PPG Industries : 1Q 2026 Earnings Conference Call Presentation

Published: 2026-04-28 17:14:27 ET PPG

Published on 04/28/2026 at 05:14 pm EDT

First Quarter 2026 Financial Results

April 28, 2026

First Quarter 2026 Highlights

Fifth consecutive quarter of higher YOY organic sales

Growth momentum led by differentiated aerospace and architectural Latin America businesses

Share gains evident in above market growth in automotive OEM, packaging and protective and marine

Net

Adjusted

EPS

+6% YOY

Share Repurchases

Sales Segment

Aerospace investment supporting

exceptional sales and earnings

Cash deployment focused on

maximizing shareholder value

+1% YOY

Organic Sales

EBITDA Margin

3 Note: All changes versus same quarter last year. Organic sales defined as net sales excluding the impact of currency, acquisitions and divestitures. See Appendix for reconciliation of Adjusted EPS and Segment EBITDA Margin.

Organic sales up 1% driven by pricing actions in key businesses

Net Sales

($ in millions)

6% $3,930

1Q'25 Price Volume Currency 1Q'26

$3,684

Strong growth in Mexico outpaced soft European demand

Net Sales

($ in millions)

$857

-1%

1Q'26

Segment EBITDA

Margin

19.1%

+230 bps

12% $965

1Q'25 Price Volume Currency Divestitures 1Q'26

Organic Sales 1Q'26

Results

Architectural

EMEA

Highlights

Architectural coatings Latin America and Asia Pacific organic sales improved with strength in Mexico

Mexico retail sales strong; project-related spend rebounding

Architectural EMEA market demand mixed by country

EBITDA margin momentum in 1Q'26 driven by price and execution of self-help actions

2Q'26 organic sales growth expected in Latin America and YOY margin improvement similar to 1Q'26

Architectural Latin America & AP

MSD

Global Architectural

Coatings Segment

LSD

Organic sales growth of 1% with strength in aerospace and protective and marine coatings

Net Sales

($ in millions)

$1,265

-2%

3% 1% $1,334

1Q'26

24.4%

+10 bps

Segment

EBITDA

Margin

Organic Sales 1Q'26

Results

1Q'25 Price Volume Currency Acquisitions 1Q'26

Aerospace Refinish

Highlights

Exceptional quarterly aerospace net sales and earnings

Automotive refinish negatively impacted by distributor order patterns weighted to 1H'25

Strong, above-market protective and marine coatings growth driven by new technologies

1Q'26 EBITDA margin reflects stronger aerospace performance

Expect flat 2Q'26 EBITDA margin on a sequential basis

Performance

Coatings Segment

LSD

Protective & Marine Traffic Solutions

Proprietary technology to deliver customized solutions and improve productivity for our customers

Inside the Can

Chemistry

Innovations

AND

Process/Delivery Innovations

Outside the Can

Long shelf life - shipped fully mixed and cured

Solid volume growth outpacing the industry, driven by share gains

Net Sales

($ in millions)

$1,562

-1%

4% $1,631

1Q'26

Segment EBITDA

Margin

Organic Sales

15.0%

-180 bps

1Q'26

Results

Highlights

Auto OEM volume growth outpaced industry demand due to share gains

Industrial coatings impacted by low demand in the U.S.

Packaging coatings sales volume growth driven by share gains stemming from leading technologies

1Q'26 margin compression driven by softer China automotive industry production rates

Expect higher 2Q'26 EBITDA margin on a sequential basis

1Q'25 Price Volume Currency 1Q'26

Auto OEM Industrial Packaging

Industrial Coatings

Segment

Flat

PPG Differentiators Actions and Improved Outlook

Improved Price/Cost Recovery

Much faster than prior inflation cycles;

run rate recovery by 1Q'27

Supply Chain Agility

Support customers by leveraging global footprint

2026 Rest of Year Incremental EBITDA Impacts

Volume/Portfolio Mix

Announced Selling Price Actions

In progress and flexible 1

if more is required

Aerospace Strength

Strong demand; improved 2

output and productivity

Formula Cost Reduction

Technology expertise and AI to optimize raw materials

Raw Material Availability

Limited impact from

supply shortages

Cost of Goods

Sold Inflation

MSD%

($240MM - $300MM)

$10MM - $30MM

Price

$230MM - $270MM

Architectural Growth

Mexico strength outweighs 3

Europe slow down

Auto Refinish Progress

Industry data indicates 4

earlier normalization

Reaffirm FY26 EPS Guidance Range

$7.70 - $8.10

9 Note: Pricing recovery is when the impact of selling prices offsets the impact of raw material inflation versus the prior year. Cost of goods sold inflation estimate of MSD% assumes current spot price for petrochemical feedstocks during April and May 2026. MSD = Mid single-digit.

Cash deployment focused on shareholder value creation

1Q'26 Activity

Cash Deployed to Shareholders

($ in millions)

$300

$200

Cash Balance

March 31, 2026

Dividends and Share Repurchases

$100

2Q'25 3Q'25 4Q'25 1Q'26

Net Debt

March 31, 2026

Net Debt / Adjusted EBITDA LTM

Repaid long-term debt of $700 million due in 1Q'26

10 Note: Cash balance includes cash equivalents and short-term investments. See appendix for EBITDA reconciliation.

Adjusted earnings per share (YOY)

Flat to +LSD

Segment organic sales (YOY %): Global Architectural Coatings Performance Coatings Industrial Coatings

Flat to +LSD

Segment margin (YOY)

-100 bps to flat

Raw material (YOY)

LSD inflation

Corporate expense

$85MM - $95MM

Net interest expense

$25MM - $30MM

Effective tax rate

24% - 25%

The PPG Way

We are customer champions

We are PPG proud

We compete to win

We are excellent operators

We act with purpose

and speed

11 Note: All forecasts are approximate. LSD = Low Single Digit. The company is not able to provide a reconciliation of second quarter 2026 expected adjusted earnings per diluted share to

Leading Positions in All Verticals

Strong Brands, Technologies and Services

Delivering core technologies and productivity solutions to our customers

Organic and inorganic growth opportunities

Asset-Light, Highly Flexible Cost Structure Accelerating margin expansion

Strong Balance Sheet &

Consistent Cash Generation

Cash deployment focused on shareholder

value creation

Appendix

Adjusted EPS Reconciliation

$ in millions, except EPS

Total PPG

First Quarter 2026

Net Income

EPS(a)

Net Income from Continuing Operations, As Reported

$ 382

$ 1.70

Acquisition-related amortization expense

0.09

Business restructuring-related costs, net(b)

0.02

Portfolio optimization(c)

0.02

Adjusted Net Income Attributable to PPG

$ 411

$ 1.83

Total PPG

First Quarter 2025

Net Income

EPS(a)

Net Income from Continuing Operations, As Reported

$ 375

$ 1.64

Acquisition-related amortization expense

0.10

Business restructuring-related costs, net(b)

0.03

Portfolio optimization(c)

(6)

(0.03)

Insurance recovery(d)

(4)

(0.02)

Adjusted Net Income Attributable to PPG

$ 396

$ 1.72

Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other income, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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, net on the condensed consolidated statement of income.

Portfolio optimization includes a $6 million charge related to the step-up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. Portfolio optimization also 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.

In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021, which is included in Other income, net on the condensed consolidated statement of income.

2024

17.3%

$3,921

678

104

782

19.9%

2025

13.8%

15.7%

18.2%

14.4%

15.6%

$857

$1,018

$1,012

$951

$3,838

118

160

184

137

599

109

144

187

213

164

708

16.8%

18.4%

21.0%

17.2%

18.4%

2026

16.1%

$965

155

184

19.1%

$ in millions, except margin %

Global Architectural Coatings

Segment Margin, As Reported

Net Sales

Segment Income

Depreciation and Amortization

Segment EBITDA

Segment EBITDA margin

Performance Coatings

Segment Margin, As Reported

Net Sales

Segment Income

Depreciation and Amortization

Segment EBITDA

Segment EBITDA margin

21.8%

$5,237

1,142

132

1,274

24.3%

21.7%

23.5%

19.2%

18.6%

20.8%

$1,265

$1,512

$1,414

$1,322

$5,513

274

356

272

246

1,148

134

307

389

307

279

1,282

24.3%

25.7%

21.7%

21.1%

23.3%

21.6%

$1,334

288

326

24.4%

Industrial Coatings

Segment Margin, As Reported

Net Sales

Segment Income

Depreciation and Amortization

Segment EBITDA

Segment EBITDA margin

13.4%

$6,687

893

206

1,099

16.4%

13.8%

13.6%

14.1%

12.2%

13.4%

$1,562

$1,665

$1,656

$1,641

$6,524

215

227

233

200

875

192

263

276

281

247

1,067

16.8%

16.6%

17.0%

15.1%

16.4%

11.8%

$1,631

193

245

15.0%

Total Segments

Segment Margin, As Reported

Net Sales

Segment Income

Depreciation and Amortization

Segment EBITDA

Segment EBITDA margin

17.1%

$15,845

2,713

442

3,155

19.9%

16.5%

17.7%

16.9%

14.9%

16.5%

$3,684

$4,195

$4,082

$3,914

$15,875

607

743

689

583

$2,622

107

109

112

107

$435

714

852

801

690

3,057

19.4%

20.3%

19.6%

17.6%

19.3%

16.2%

$3,930

636

119

755

19.2%

2025

$ 375

$ 450

$ 444

$302

$1,571

122

140

118

458

373

125

(6)

$ 636

$ 740

$ 705

$550

$2,631

(6)

(12)

(6)

$ 633

$ 778

$ 742

$596

$2,749

2026

$ 382

132

101

$ 669

$ 681

$ in millions, except margin %

Reported net income from continuing operations

Interest expense, net of interest income

Income tax expense

Depreciation

Amortization

Net income/(loss) attributable to noncontrolling interests

EBITDA

Business restructuring-related costs, net(a)

Portfolio optimization costs(b)

Income from legal settlements(c)

Resolution of tax matter(d)

Impairment and other related charges, net(e)

Insurance recoveries(f)

Legacy environmental remediation charges(g)

Adjusted EBITDA

Net Sales

Net income margin

Adjusted EBITDA margin

$3,684

$4,195

$4,082

$3,914

$15,875

10.2%

10.7%

10.9%

7.7%

9.9%

17.2%

18.5%

18.2%

15.2%

17.3%

$3,930

9.7%

17.3%

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other income, 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, net on the consolidated statement of income.

In the fourth quarter 2025, the Company settled a legal matter related to a legacy business that it not longer operates. The related gain is included in Other income, net on the consolidated statement of income.

In the fourth quarter 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. The portion of the charge related to non-income taxes is included in Other income, net on the consolidated statement of income. In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income.

In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Other income, net on the condensed consolidated statement of income. Net loss of

$12 million related to the impairment charge was attributable to noncontrolling interests.

Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other income, net in the condensed consolidated statement of income.

Global Architectural Coatings

Volume Vaiance

Price Variance

Segment Organic Sales Variance

2023

-6%

-8%

-4%

-5%

10%

-2%

2024

-6%

-2%

-5%

-2%

-1%

2025

-3%

-2%

-1%

2026

Performance Coatings

Volume Vaiance

Price Variance

Segment Organic Sales Variance

-1%

-2%

-1%

-2%

Industrial Coatings

Volume Vaiance

Price Variance

Segment Organic Sales Variance

-5%

-2%

-5%

-2%

-3%

-2%

-4%

-2%

-3%

-2%

-3%

-2%

-5%

-6%

-5%

-1%

-2%

-1%

Total Segments

Volume Vaiance

Price Variance

Segment Organic Sales Variance

-4%

-3%

-2%

-1%

-2%

-1%

-2%

-1%

-2%

-1%

Thank You For Your Interest In PPG

Contact Information:

INVESTORS:

Alex Lopez

phone: +1 412 434 3466

email: [email protected]

MEDIA:

Greta Edgar Borza

phone: +1 724 316 7552

email: [email protected]

Disclaimer

PPG Industries Inc. published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 21:02 UTC.