PPG Industries reported second-quarter 2026 net sales of $4.5 billion, up 7% from a year earlier, even as automotive refinish coatings, the products used daily by collision repair shops, posted an organic sales decline of a double-digit percentage, according to the company's earnings release issued July 28.
The refinish decline sat inside PPG's Performance Coatings segment, which includes automotive refinish alongside aerospace, protective and marine coatings, and traffic solutions. Segment net sales rose 7% to $1.62 billion, but segment income fell 8% to $329 million, and segment EBITDA fell 5% to $368 million as EBITDA margin declined 300 basis points to 22.7%, a decline the release attributed to lower automotive refinish coatings sales volumes.
PPG said the refinish decline reflected both a difficult comparison to customer order patterns from the second quarter of 2025 and a slower recovery in underlying industry demand, according to the release. The company said it expects automotive refinish coatings organic sales to grow by a low to mid-single-digit percentage in the second half of 2026 due to the phasing of customer order patterns from last year, according to the release.
The refinish softness continues a trend that has shown up in PPG's results in recent quarters, including its first-quarter 2026 report and its fourth-quarter and full-year 2025 results, both of which showed refinish coatings lagging PPG's other businesses.
Company sees overall sales growth for sixth quarter
PPG chairman and CEO Tim Knavish said the quarter marked "its sixth consecutive quarter of organic sales growth" for the company overall, an organic 4% increase driven equally by higher sales volumes and selling prices, according to the release. The company said it outpaced its industry by 300 basis points, with organic growth in all three of its segments and eight of its nine businesses, led by its aerospace business.
Net income from continuing operations was $439 million, down 2% from $450 million in the same quarter last year. Reported earnings per diluted share were $1.96, down from $1.98, while adjusted EPS was $2.23, which the release described as slightly higher than $2.22 a year earlier, driven by strong results in the company's aerospace and architectural coatings Latin America businesses, offsetting lower sales volumes in automotive refinish coatings.
The 7% net sales increase reflected 2% higher sales volumes, 2% higher selling prices, a 2% benefit from foreign currency translation, and 1% from acquisitions, PPG said.
PPG expects to cover inflation ahead of goal
PPG said it has raised prices globally across its businesses to offset higher costs for raw materials, energy, logistics, and packaging, covering about 90% of cost of goods sold inflation in the quarter. The company said it expects to cover 100% of that inflation by the fourth quarter, a quarter ahead of its original timeline.
Cash from operating activities totaled approximately $600 million year to date, more than $220 million higher than the same period last year, PPG said. The company repurchased $75 million of shares during the quarter and $175 million year to date. Cash and short-term investments stood at $1.6 billion at quarter end, and net debt was $5.3 billion, down $415 million from a year earlier.
PPG reaffirmed its full-year 2026 adjusted EPS guidance range of $7.70 to $8.10. For the third quarter, the company said it expects organic sales growth in the low to mid-single-digit percentage range and adjusted EBITDA margin ranging from flat to a decline of 100 basis points year over year.
