Sherwin-Williams announced its financial results for the third quarter ended September 30, 2022. All comparisons are to the third quarter of the prior year, unless otherwise noted.

The company’s consolidated net sales increased 17.5% in the quarter to a record $6.05 billion. However, net sales from stores in U.S. and Canada open more than twelve calendar months increased 20.7% in the quarter. Diluted net income per share increased to $2.62 per share in the quarter compared to $1.88 per share in the third quarter 2021. Adjusted diluted net income per share increased 35.4% to $2.83 per share in the quarter compared to $2.09 per share in the third quarter 2021. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased to $1.12 billion, or 18.6% of sales, in the quarter.

"Our team delivered record net sales results in the third quarter as we continued to focus on serving our customers with innovative solutions," said Chairman and Chief Executive Officer, John G. Morikis.

"Sales grew to $6.05 billion, a 17.5% increase against a softer quarter comparison last year when raw material availability was highly challenged. Consolidated gross margin expanded 110 basis points sequentially and 120 basis points year-over-year to 42.8%. Our margins improved as a result of pricing actions across all businesses and volume increases in all architectural paint end markets in The Americas Group. We generated strong cash flow in the quarter, which enabled us to continue making strategic long-term investments across the business and pursue strategic, bolt-on acquisitions in the Performance Coatings Group, having closed three acquisitions since the beginning of the third quarter.

"In The Americas Group, we continued to capture strong demand across all professional architectural markets, as same-store sales increased 20.7% in the third quarter, and we are seeing strong realization from our September 6th 10% price increase. In the Consumer Brands Group, double-digit growth in North America was partially offset by continued tightness in supply of alkyd resins and headwinds in Europe and Asia, while segment margin improved significantly sequentially and year-over-year. Momentum continues in the Pros Who Paint category with our North American retail partners. In the Performance Coatings Group, sales grew in every division as a result of pricing actions across all divisions and contributions from acquisitions. Regionally, sales were up strong double-digits in North America and Latin America, and high-single-digits in Asia, partially offset by a mid-single-digit decline in Europe. Segment margin in this group also meaningfully expanded sequentially and year-over-year."