Mike Harrison

Beck reported no change in consumption or food and beverage demand from the outbreak, declined to characterize FDA posture as helpful or harmful, and flagged connecting producers to end users as a future opportunity.

700K smart devices deployed, targeting 1 million by year-end. Plan to convert entire Pest business to Pest Intelligence in 3-4 years with growth, retention, and margin benefits.

Beck confirmed IQ Suite (DishIQ, AquaIQ, KitchenIQ, BeverageIQ) at low single-digit penetration. Technology cost barrier no longer an issue. Digital sales included within traditional four reported segments. Higher gross margin than company average. Drives volume, margin, and digital revenue.

Beck described F&B 4% growth as well above market where consumer goods companies are closer to flat. Combination of new customer wins, new plants within existing customers, digital monetization, and value pricing. Only North America unified so far.

Kirkland explained $1.9B cash includes $500M bond offering pre-funding a $525M euro maturity paid in July. Even after that, cash remains high for M&A optionality and growth investments. Leverage at 1.7x vs 2x target.

Beck confirmed same delivery but different path. Kirkland noted FX still expected as full-year headwind though improving. Multiple variables at play.

Beck confirmed it is a reporting formalization, not new operational changes. Future healthcare growth through instrument reprocessing, a dishwasher-like model.

Petz gave the full price, volume and FX split and named general finishing and heavy equipment as the drivers, with transportation and energy still a headwind.

Heidi confirmed January realization exceeded expectations. Said window has not passed for mid-season increases if needed, but would work methodically with customers to prepare them.

Heidi cited inflation and consumer confidence as governors on the repaint cycle; emphasized DIY is 40% of gallons and needs to start moving.

Heidi highlighted commercial/multifamily improvement with 9-12 month sight line; meaningful pickup likely late back half 2026 or early 2027.

Jim noted petrochem/solvent/resin relief, offset by tariff pressure on applicators, packaging, pigments; competitors raising prices mid-season while SHW maintains disciplined value-based approach.

Heidi cited Valspar playbook for Suvinil integration; too early on specific investments but more about efficiency opportunities; Al noted SHW's disciplined return-focused approach to growth investments like packaging and coil capacity.

Heidi said too early to tell on immigration impact but framed Sherwin's investments in productivity (delivery, field reps, application technology) as positioning them to help contractors navigate labor constraints.

Direct: rejected the peak thesis and enumerated marine, fire protection and data center verticals as drivers.

Knavish clarified: China low-to-mid single digit growth expected in 2026, well-positioned local-for-local in right industries. India delivered double-digit growth throughout 2025, expected to continue. Southeast Asia also strong. Asia Pacific overall a strength.

Knavish explained formulation AI scrapes 100+ years of PPG proprietary data to optimize products faster than humans. About 50 products expected to be commercialized by year-end using formulation AI, both new products and optimization of existing formulas. Morales clarified best price point means optimal raw material stack composition regardless of vendor.

Morales explained pricing varies by cycle length: long-cycle businesses have carryover benefits, additional pricing being interjected in Q2, short-cycle reacting to market trends. Knavish cited 3 traffic drivers: share gains from late 2024, pent-up demand from last year's wet weather, and growing infrastructure spending tailwind.

Comprehensive regional overview: LatAm strong led by Mexico nearshoring; India growing via Asian Paints JV; China local-for-local with consistent low-to-mid-single-digit growth.

Melissa quantified the gasification-assets-held-for-sale contribution at about 1-1.5% (from paused depreciation plus past-due collections) and said APD is working with international and local banks on a sale, with timing to be updated later.

Melissa attributed margin decline to higher depreciation from supply chain asset in-sourcing and fixed cost inflation (primarily wage inflation in Europe). Seasonality also a factor for calendar Q4.

Melissa disclosed utilization across all regions in mid-to-high 70s, similar to FY2025. Eduardo added steel and chemical industries in Europe affected but impact varies by customer and location.