(Reuters) -Sherwin-Williams on Tuesday beat Wall Street estimates for first-quarter profit, helped by higher prices for its industrial paints, sending the company’s shares up 5%.
Sales of U.S. single-family homes increased more than expected in March as buyers rushed to take advantage of a decline in mortgage rates, boosting demand for products such as paints and adhesives.
At Sherwin-Williams (NYSE:SHW)’ paint stores group unit, serving architectural and industrial contractors and DIY homeowners, first-quarter net sales rose 2.3% to $2.94 billion.
The results come amid a global choppy demand environment for the chemical industry, with companies bracing for impacts from U.S. President Donald Trump’s tariffs.
Sherwin Williams is expecting its large U.S. footprint to help cushion some of the tariff impact.
"Approximately 80% of our consolidated revenue is in the U.S. with less than 2% in China... in addition, the vast majority of our raw materials are sourced in the region where we are manufacturing," CEO Heidi Petz said during a post-earnings call.
The company, however, said it was seeing some tariff impact, mainly in areas such as applicators, pigments, extenders, industrials and packaging.
Sherwin-Williams, one of the largest paint and coating companies in the world, reaffirmed its adjusted profit per share forecast of $11.65 to $12.05 for full-year 2025, compared with analysts’ estimate of $11.90 per share, according to data compiled by LSEG.
Sherwin and its peers have been grappling with weak demand in the past several quarters, and the company said it expects demand softness to persist in several end-markets well into the second half of the year.
Rival PPG Industries (NYSE:PPG) is set to report results later in the day.
Sherwin posted an adjusted profit of $2.25 per share for the quarter ending March 31, compared with the estimate of $2.16 per share.