PPG Industries (PPG.N): Slight 2Q Miss on Refinish Sales Volumes; Reiterated FY26 Guidance

Research evidence excerpt

PPG Industries (PPG.N): Slight 2Q Miss on Refinish Sales Volumes; Reiterated FY26 Guidance

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28 Jul 2026 17:08:38 ET │ 12 pages

PPG Industries (PPG.N)

Slight 2Q Miss on Refinish Sales Volumes; Reiterated FY26 Guidance

CITI'S TAKE

Neutral PPG reported 2Q adj. EPS of $2.23, a slight miss against FactSet

consensus of $2.25 and our $2.26 estimate. Performance Coatings saw Price (28 Jul 26 16:00) US$119.01

7% growth with double-digit organic sales in Aerospace and DD Target price US$125.00

contributions from P&M and Traffic. That said, DD decline in refinish and Expected share price return 5.0%

negative mix from lower refinish sales volume resulted in 300bps Y/Y Expected dividend yield 2.5%

EBITDA margin compression. Global Architectural was helped by MSD Expected total return 7.6%

sales growth in LatAm/AP, and LSD growth in Architectural EMEA, with FX

Market Cap US$26,527M also contributing to 100 bps of Y/Y EBITDA margin expansion. Industrial

Coatings saw 70bps Y/Y EBITDA margin compression, driven by COGS

inflation partially offset by higher sales volumes. PPG re-iterated FY26

guidance midpoint of $7.90 (vs. consensus of $7.88), while calling MSD Patrick CunninghamAC

inflation outlook for FY26. 3Q26 sales guidance points to LSD-MSD +1-212-816-6684

organic sales growth with HSD inflation on raw materials, yielding 100bps patrick.cunningham@citi.com

to flat EBITDA margin compression.

Rachel Lee

+1-212-816-4559

Segment Analysis — Industrial Coatings net sales were up ~7% Y/Y at $1,778mm rachel.lee@citi.com

(vs. our $1,704mm est) driven by 5% volume growth and 2% favorable FX. Auto OEM

Alexander Yiorganic sales increased +LSD while industrial coatings organic sales increased

+MSD Y/Y while packaging coatings organic sales increased +DD Y/Y. Segment +1-212-816-4220