PPG - Key Themes Ahead of 2Q26 Results

研报英文原文证据摘录

PPG - Key Themes Ahead of 2Q26 Results

NSTEIN FLASHMAIL

29 June 2026

James Hooper

+44 20 7676 6995

European Chemicals james.hooper@bernsteinsg.com

PPG Industries Sebastien Afoy

+44 207 762 1032

Rating sebastien.afoy@bernsteinsg.com

Outperform Specialist Sales

Price Target James Brady

+44 20 7762 5272

PPG 130.00 USD james.brady@bernsteinsg.com

We regularly hold calls with companies, making sure we are up-to-date with their latest communications. We recently caught up with

PPG in the lead up to their 2Q26 reporting, and provide an update of the key themes below.

The company largely reiterated the key messages from our New York SDC conference (see Chemicals: 4 things we learned

at the SDC). Overall, PPG expect input costs to increase +MSD for FY26 overall due to the Middle East conflict, towards the upper

end of previous expectations. This rise in raw material costs should be 90–95% offset by higher pricing, also towards the upper end

of the range discussed at Q1 results, with auto OEM and packaging end markets lagging until 2027 given contract structures. Pricing

benefits should gradually become visible in the second half of the year and into 2027. We remain comfortable with our 2Q26 Adj. EPS

estimate of $2.26 (2% yoy growth), consistent with the flat to +LSD growth Adj. EPS guide and 1% above consensus at $2.24 (1% yoy

growth).

We remain optimistic around the possibility of a US automotive refinish-led recovery in 2H. Given the aforementioned view

on cost inflation and pricing, demand is the key unknown to determine 2H26 performance. Even if macro does deteriorate slightly,

or higher prices destroy demand, we believe the US auto refinish business could provide support. PPG noted 2Q refinish trends are

similar to 1Q, and further sequential stability would imply c.