Shares fell 2.7% after earnings, a roughly flat reaction under the stated threshold. Sales grew, but earnings conversion was below management’s standard: adjusted EPS rose only about 1%, with gross margin pressured by higher raw-material and supply-chain costs and acquisition dilution.
- Consolidated sales increased at a high-single-digit rate, including mid-single-digit price/mix and low-single-digit contributions from acquisitions and volume.
- Adjusted diluted EPS grew approximately 1%; adjusted EBITDA rose 3.3% to $1.4 billion, with a 20.5% margin.
- Reported gross margin was pressured by higher costs, Suvenil acquisition dilution, and growth in lower-margin segments; excluding Suvenil’s impact, gross margin was flat year to date.
- Paint Stores sales grew at a mid-single-digit rate, with mid-single-digit price/mix and low-single-digit volume growth. Segment profit increased at a low-single-digit rate.
- Management maintained the midpoint of full-year adjusted EPS guidance and cited about $25 million of expected savings from actions taken in 2026.
Community Discussion