PPG Sales Rise 7% as Organic Growth Streak Reaches Six Quarters
Image courtesy of PPG.
PPG reported second-quarter 2026 net sales of $4.50 billion, a 7% increase from the prior-year period, driven by higher sales volumes, pricing, favorable foreign currency translation and acquisitions.
The company recorded 4% organic sales growth, marking its sixth consecutive quarter of organic sales gains. Sales increased in eight of PPG’s nine businesses, led by aerospace coatings.
Reported earnings per diluted share were $1.96, compared with $1.98 in the second quarter of 2025, while adjusted earnings per diluted share increased to $2.23 from $2.22. Net income from continuing operations declined 2% to $439 million, while adjusted net income was $500 million.
“I am proud to announce that PPG delivered its sixth consecutive quarter of organic sales growth,” said Tim Knavish, PPG chairman and CEO. “We outpaced the industry by 300 basis points, achieving organic growth in all three segments and in eight of our nine businesses.”
Aerospace, Protective and Marine Drive Performance Coatings
Performance Coatings net sales increased 7% to $1.62 billion, with 3% organic sales growth driven by aerospace, protective and marine coatings and traffic solutions.
PPG said aerospace delivered double-digit organic sales growth, while its order backlog remained near $300 million. Protective and marine coatings also posted double-digit organic growth, marking the segment’s 13th consecutive quarter of sales volume growth.
Automotive refinish coatings declined by a double-digit percentage due to lower customer order patterns and slower-than-expected recovery in underlying industry demand. Segment EBITDA declined 5%, and margin decreased 300 basis points to 22.7%.
The company expects automotive refinish sales to return to low- to mid-single-digit organic growth during the second half of 2026.
Global Architectural Coatings Margin Improves
Global Architectural Coatings sales increased 8% to $1.10 billion. Organic sales grew 2%, supported by pricing, while EBITDA increased 14% and margin improved 100 basis points to 19.4%.
Growth was led by Latin America, where retail demand remained strong and project-related sales improved in Mexico.
Industrial Coatings Benefits from Share Gains
Industrial Coatings sales rose 7% to $1.78 billion, with 5% organic growth driven by sales volume increases across automotive OEM, industrial and packaging coatings.
Packaging coatings delivered double-digit organic growth, while industrial coatings posted mid-single-digit growth. Automotive OEM coatings outpaced global vehicle production by approximately 500 basis points through market share gains, according to PPG.
Company Reaffirms Full-Year Guidance
PPG reaffirmed its full-year 2026 adjusted EPS guidance of $7.70 to $8.10.
The company expects third-quarter organic sales growth in the low- to mid-single-digit range and said pricing actions should fully offset inflation by the fourth quarter, one quarter earlier than previously anticipated.
Year-to-date operating cash flow totaled approximately $600 million, more than $220 million higher than the same period last year. PPG repurchased $75 million of shares during the quarter and ended June with $1.6 billion in cash and short-term investments.
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