PPG Industries (PPG) Q1 2026 earnings summary

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 businesses.

• Adjusted EPS increased 6% to $1.83, marking the fifth consecutive quarter of organic sales growth.

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

• Segment EBITDA margin exceeded 19%, reflecting strong execution and technology-advantaged products.

• Income before income taxes rose to $517 million, primarily due to higher prices, currency effects, and cost controls.

Financial highlights

• Net sales: $3.93 billion, up 7% year-over-year.

• Adjusted EPS: $1.83, up 6% versus prior year.

• Segment EBITDA margin: over 19%.

• Cash and short-term investments: $1.6 billion at quarter end.

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

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.

• Expects volume growth in the second half of 2026, especially in Aerospace and Refinish, with margin improvement driven by mix and cost actions.

• Cost of goods sold projected to rise mid-single digits for the remainder of 2026 due to raw material and logistics inflation, with price increases up to 20% being implemented.

• Total capital spending for 2026 is expected to be $650–$700 million.