PPG Industries, Inc.

What they do

PPG manufactures and distributes paints, coatings and specialty products for industrial equipment and components, packaging material, aircraft and marine equipment, automotive original equipment, automotive refinish and aftermarket, pavement marking, and other industrial and consumer end-uses. It also supplies commercial and residential new-build and maintenance customers, selling to painting and maintenance contractors and directly to consumers. The business is reported in three segments: Global Architectural Coatings, Performance Coatings and Industrial Coatings.

Revenue drivers

• Global Architectural Coatings — Supplies decorative coatings, adhesives, sealants and finishes through company-owned stores, home centers, paint dealers, distributors and direct-to-consumer channels, under brands including COMEX, PPG, GLIDDEN, SIGMA, HISTOR, SEIGNEURIE and JOHNSTONE'S. In 2Q 2026 the segment posted 2% organic sales growth and 100 basis points of EBITDA margin improvement, led by Latin America with modest growth in Europe.
• Performance Coatings — Delivers highly-specified products focused on aftermarket and select OEMs, including aerospace coatings, sealants, transparencies, adhesives and chemical management services, plus automotive refinish coatings. In 2Q 2026 segment organic sales grew 3% on aerospace and protective and marine demand, while margin declined on weaker automotive refinish demand.
• Industrial Coatings — Provides direct-to-factory, technology-advantaged solutions integrated into OEM customers' operations. In 2Q 2026 the segment grew sales volumes 5%, with double-digit percentage growth in packaging coatings and mid-single-digit growth in automotive OEM and industrial coatings, while price was flat following previous price declines.
• Regional sales base — Full-year 2025 net sales of $15,875 million were split across United States and Canada ($5,372 million), EMEA ($5,368 million), Asia Pacific ($2,937 million) and Latin America ($2,198 million).

Recent performance

Second quarter 2026 net sales were $4,495 million, up 7% from $4,195 million a year earlier, with organic sales up 4% on 2% volume growth and 2% higher selling prices. Reported EPS from continuing operations was $1.96 versus $1.98, and adjusted EPS was $2.23 versus $2.22. First-half 2026 net sales were $8,425 million versus $7,879 million, and net income attributable to PPG was $819 million versus $823 million. Full-year 2025 net sales were $15,875 million, essentially flat versus $15,845 million in 2024, as higher prices, volumes and favorable currency were offset by divestitures. Full-year 2025 income before income taxes rose $193 million to $2,045 million, helped by lower restructuring and impairment charges.

Strategy

Management is pursuing organic sales growth, reporting a sixth consecutive quarter of organic growth in 2Q 2026, and has said it outpaced the industry by 300 basis points. It is implementing pricing actions across all businesses, covering about 90% of cost of goods sold inflation in the second quarter and expecting to cover 100% by the fourth quarter, one quarter ahead of its original commitment. Portfolio actions include the completed divestitures of the silicas products business and the U.S. and Canada architectural coatings business, followed by an October 2024 comprehensive cost reduction program focused on structural costs primarily in Europe. Capital returns continued with $75 million of share repurchases in the quarter and $175 million year to date.

Risks

• Raw material and input costs — Raw materials, including petroleum-derived materials and titanium dioxide, represent PPG's single largest production cost component and are largely purchased from outside sources, leaving margins exposed to price increases and supply chain or logistics disruptions.
• Automotive refinish demand — Weaker automotive refinish coatings demand, tied to an insurance claims recovery that improved more gradually than anticipated, reduced Performance Coatings margin in 2Q 2026.
• Foreign currency exposure — With sales split across the U.S. and Canada, EMEA, Asia Pacific and Latin America, PPG is exposed to currency translation effects and to importing raw materials priced in supplier currencies into emerging-region manufacturing facilities.
• Restructuring and impairment charges — PPG recorded a $239 million pretax restructuring charge in 2024 tied to its cost reduction program, $24 million of 2025 impairment and other related charges at a Performance Coatings joint venture, and a $146 million 2024 impairment on its remaining Russian business.

Outlook

For the third quarter of 2026, management expects robust organic sales growth across most businesses, aggregating in the low single-digit to mid-single-digit percentage range, led by aerospace, Latin American architectural coatings and packaging coatings. Automotive refinish coatings organic sales are projected to grow at a low to mid-single-digit percentage rate in the second half of 2026. PPG reaffirmed its full-year 2026 adjusted EPS guidance range of $7.70 to $8.10.