PPG Industries (NYSE: PPG) lifts Q2 sales to $4.5B, adj EPS $2.23
Rhea-AI Filing Summary
PPG Industries reported second quarter 2026 net sales of $4,495 million, up 7% year over year, with organic sales up 4% driven equally by 2% higher volumes and 2% higher selling prices. Net income from continuing operations was $439 million with diluted EPS of $1.96, compared with $450 million and $1.98 a year earlier. Adjusted net income was $500 million and adjusted EPS $2.23, essentially flat versus 2025.
Global Architectural Coatings net sales rose 8% to $1,098 million, and segment EBITDA margin improved 100 basis points to 19.4%. Performance Coatings net sales grew 7% to $1,619 million, but segment EBITDA margin declined to 22.7% from 25.7%, mainly due to weaker automotive refinish volumes. Industrial Coatings net sales increased 7% to $1,778 million, with segment EBITDA margin at 15.9% versus 16.6%.
Year-to-date cash from operating activities was $594 million, up from $369 million. The company ended the quarter with $1.6 billion in cash and short-term investments and net debt of $5.3 billion. Management expects third quarter organic sales growth in the low- to mid-single-digit percentage range and reaffirmed full-year 2026 adjusted EPS guidance of $7.70 to $8.10.
Positive
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Filing Explained
PPG completed a CHF320 million long-term bond issuance, adding debt due in 2030 and 2034.
PPG Industries reports a completed issuance of
Form 8-K is used to report specified material events, and this release is furnished under Item 2.02; the filing says the information is not treated as filed for Section 18 purposes unless PPG incorporates it into another filing.
The bonds carry stated rates of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $4,495 million
Net income from continuing operations: $439 million
Adjusted diluted EPS: $2.23
+5 more
8 metrics
Net sales
$4,495 million
Second quarter 2026 consolidated net sales; 7% year-over-year increase.
Net income from continuing operations
$439 million
Second quarter 2026; compared with $450 million in second quarter 2025.
Adjusted diluted EPS
$2.23
Second quarter 2026 adjusted earnings per share from continuing operations; versus $2.22 in 2025.
Cash from operating activities
$594 million
Cash from operating activities – continuing operations for the six months ended June 30, 2026.
Net debt
$5.3 billion
Net debt at the end of the second quarter 2026; decreased $415 million from Q2 2025.
Adjusted EBITDA margin
17.4%
Second quarter 2026 adjusted EBITDA margin; compared with 18.5% in second quarter 2025.
2026 adjusted EPS guidance
$7.70 to $8.10
Full-year 2026 adjusted earnings per share guidance range, reaffirmed.
Operating working capital
$3,279 million
Operating working capital at June 30, 2026; 18.2% of quarter sales, annualized.
Key Terms
organic sales, adjusted EBITDA, segment EBITDA, operating working capital, +2 more
6 terms
organic sales financial
"Organic sales increased 4% year over year with growth in 8 of 9 businesses"
Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.
adjusted EBITDA financial
"Adjusted EBITDA margin | 17.4% | | 18.5% |"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
segment EBITDA financial
"Segment EBITDA % | 19.4% | % | | 18.4% | %"
Segment EBITDA measures how much profit a specific part of a company generates from its core operations, before accounting for interest, taxes and long-term accounting items like depreciation and amortization. Investors use it like inspecting a single slice of a pie to compare which business units are most profitable, track performance trends, and decide where to allocate capital because it highlights underlying operating results without financing or accounting differences.
operating working capital financial
"Operating Working Capital (a) | $3,279 | | $2,748 |"
legacy environmental remediation charges regulatory
"Legacy environmental remediation charges (d) | 19 | | | 0.08"
Earnings Snapshot
Net sales: $4,495 million · Guidance included
Second quarter 2026
Net sales
$4,495 million
+7% year over year
Net income from continuing operations
$439 million
(2)% year over year
Adjusted EPS
$2.23
—% year over year
Guidance
Full-year 2026 adjusted earnings per share guidance reaffirmed in a range of $7.70 to $8.10.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did PPG (PPG) perform financially in Q2 2026?
PPG reported Q2 2026 net sales of $4,495 million, up 7% year over year, and net income from continuing operations of $439 million. Adjusted net income was $500 million and adjusted diluted EPS was $2.23, essentially flat versus Q2 2025.
How did PPG (PPG) segments perform in Q2 2026?
In Q2 2026, Global Architectural Coatings net sales were $1,098 million (+8%), Performance Coatings $1,619 million (+7%), and Industrial Coatings $1,778 million (+7%). Segment EBITDA margins were 19.4%, 22.7%, and 15.9%, respectively, with mixed margin trends across segments.
What is PPG’s (PPG) 2026 earnings guidance after Q2 2026?
PPG reaffirmed its full-year 2026 adjusted EPS guidance in a range of $7.70 to $8.10. This outlook incorporates expectations for organic sales growth, pricing realization, cost inflation coverage, and the impact of regional and business mix on profitability.
How strong was PPG (PPG) cash flow in the first half of 2026?
For the six months ended June 30, 2026, PPG generated $594 million of cash from operating activities, up from $369 million in the prior-year period. The company also spent $309 million on capital expenditures and paid $317 million in dividends on common stock.
What is PPG’s (PPG) debt and liquidity position after Q2 2026?
At June 30, 2026, PPG held $1,520 million in cash and cash equivalents plus $74 million in short-term investments. Long-term debt was $6,195 million and current debt $691 million, with net debt disclosed at $5.3 billion, providing context for its leverage and funding capacity.
What sales growth does PPG (PPG) expect for Q3 2026?
PPG expects third quarter 2026 organic sales growth in a low single-digit to mid-single-digit percentage range. Management also anticipates company adjusted EBITDA margin to be between flat and down 100 basis points year over year, reflecting pricing, mix, and cost dynamics.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
| FORM | |||||
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 28, 2026
(Exact Name of Registrant as Specified in Charter) | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices, and Zip Code)
(412 ) 434-3131
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | |||||||
On July 28, 2026, PPG Industries, Inc. ("PPG") issued the press release attached hereto as Exhibit 99, which is incorporated by reference herein. The information furnished pursuant to this Item 2.02 shall in no way be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, except if PPG specifically incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. | |||||||
(d) Exhibits. The following exhibits are being furnished as part of this Report.
Exhibit Number | Description | |||||||
| 99 | Earnings press release of PPG Industries, Inc. dated July 28, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PPG INDUSTRIES, INC. | ||||||||
| (Registrant) | ||||||||
| Date: July 28, 2026 | By: | /s/ Jamie A. Beggs | ||||||
| Jamie A. Beggs | ||||||||
| Senior Vice President and Chief Financial Officer | ||||||||
Exhibit 99
News
Media Contact:
Greta Edgar Borza
Corporate Communications
+1-724-316-7552
edgar@ppg.com
Investor Contact:
Alex Lopez
Investor Relations
+1-412-434-3466
alejandrolopez@ppg.com
investor.ppg.com
PPG reports second quarter 2026 financial results
•Net sales of $4.5 billion, an increase of 7% versus prior year
•Organic sales increased 4% year over year with growth in 8 of 9 businesses led by our differentiated aerospace business
•Sales volumes increased 2% and selling prices increased 2%
•Reported earnings per diluted share (EPS) of $1.96 and adjusted EPS of $2.23
•Cash from operating activities was approximately $600 million year to date, more than $220 million higher year over year
•Share repurchases totaled $75 million in the quarter and $175 million year to date
•Reaffirming full-year 2026 adjusted EPS guidance range of $7.70 to $8.10
PITTSBURGH, July 28, 2026 – PPG (NYSE:PPG) today reported financial results for the second quarter 2026.
Second Quarter 2026 Consolidated Results
| $ in millions, except EPS | 2Q 2026 | 2Q 2025 | YOY change | ||||||||
| Net sales | $4,495 | $4,195 | +7% | ||||||||
Net income (a) | $439 | $450 | (2)% | ||||||||
Adjusted net income (a)(b) | $500 | $504 | (1)% | ||||||||
EPS (a) | $1.96 | $1.98 | (1)% | ||||||||
Adjusted EPS (a)(b) | $2.23 | $2.22 | —% | ||||||||
(a) From continuing operations
(b) Reconciliations of reported to adjusted figures are included below
Chairman and CEO Comments
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.
Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: We protect and beautify the world®.
Additional Financial Information
•Net sales in the quarter increased 7% year over year, due to higher sales volumes of 2%, higher selling prices of 2%, positive foreign currency translation of 2% and acquisitions of 1%
•At quarter end, the company had cash and short-term investments totaling $1.6 billion
•Net debt was $5.3 billion, a decrease of $415 million from the second quarter 2025
•In the second quarter, issued long-term bonds of CHF320 million due in 2030 and 2034, at a rate of 1.22% and 1.66%, respectively
•Corporate expenses were $91 million in the second quarter, $83 million exclusive of depreciation and amortization
•Second quarter net interest expense was $29 million
•In the second quarter, the effective tax rate was 22.3% and the adjusted effective tax rate was 22.5%, down approximately 100 basis points year over year
Second Quarter 2026 Reportable Segment Financial Results
Global Architectural Coatings Segment
| $ in millions | 2Q 2026 | 2Q 2025 | YOY change | ||||||||
| Net sales | $1,098 | $1,018 | +8% | ||||||||
| Sales volumes | (1)% | ||||||||||
| Selling prices | +3% | ||||||||||
| Foreign currency translation | +6% | ||||||||||
| Segment income | $185 | $160 | +16% | ||||||||
| Segment income % | 16.8% | 15.7% | |||||||||
Segment EBITDA (a) | $213 | $187 | +14% | ||||||||
| Segment EBITDA % | 19.4% | 18.4% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Global Architectural Coatings segment net sales increased 8% compared to the second quarter 2025 driven by a benefit from foreign currency translation and organic sales growth of 2% due to higher selling prices, partially offset by lower sales volumes.
Organic sales for architectural coatings EMEA increased by a low single-digit percentage compared to the second quarter 2025, with higher selling prices partially offset by lower sales volumes. Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales were strong, and project-related sales improved compared to lower prior-year demand from local business and governmental investment.
Segment EBITDA increased 14% and segment EBITDA margin improved 100 basis points compared to the prior year with realization of higher selling prices and cost-control actions partially offset by cost of goods sold inflation. In the third quarter, the company expects organic sales in the range of flat to a low single-digit percentage growth year over year and EBITDA margin to be relatively flat.
Performance Coatings Segment
| $ in millions | 2Q 2026 | 2Q 2025 | YOY change | ||||||||
| Net sales | $1,619 | $1,512 | +7% | ||||||||
| Sales volumes | —% | ||||||||||
| Selling prices | +3% | ||||||||||
| Foreign currency translation | +1% | ||||||||||
| Acquisitions | +3% | ||||||||||
| Segment income | $329 | $356 | (8)% | ||||||||
| Segment income % | 20.3% | 23.5% | |||||||||
Segment EBITDA (a) | $368 | $389 | (5)% | ||||||||
| Segment EBITDA % | 22.7% | 25.7% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Performance Coatings segment net sales increased 7% due to higher selling prices, a benefit from foreign currency translation, and acquisitions.
Organic sales improved 3% compared to the prior year led by aerospace, protective and marine coatings, and traffic solutions, partially offset by year-over-year sales volume declines in automotive refinish coatings. Aerospace achieved exceptional quarterly sales with double-digit percentage organic sales growth, while our order backlog remained near $300 million. Organic sales in automotive refinish coatings decreased by a double-digit percentage as sales volumes were lower, reflecting both a challenging comparison to customer order patterns in the second quarter of 2025
and a slower recovery in underlying industry demand. Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior year, achieving its 13th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific and Europe. Organic sales in traffic solutions increased a mid-single-digit percentage driven by strong demand.
Compared to the second quarter 2025, segment EBITDA decreased by 5% and segment EBITDA margin declined 300 basis points, driven by lower automotive refinish coatings sales volumes. In the third quarter, the company expects organic sales growth in the range of a mid-single-digit percentage to a high single-digit percentage year over year. In the second half of 2026, we expect EBITDA margin expansion driven by pricing actions and automotive refinish stabilization.
Industrial Coatings Segment
| $ in millions | 2Q 2026 | 2Q 2025 | YOY change | ||||||||
| Net sales | $1,778 | $1,665 | +7% | ||||||||
| Sales volumes | +5% | ||||||||||
| Selling prices | —% | ||||||||||
| Foreign currency translation | +2% | ||||||||||
| Segment income | $229 | $227 | +1% | ||||||||
| Segment income % | 12.9% | 13.6% | |||||||||
Segment EBITDA (a) | $282 | $276 | +2% | ||||||||
| Segment EBITDA % | 15.9% | 16.6% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Industrial Coatings segment net sales increased 7% compared to the second quarter 2025, led by higher sales volumes and a benefit from foreign currency translation. Organic sales increased 5% due to sales volume growth in all three businesses, reflecting the benefits from share gains.
Automotive OEM coatings organic sales increased a low single-digit percentage, with mid-single-digit percentage sales volume growth, including share gains, outpacing global automotive industry production by about 500 basis points. Industrial coatings organic sales improved a mid-single-digit percentage driven by sales volume and selling price growth in Asia Pacific, Europe and North America. Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes were up over 20% on a two-year stacked basis, due to share gains as customers adopt our leading technologies.
Segment EBITDA increased 2% and segment EBITDA margin declined 70 basis points compared to the second quarter 2025. This margin decline was driven by cost of goods sold inflation partially offset by higher sales volumes. In the third quarter, the company expects organic sales in the range of flat to a low single-digit percentage growth year over year. In the second half of 2026, we expect EBITDA margin compression due to the timing of index-based pricing.
Outlook
The company expects third quarter organic sales growth in the range of a low single-digit to a mid-single-digit percentage and company adjusted EBITDA margin in the range of flat to a decline of 100 basis points year over year. We are reaffirming our full-year adjusted earnings per share guidance range of $7.70 to $8.10. This reflects the momentum of share gains and self-help actions, along with an updated view of global economic activity, foreign exchange rates as well as regional and business mix.
Additional information related to 2026 financial projections is posted within the slides associated with the second quarter earnings documents on the Investors section of PPG.com.
The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.
Additional Information
PPG will provide additional information regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, July 28. The company will hold a conference call to review its second quarter 2026 financial performance on July 29, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/attendee/123720578.The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A web replay will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Tuesday, July 27, 2027.
Forward-Looking Statements
Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2025 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.
All information in this release speaks only as of July 28, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.
Regulation G Reconciliation
PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies. PPG is not able to provide a reconciliation of third quarter 2026 or full-year 2026 expected adjusted earnings per diluted share or adjusted EBITDA to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.
Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income
($ in millions, except per-share amounts and percentages)
| Second Quarter 2026 | Second Quarter 2025 | ||||||||||||||||||||||
| $ | EPS(a) | $ | EPS (a) | ||||||||||||||||||||
| Reported net income from continuing operations | $439 | $1.96 | $450 | $1.98 | |||||||||||||||||||
| Acquisition-related amortization expense | 20 | 0.09 | 25 | 0.11 | |||||||||||||||||||
Business restructuring-related costs, net(b) | 10 | 0.04 | 15 | 0.07 | |||||||||||||||||||
Portfolio optimization(c) | 4 | 0.02 | 2 | 0.01 | |||||||||||||||||||
Legacy environmental remediation charges(d) | 19 | 0.08 | 12 | 0.05 | |||||||||||||||||||
Legal settlement(e) | 8 | 0.04 | — | — | |||||||||||||||||||
| Adjusted net income from continuing operations, excluding certain items | $500 | $2.23 | $504 | $2.22 | |||||||||||||||||||
| Second Quarter 2026 | Second Quarter 2025 | ||||||||||||||||||||||||||||||||||
| Income Before Income Taxes | Tax Expense | Effective Tax Rate | Income Before Income Taxes | Tax Expense | Effective Tax Rate | ||||||||||||||||||||||||||||||
| Effective tax rate, continuing operations | $569 | $127 | 22.3 | % | $598 | $140 | 23.4 | % | |||||||||||||||||||||||||||
| Acquisition-related amortization expense | 26 | 6 | 24.5 | % | 33 | 8 | 24.4 | % | |||||||||||||||||||||||||||
Business restructuring-related costs, net(b) | 13 | 3 | 22.0 | % | 20 | 5 | 23.3 | % | |||||||||||||||||||||||||||
Portfolio optimization(c) | 5 | 1 | 24.2 | % | 2 | — | 24.3 | % | |||||||||||||||||||||||||||
Legacy environmental remediation charges(d) | 25 | 6 | 24.3 | % | 16 | 4 | 24.3 | % | |||||||||||||||||||||||||||
Legal settlement(e) | 11 | 3 | 24.3 | % | — | — | — | % | |||||||||||||||||||||||||||
| Adjusted effective tax rate, continuing operations, excluding certain items | $649 | $146 | 22.5 | % | $669 | $157 | 23.5 | % | |||||||||||||||||||||||||||
| Second Quarter | |||||||||||
| 2026 | 2025 | ||||||||||
| Reported net income from continuing operations | $439 | $450 | |||||||||
| Interest expense, net of interest income | 29 | 18 | |||||||||
| Income tax expense | 127 | 140 | |||||||||
| Net income attributable to noncontrolling interests | 3 | 8 | |||||||||
| Earnings before interest and taxes ("EBIT") | 598 | 616 | |||||||||
| Depreciation | 102 | 91 | |||||||||
| Amortization | 26 | 33 | |||||||||
| EBITDA | $726 | $740 | |||||||||
Business restructuring-related costs, net(b) | 13 | 20 | |||||||||
Portfolio optimization(c) | 5 | 2 | |||||||||
Legacy environmental remediation charges(d) | 25 | 16 | |||||||||
Legal settlement(e) | 11 | — | |||||||||
| Adjusted EBITDA | $780 | $778 | |||||||||
| Net sales | $4,495 | $4,195 | |||||||||
| Net income margin | 9.8% | 10.7% | |||||||||
| EBIT margin | 13.3% | 14.7% | |||||||||
| Adjusted EBITDA margin | 17.4% | 18.5% | |||||||||
(a)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.
(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges, net on the consolidated statement of income.
(c)Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. Portfolio optimization also includes charges related to the step-up of acquired inventory. These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025, which is included in Other charges, net on the condensed consolidated statement of income. There was no tax expense associated with that gain.
(d)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges, net in the condensed consolidated statement of income.
(e)In the second quarter 2026, the Company settled a legal matter. The related charge is included in Other charges, net on the consolidated statement of income.
| Second Quarter | |||||||||||
| 2026 | 2025 | ||||||||||
| Global Architectural Coatings | |||||||||||
| Net sales | $1,098 | $1,018 | |||||||||
| Segment income | $185 | $160 | |||||||||
| Segment depreciation and amortization | 28 | 27 | |||||||||
| Segment EBITDA | $213 | $187 | |||||||||
| Segment EBITDA % | 19.4 | % | 18.4 | % | |||||||
| Performance Coatings | |||||||||||
| Net sales | $1,619 | $1,512 | |||||||||
| Segment income | $329 | $356 | |||||||||
| Segment depreciation and amortization | 39 | 33 | |||||||||
| Segment EBITDA | $368 | $389 | |||||||||
| Segment EBITDA % | 22.7 | % | 25.7 | % | |||||||
| Industrial Coatings | |||||||||||
| Net sales | $1,778 | $1,665 | |||||||||
| Segment income | $229 | $227 | |||||||||
| Segment depreciation and amortization | 53 | 49 | |||||||||
| Segment EBITDA | $282 | $276 | |||||||||
| Segment EBITDA % | 15.9 | % | 16.6 | % | |||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited) | |||||||||||||||||||||||
| (All amounts in millions except per-share data) | |||||||||||||||||||||||
| Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $4,495 | $4,195 | $8,425 | $7,879 | |||||||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 2,687 | 2,432 | 4,962 | 4,574 | |||||||||||||||||||
| Selling, general and administrative | 931 | 872 | 1,816 | 1,710 | |||||||||||||||||||
| Depreciation | 108 | 102 | 213 | 191 | |||||||||||||||||||
| Amortization | 26 | 33 | 53 | 65 | |||||||||||||||||||
| Research and development, net | 107 | 106 | 220 | 208 | |||||||||||||||||||
| Interest expense | 71 | 62 | 132 | 118 | |||||||||||||||||||
| Interest income | (42) | (44) | (79) | (87) | |||||||||||||||||||
| Other charges, net | 38 | 34 | 22 | — | |||||||||||||||||||
| Income before income taxes | $569 | $598 | $1,086 | $1,100 | |||||||||||||||||||
| Income tax expense | 127 | 140 | 259 | 262 | |||||||||||||||||||
| Income from continuing operations | $442 | $458 | $827 | $838 | |||||||||||||||||||
| Loss from discontinued operations, net of tax | (2) | — | (2) | (2) | |||||||||||||||||||
| Net income attributable to controlling and noncontrolling interests | $440 | $458 | $825 | $836 | |||||||||||||||||||
| Net income attributable to noncontrolling interests | (3) | (8) | (6) | (13) | |||||||||||||||||||
| Net income (attributable to PPG) | $437 | $450 | $819 | $823 | |||||||||||||||||||
| Amounts attributable to PPG: | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $439 | $450 | $821 | $825 | |||||||||||||||||||
| Loss from discontinued operations, net of tax | (2) | — | (2) | (2) | |||||||||||||||||||
| Net income (attributable to PPG) | $437 | $450 | $819 | $823 | |||||||||||||||||||
| Earnings per common share (attributable to PPG): | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $1.97 | $1.98 | $3.68 | $3.63 | |||||||||||||||||||
| Loss from discontinued operations, net of tax | (0.01) | — | (0.01) | (0.01) | |||||||||||||||||||
| Earnings per common share (attributable to PPG) | $1.96 | $1.98 | $3.67 | $3.62 | |||||||||||||||||||
| Earnings per common share (attributable to PPG) - assuming dilution: | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $1.96 | $1.98 | $3.66 | $3.61 | |||||||||||||||||||
| Loss from discontinued operations, net of tax | (0.01) | — | (0.01) | (0.01) | |||||||||||||||||||
| Earnings per common share (attributable to PPG) - assuming dilution | $1.95 | $1.98 | $3.65 | $3.60 | |||||||||||||||||||
| Average shares outstanding | 223.0 | 226.8 | 223.4 | 227.4 | |||||||||||||||||||
| Average shares outstanding - assuming dilution | 223.9 | 227.7 | 224.2 | 228.3 | |||||||||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited) | ||||||||||||||
| ($ in millions) | ||||||||||||||
| Six Months Ended June 30 | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash from/(used for) operating activities: | ||||||||||||||
| Cash from operating activities - continuing operations | $594 | $371 | ||||||||||||
| Cash used for operating activities - discontinued operations | ($2) | ($2) | ||||||||||||
| Cash from operating activities | $592 | $369 | ||||||||||||
| Cash used for investing activities - continuing operations: | ||||||||||||||
| Capital expenditures | $309 | $330 | ||||||||||||
| Cash used for financing activities - continuing operations: | ||||||||||||||
| Dividends paid on PPG common stock | $317 | $308 | ||||||||||||
| Purchase of treasury stock | $175 | $540 | ||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| June 30 | December 31 | June 30 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $1,520 | $2,163 | $1,561 | ||||||||||||||
| Short-term investments | 74 | 56 | 64 | ||||||||||||||
| Receivables, net | 3,912 | 3,336 | 3,891 | ||||||||||||||
| Inventories | 2,226 | 1,996 | 2,224 | ||||||||||||||
| Other current assets | 529 | 408 | 450 | ||||||||||||||
| Total current assets | $8,261 | $7,959 | $8,190 | ||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term debt and current portion of long-term debt | $691 | $706 | $1,413 | ||||||||||||||
| Accounts payable and accrued liabilities | 4,307 | 3,957 | 4,061 | ||||||||||||||
| Current portion of operating lease liabilities | 135 | 138 | 141 | ||||||||||||||
| Restructuring reserves | 96 | 99 | 147 | ||||||||||||||
| Total current liabilities | $5,229 | $4,900 | $5,762 | ||||||||||||||
| Long-term debt | $6,195 | $6,602 | $5,919 | ||||||||||||||
| PPG OPERATING METRICS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| June 30 | December 31 | June 30 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
Operating Working Capital(a) | $3,279 | $2,748 | $3,249 | ||||||||||||||
| As a percent of quarter sales, annualized | 18.2 | % | 17.6 | % | 19.4 | % | |||||||||||
(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities. | |||||||||||||||||