PPG reports record third quarter 2026 EPS and raises midpoint of full-year EPS guidance

Tim Knavish, Chairman and chief executive officer of PPG

“I am extremely encouraged by our performance as we delivered record third quarter EPS, an increase of +6% year over year. Our 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. Organic 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. Our 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. Sales 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. We 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®.”