PPG Industries (PPG.N): Refinish Volumes and Margins to Improve in 2H; Turnaround Momentum in Industrial

Research evidence excerpt

PPG Industries (PPG.N): Refinish Volumes and Margins to Improve in 2H; Turnaround Momentum in Industrial

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29 Jul 2026 18:22:05 ET │ 13 pages

PPG Industries (PPG.N)

Refinish Volumes and Margins to Improve in 2H; Turnaround Momentum

in Industrial

CITI'S TAKE Neutral

Price (29 Jul 26 16:00) US$111.83 Our takeaways from the call: 1) Performance Coatings margins declined

Target price US$121.00↓ primarily due to tough Y/Y refinish comps and a sequential price/cost

headwind in 2Q, versus a benefit in 1Q. Management noted U.S. refinish from US$125.00

industry destocking is largely complete and saw no evidence of trade- Expected share price return 8.2%

down behavior or negative mix shift. PPG expects refinish volumes to Expected dividend yield 2.8%

improve in 2H and highlighted an upcoming large MSO conversion. 2) The Expected total return 11.0%

company has good visibility into continued outperformance in auto OEM Market Cap US$24,927M

over the next several quarters as share gains flow through the P&L. PPG

also highlighted a broader turnaround in the Industrial Coatings segment

as all three core businesses (auto OEM, packaging, and industrial) benefit

from ~$25mm of new business wins per quarter. 3) Price/cost recovery is Patrick CunninghamAC

tracking one quarter ahead of expectations, driven by faster and more +1-212-816-6684

aggressive pricing initiatives informed by learnings from previous patrick.cunningham@citi.com

inflationary cycles. Rachel Lee

+1-212-816-4559

Stock Action — Our FY26E EBITDA estimate is relatively unchanged compared to rachel.lee@citi.com

our previous estimate as we increase our organic sales growth particularly in Alexander Yi

industrial coatings and performance coatings offset by lower 2H margins as inflation