PPG Industries: 2026 adjusted EPS outlook $7.90-$8.10
PPG raised the midpoint of its 2026 adjusted EPS outlook and narrowed the range to $7.90 to $8.10.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
PPG Industries reported third-quarter 2026 net sales of $4.353 billion, up 7% year over year. Net income from continuing operations was $473 million, up 7%; diluted EPS from continuing operations was $2.12, versus $1.96, while adjusted diluted EPS was $2.25, up 6%. Organic sales, which exclude currency, acquisitions and divestitures, increased 5%. Cash from operating activities totaled $1.158 billion for the nine months ended September 30, 2026, compared with $1.054 billion a year earlier.
Performance Coatings net sales rose 10% and segment EBITDA increased 21% to $372 million; Global Architectural Coatings segment EBITDA rose 19% to $253 million. Industrial Coatings segment EBITDA fell 11% to $251 million as cost inflation pressured margins. PPG expects fourth-quarter organic sales growth in the low single digits and adjusted EBITDA margin from flat to an increase of 100 basis points year over year. Its full-year 2026 adjusted EPS guidance is $7.90 to $8.10, with a higher midpoint and narrower range. PPG repurchased about $150 million of shares during the quarter and about $320 million year to date.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales rose 7% to $4.353 billion year over year.
- Moderate pointReported diluted EPS rose 8% to $2.12 year over year.
Negative
- Moderate pointIndustrial Coatings segment EBITDA declined 11% to $251 million.
Filing Explained
PPG reported net debt 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, or exhibit attachments filed with this report.
Key Figures
Net sales: $4.353 billion
Net income from continuing operations: $473 million
Diluted EPS from continuing operations: $2.12
+5 more
8 metrics
Net sales
$4.353 billion
Third quarter 2026; increased 7% year over year
Net income from continuing operations
$473 million
Third quarter 2026; increased 7% year over year
Diluted EPS from continuing operations
$2.12
Third quarter 2026; increased 8% year over year
Adjusted diluted EPS
$2.25
Third quarter 2026; increased 6% year over year
Cash from operating activities
$1.158 billion
Nine months ended September 30, 2026; approximately $100 million higher year over year
Full-year adjusted EPS guidance
$7.90 to $8.10
2026; midpoint raised and range narrowed
Industrial Coatings segment EBITDA
$251 million
Third quarter 2026; declined 11% year over year
Net debt
$5.2 billion
At quarter end; decreased approximately $200 million from third quarter 2025
Key Terms
organic sales, Adjusted EBITDA margin, lagging index pricing, Operating Working Capital, +1 more
5 terms
organic sales financial
"The term organic sales as used in this press release is defined as net sales excluding"
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 margin financial
"Adjusted EBITDA margin expanded by 220 basis points"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
lagging index pricing financial
"beginning to realize the benefits of lagging index pricing"
Operating Working Capital financial
"Operating Working Capital includes"
Segment EBITDA financial
"Segment EBITDA decreased 11% and segment EBITDA margin declined 260 basis points"
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.
Earnings Snapshot
Net sales: $4.353 billion · Guidance included
Third quarter 2026
Net sales
$4.353 billion
+7% year over year
Net income from continuing operations
$473 million
+7% year over year
Diluted EPS from continuing operations
$2.12
+8% year over year
Adjusted diluted EPS
$2.25
+6% year over year
Guidance
Full-year 2026 adjusted EPS guidance of $7.90 to $8.10; midpoint raised and range narrowed.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were PPG's (PPG) Q3 2026 revenue and EPS?
PPG reported net sales of $4.353 billion and diluted EPS from continuing operations of $2.12 for the third quarter of 2026. Net sales increased 7% year over year; diluted EPS from continuing operations was $1.96 in the third quarter of 2025.
What is PPG's (PPG) 2026 adjusted EPS guidance?
PPG's full-year 2026 adjusted EPS guidance is $7.90 to $8.10. PPG said it raised the midpoint and narrowed the range, and expects fourth-quarter organic sales growth of a low single-digit percentage.
Why did PPG's (PPG) Industrial Coatings EBITDA margin decline?
Industrial Coatings segment EBITDA was $251 million, down 11% year over year, and its EBITDA margin declined 260 basis points. PPG attributed the margin decline to cost of goods sold inflation, partially offset by higher selling prices and sales volumes.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 27, 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 October 27, 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 October 27, 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: October 27, 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 record third quarter 2026 EPS and raises midpoint of full-year EPS guidance
•Net sales of $4.4 billion, an increase of 7% versus prior year
•Organic sales increased 5% year over year with growth led by our differentiated aerospace and architectural coatings Latin America businesses
•Record third quarter reported earnings per diluted share (EPS) of $2.12 and adjusted EPS of $2.25, an increase of 6% versus prior year
•Cash from operating activities was approximately $1.2 billion year to date, $100 million higher year over year
•Share repurchases totaled about $150 million in the quarter and $320 million year to date
•Updating full-year 2026 adjusted EPS guidance to a higher midpoint and tighter range of $7.90 to $8.10
PITTSBURGH, Oct. 27, 2026 – PPG (NYSE:PPG) today reported financial results for the third quarter 2026.
Third Quarter 2026 Consolidated Results
| $ in millions, except EPS | 3Q 2026 | 3Q 2025 | YOY change | ||||||||
| Net sales | $4,353 | $4,082 | +7% | ||||||||
Net income (a) | $473 | $444 | +7% | ||||||||
Adjusted net income (a)(b) | $502 | $481 | +4% | ||||||||
EPS (a) | $2.12 | $1.96 | +8% | ||||||||
Adjusted EPS (a)(b) | $2.25 | $2.13 | +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:
I am extremely encouraged by our performance as we delivered record third quarter EPS, an increase of +6% year over year. Our teams around the world executed with strong discipline, driving a solid 5% increase in organic sales, which marks our seventh consecutive quarter of growth. We outpaced the industry by 300 basis points, reflecting the quality of our businesses and the impact of our commercial actions. Adjusted EBITDA was 18.2% supported by exceptional results in our differentiated aerospace and architectural coatings Latin America businesses.
Our Global Architectural Coatings segment achieved 2% organic sales growth and expanded EBITDA margin by 300 basis points to 24% led by performance in Latin America and selling price actions in all regions. Our European Architectural business is benefiting from the execution of our strategy, including productivity enhancements, footprint optimization, and structural cost actions that are improving efficiency and driving year-to-date earnings and margin expansion.
Organic sales in our Performance Coatings segment grew 8%, with contributions from higher sales volumes and selling prices. We benefited from strong demand for our aerospace and protective and marine coatings products, as well as higher automotive refinish organic sales. Adjusted EBITDA margin expanded by 220 basis points to 24% as sales mix improved and we offset cost of goods sold inflation.
Our Industrial Coatings segment delivered selling price increases of 2% during the quarter as we are beginning to realize the benefits of lagging index pricing. However, cost of goods sold inflation remains high resulting in year-over-year adjusted EBITDA margin contraction, which is consistent with expectations. Sales volumes also grew 2% as we executed on previously communicated share gains across all three businesses. This improvement was due to double-digit percentage growth in packaging coatings and high single-digit percentage growth in industrial coatings. Share gains in automotive original equipment manufacturer (OEM) coatings enabled the business to deliver sales volumes that outperformed global automotive industry production.
During the third quarter, the company’s commercial actions fully offset the impact of cost of goods sold inflation, reflecting pricing discipline across the portfolio. We remain focused on achieving appropriate value for our differentiated products and solutions and will continue to pursue targeted actions where necessary to address cost inflation and market-specific dynamics.
Looking ahead, we expect low single-digit percentage organic growth in the fourth quarter, led by aerospace, architectural coatings in Latin America, and packaging coatings. We are raising the midpoint of our full-year adjusted earnings per share outlook and narrowing the guidance range to $7.90 to $8.10. Our improved outlook reflects growth momentum, realized pricing benefits, and execution of productivity programs.
Thank you to the PPG team around the world for their focus and execution. Our strong performance this quarter would not be possible without the dedication of our employees who serve our customers, create value for our shareholders, 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 selling prices of 3%, higher sales volumes of 2%, positive foreign currency translation of 1% and acquisitions of 1%
•At quarter end, the company had cash and short-term investments totaling $1.6 billion
•Net debt was $5.2 billion, a decrease of approximately $200 million from the third quarter 2025
•Corporate expenses were $92 million in the third quarter, $83 million exclusive of depreciation and amortization
•Third quarter net interest expense was $22 million
•In the third quarter, the effective tax rate was 24.2%
Third Quarter 2026 Reportable Segment Financial Results
Global Architectural Coatings Segment
| $ in millions | 3Q 2026 | 3Q 2025 | YOY change | ||||||||
| Net sales | $1,055 | $1,012 | +4% | ||||||||
| Sales volumes | (2)% | ||||||||||
| Selling prices | +4% | ||||||||||
| Foreign currency translation | +2% | ||||||||||
| Segment income | $225 | $184 | +22% | ||||||||
| Segment income % | 21.3% | 18.2% | |||||||||
Segment EBITDA (a) | $253 | $213 | +19% | ||||||||
| Segment EBITDA % | 24.0% | 21.0% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Global Architectural Coatings segment net sales increased 4% compared to the third quarter 2025 driven by 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 third 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 higher selling prices and volume growth in Latin America supported by strong retail sales and improved project-related sales in Mexico.
Segment EBITDA increased 19% and segment EBITDA margin improved 300 basis points compared to the prior year with realization of higher selling prices and productivity actions partially offset by inflation on cost of goods sold. In the fourth quarter, the company expects organic sales in the range of flat to growth of a low single-digit percentage year over year and EBITDA margin expansion.
Performance Coatings Segment
| $ in millions | 3Q 2026 | 3Q 2025 | YOY change | ||||||||
| Net sales | $1,554 | $1,414 | +10% | ||||||||
| Sales volumes | +5% | ||||||||||
| Selling prices | +3% | ||||||||||
| Acquisitions | +2% | ||||||||||
| Segment income | $332 | $272 | +22% | ||||||||
| Segment income % | 21.4% | 19.2% | |||||||||
Segment EBITDA (a) | $372 | $307 | +21% | ||||||||
| Segment EBITDA % | 23.9% | 21.7% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Performance Coatings segment net sales increased 10% and organic sales increased 8% with contributions from higher sales volumes and selling prices. Net sales also included a benefit from acquisitions.
Organic sales improved compared to the prior year led by aerospace, protective and marine coatings, and automotive refinish coatings, partially offset by traffic solutions. 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 increased by a mid-single-digit percentage driven by higher selling prices and higher automotive refinish sales volumes. Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 14th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific.
Compared to third quarter 2025, segment EBITDA increased by 21% and segment EBITDA margin improved 220 basis points, driven by higher selling prices and sales volumes, which were partially offset by higher inflation on cost of goods sold. In the fourth quarter, the company expects organic sales growth in the range of a low single-digit percentage to a mid-single-digit percentage year over year and EBITDA margin expansion driven by pricing actions and automotive refinish stabilization.
Industrial Coatings Segment
| $ in millions | 3Q 2026 | 3Q 2025 | YOY change | ||||||||
| Net sales | $1,744 | $1,656 | +5% | ||||||||
| Sales volumes | +2% | ||||||||||
| Selling prices | +2% | ||||||||||
| Foreign currency translation | +1% | ||||||||||
| Segment income | $200 | $233 | (14)% | ||||||||
| Segment income % | 11.5% | 14.1% | |||||||||
Segment EBITDA (a) | $251 | $281 | (11)% | ||||||||
| Segment EBITDA % | 14.4% | 17.0% | |||||||||
(a) Reconciliations of reported to adjusted figures are included below
Industrial Coatings segment net sales increased 5% compared to the third quarter 2025, led by higher sales volumes and selling prices and a benefit from foreign currency translation. Organic sales increased 4%, reflecting the benefits from share gains.
Automotive OEM coatings organic sales decreased by a low single-digit percentage, with share gains supporting a change in sales volume that outpaced global automotive industry production. Industrial coatings organic sales improved by a high single-digit percentage driven by sales volume and selling price growth in all regions, marking the second consecutive quarter of growth. 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 decreased 11% and segment EBITDA margin declined 260 basis points compared to the third quarter 2025. This margin decline was driven by inflation on cost of goods sold partially offset by higher selling prices and sales volumes. In the fourth quarter, the company expects organic sales in the range of up or down a low single-digit percentage year over year and EBITDA margin compression due to the timing of index-based pricing.
Outlook
The company expects fourth quarter organic sales growth of a low single-digit percentage and company adjusted EBITDA margin in the range of flat to an increase of 100 basis points year over year. We are improving our earnings outlook, resulting in a higher midpoint with a full-year adjusted earnings per share guidance range of $7.90 to $8.10.
Additional information related to 2026 financial projections is posted within the slides associated with the third 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, October 27. The company will hold a
conference call to review its third quarter 2026 financial performance on October 28, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/attendee/129179062.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, October 26, 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 October 27, 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 fourth 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)
| Third Quarter 2026 | Third Quarter 2025 | ||||||||||||||||||||||
| $ | EPS(a) | $ | EPS (a) | ||||||||||||||||||||
| Reported net income from continuing operations | $473 | $2.12 | $444 | $1.96 | |||||||||||||||||||
| Acquisition-related amortization expense | 20 | 0.09 | 24 | 0.11 | |||||||||||||||||||
Business restructuring-related costs, net(b) | 11 | 0.05 | 7 | 0.03 | |||||||||||||||||||
Resolution of tax matter(c) | 2 | 0.01 | — | — | |||||||||||||||||||
Portfolio optimization(d) | (2) | (0.01) | — | — | |||||||||||||||||||
Insurance recovery(e) | (2) | (0.01) | — | — | |||||||||||||||||||
Impairment and other related charges, net(f) | — | — | 6 | 0.03 | |||||||||||||||||||
| Adjusted net income from continuing operations, excluding certain items | $502 | $2.25 | $481 | $2.13 | |||||||||||||||||||
| Third Quarter 2026 | Third 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 | $631 | $153 | 24.2 | % | $556 | $118 | 21.2 | % | |||||||||||||||||||||||||||
| Acquisition-related amortization expense | 26 | 6 | 24.5 | % | 32 | 8 | 24.4 | % | |||||||||||||||||||||||||||
Business restructuring-related costs, net(b) | 15 | 4 | 21.9 | % | 11 | 4 | 38.5 | % | |||||||||||||||||||||||||||
Resolution of tax matter(c) | 3 | 1 | 30.0 | % | — | — | — | % | |||||||||||||||||||||||||||
Portfolio optimization(d) | (3) | (1) | 24.3 | % | 2 | 2 | 94.5 | % | |||||||||||||||||||||||||||
Insurance recovery(e) | (3) | (1) | 24.3 | % | — | — | — | % | |||||||||||||||||||||||||||
Impairment and other related charges, net(f) | — | — | — | % | 24 | 6 | 24.3 | % | |||||||||||||||||||||||||||
| Adjusted effective tax rate, continuing operations, excluding certain items | $669 | $162 | 24.2 | % | $625 | $138 | 22.1 | % | |||||||||||||||||||||||||||
| Third Quarter | |||||||||||
| 2026 | 2025 | ||||||||||
| Reported net income from continuing operations | $473 | $444 | |||||||||
| Interest expense, net of interest income | 22 | 23 | |||||||||
| Income tax expense | 153 | 118 | |||||||||
| Net income/(loss) attributable to noncontrolling interests | 5 | (6) | |||||||||
| Earnings before interest and taxes ("EBIT") | 653 | 579 | |||||||||
| Depreciation | 102 | 94 | |||||||||
| Amortization | 26 | 32 | |||||||||
| EBITDA | $781 | $705 | |||||||||
Business restructuring-related costs, net(b) | 15 | 11 | |||||||||
Resolution of tax matter(c) | 3 | — | |||||||||
Portfolio optimization(d) | (3) | 2 | |||||||||
Insurance recovery(e) | (3) | — | |||||||||
Impairment and other related charges, net(f) | — | 24 | |||||||||
| Adjusted EBITDA | $793 | $742 | |||||||||
| Net sales | $4,353 | $4,082 | |||||||||
| Net income margin | 10.9% | 10.9% | |||||||||
| EBIT margin | 15.0% | 14.2% | |||||||||
| Adjusted EBITDA margin | 18.2% | 18.2% | |||||||||
(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)/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 (income)/charges, net on the consolidated statement of income.
(c)In the third quarter 2026, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes.
(d)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 includes a $3 million gain recognized in the third quarter of 2026 related to the sale of a non-core business, which is included in Other (income)/charges, net 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.
(e)In the third quarter 2026, the Company received an insurance reimbursement under policies covering legacy asbestos-related matters. These insurance recoveries are included in Other (income)/charges, net on the consolidated statement of income.
(f)In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Other (income)/charges, net on the condensed consolidated statement of income. Net loss of $12 million related to the impairment charge was attributable to noncontrolling interests.
| Third Quarter | |||||||||||
| 2026 | 2025 | ||||||||||
| Global Architectural Coatings | |||||||||||
| Net sales | $1,055 | $1,012 | |||||||||
| Segment income | $225 | $184 | |||||||||
| Segment depreciation and amortization | 28 | 29 | |||||||||
| Segment EBITDA | $253 | $213 | |||||||||
| Segment EBITDA % | 24.0 | % | 21.0 | % | |||||||
| Performance Coatings | |||||||||||
| Net sales | $1,554 | $1,414 | |||||||||
| Segment income | $332 | $272 | |||||||||
| Segment depreciation and amortization | 40 | 35 | |||||||||
| Segment EBITDA | $372 | $307 | |||||||||
| Segment EBITDA % | 23.9 | % | 21.7 | % | |||||||
| Industrial Coatings | |||||||||||
| Net sales | $1,744 | $1,656 | |||||||||
| Segment income | $200 | $233 | |||||||||
| Segment depreciation and amortization | 51 | 48 | |||||||||
| Segment EBITDA | $251 | $281 | |||||||||
| Segment EBITDA % | 14.4 | % | 17.0 | % | |||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited) | |||||||||||||||||||||||
| (All amounts in millions except per-share data) | |||||||||||||||||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $4,353 | $4,082 | $12,778 | $11,961 | |||||||||||||||||||
| Cost of sales, exclusive of depreciation and amortization | 2,589 | 2,426 | 7,551 | 7,000 | |||||||||||||||||||
| Selling, general and administrative | 876 | 824 | 2,692 | 2,534 | |||||||||||||||||||
| Depreciation | 108 | 106 | 321 | 297 | |||||||||||||||||||
| Amortization | 26 | 32 | 79 | 97 | |||||||||||||||||||
| Research and development, net | 106 | 106 | 326 | 314 | |||||||||||||||||||
| Interest expense | 67 | 65 | 199 | 183 | |||||||||||||||||||
| Interest income | (45) | (42) | (124) | (129) | |||||||||||||||||||
| Other (income)/charges, net | (5) | 9 | 17 | 9 | |||||||||||||||||||
| Income before income taxes | $631 | $556 | $1,717 | $1,656 | |||||||||||||||||||
| Income tax expense | 153 | 118 | 412 | 380 | |||||||||||||||||||
| Income from continuing operations | $478 | $438 | $1,305 | $1,276 | |||||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (22) | 9 | (24) | 7 | |||||||||||||||||||
| Net income attributable to controlling and noncontrolling interests | $456 | $447 | $1,281 | $1,283 | |||||||||||||||||||
| Net (income)/loss attributable to noncontrolling interests | (5) | 6 | (11) | (7) | |||||||||||||||||||
| Net income (attributable to PPG) | $451 | $453 | $1,270 | $1,276 | |||||||||||||||||||
| Amounts attributable to PPG: | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $473 | $444 | $1,294 | $1,269 | |||||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (22) | 9 | (24) | 7 | |||||||||||||||||||
| Net income (attributable to PPG) | $451 | $453 | $1,270 | $1,276 | |||||||||||||||||||
| Earnings per common share (attributable to PPG): | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $2.13 | $1.97 | $5.80 | $5.59 | |||||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (0.10) | 0.04 | (0.11) | 0.03 | |||||||||||||||||||
| Earnings per common share (attributable to PPG) | $2.03 | $2.01 | $5.69 | $5.62 | |||||||||||||||||||
| Earnings per common share (attributable to PPG) - assuming dilution: | |||||||||||||||||||||||
| Income from continuing operations, net of tax | $2.12 | $1.96 | $5.78 | $5.57 | |||||||||||||||||||
| (Loss)/income from discontinued operations, net of tax | (0.10) | 0.04 | (0.11) | 0.03 | |||||||||||||||||||
| Earnings per common share (attributable to PPG) - assuming dilution | $2.02 | $2.00 | $5.67 | $5.60 | |||||||||||||||||||
| Average shares outstanding | 222.2 | 225.7 | 223.0 | 226.9 | |||||||||||||||||||
| Average shares outstanding - assuming dilution | 223.2 | 226.5 | 223.8 | 227.7 | |||||||||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited) | ||||||||||||||
| ($ in millions) | ||||||||||||||
| Nine Months Ended September 30 | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash from operating activities: | ||||||||||||||
| Cash from operating activities - continuing operations | $1,160 | $1,047 | ||||||||||||
| Cash (used for)/from operating activities - discontinued operations | ($2) | $7 | ||||||||||||
| Cash from operating activities | $1,158 | $1,054 | ||||||||||||
| Cash used for investing activities - continuing operations: | ||||||||||||||
| Capital expenditures | $464 | $477 | ||||||||||||
| Cash used for financing activities - continuing operations: | ||||||||||||||
| Dividends paid on PPG common stock | $482 | $468 | ||||||||||||
| Purchase of treasury stock | $322 | $687 | ||||||||||||
| PPG INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| September 30 | December 31 | September 30 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $1,593 | $2,163 | $1,832 | ||||||||||||||
| Short-term investments | 49 | 56 | 76 | ||||||||||||||
| Receivables, net | 3,857 | 3,336 | 3,718 | ||||||||||||||
| Inventories | 2,236 | 1,996 | 2,182 | ||||||||||||||
| Other current assets | 507 | 408 | 415 | ||||||||||||||
| Total current assets | $8,242 | $7,959 | $8,223 | ||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term debt and current portion of long-term debt | $686 | $706 | $1,410 | ||||||||||||||
| Accounts payable and accrued liabilities | 4,339 | 3,957 | 3,947 | ||||||||||||||
| Current portion of operating lease liabilities | 127 | 138 | 140 | ||||||||||||||
| Restructuring reserves | 69 | 99 | 115 | ||||||||||||||
| Total current liabilities | $5,221 | $4,900 | $5,612 | ||||||||||||||
| Long-term debt | $6,155 | $6,602 | $5,904 | ||||||||||||||
| PPG OPERATING METRICS (unaudited) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| September 30 | December 31 | September 30 | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
Operating Working Capital(a) | $3,323 | $2,748 | $3,202 | ||||||||||||||
| As a percent of quarter sales, annualized | 19.1 | % | 17.6 | % | 19.6 | % | |||||||||||
(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities. | |||||||||||||||||