PPG Announces Second Quarter 2026 Financial Results

• Net sales increased 7% year over year to $4.5 billion.

• Organic sales increased 4% year over year, driven by growth across eight of the company's nine businesses, led by its differentiated aerospace segment.

• Sales volumes increased by 2%, while selling prices also rose by 2%.

• Reported earnings per diluted share (EPS) were $1.96, with adjusted EPS reaching $2.23.

• Year-to-date cash generated from operating activities totalled approximately $600 million, an increase of more than $220 million compared with the prior year.

• Share repurchases totalled $75 million in the quarter and $175 million on a year-to-date basis.

• PPG reaffirmed its full-year 2026 adjusted earnings per share (EPS) guidance of $7.70 to $8.10.

  
  

Chairman and CEO Tim Knavish, PPG chairman and chief executive officer, commented on the quarter:

" I am proud to announce that PPG delivered its sixth consecutive quarter of organic sales growth, a solid increase of 4%, with equal contributions from sales volumes and selling prices. We outpaced the industry by 300 basis points, achieving organic growth in all three segments and in eight of our nine businesses, demonstrating our ability to accelerate momentum in a complex and evolving environment. Adjusted EPS of $2.23 was slightly higher year over year driven by strong results in our differentiated aerospace and architectural coatings Latin America businesses, offsetting lower sales volumes in automotive refinish coatings."

"Our Global Architectural Coatings segment achieved 2% organic sales growth and EBITDA margin improvement of 100 basis points led by strength in Latin America and modest growth in Europe. Long-term organic sales and margin expansion in this segment is driven by high-performance products, strong brand recognition, and cost control actions, along with excellent commercial execution."

"Performance Coatings segment organic sales grew 3%, benefiting from strong demand for our aerospace and protective and marine coatings products. Margin declined year over year, driven by weaker automotive refinish coatings demand, as the recovery of insurance claims improved more gradually than anticipated. Automotive refinish coatings organic sales are projected to grow in the second half of the year in the range of a low to mid-single-digit percentage due to the phasing of PPG customer order patterns last year. Aerospace industry demand is expected to remain robust, and our technology-advantaged products position us well to deliver consistent above-industry growth in this key business."

"In our Industrial Coatings segment, we are delivering on previously communicated share gains in all three businesses, resulting in sales volume growth of 5%. This performance was due to double-digit percentage growth in packaging coatings and mid-single-digit percentage growth in both automotive original equipment manufacturer (OEM) and industrial coatings. Price was flat for the quarter, following previous price declines, as we executed new pricing actions. Our ability to outpace industry growth is driven by technology leadership, investment in product innovation, and commercial excellence."

"The company has proactively made price adjustments globally and across all of our businesses, resulting in a 2% selling price improvement in the quarter. Costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. In the second quarter we covered about 90% of the cost of goods sold inflation and expect to cover 100% by the fourth quarter, one quarter ahead of our original commitment. This represents a faster rate of price realization than we achieved during previous cycles."

"Looking ahead, we expect robust organic sales growth across most of our businesses in the third quarter, with aggregate growth in the low single-digit to mid-single-digit percentage range, led by strength in aerospace, Latin American architectural coatings, and packaging coatings. We are reaffirming our full-year earnings per share guidance range of $7.70 to $8.10. This demonstrates our confidence in our earnings trajectory given our positive momentum, realization of pricing, and execution of self-help actions."

Outlook

PPG expects third-quarter 2026 organic sales to grow in the low- to mid-single-digit percentage range, while adjusted EBITDA margin is projected to remain flat or decline by up to 100 basis points compared with the prior-year period. The company also reaffirmed its full-year 2026 adjusted earnings per share (EPS) guidance of $7.70 to $8.10, supported by continued market share gains, ongoing self-help initiatives, and its updated outlook for global economic activity, foreign exchange rates, and regional and business mix.

Source: PPG