Q2 2026 PPG Industries Inc Earnings Call Transcript
Key Points
- PPG Industries Inc (PPG) reported its sixth consecutive quarter of organic sales growth, with a solid increase of 4% driven by equal contributions from sales volumes and selling prices.
- The company achieved a 7% year-over-year increase in net sales, totaling $4.5 billion, with strong performance in aerospace and Architectural Coatings Latin America businesses.
- PPG Industries Inc (PPG) successfully covered about 90% of cost of goods sold inflation with pricing during the quarter and expects to reach 100% coverage by the fourth quarter.
- The Global Architectural Coatings segment saw an 8% increase in net sales, with significant growth in Latin America and Asia Pacific driven by volume growth and higher selling prices.
- The Industrial Coatings segment experienced a 7% growth in net sales, with organic sales increasing 5% due to volume growth across all three businesses, reflecting share gains and strong performance in automotive OEM coatings.
- The Performance Coatings segment experienced a decline in EBITDA margin by 300 basis points year over year, primarily due to lower automotive refinish sales volumes.
- Automotive refinish coatings saw a double-digit percentage decrease in organic sales, reflecting challenging comparisons to customer order patterns and a modest recovery of underlying industry demand.
- The company faced rising costs for raw materials, energy, logistics, and packaging due to the impact of the Iran War, affecting the coatings value chain.
- PPG Industries Inc (PPG) anticipates a relatively flat EBITDA margin for the Global Architectural Coatings segment in the third quarter, with mixed consumer sentiment in Europe.
- The Industrial Coatings segment is expected to face EBITDA margin compression in the second half of 2026 due to the timing of index-based price adjustments.
Good morning. My name is Chase, and I will be your conference operator today. At this time, I would like to welcome everyone to the second-quarter 2026 PPG earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Alex Lopez, Director of Investor Relations. Please go ahead, sir.
Thank you, Chase, and good morning, everyone. This is Alex Lopez. Joining me today from PPG are Tim Knavish, Chairman and CEO; and Jamie Beggs, Senior Vice President and CFO. Our remarks relate to the financial information released on July 28, 2026. Supporting materials are available in the Investor Center at ppg.com, and we will take questions following our prepared remarks.
Both the prepared commentary and discussion during this call may include forward-looking statements and non-GAAP financial measures. Forward-looking statements involve uncertainties and risks, which may cause actual results to differ. Please read our cautionary statement on slide 2 of the
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