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PPG announces Q1 2026 results with 7% sales growth
PPG has reported its financial results for the first quarter of 2026, showing a 7 % year-over-year increase in net sales, driven by higher selling prices and favourable currency impacts. The coatings giant remains optimistic about aerospace, packaging, and architectural coatings growth, despite inflationary pressures.
PPG has released its financial results for the first quarter of 2026, reporting net sales of approximately EUR 3.59 billion, a 7 % increase compared to the same period in 2025. Organic sales rose by 1 %, primarily due to higher selling prices across its portfolio, while foreign currency translation contributed an additional 6 % to sales growth. Adjusted earnings per diluted share increased by 6 % year-over-year to EUR 1.68, supported by strong results in aerospace and architectural coatings segments.
Tim Knavish, Chairman and CEO of PPG, emphasised the company’s ability to maintain growth momentum despite inflationary pressures. “We delivered higher selling prices, with further selling price realisation targeted to offset any inflationary impact more quickly than prior cycles,” Knavish stated. He highlighted the robust performance of aerospace and architectural coatings in Latin America, attributing these results to PPG’s technology-advantaged products and strong commercial execution.
Segment highlights reflect regional and product-specific dynamics
The Global Architectural Coatings segment saw a 13 % sales growth year-over-year, bolstered by strong retail sales in Mexico and recovery in project-related sales. EBITDA margin for the segment improved by 230 basis points to 19.1 %, reflecting higher pricing and cost-control measures. However, mixed demand in Europe led to a slight decline in organic sales in the region.
Performance Coatings achieved a 5 % increase in net sales compared to Q1 2025, with notable growth in aerospace and protective and marine coatings. Organic aerospace sales grew by double digits, supported by a healthy order backlog of approximately EUR 295 million. Despite these advances, automotive refinish coatings volumes declined, creating a challenging comparison to the previous year.
Industrial Coatings experienced 4 % net sales growth, supported by share gains in automotive OEM coatings and double-digit growth in packaging coatings. However, the segment’s EBITDA margin declined by 180 basis points due to regional mix and index-based customer contracts, which impacted selling prices.
Future outlook remains optimistic despite inflation
Looking ahead, PPG expects continued growth in key areas such as aerospace, packaging coatings, and architectural coatings in Latin America. Automotive refinish coatings are anticipated to recover in the second half of the year as customer order patterns stabilise. The coatings producer has also announced global price adjustments to address rising costs for raw materials, energy, logistics, and packaging. Knavish expressed confidence in PPG’s ability to mitigate inflation impacts, noting its improved capacity to align selling prices with cost increases. For Q2 2026, PPG forecasts flat to low single-digit percentage growth in organic sales and adjusted earnings per share. The company reaffirmed its full-year EPS guidance range of approximately EUR 7.08 to EUR 7.45, demonstrating confidence in its growth momentum and ability to execute cost-saving measures.
