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% year-over-year to $1.83, with reported EPS at $1.70.

• Segment EBITDA margin exceeded 19%, reflecting strong execution and technology advantage.

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

• Announced CFO transition with Jamie Beggs succeeding Vince Morales.

Financial highlights

• Adjusted net income was $411 million, up 4% year-over-year; net income attributable to shareholders was $382 million.

• Segment EBITDA margin was 19.2%; Performance Coatings margin reached 24.4%.

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

• $700 million debt repaid; $260 million returned to shareholders via dividends and buybacks.

• Operating cash flow was $33 million, a $51 million improvement 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.

• Expects to offset mid-single digit COGS inflation with low single-digit to up to 20% price increases.

• Anticipates volume growth in H2 2026, especially in Aerospace, Refinish, and Mexico.

• Total capital spending for 2026 expected at $650–$700 million.