabilities. Under the guidance, assets and liabilities measured at fair value are categorized as follows: Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs Level 3: Significant unobservable inputs There were no assets and liabilities measured at fair value on a recurring basis classified as Level 3 at June 30, 2026, December 31, 2025 and June 30, 2025. Except for the acquisition related fair value measurements described in Note 3, there were no assets and liabilities measured at fair value on a nonrecurring basis. The following table summarizes the Companys assets and liabilities measured at fair value on a recurring basis, categorized using the fair value hierarchy. June 30, 2026 December 31, 2025 June 30, 2025 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Assets: Deferred compensation plan $ 103.4 $ 103.4 $ $ 101.0 $ 101.0 $ $ 104.1 $ 104.1 $ Net investment hedges 2.4 2.4 Interest rate locks 4.1 4.1 $ 105.8 $ 103.4 $ 2.4 $ 101.0 $ 101.0 $ $ 108.2 $ 104.1 $ 4.1 Liabilities: Net investment hedges $ 84.5 $ $ 84.5 $ 122.6 $ $ 122.6 $ 144.1 $ $ 144.1 The deferred compensation plan assets consist of investment funds maintained for future payments …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The effective tax rate was 24.2% and 23.1% for the second quarter and first six months of 2026, compared to 23.4% and 23.2% for the second quarter and first six months of 2025. The increase in the effective tax rate for the second quarter was primarily due to a less favorable impact from tax benefits related to employee share-based payments. The effective tax rate was essentially flat for the first six months of 2026 compared to the same period last year. The other significant components of the Companys effective tax rate were consistent year-over-year. At December 31, 2025, the Company had $106.9 million in unrecognized tax benefits, the recognition of which would have an effect of $91.9 million on the effective tax rate. The Company classifies all income tax related interest and penalties as income tax expense. At December 31, 2025, the Company had accrued $23.9 million for the potential payment of income tax interest and penalties. There were no significant changes to any of the balances of unrecognized tax benefits at December 31, 2025 during the first six months of 2026. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The IRS is currently auditing the Companys 2020 through 2022 income tax returns. As of June 30, 2026, the federal statute of limitations has not expired for the 2020 through 2025 tax years. At June 30, 2026, the Company is subject to non-U.S. income tax exami …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LITIGATION In the course of its business, the Company is subject to a variety of actual and potential claims, lawsuits, and other proceedings, including, but not limited to, litigation relating to product liability and warranty, raw materials used in our products, personal injury, environmental (including alleged natural resource damages), intellectual property, commercial, contractual and antitrust claims, that are inherently subject to many uncertainties regarding the possibility of a loss to the Company. Uncertainties to which litigation is inherently subject include, among other things, costs, unpredictable court or jury decisions that could affect other litigation against the Company and encourage an increase in the number and nature of future claims and proceedings, and differing laws and regulations in jurisdictions where the Company operates. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur confirming the incurrence of a liability or the avoidance or reduction of a liability. In accordance with the Contingencies Topic of the ASC, the Company accrues for contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. In the event that a loss contingency is ultimately determined to be significantly higher than currently accrued, the recording of the additional liability may result in a material …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Not Yet Adopted In May 2026, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818). This ASU, which introduces Topic 818 to US GAAP, standardizes the accounting for and disclosure of environmental credits and environmental credit obligations by establishing consistent guidance for recognition, measurement, presentation and disclosure. This ASU is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting ASU 2026-02. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU clarifies and modernizes the accounting for costs related to internal-use software by removing references to prescriptive and sequential software development states and clarifies the threshold entities apply to begin capitalizing costs. Additionally, this ASU specifies that the disclosures in Subtopic 360-10, Property, Plant and Equipment - Overall, are required for all capitalized internal-use software costs, regardless of how those costs are presented in the consolidated financial statements. This ASU is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impa …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE The Company manufactures and sells paint, stains, supplies, equipment and floor covering through company-operated stores, branded and private label products through retailers and a broad range of industrial coatings directly to global manufacturing customers through company-operated branches. A large portion of the Companys revenue is recognized at a point in time and made to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. These sales are paid for at the time of sale in cash, credit card or on account with the vast majority of customers having terms between 30 and 60 days, not to exceed one year. Many customers who purchase on account take advantage of early payment discounts offered by paying within 30 days of being invoiced. The Company estimates variable consideration for these sales on the basis of both historical information and current trends to estimate the expected amount of discounts to which customers are likely to be entitled. The remaining revenue is governed by long-term supply agreements and related purchase orders (contracts) that specify shipping terms and aspects of the transaction price including rebates, discounts and other sales incentives, such as advertising support. Contracts are at standalone pricing. The performance obligation in these contracts is determined by each of the individual purchase orders and the respective stated quantities, with revenue being recognized at a point in time wh …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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). In the reportable segment financial information, segment profit represents each segments Income before income taxes. Three Months Ended June 30, 2026 Paint Stores Group Consumer Brands Group Performance Coatings Group Administrative Consolidated Totals Net sales $ 3,890.0 $ 983.5 $ 1,913.8 $ 2.0 $ 6,789.3 Intersegment transfers 1,555.7 15.8 (1,571.5) Total net sales and intersegment transfers 3,890.0 2,539.2 1,929.6 (1,569.5) 6,789.3 Cost of goods sold 1,695.2 2,075.3 1,258.5 (1,577.7) 3,451.3 Selling, general and administrative expenses 1,237.0 252.0 397.6 217.1 2,103.7 Interest expense 135.9 135.9 Other segment items (1) 0.2 (1.0) 0.2 (13.5) (14.1) Income before income taxes $ 957.6 $ 212.9 $ 273.3 $ (331.3) $ 1,112.5 Percent to Net sales 24.6% 21.6% 14.3% nm 16.4% Supplemental Information: Capital expenditures $ 25.3 $ 53.7 $ 5.7 $ 23.7 $ 108.4 Depreciation (2) 23.0 54.4 5.0 16.1 98.5 Amortization (3) 2.8 21.1 64.0 87.9 nm - not meaningful (1) Other segment items includes Other general e …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY Dividends The following table summarizes the dividends declared and paid on common stock: 2026 2025 Cash Dividend Per Share Total Dividends (in millions) Cash Dividend Per Share Total Dividends (in millions) First Quarter $ 0.80 $ 197.1 $ 0.79 $ 200.4 Second Quarter 0.80 197.5 0.79 197.9 Total $ 1.60 $ 394.6 $ 1.58 $ 398.3 Treasury Stock The Company acquires its common stock for general corporate purposes through its publicly announced share repurchase program. As of June 30, 2026, the Company had remaining authorization from its Board of Directors to purchase 24.0 million shares of its common stock. The table below summarizes the Companys share repurchase activity: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Treasury stock purchases (in millions) $ 1,261.4 $ 518.5 $ 1,837.0 $ 870.2 Treasury stock purchases (in shares) 4,000,000 1,450,000 5,600,000 2,450,000 Average price per share $ 315.37 $ 357.57 $ 328.04 $ 355.17 In June 2026, the Company entered into an accelerated share repurchase agreement (ASR) with a third-party financial institution to repurchase 2.5 million shares of the Companys outstanding common stock. Settlement of the forward contract component of the ASR occurred subsequently in July 2026 resulting in a $34.3 million payment to be recorded to Other capital in accordance with the Derivatives and Hedging Topic of the ASC. Other Capital During the six months ended June 30, 2026, 442,640 stock options were exercis …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing