PPG (NYSE: PPG) posts 7% Q1 2026 sales growth and reaffirms EPS outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
PPG Industries reported first quarter 2026 net sales of $3.93 billion, up 7% from 2025, with organic sales growing 1% and foreign currency adding 6%. Reported EPS from continuing operations was $1.70 and adjusted EPS was $1.83, both up from the prior year.
Global Architectural Coatings net sales rose 13% with stronger Latin America demand and segment EBITDA margin improving to 19.1%. Performance Coatings net sales grew 5%, supported by double-digit aerospace growth, while Industrial Coatings net sales increased 4% but margins declined due to regional mix and index-based pricing.
PPG ended the quarter with $1.6 billion in cash and short-term investments and net debt of $5.5 billion. Operating cash flow was $33 million, the company repaid $700 million of maturing debt and repurchased about $100 million of shares. PPG reaffirmed its full-year 2026 EPS guidance range of $7.70 to $8.10 and expects second quarter organic sales and adjusted EPS to be flat to up a low single-digit percentage.
Positive
- None.
Negative
- None.
Insights
PPG posts steady Q1 growth, with reaffirmed full-year EPS guidance.
PPG delivered Q1 2026 net sales of $3.93 billion, up 7% year over year, with organic sales up 1% and foreign exchange adding 6%. Adjusted EPS from continuing operations increased to $1.83 from $1.72, reflecting stronger mix in aerospace and Latin America architectural coatings.
Segment results were mixed: Global Architectural Coatings net sales rose 13% and segment EBITDA margin expanded to 19.1%, while Performance Coatings grew 5% with double-digit aerospace organic growth and a $315 million backlog. Industrial Coatings net sales rose 4%, but segment EBITDA margin declined to 15.0% due to regional mix and index-based price reductions.
Cash flow and the balance sheet remain solid, with cash and short-term investments at $1.6 billion, net debt at $5.5 billion, and $700 million of maturing debt repaid. Management reaffirmed full-year EPS guidance of $7.70–$8.10 and signaled expectations for second quarter organic sales and adjusted EPS to be flat to up a low single-digit percentage versus the prior year.
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: $3.93 billion
Reported EPS: $1.70 per diluted share
Adjusted EPS: $1.83 per diluted share
+5 more
8 metrics
Net sales
$3.93 billion
First quarter 2026 consolidated net sales, up 7% year over year
Reported EPS
$1.70 per diluted share
Q1 2026 EPS from continuing operations, up from $1.64 in Q1 2025
Adjusted EPS
$1.83 per diluted share
Q1 2026 adjusted EPS from continuing operations, 6% higher year over year
Cash and short-term investments
$1.6 billion
Cash and short-term investments at quarter end March 31, 2026
Net debt
$5.5 billion
Net debt at quarter end, up $150 million versus first quarter 2025
Debt repaid
$700 million
Debt repaid that matured in the first quarter 2026
Share repurchases
about $100 million
Share repurchases completed during the first quarter 2026
Global Architectural Coatings net sales
$965 million
Q1 2026 segment net sales, 13% higher than Q1 2025
Key Terms
organic sales, segment EBITDA margin, portfolio optimization, business restructuring-related costs, +1 more
5 terms
organic sales financial
"Organic sales increased 1% year over year driven by higher selling prices"
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.
segment EBITDA margin financial
"Segment EBITDA margin of 19% and segment margin of 16%"
Segment EBITDA margin measures how much profit a particular business unit or product line generates from its own revenue after subtracting the direct operating costs, but before interest, taxes and certain accounting charges. Think of it like the share of each dollar from one shop in a chain that remains after paying the shop’s day-to-day expenses; investors use it to compare efficiency across parts of a company and to judge which units drive value or pose risk.
portfolio optimization financial
"Portfolio optimization includes a $6 million charge related to the step‑up of acquired inventory"
Portfolio optimization is the process of arranging and adjusting an investment collection to achieve the best possible balance between potential returns and risk. It’s like fine-tuning a recipe to get the most flavor with the least unwanted ingredients, helping investors make smarter choices about how to allocate their money to meet their financial goals efficiently.
operating working capital financial
"Operating Working Capital (a) was $3,138 million as of March 31, 2026"
Earnings Snapshot
Net sales: $3,930 million · Guidance included
Q1 2026
Net sales
$3,930 million
+7% YoY
Net income from continuing operations
$382 million
+2% YoY
Adjusted net income from continuing operations
$411 million
+4% YoY
EPS from continuing operations
$1.70
+4% YoY
Adjusted EPS from continuing operations
$1.83
+6% YoY
Guidance
PPG expects second quarter organic sales and adjusted EPS to be flat to up a low single-digit percentage year over year and reaffirmed full-year 2026 EPS guidance of $7.70 to $8.10.
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): April 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 April 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 April 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: April 28, 2026 | By: | /s/ Vincent J. Morales | ||||||
| Vincent J. Morales | ||||||||
| 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 first quarter 2026 financial results
•Net sales of $3.9 billion, an increase of 7% versus prior year
•Organic sales increased 1% year over year driven by higher selling prices
•First quarter reported earnings per diluted share (EPS) of $1.70 and adjusted EPS of $1.83, an increase of 6% year over year
•Segment margin of 16% and segment EBITDA margin of 19%
•Share repurchases in the quarter totaled about $100 million
•Reaffirms full-year 2026 EPS guidance range of $7.70 to $8.10
PITTSBURGH, April 28, 2026 – PPG (NYSE:PPG) today reported financial results for the first quarter 2026.
First Quarter 2026 Consolidated Results
| $ in millions, except EPS | 1Q 2026 | 1Q 2025 | YOY change | ||||||||
| Net sales | $3,930 | $3,684 | +7% | ||||||||
Net income (a) | $382 | $375 | +2% | ||||||||
Adjusted net income (a)(b) | $411 | $396 | +4% | ||||||||
EPS (a) | $1.70 | $1.64 | +4% | ||||||||
Adjusted EPS (a)(b) | $1.83 | $1.72 | +6% | ||||||||
(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:
In the first quarter, PPG delivered organic sales growth of 1%, demonstrating our ability to maintain growth momentum in a challenging environment. We delivered higher selling prices, with further selling price realization targeted to offset any inflationary impact more quickly than prior cycles. Adjusted EPS increased 6% driven by strong results in our differentiated aerospace and architectural coatings Latin America businesses, reflecting the benefits of our technology-advantaged products and strong brand recognition, along with excellent commercial execution.
Our Global Architectural Coatings segment achieved low single-digit percentage organic sales growth and EBITDA margin improvement of 230 basis points driven by strength in Latin America. In Europe, demand remains mixed whereas in Mexico, project-related sales are recovering and retail sales were especially strong.
Performance Coatings segment organic sales grew a low single-digit percentage benefitting from strong demand for aerospace and protective and marine coatings products. Aerospace industry growth is expected to remain robust, and our order backlog positions us well to deliver consistent above-industry growth in this key end market.
In our Industrial Coatings segment, we are delivering on previously communicated share gains in automotive original equipment manufacturer (OEM) coatings and packaging coatings, which allowed us to grow above industry levels. However, margins in the first quarter were negatively impacted by regional mix as China automotive production dropped in comparison to a particularly high level in the first quarter of last year. Results for packaging coatings were outstanding as we increased both organic sales and EBITDA margin.
Looking ahead, we expect strong growth in aerospace, architectural coatings in Latin America, protective and marine coatings and packaging coatings. Automotive refinish coatings organic sales are anticipated to improve for PPG in the second half of the year related to the phasing of customer order patterns last year. We are also seeing early signs of demand improvement in the U.S. refinish market as insurance claims begin to normalize to historical levels.
In recent weeks, costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. As a result, PPG has proactively announced price adjustments globally and across the portfolio. Given the scale of our differentiated portfolio, we are able to source raw materials globally, and compared to prior inflation cycles, we have an improved ability to offset inflation by increasing selling prices in step with raw material price increases.
In the second quarter, we expect both organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year earnings per share guidance range of $7.70 to $8.10. This guidance reflects confidence in our growth momentum, including share gains and realization of pricing and execution of self-help actions, which will serve to mitigate the raw material inflation impact.
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, including benefits from higher selling prices of 1% and positive foreign currency translation of 6%.
•At quarter end, the company had cash and short-term investments totaling $1.6 billion. Net debt was $5.5 billion, an increase of $150 million from the first quarter 2025.
•Cash from operating activities was $33 million, approximately $50 million higher year over year.
•The company repaid $700 million of debt which matured in the first quarter.
•Corporate expenses were $83 million in the first quarter.
•First quarter net interest expense was $24 million.
•In the first quarter, the effective tax rate was approximately 25.5%, up about 100 basis points year over year.
First Quarter 2026 Reportable Segment Financial Results
Global Architectural Coatings Segment
| $ in millions | 1Q 2026 | 1Q 2025 | YOY change | ||||||||
| Net sales | $965 | $857 | +13% | ||||||||
| Sales volumes | —% | ||||||||||
| Selling prices | +2% | ||||||||||
| Foreign currency translation | +12% | ||||||||||
| Divestitures | (1)% | ||||||||||
| Segment income | $155 | $118 | +31% | ||||||||
| Segment income % | 16.1% | 13.8% | |||||||||
Segment EBITDA (a) | $184 | $144 | +28% | ||||||||
| Segment EBITDA % | 19.1% | 16.8% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Global Architectural Coatings segment net sales increased 13% compared to the first quarter 2025 driven by higher selling prices and a benefit from foreign currency translation partially offset by divestitures.
Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage compared to the first quarter 2025 driven by growth in Latin America. Organic sales for architectural coatings EMEA declined by a low single-digit percentage year over year, with higher selling prices more than offset by lower sales volumes. In Mexico, retail sales were especially strong in the quarter. Mexican project-related sales continued to recover and the company expects further incremental improvement in the second quarter aided by higher business and governmental project investment.
Segment EBITDA increased 28% and segment EBITDA margin improved 230 basis points compared to the prior year with realization of higher selling prices and cost-control actions.
Performance Coatings Segment
| $ in millions | 1Q 2026 | 1Q 2025 | YOY change | ||||||||
| Net sales | $1,334 | $1,265 | +5% | ||||||||
| Sales volumes | (2)% | ||||||||||
| Selling prices | +3% | ||||||||||
| Foreign currency translation | +3% | ||||||||||
| Acquisitions | +1% | ||||||||||
| Segment income | $288 | $274 | +5% | ||||||||
| Segment income % | 21.6% | 21.7% | |||||||||
Segment EBITDA (a) | $326 | $307 | +6% | ||||||||
| Segment EBITDA % | 24.4% | 24.3% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Performance Coatings segment net sales increased 5% driven by higher selling prices, foreign currency translation benefit, and acquisitions, partially offset by lower sales volumes.
Organic sales improved 1% compared to the prior year driven by aerospace, protective and marine coatings, and traffic solutions, partially offset by expected 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 at about $315 million. Organic sales in automotive refinish coatings decreased by a double-digit percentage as sales volumes were lower, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025. Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 12th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific. Organic sales in traffic solutions increased a high single-digit percentage driven by strong demand across the U.S. and Canada.
Compared to the first quarter 2025, segment EBITDA increased by 6% and segment EBITDA margin improved slightly, driven by higher selling prices partially offset by lower automotive refinish coatings sales volumes and higher growth-related investment spending in aerospace and protective and marine coatings.
Industrial Coatings Segment
| $ in millions | 1Q 2026 | 1Q 2025 | YOY change | ||||||||
| Net sales | $1,631 | $1,562 | +4% | ||||||||
| Sales volumes | +1% | ||||||||||
| Selling prices | (1)% | ||||||||||
| Foreign currency translation | +4% | ||||||||||
| Segment income | $193 | $215 | (10)% | ||||||||
| Segment income % | 11.8% | 13.8% | |||||||||
Segment EBITDA (a) | $245 | $263 | (7)% | ||||||||
| Segment EBITDA % | 15.0% | 16.8% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Industrial Coatings segment net sales increased 4% compared to the first quarter 2025 driven by foreign currency translation. Organic sales were flat, including sales volumes growth of 1%, reflecting the benefits from share gains offset by the impact of lower selling prices from certain index-based customer contracts.
Automotive OEM coatings organic sales decreased a low single-digit percentage, with flat sales volumes, including share gains, resulting in the business outpacing the decline in global automotive industry production by about 300 basis points. Industrial coatings organic sales declined a low single-digit percentage driven by soft demand in the United States which offset growth in other regions. Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20 percent on a two-year stacked basis, driven by share gains, as customers adopt our leading technologies.
Segment EBITDA decreased 7% and segment EBITDA margin declined 180 basis points compared to the first quarter 2025. This was driven by regional mix and lower selling prices due to index-based contracts.
Outlook
The company expects both second quarter organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year 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 current 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 and prepared commentary associated with the first 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 detailed commentary 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, April 28. The company will hold a conference call to review its first quarter 2026 financial performance on April 29, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/analyst/616458242?pwd=9U5JS1Tl.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, April 28, 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 April 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 second quarter 2026 or full-year 2026 expected adjusted earnings per diluted share 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)
| First Quarter 2026 | First Quarter 2025 | ||||||||||||||||||||||
| $ | EPS(a) | $ | EPS (a) | ||||||||||||||||||||
| Reported net income from continuing operations | $382 | $1.70 | $375 | $1.64 | |||||||||||||||||||
| Acquisition-related amortization expense | 20 | 0.09 | 24 | 0.10 | |||||||||||||||||||
Business restructuring-related costs, net(b) | 4 | 0.02 | 7 | 0.03 | |||||||||||||||||||
Portfolio optimization(c) | 5 | 0.02 | (6) | (0.03) | |||||||||||||||||||
Insurance recovery(d) | — | — | (4) | (0.02) | |||||||||||||||||||
| Adjusted net income from continuing operations, excluding certain items | $411 | $1.83 | $396 | $1.72 | |||||||||||||||||||
| First Quarter 2026 | First 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 | $517 | $132 | 25.5 | % | $502 | $122 | 24.3 | % | |||||||||||||||||||||||||||
| Acquisition-related amortization expense | 27 | 7 | 24.3 | % | 32 | 8 | 24.4 | % | |||||||||||||||||||||||||||
Business restructuring-related costs, net(b) | 5 | 1 | 23.2 | % | 9 | 2 | 19.7 | % | |||||||||||||||||||||||||||
Portfolio optimization(c) | 7 | 2 | 25.6 | % | (6) | — | N/A | ||||||||||||||||||||||||||||
Insurance recovery(d) | — | — | — | % | (6) | (2) | 24.3 | % | |||||||||||||||||||||||||||
| Adjusted effective tax rate, continuing operations, excluding certain items | $556 | $142 | 25.5 | % | $531 | $130 | 24.5 | % | |||||||||||||||||||||||||||
(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 income, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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 income, net on the condensed consolidated statement of income.
(c)Portfolio optimization includes a $6 million charge related to the step‑up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. Portfolio optimization also 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.
(d)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021, which is included in Other income, net on the condensed consolidated statement of income.
| First Quarter | |||||||||||
| 2026 | 2025 | ||||||||||
| Global Architectural Coatings | |||||||||||
| Net sales | $965 | $857 | |||||||||
| Segment income | $155 | $118 | |||||||||
| Segment depreciation and amortization | 29 | 26 | |||||||||
| Segment EBITDA | $184 | $144 | |||||||||
| Segment EBITDA % | 19.1 | % | 16.8 | % | |||||||
| Performance Coatings | |||||||||||
| Net sales | $1,334 | $1,265 | |||||||||
| Segment income | $288 | $274 | |||||||||
| Segment depreciation and amortization | 38 | 33 | |||||||||
| Segment EBITDA | $326 | $307 | |||||||||
| Segment EBITDA % | 24.4 | % | 24.3 | % | |||||||
| Industrial Coatings | |||||||||||
| Net sales | $1,631 | $1,562 | |||||||||
| Segment income | $193 | $215 | |||||||||
| Segment depreciation and amortization | 52 | 48 | |||||||||
| Segment EBITDA | $245 | $263 | |||||||||
| Segment EBITDA % | 15.0 | % | 16.8 | % | |||||||
| Total Segment EBITDA | |||||||||||
| Net sales | $3,930 | $3,684 | |||||||||
| Segment income | $636 | $607 | |||||||||
| Segment depreciation and amortization | 119 | 107 | |||||||||
| Segment EBITDA | $755 | $714 | |||||||||
| Segment EBITDA % | 19.2 | % | 19.4 | % | |||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited) | |||||||||||
| (All amounts in millions except per-share data) | |||||||||||
| Three Months Ended March 31 | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $3,930 | $3,684 | |||||||||
| Cost of sales, exclusive of depreciation and amortization | 2,275 | 2,142 | |||||||||
| Selling, general and administrative | 885 | 838 | |||||||||
| Depreciation | 105 | 89 | |||||||||
| Amortization | 27 | 32 | |||||||||
| Research and development, net | 113 | 102 | |||||||||
| Interest expense | 61 | 56 | |||||||||
| Interest income | (37) | (43) | |||||||||
| Other income, net | (16) | (34) | |||||||||
| Income before income taxes | $517 | $502 | |||||||||
| Income tax expense | 132 | 122 | |||||||||
| Income from continuing operations | $385 | $380 | |||||||||
| Loss from discontinued operations, net of tax | — | (2) | |||||||||
| Net income attributable to controlling and noncontrolling interests | $385 | $378 | |||||||||
| Net income attributable to noncontrolling interests | (3) | (5) | |||||||||
| Net income (attributable to PPG) | $382 | $373 | |||||||||
| Amounts attributable to PPG: | |||||||||||
| Income from continuing operations, net of tax | $382 | $375 | |||||||||
| Loss from discontinued operations, net of tax | — | (2) | |||||||||
| Net income (attributable to PPG) | $382 | $373 | |||||||||
| Earnings per common share: | |||||||||||
| Income from continuing operations, net of tax | $1.71 | $1.64 | |||||||||
| Loss from discontinued operations, net of tax | — | (0.01) | |||||||||
| Earnings per common share (attributable to PPG) | $1.71 | $1.63 | |||||||||
| Earnings per common share – assuming dilution: | |||||||||||
| Income from continuing operations, net of tax | $1.70 | $1.64 | |||||||||
| Loss from discontinued operations, net of tax | — | (0.01) | |||||||||
| Earnings per common share (attributable to PPG) - assuming dilution | $1.70 | $1.63 | |||||||||
| Average shares outstanding | 223.7 | 228.0 | |||||||||
| Average shares outstanding - assuming dilution | 224.4 | 228.9 | |||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited) | ||||||||||||||
| ($ in millions) | ||||||||||||||
| Three Months Ended March 31 | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash from/(used for) operating activities: | ||||||||||||||
| Cash from/(used for) operating activities - continuing operations | $33 | ($16) | ||||||||||||
| Cash used for operating activities - discontinued operations | $— | ($2) | ||||||||||||
| Cash from/(used for) operating activities | $33 | ($18) | ||||||||||||
| Cash used for investing activities - continuing operations: | ||||||||||||||
| Capital expenditures | $196 | $209 | ||||||||||||
| Cash used for financing activities - continuing operations: | ||||||||||||||
| Dividends paid on PPG common stock | $159 | $154 | ||||||||||||
| Purchase of treasury stock | $96 | $394 | ||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| March 31 | December 31 | March 31 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $1,573 | $2,163 | $1,830 | ||||||||||||||
| Short-term investments | 51 | 56 | 63 | ||||||||||||||
| Receivables, net | 3,676 | 3,336 | 3,429 | ||||||||||||||
| Inventories | 2,162 | 1,996 | 2,115 | ||||||||||||||
| Other current assets | 508 | 408 | 464 | ||||||||||||||
| Total current assets | $7,970 | $7,959 | $7,901 | ||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term debt and current portion of long-term debt | $736 | $706 | $1,688 | ||||||||||||||
| Accounts payable and accrued liabilities | 4,001 | 3,957 | 3,885 | ||||||||||||||
| Current portion of operating lease liabilities | 138 | 138 | 134 | ||||||||||||||
| Restructuring reserves | 78 | 99 | 130 | ||||||||||||||
| Total current liabilities | $4,953 | $4,900 | $5,837 | ||||||||||||||
| Long-term debt | $6,407 | $6,602 | $5,574 | ||||||||||||||
| PPG OPERATING METRICS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| March 31 | December 31 | March 31 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
Operating Working Capital(a) | $3,138 | $2,748 | $2,843 | ||||||||||||||
| As a percent of quarter sales, annualized | 20.0 | % | 17.6 | % | 19.3 | % | |||||||||||
(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities. | |||||||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited) | ||||||||||||||
| ($ in millions) | ||||||||||||||
| Three Months Ended March 31 | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net sales | ||||||||||||||
| Global Architectural Coatings | $965 | $857 | ||||||||||||
| Performance Coatings | 1,334 | 1,265 | ||||||||||||
| Industrial Coatings | 1,631 | 1,562 | ||||||||||||
| Total | $3,930 | $3,684 | ||||||||||||
| Segment income | ||||||||||||||
| Global Architectural Coatings | $155 | $118 | ||||||||||||
| Performance Coatings | 288 | 274 | ||||||||||||
| Industrial Coatings | 193 | 215 | ||||||||||||
| Total | $636 | $607 | ||||||||||||
| Items not allocated to segments | ||||||||||||||
| Corporate / non-segment unallocated, exclusive of depreciation and amortization | (74) | (81) | ||||||||||||
| Corporate / non-segment unallocated depreciation and amortization | (9) | (14) | ||||||||||||
| Interest expense, net of interest income | (24) | (13) | ||||||||||||
Business restructuring-related costs, net (a) | (5) | (9) | ||||||||||||
Portfolio optimization (b) | (7) | 6 | ||||||||||||
Insurance recovery (c) | — | 6 | ||||||||||||
| Income before income taxes | $517 | $502 | ||||||||||||
(a) Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other income, 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 income, net on the consolidated statement of income.
(b) Portfolio optimization includes a $6 million charge related to the step‑up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. Portfolio optimization also 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.
(c) In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021, which is included in Other income, net on the condensed consolidated statement of income.
FAQ
How did PPG (PPG) perform financially in the first quarter of 2026?
PPG reported solid first quarter 2026 results, with net sales of $3.93 billion, up 7% year over year. Reported EPS from continuing operations was $1.70, and adjusted EPS rose to $1.83, a 6% increase versus the prior year period.
What were PPG (PPG) segment results for Q1 2026?
PPG’s Global Architectural Coatings net sales grew 13%, with segment EBITDA margin at 19.1%. Performance Coatings net sales increased 5% and Industrial Coatings net sales rose 4%, although Industrial Coatings segment EBITDA margin declined to 15.0% from 16.8% a year earlier.
What guidance did PPG (PPG) provide for 2026 earnings?
PPG reaffirmed its full-year 2026 earnings guidance, expecting EPS in the range of $7.70 to $8.10. For the second quarter, the company anticipates organic sales and adjusted EPS to be flat to up a low single-digit percentage compared with the prior year.
How strong is PPG (PPG) liquidity and debt position after Q1 2026?
PPG ended Q1 2026 with $1.6 billion in cash and short-term investments and net debt of $5.5 billion. During the quarter, it generated $33 million of operating cash, repaid $700 million of maturing debt, and repurchased about $100 million of shares.
What drove PPG (PPG) sales growth in the first quarter of 2026?
PPG’s 7% net sales growth was driven by 1% organic sales growth and a 6% benefit from foreign currency translation. Higher selling prices contributed across segments, with especially strong demand in aerospace, Latin America architectural coatings, protective and marine coatings, and packaging coatings.
How did PPG (PPG) Industrial Coatings perform in Q1 2026?
Industrial Coatings net sales increased 4%, with organic sales flat as 1% volume growth was offset by lower selling prices under index-based contracts. Segment EBITDA declined to $245 million, and segment EBITDA margin fell to 15.0% from 16.8% in the prior year.