PPG Industries (PPG) Q2 2026 earnings summary

Executive summary

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

• Achieved sixth consecutive quarter of organic sales growth, outpacing industry by 300 basis points, led by aerospace, Latin America, and packaging coatings.

• Adjusted EPS was $2.23, slightly higher year-over-year, driven by strong aerospace and Latin American coatings, offsetting weaker automotive refinish volumes.

• 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 the quarter and $175 million year-to-date.

Financial highlights

• Adjusted EBITDA margin was 17.4%, reflecting solid commercial execution and share gains.

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

• Cash and short-term investments ended at $1.6 billion; net debt at $5.3 billion and 1.9x adjusted EBITDA.

• Returned $235 million to shareholders via dividends and buybacks in the quarter; dividend per share for H1 2026 was $1.42.

• Issued CHF 320 million in long-term bonds at a 1.4% average rate.

Outlook and guidance

• Q3 organic sales growth expected in the low to mid-single-digit percentage range, led by aerospace, Latin America, and packaging coatings.

• Q3 adjusted EBITDA margin projected to be flat to down 100 basis points year-over-year.

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

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

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