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PPG Industries, Inc.
NYSE: PPG Materials Chemicals 🔎 Screen
S&P 500
🏹 Trader: 🎯 Near 52W High 💎 VCP Breakout View all →
$25.7B
Market Cap
14.8
P/E
2.37
PEG
12.8%
ROCE
21.1%
ROE
0.96
D/E
13.4%
OPM
-11.4%
% from 52W High
51
α RS
🔍 PPG is showing a high-conviction setup because it matches 6 of 37 tracked screener presets, Sector RRG has Materials in the Leading quadrant with the trail still strengthening, and an ECS of 61.1 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 6/37 · Materials in Leading quadrant · ECS 61.1
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🌏 Global Investor Returns
Currency-adjusted total returns for PPG including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

PPG Industries, Inc. manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$4.5B
+7% YoY
Net Income
$439M
-2% YoY
Adjusted EPS
$2.23
0% YoY
Operating Cash Flow (YTD)
$600M
+$220M YoY
What Went Right
  • Organic sales grew 4% in Q2, marking the sixth consecutive quarter of organic growth, with growth in 8 of 9 businesses.
  • Pricing covered ~90% of COGS inflation during the quarter, and management expects 100% coverage by Q4 — one quarter ahead of schedule.
  • Aerospace delivered double-digit sales growth with ~$300M backlog; Protective & Marine posted its 13th straight quarter of volume growth.
What to Watch
  • Automotive Refinish organic sales fell double-digit due to tough 2025 comparisons and a slower-than-expected recovery in insurance claims.
  • Iran War-driven raw material, energy, logistics and packaging inflation is expected to remain mid-to-high single digit between Q2 and Q4.
  • Industrial Coatings segment EBITDA margin fell 70 bps YoY, and further margin compression is expected in 2H due to index-based pricing timing.
Management Guidance
  • Q3 2026 organic sales growth expected in the low single-digit to mid-single-digit range.
  • Q3 2026 adjusted EBITDA margin expected flat to down 100 bps YoY.
  • FY 2026 adjusted EPS guidance reaffirmed at $7.70-$8.10.
  • Company expects to reach 100% COGS inflation coverage by Q4 2026.
Investor Lens
The thesis is slightly stronger after this call: organic growth is broad-based, pricing actions are coming through faster than in prior cycles, and differentiated businesses like Aerospace and Protective & Marine are compounding. The main overhang remains Refinish de-stocking, but management says that drag is now behind and Refinish should return to growth in 2H26. With FY26 EPS guidance held at $7.70-$8.10, strong cash generation and net debt down to 1.9x EBITDA, the setup is solid if inflation coverage is fully delivered by Q4.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid quarter with 4% organic growth; Refinish drag keeps EPS flat
Revenue
Q2 net sales rose 7% to $4.5B, with organic sales up 4% on a 2% volume gain and 2% higher selling prices. All three segments grew: Global Architectural Coatings +8%, Performance Coatings +7%, and Industrial Coatings +7%.
Profitability
Adjusted EPS was $2.23, essentially flat versus $2.22 in the prior year, while reported EPS fell 1% to $1.96. Net income was $439M, down 2% from $450M, pressured by weaker Refinish volumes and input-cost inflation.
Margins
Total company adjusted EBITDA margin was over 17%. Segment margins were mixed: Architectural EBITDA margin expanded 100 bps to 19.4%, Performance Coatings contracted 300 bps to 22.7%, and Industrial Coatings fell 70 bps to 15.9%.
Balance Sheet
Cash and short-term investments totaled $1.6B. Net debt decreased $415M year over year to $5.3B, or 1.9x adjusted EBITDA. Year-to-date operating cash flow was ~$600M, up more than $220M, and Q2 returned ~$235M to shareholders via dividends and buybacks.
Key Risks
Management flagged Refinish volume recovery remains slower than hoped, though U.S. insurance claims are improving and premiums declined for the first time in five years. COGS inflation is expected to stay mid-to-high single digit between Q2 and Q4, and Industrial segment margins face continued pressure from index-based pricing timing.
Outlook
For Q3 2026, PPG expects organic sales growth in the low-to-mid single-digit range and adjusted EBITDA margin flat to down 100 bps year over year. Full-year adjusted EPS guidance of $7.70-$8.10 was reaffirmed, with pricing expected to fully offset COGS inflation by Q4.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Delivered 7% net sales growth and sixth straight quarter of organic growth, with strong performance in Aerospace, Architectural Coatings, and Industrial Coatings. Pricing actions nearly offset cost inflation, and full-year EPS guidance was reaffirmed.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 saw 7% net sales growth and 6% higher adjusted EPS, driven by strong Aerospace and Comex performance. The company reaffirmed full-year EPS guidance, expects to offset inflation with price increases, and is executing cost reductions and targeted investments, especially in Aerospace.
Q4 2025 Q4 2025 2026-01-28
Delivered 2% organic growth and strong cash flow in 2025, with record Aerospace results and robust share gains in key segments. 2026 guidance calls for flat to low single-digit organic growth, margin expansion in H2, and continued investment in innovation and operational excellence.
Q3 2025 Q3 2025 2025-10-29
Q3 delivered record EPS and organic sales growth, led by aerospace and protective/marine coatings, while automotive refinish faced headwinds from lower collision claims and distributor destocking. Full-year EPS guidance was updated to $7.60–$7.70, with continued investment in aerospace and portfolio optimization supporting future growth.
Q2 2025 Q2 2025 2025-07-30
Net sales grew 2.2% organically to $4.2B, led by aerospace and protective/marine coatings. Segment EBITDA margin was 20.3% and adjusted EPS $2.22. Share gains and cost controls are expected to drive high single-digit earnings growth in the second half.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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