PPG Industries (NYSE: PPG) reported first-quarter 2026 results April 28, posting net sales of $3.93 billion, up 7% from a year earlier, and adjusted earnings per share of $1.83, up 6%. Both figures topped consensus estimates, while automotive refinish coatings organic sales declined by a double-digit percentage on what the company described as a difficult comparison to prior-year customer order patterns.
Net income was $382 million, up 2%. Reported diluted EPS was $1.70, up 4%. Segment margin was 16% and segment EBITDA margin was 19%. Organic sales increased 1% year over year, driven by higher selling prices, with positive foreign currency translation contributing 6 percentage points to the headline growth. PPG reaffirmed its full-year 2026 EPS guidance range of $7.70 to $8.10.
Refinish drop tied to distributor inventory levels, not demand
Automotive refinish coatings organic sales decreased by a double-digit percentage in Q1. The company attributed the decline to a difficult comparison with the prior year, when distributor order patterns were heavily weighted to the first half of 2025. With those inventories now being drawn down, distributors have ordered less from PPG in recent quarters, creating a steep year-over-year sales comparison.
PPG said in its earnings release that automotive refinish coatings organic sales are anticipated to improve in the second half of 2026 as the comparison eases. The company added that it is "seeing early signs of demand improvement in the U.S. refinish market as insurance claims begin to normalize to historical levels."
On the company's earnings call, Chairman and CEO Tim Knavish told analysts that February and March industry claims were down 1% year over year, which he described as reinforcing a normalization trend after high-single-digit to double-digit declines through most of 2025. The company expects refinish volumes to remain muted through the year overall, with year-over-year growth in the second half supported by easier comparisons.
PPG joins AkzoNobel and Sherwin-Williams in reporting Q1 refinish results this week, with each company describing a different U.S. demand picture. AkzoNobel CEO Greg Poux-Guillaume said last week that U.S. refinish demand had stabilized at a trough but had not yet picked up. Sherwin-Williams reported its automotive refinish sales increased by a double-digit percentage on share-of-wallet gains.
Aerospace strength offsets refinish drag in Performance Coatings
Performance Coatings segment net sales rose 5% to $1.33 billion, driven by higher selling prices, foreign currency translation, and acquisitions. Organic sales grew 1%, with double-digit organic sales growth in aerospace and high-single-digit growth in protective and marine and traffic solutions, partially offset by the refinish volume decline. The segment's order backlog in aerospace remained at about $315 million.
Segment income was $288 million, up 5%. Segment EBITDA was $326 million, up 6%, with EBITDA margin of 24.4%, up slightly from a year earlier.
Industrial margin pressured as Architectural posts strong gains
Industrial Coatings segment net sales rose 4% to $1.63 billion, with organic sales flat. Automotive OEM coatings organic sales decreased by a low-single-digit percentage, with PPG citing share gains that allowed the business to outpace the decline in global automotive industry production by about 300 basis points. Packaging coatings organic sales increased by a double-digit percentage. Segment EBITDA decreased 7% to $245 million as regional mix and lower selling prices from index-based contracts pressured margin.
Global Architectural Coatings segment net sales rose 13% to $965 million, driven by higher selling prices and foreign currency translation. Segment EBITDA increased 28% to $184 million, with margin up 230 basis points to 19.1%.
Pricing actions ahead amid raw material inflation
PPG said it has announced price adjustments globally to offset rising costs for raw materials, energy, logistics, and packaging. The company expects both Q2 organic sales and adjusted EPS to be flat to up by a low-single-digit percentage. PPG repaid $700 million of debt that matured in the first quarter and ended the period with $1.6 billion in cash and short-term investments. Share repurchases totaled approximately $100 million in the quarter.
