PPG Industries (PPG) Q2 2026 earnings summary

Executive summary

• Net sales reached $4.5 billion in Q2 2026, up 7% year-over-year, with 4% organic growth and balanced contributions from volume and pricing.

• Adjusted EPS was $2.23, supported by strong Aerospace and Latin America Architectural Coatings, offsetting lower Automotive Refinish volumes.

• Achieved sixth consecutive quarter of organic sales growth, outpacing industry by 300 basis points.

• Cash from operating activities year-to-date was approximately $600 million, over $220 million higher year-over-year due to working capital improvements.

• Share repurchases totaled $75 million in Q2 and $175 million year-to-date.

Financial highlights

• Net sales for Q2 2026 were $4.5 billion, up 7% year-over-year, with 4% organic growth.

• Adjusted EBITDA margin was 17.4%; segment EBITDA margins: Architectural Coatings 19.4% (+100 bps), Performance Coatings 22.7% (-300 bps), Industrial Coatings 15.9% (-70 bps).

• Net income from continuing operations was $439 million, down 2% year-over-year; adjusted net income was $500 million.

• Cash and short-term investments at $1.6 billion; net debt at 1.9x adjusted EBITDA, down $400 million year-over-year.

• Cash from operations YTD at $600 million, up $220 million year-over-year.

Outlook and guidance

• Q3 organic sales growth expected in low to mid-single digits, led by Aerospace, Latin America Architectural Coatings, and Packaging Coatings.

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

• Expect to fully offset cost inflation with pricing by Q4, one quarter ahead of prior guidance.

• Q3 adjusted EBITDA margin expected to be flat or down up to 100 bps year-over-year.

• Capital expenditures for 2026 expected to be $650–$700 million.