PPG Industries (PPG) investor relations material

Executive summary

• Net sales for Q1 2026 reached $3.93 billion, up 7% year-over-year, with organic sales growth of 1% driven by higher selling prices and strong performance in aerospace and Latin America architectural coatings.

• Adjusted EPS was $1.83, a 6% increase year-over-year; reported EPS was $1.70.

• Achieved fifth consecutive quarter of year-over-year organic sales growth.

• Share repurchases totaled about $100 million in the quarter.

• Announced CFO transition with Jamie Beggs succeeding Vince Morales.

Financial highlights

• Net sales: $3.93 billion, up 7% year-over-year; adjusted EPS: $1.83, up 6%; net income attributable to shareholders was $382 million, up 2%.

• Segment EBITDA margin was 19.2%, with Performance Coatings at 24.4%.

• Cash and short-term investments: $1.6 billion at quarter end; net debt totaled $5.5 billion.

• $700 million debt repaid and $260 million returned to shareholders via dividends and share repurchases.

• Operating cash flow was $33 million, about $50 million higher year-over-year.

Outlook and guidance

• Full-year 2026 EPS guidance reaffirmed at $7.70–$8.10.

• Q2 2026 organic sales and adjusted EPS expected to be flat to low single-digit growth year-over-year.

• Cost of goods sold projected to rise mid-single digits for the year due to raw material and logistics inflation, with price increases up to 20% being implemented.

• Growth momentum expected in aerospace, architectural coatings Latin America, protective and marine coatings, and packaging coatings.

• Free cash flow expected to be about 10% of sales for 2026; total capital spending projected at $650–$700 million.