01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
PPG Industries, Inc. reported second-quarter 2026 net sales of $4,495 milliona, up from $4,195 million a year earlier, with net sales for the six months rising to $8,425 million from $7,879 million.
Income before income taxes was $569 millionb versus $598 million, and net income attributable to PPG was $437 million versus $450 million. Diluted EPS from continuing operations was $1.96 versus $1.98. The filing attributes sales growth mainly to higher selling prices, higher sales volumes, favorable foreign currency translation and acquisitions, while cost of sales rose $255 million on higher volumes, raw material inflation and currency.
Management says selling price increases offset about 90% of cost of goods sold inflation in the second quarter and expects 100% offset by the fourth quarter, following Middle East conflict-related cost increases. For the six months, cash from operating activities was $592 millionc versus $369 million, mainly from improved working capital, and PPG repurchased $175 million of treasury stock and paid $317 million in dividends. Cash and cash equivalents fell to $1,520 million from $2,163 million at year-end 2025 after repaying a $700 million 1.2% note in March 2026.
In June 2026 PPG issued Swiss franc notes with net proceeds of $403 milliond. Total debt to total capitalization was 44% against a 60% covenant ceiling, and the company reported full covenant compliance.
Segment results were mixed: Global Architectural Coatings segment income rose to $185 million, Performance Coatings fell to $329 million on lower automotive refinish volumes, and Industrial Coatings rose slightly to $229 million. The filing also discloses a pending Di Gregório litigation dispute with Westlake, in which a Brazilian court award against PPG is reported at over $700 million including interest and costs, or approximately $350 million under Westlake's simple-interest view, and PPG believes the risk of loss to it is remote.
02—Key points
Key Highlights
- Net sales rose to $4,495 million in Q2 2026 from $4,195 million, with the filing citing higher selling prices, higher volumes, favorable currency translation and acquisitions.
- Income before income taxes declined to $569 million from $598 million; diluted EPS from continuing operations was $1.96 versus $1.98.
- Six-month operating cash flow increased to $592 million from $369 million, primarily due to improved working capital performance.
- Performance Coatings segment income fell to $329 million from $356 million on lower automotive refinish coatings volumes, while aerospace and protective and marine grew.
- Cash and cash equivalents declined to $1,520 million from $2,163 million at year-end 2025, reflecting the $700 million note repayment and $175 million of share repurchases.
- PPG issued CHF 320 million of Swiss franc notes in June 2026 with net proceeds of $403 million and reported a 44% total debt to total capitalization ratio against a 60% covenant limit.
- A Brazilian court award related to the Di Gregório litigation, which Westlake controls, could reach over $700 million with interest and costs; PPG considers its risk of loss remote.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, PPG Industries kept $0.10.
- Revenue$4.50B100.0%
- Cost of revenue−$2.69B59.8%
- Gross profit$1.81B40.2%
- Operating costs−$1.06B23.7%
- Operating income$743.0M16.5%
- Interest, other & tax−$306.0M6.8%
- Net income$437.0M9.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.50B$4.20B | +7.2% |
| Cost of Revenue | $2.69B$2.43B | +10.5% |
| Gross Profit | $1.81B$1.76B | +2.6% |
| SG&A Expenses | $931.00M$872.00M | +6.8% |
| Operating Income | $743.00M$743.00M | 0.0% |
| Interest Expense | $71.00M$62.00M | +14.5% |
| Net Income | $437.00M$450.00M | −2.9% |
| EPS (Basic) | $1.96$1.98 | −1.0% |
| EPS (Diluted) | $1.95$1.98 | −1.5% |
| Shares Outstanding (Basic) | 223.00M226.80M | −1.7% |
| Shares Outstanding (Diluted) | 223.90M227.70M | −1.7% |
05—Questions
Frequently Asked Questions
How did PPG's sales and profitability trend in the second quarter of 2026?
Net sales increased 7.2% to $4,495 million, but income before income taxes decreased to $569 million from $598 million, and net income attributable to PPG was $437 million versus $450 million. Cost of sales rose faster than sales, with the filing citing higher volumes, raw material inflation and unfavorable currency translation.
What is the status of the Di Gregório litigation and PPG's exposure?
A Brazilian court entered an award against PPG as nominal defendant that Westlake estimates at over $700 million with prejudgment interest, fees and costs, or about $350 million under simple prejudgment interest. Westlake has said it will not post a bond or pay the judgment. PPG's lawsuit against Westlake is pending in Delaware Chancery Court, with a final decision expected in 2026, and PPG believes the risk of loss is remote.
How is PPG managing rising costs and how much debt does it carry?
Selling price increases offset approximately 90% of second-quarter cost of goods sold inflation, and PPG anticipates 100% offset by the fourth quarter through pricing and productivity initiatives. Long-term debt was $6,195 million at June 30, 2026, versus $6,602 million at year-end 2025, and the company was in full compliance with its restrictive covenants.
What are PPG's capital spending and cash return plans for 2026?
Total capital spending is expected to be approximately $650 million to $700 million in 2026. Through six months, PPG repurchased $175 million of treasury stock and paid $317 million in dividends on common stock, and the filing shows $14,869,933 shares remaining under the $2.5 billion repurchase program as of June 30, 2026.
06—Continue