Key Highlights

  • PPG Industries reported third quarter net sales of USD 4.353 billion, up 7% year over year.
  • Adjusted earnings per share reached a record USD 2.25, up 6% from a year earlier, with GAAP EPS of USD 2.12.
  • Organic sales grew 5% year over year, marking the company's seventh consecutive quarter of organic growth.
  • The company raised and narrowed full year 2026 adjusted EPS guidance to a range of USD 7.90 to USD 8.10.

Record EPS Driven by Aerospace and Latin America Strength

PPG Industries (NYSE:PPG) reported third quarter net sales of USD 4.353 billion, up 7% from USD 4.082 billion a year earlier, driven by 3% higher selling prices, 2% higher sales volumes, 1% favorable currency translation and 1% from acquisitions. Record adjusted earnings per share were USD 2.25, up 6% year over year, while GAAP earnings per share were USD 2.12.

Organic sales grew 5% year over year, marking the company's seventh consecutive quarter of organic growth, with the company saying it outpaced the industry by 300 basis points. Adjusted EBITDA margin was 18.2% for the quarter, supported by results in the company's aerospace and architectural coatings Latin America businesses.

Segment Performance Shows Broad Strength

The Global Architectural Coatings segment achieved 2% organic sales growth, with net sales of USD 1,055 million, up 4%, and segment income of USD 225 million, up 22%, as segment margin expanded 300 basis points to 21.3%. Growth was led by performance in Latin America and selling price actions across all regions, alongside productivity enhancements in the company's European architectural business.

Performance Coatings organic sales grew 8%, with adjusted EBITDA margin expanding 220 basis points to 24%, supported by strong demand for aerospace, protective and marine coatings along with higher automotive refinish organic sales. Industrial Coatings delivered 2% selling price increases and 2% sales volume growth, with double digit percentage growth in packaging coatings, though margin contracted year over year as cost of goods sold inflation remained elevated.

Raised Guidance Reflects Pricing and Productivity Gains

The company said its commercial actions fully offset cost of goods sold inflation during the quarter, reflecting pricing discipline across its portfolio. Cash and short-term investments totaled USD 1.6 billion at quarter end, with the effective tax rate at 24.2% for the period.

The company raised and narrowed its full year 2026 adjusted earnings per share guidance to a range of USD 7.90 to USD 8.10, reflecting growth momentum, realized pricing benefits, and execution of productivity programs. Management said it expects low single digit percentage organic growth in the fourth quarter, led by aerospace, Latin America architectural coatings and packaging coatings.

Margin and Guidance Metrics to Track

Organic sales growth relative to the 5% reported this quarter, continued margin expansion in Performance Coatings and Architectural Coatings relative to this quarter's gains, and full year adjusted EPS relative to the raised USD 7.90 to USD 8.10 guidance range are among the items the company has flagged for investors heading into the fourth quarter.