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PPG Q3 Earnings Beat Estimates, Revenues Up Y/Y on Aerospace Strength
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Key Takeaways
PPG's Q3 adjusted earnings rose 5.6% to $2.25 per share, while revenues climbed 6.6% to $4.35 billion.
Aerospace delivered double-digit organic growth, boosting Performance Coatings sales by 10% to $1.55 billion.
PPG raised its 2026 adjusted EPS guidance midpoint, narrowing the range to $7.90-$8.10 from $7.70-$8.10.
PPG Industries, Inc. (PPG - Free Report) reported adjusted earnings of $2.25 per share in the third quarter of 2026, up 5.6% year over year. The figure topped the Zacks Consensus Estimate of $2.13 by 5.6%.
Revenues increased 6.6% year over year to $4.35 billion and beat the consensus mark of $4.28 billion by 1.8%. Organic sales grew 5%, supported by higher selling prices and volumes. Aerospace delivered double-digit organic growth, with its order backlog remaining near $300 million.
PPG Industries, Inc. Price, Consensus and EPS Surprise
Performance Coatings' net sales increased 10% year over year to $1.55 billion. The figure beat our estimate of $1.5 billion. The growth reflected a 5% increase in sales volumes, 3% higher selling prices and a 2% contribution from acquisitions. Organic sales rose 8%, driven by aerospace, protective and marine coatings, and automotive refinish coatings, partly offset by weakness in traffic solutions. The segment's EBITDA margin expanded to 23.9% from 21.7% a year earlier, aided by a favorable sales mix, higher prices and volumes, which more than offset cost inflation.
Global Architectural Coatings' net sales increased 4% year over year to $1.06 billion. The figure topped our estimate of $1.02 billion. Organic sales advanced 2%, as a 4% increase in selling prices more than offset a 2% decline in volumes. Favorable foreign currency translation contributed another 2% to sales growth. The segment's EBITDA margin expanded 300 basis points to 24% from 21% in the prior-year quarter. Higher selling prices and productivity measures helped offset cost-of-goods-sold inflation. Restructuring and footprint optimization initiatives also supported profitability improvements in Europe.
Industrial Coatings' net sales rose 5% year over year to $1.74 billion. The figure topped our estimate of $1.7 billion. The increase reflected 2% higher sales volumes, a 2% improvement in selling prices and a 1% benefit from foreign currency translation. Organic sales increased 4%, supported by market-share gains across the business. The segment's EBITDA margin contracted to 14.4% from 17% a year ago. Cost-of-goods-sold inflation more than offset higher prices and volumes. Segment EBITDA declined 11% year over year to $251 million.
PPG's Financial Position and Cash Flow
PPG had cash and cash equivalents of $1.59 billion as of Sept. 30, 2026, compared with $2.16 billion at the end of 2025. Long-term debt stood at $6.16 billion, down from $6.6 billion at year-end 2025. Net debt was $5.2 billion, approximately $200 million lower year over year.
Cash from operating activities totaled $1.16 billion in the first nine months of 2026 compared with $1.05 billion a year earlier. Capital expenditures amounted to $464 million. The company repurchased approximately $150 million of shares in the third quarter, bringing year-to-date repurchases to $322 million.
PPG Industries' Q4 and 2026 Outlook
PPG expects fourth-quarter 2026 organic sales to increase by a low-single-digit percentage, led by aerospace, architectural coatings in Latin America and packaging coatings. The company projects adjusted EBITDA margin to range from flat to an improvement of 100 basis points year over year.
Performance Coatings' organic sales are expected to increase by low- to mid-single-digit percentages, supported by pricing actions and stabilization in automotive refinish. Global Architectural Coatings anticipates organic sales ranging from flat to low-single-digit growth, while Industrial Coatings expects sales to fluctuate within a low-single-digit range.
For full-year 2026, PPG raised the midpoint of its adjusted earnings guidance and narrowed the range to $7.9-$8.1 per share from $7.7-$8.1. The improved outlook reflects continued organic growth, pricing benefits and productivity initiatives.
PPG’s Price Performance
Shares of PPG have gained 14.4% over the past year compared with the 9.2% rise in its industry.
Image Source: Zacks Investment Research
PPG’s Zacks Rank & Key Picks
PPGcurrently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.7 per share, indicating a 66.2% year-over-year surge. RS shares have gained 50.6% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
View the Zacks #1 Rank List
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PPG Q3 Earnings Beat Estimates, Revenues Up Y/Y on Aerospace Strength
Key Takeaways
PPG Industries, Inc. (PPG - Free Report) reported adjusted earnings of $2.25 per share in the third quarter of 2026, up 5.6% year over year. The figure topped the Zacks Consensus Estimate of $2.13 by 5.6%.
Revenues increased 6.6% year over year to $4.35 billion and beat the consensus mark of $4.28 billion by 1.8%. Organic sales grew 5%, supported by higher selling prices and volumes. Aerospace delivered double-digit organic growth, with its order backlog remaining near $300 million.
PPG Industries, Inc. Price, Consensus and EPS Surprise
PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. Quote
PPG's Segment Review
Performance Coatings' net sales increased 10% year over year to $1.55 billion. The figure beat our estimate of $1.5 billion. The growth reflected a 5% increase in sales volumes, 3% higher selling prices and a 2% contribution from acquisitions. Organic sales rose 8%, driven by aerospace, protective and marine coatings, and automotive refinish coatings, partly offset by weakness in traffic solutions. The segment's EBITDA margin expanded to 23.9% from 21.7% a year earlier, aided by a favorable sales mix, higher prices and volumes, which more than offset cost inflation.
Global Architectural Coatings' net sales increased 4% year over year to $1.06 billion. The figure topped our estimate of $1.02 billion. Organic sales advanced 2%, as a 4% increase in selling prices more than offset a 2% decline in volumes. Favorable foreign currency translation contributed another 2% to sales growth. The segment's EBITDA margin expanded 300 basis points to 24% from 21% in the prior-year quarter. Higher selling prices and productivity measures helped offset cost-of-goods-sold inflation. Restructuring and footprint optimization initiatives also supported profitability improvements in Europe.
Industrial Coatings' net sales rose 5% year over year to $1.74 billion. The figure topped our estimate of $1.7 billion. The increase reflected 2% higher sales volumes, a 2% improvement in selling prices and a 1% benefit from foreign currency translation. Organic sales increased 4%, supported by market-share gains across the business. The segment's EBITDA margin contracted to 14.4% from 17% a year ago. Cost-of-goods-sold inflation more than offset higher prices and volumes. Segment EBITDA declined 11% year over year to $251 million.
PPG's Financial Position and Cash Flow
PPG had cash and cash equivalents of $1.59 billion as of Sept. 30, 2026, compared with $2.16 billion at the end of 2025. Long-term debt stood at $6.16 billion, down from $6.6 billion at year-end 2025. Net debt was $5.2 billion, approximately $200 million lower year over year.
Cash from operating activities totaled $1.16 billion in the first nine months of 2026 compared with $1.05 billion a year earlier. Capital expenditures amounted to $464 million. The company repurchased approximately $150 million of shares in the third quarter, bringing year-to-date repurchases to $322 million.
PPG Industries' Q4 and 2026 Outlook
PPG expects fourth-quarter 2026 organic sales to increase by a low-single-digit percentage, led by aerospace, architectural coatings in Latin America and packaging coatings. The company projects adjusted EBITDA margin to range from flat to an improvement of 100 basis points year over year.
Performance Coatings' organic sales are expected to increase by low- to mid-single-digit percentages, supported by pricing actions and stabilization in automotive refinish. Global Architectural Coatings anticipates organic sales ranging from flat to low-single-digit growth, while Industrial Coatings expects sales to fluctuate within a low-single-digit range.
For full-year 2026, PPG raised the midpoint of its adjusted earnings guidance and narrowed the range to $7.9-$8.1 per share from $7.7-$8.1. The improved outlook reflects continued organic growth, pricing benefits and productivity initiatives.
PPG’s Price Performance
Shares of PPG have gained 14.4% over the past year compared with the 9.2% rise in its industry.
Image Source: Zacks Investment Research
PPG’s Zacks Rank & Key Picks
PPGcurrently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.7 per share, indicating a 66.2% year-over-year surge. RS shares have gained 50.6% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.