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 increases in both sales volumes and selling prices.

• Achieved sixth consecutive quarter of organic sales growth, outpacing industry by 300 basis points, with strong performance in aerospace, Latin American architectural coatings, and packaging coatings, offsetting weaker automotive refinish volumes.

• Adjusted EPS was $2.23, slightly higher than the prior year, with adjusted EBITDA margin at 17.4%.

• 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

• Net income from continuing operations was $439 million, down 2% year-over-year; adjusted net income was $500 million, down 1%.

• Net sales growth was driven by 2% higher volumes, 2% higher prices, 2% positive FX, and 1% from acquisitions.

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

• Operating cash flow for the first half of 2026 was $600 million.

• Returned $235 million to shareholders via dividends and buybacks in the quarter.

Outlook and guidance

• Reaffirmed full-year 2026 adjusted EPS guidance of $7.70 to $8.10.

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

• Company expects to fully offset cost inflation by Q4, one quarter ahead of plan.

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

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