Results
1PPG reports record third quarter 2026 EPS and raises midpoint of full-year EPS guidance
Net sales of $4.4 billion, an increase of 7% versus prior year
Organic sales increased 5% year over year with growth led by our differentiated aerospace and architectural coatings Latin America businesses
Record third quarter reported earnings per diluted share (EPS) of $2.12 and adjusted EPS of $2.25, an increase of 6% versus prior year
Cash from operating activities was approximately $1.2 billion year to date, $100 million higher year over year
Share repurchases totaled about $150 million in the quarter and $320 million year to date
3Updating full-year 2026 adjusted EPS guidance to a higher midpoint and tighter range of $7.90 to $8.10
PITTSBURGH, Oct. 27, 2026 – PPG (NYSE:PPG) today reported financial results for the third quarter 2026.
Third Quarter 2026 Consolidated Results
$ in millions, except EPS3Q 20263Q 2025YOY change
Net sales$4,353$4,082+7%
Net income (a)$473$444+7%
Adjusted net income (a)(b)$502$481+4%
EPS (a)$2.12$1.96+8%
Adjusted EPS (a)(b)$2.25$2.13+6%
(a) From continuing operations
(b) Reconciliations of reported to adjusted figures are included below
Chairman and CEO Comments
Tim Knavish, PPG chairman and chief executive officer, commented on the quarter:
2I am extremely encouraged by our performance as we delivered record third quarter EPS, an increase of +6% year over year.
6Our teams around the world executed with strong discipline, driving a solid 5% increase in organic sales, which marks our seventh consecutive quarter of growth.
We outpaced the industry by 300 basis points, reflecting the quality of our businesses and the impact of our commercial actions.
Adjusted EBITDA was 18.2% supported by exceptional results in our differentiated aerospace and architectural coatings Latin America businesses.
Our Global Architectural Coatings segment achieved 2% organic sales growth and expanded EBITDA margin by 300 basis points to 24% led by performance in Latin America and selling price actions in all regions.
Our European Architectural business is benefiting from the execution of our strategy, including productivity enhancements, footprint optimization, and structural cost actions that are improving efficiency and driving year-to-date earnings and margin expansion.
8Organic sales in our Performance Coatings segment grew 8%, with contributions from higher sales volumes and selling prices.
We benefited from strong demand for our aerospace and protective and marine coatings products, as well as higher automotive refinish organic sales.
Adjusted EBITDA margin expanded by 220 basis points to 24% as sales mix improved and we offset cost of goods sold inflation.
4Our Industrial Coatings segment delivered selling price increases of 2% during the quarter as we are beginning to realize the benefits of lagging index pricing.
However, cost of goods sold inflation remains high resulting in year-over-year adjusted EBITDA margin contraction, which is consistent with expectations.
5Sales volumes also grew 2% as we executed on previously communicated share gains across all three businesses.
This improvement was due to double-digit percentage growth in packaging coatings and high single-digit percentage growth in industrial coatings.
Share gains in automotive original equipment manufacturer (OEM) coatings enabled the business to deliver sales volumes that outperformed global automotive industry production.
During the third quarter, the company’s commercial actions fully offset the impact of cost of goods sold inflation, reflecting pricing discipline across the portfolio.
We remain focused on achieving appropriate value for our differentiated products and solutions and will continue to pursue targeted actions where necessary to address cost inflation and market-specific dynamics.
Looking ahead, we expect low single-digit percentage organic growth in the fourth quarter, led by aerospace, architectural coatings in Latin America, and packaging coatings.
7We are raising the midpoint of our full-year adjusted earnings per share outlook and narrowing the guidance range to $7.90 to $8.10.
Our improved outlook reflects growth momentum, realized pricing benefits, and execution of productivity programs.
Thank you to the PPG team around the world for their focus and execution.
Our strong performance this quarter would not be possible without the dedication of our employees who serve our customers, create value for our shareholders, and deliver on our purpose every day: We protect and beautify the world®.
Additional Financial Information
Net sales in the quarter increased 7% year over year due to higher selling prices of 3%, higher sales volumes of 2%, positive foreign currency translation of 1% and acquisitions of 1%
At quarter end, the company had cash and short-term investments totaling $1.6 billion
Net debt was $5.2 billion, a decrease of approximately $200 million from the third quarter 2025
Corporate expenses were $92 million in the third quarter, $83 million exclusive of depreciation and amortization
Third quarter net interest expense was $22 million
In the third quarter, the effective tax rate was 24.2%
Third Quarter 2026 Reportable Segment Financial Results
Global Architectural Coatings Segment
$ in millions3Q 20263Q 2025YOY change
Net sales$1,055$1,012+4%
Sales volumes(2)%
Selling prices+4%
Foreign currency translation+2%
Segment income$225$184+22%
Segment income %21.3%18.2%
Segment EBITDA (a)$253$213+19%
Segment EBITDA %24.0%21.0%
(a) Reconciliations of reported to adjusted figures are included below
Global Architectural Coatings segment net sales increased 4% compared to the third quarter 2025 driven by organic sales growth of 2% due to higher selling prices, partially offset by lower sales volumes.
Organic sales for architectural coatings EMEA increased by a low single-digit percentage compared to the third quarter 2025, with higher selling prices partially offset by lower sales volumes.
Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage year over year driven by higher selling prices and volume growth in Latin America supported by strong retail sales and improved project-related sales in Mexico.
Segment EBITDA increased 19% and segment EBITDA margin improved 300 basis points compared to the prior year with realization of higher selling prices and productivity actions partially offset by inflation on cost of goods sold.
In the fourth quarter, the company expects organic sales in the range of flat to growth of a low single-digit percentage year over year and EBITDA margin expansion.
Performance Coatings Segment
$ in millions3Q 20263Q 2025YOY change
Net sales$1,554$1,414+10%
Sales volumes+5%
Selling prices+3%
Acquisitions+2%
Segment income$332$272+22%
Segment income %21.4%19.2%
Segment EBITDA (a)$372$307+21%
Segment EBITDA %23.9%21.7%
(a) Reconciliations of reported to adjusted figures are included below
Performance Coatings segment net sales increased 10% and organic sales increased 8% with contributions from higher sales volumes and selling prices.
Net sales also included a benefit from acquisitions.
Organic sales improved compared to the prior year led by aerospace, protective and marine coatings, and automotive refinish coatings, partially offset by traffic solutions.
Aerospace achieved exceptional quarterly sales with double-digit percentage organic sales growth, while our order backlog remained near $300 million.
Organic sales in automotive refinish coatings increased by a mid-single-digit percentage driven by higher selling prices and higher automotive refinish sales volumes.
Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 14th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific.
Compared to third quarter 2025, segment EBITDA increased by 21% and segment EBITDA margin improved 220 basis points, driven by higher selling prices and sales volumes, which were partially offset by higher inflation on cost of goods sold .
In the fourth quarter, the company expects organic sales growth in the range of a low single-digit percentage to a mid-single-digit percentage year over year and EBITDA margin expansion driven by pricing actions and automotive refinish stabilization.
Industrial Coatings Segment
$ in millions3Q 20263Q 2025YOY change
Net sales$1,744$1,656+5%
Sales volumes+2%
Selling prices+2%
Foreign currency translation+1%
Segment income$200$233(14)%
Segment income %11.5%14.1%
Segment EBITDA (a)$251$281(11)%
Segment EBITDA %14.4%17.0%
(a) Reconciliations of reported to adjusted figures are included below
Industrial Coatings segment net sales increased 5% compared to the third quarter 2025, led by higher sales volumes and selling prices and a benefit from foreign currency translation.
Organic sales increased 4%, reflecting the benefits from share gains.
Automotive OEM coatings organic sales decreased by a low single-digit percentage, with share gains supporting a change in sales volume that outpaced global automotive industry production.
Industrial coatings organic sales improved by a high single-digit percentage driven by sales volume and selling price growth in all regions, marking the second consecutive quarter of growth.
Packaging coatings organic sales increased by a double-digit percentage versus the prior year period, and sales volumes were up over 20% on a two-year stacked basis due to share gains as customers adopt our leading technologies.
Segment EBITDA decreased 11% and segment EBITDA margin declined 260 basis points compared to the third quarter 2025.
This margin decline was driven by inflation on cost of goods sold partially offset by higher selling prices and sales volumes.
In the fourth quarter, the company expects organic sales in the range of up or down a low single-digit percentage year over year and EBITDA margin compression due to the timing of index-based pricing.
Outlook
The company expects fourth quarter organic sales growth of a low single-digit percentage and company adjusted EBITDA margin in the range of flat to an increase of 100 basis points year over year.
We are improving our earnings outlook, resulting in a higher midpoint with a full-year adjusted earnings per share guidance range of $7.90 to $8.10.
Additional information related to 2026 financial projections is posted within the slides associated with the third quarter earnings documents on the Investors section of PPG.com.
The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.
PPG: WE PROTECT AND BEAUTIFY THE WORLD®
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years.
Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward.
With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025.
We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets.
To learn more, visit www.ppg.com .
Additional Information
PPG will provide additional information regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, October 27.
The company will hold a
Participants can pre-register for the conference by navigating to https://events.q4inc.com/attendee/129179062 .
These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder.
Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations.
However, it is not possible to predict or identify all such factors.
Consequently, while the list of factors presented here and in our 2025 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.
All information in this release speaks only as of October 27, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information.
PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA.
PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations.
Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP.
In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies.
PPG is not able to provide a reconciliation of fourth quarter 2026 or full-year 2026 expected adjusted earnings per diluted share or adjusted EBITDA to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.
Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income
($ in millions, except per-share amounts and percentages)
(a) Earnings per diluted share is calculated based on unrounded numbers.
Figures in the table may not recalculate due to rounding.
(b) Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other (income)/charges, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other (income)/charges, net on the consolidated statement of income.
(c) In the third quarter 2026, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes.
(d) Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions.
These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income.
Portfolio optimization includes a $3 million gain recognized in the third quarter of 2026 related to the sale of a non-core business, which is included in Other (income)/charges, net on the condensed consolidated statement of income.
Portfolio optimization also includes charges related to the step-up of acquired inventory.
These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income.
22 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.