PPG Industries Expects Q1 2026 Earnings to Exceed Guidance, Signals Continued Growth Momentum

Key Highlights for Investors

• Q1 2026 Reported and Adjusted EPS: PPG Industries (NYSE: PPG) announced preliminary results indicating earnings per diluted share (EPS) of \$1.70 and adjusted EPS of \$1.83 for the first quarter of 2026, representing a 6% increase year-over-year compared to Q1 2025.
• Organic Sales Growth: The company has delivered its fifth consecutive quarter of organic sales growth, driven by positive selling prices and stable sales volumes.
• Segment Performance: Strong results in the architectural coatings Latin America and aerospace businesses contributed significantly, along with successful execution of internal self-help actions. These factors drove segment EBITDA margins above original expectations.
• Outlook for Q2 2026: PPG expects both organic sales and adjusted EPS for the second quarter to be in the range of flat to low single-digit percentage growth versus the prior year. The company will provide more detailed financial results on April 28, 2026, after market close.
• Upcoming Events: A detailed earnings teleconference is scheduled for April 29, 2026, at 8 a.m. ET, where investors can expect comprehensive updates and forward-looking financial projections.
• 2025 Performance Context: For perspective, PPG reported \$15.9 billion in net sales in 2025, serving customers in over 50 countries across construction, consumer products, industrial, and transportation markets.

Details on Adjusted Earnings and Regulation G Reconciliation

The company provided a reconciliation for adjusted EPS, which excludes certain items not attributable to its primary operations or not expected to recur quarterly. For Q1 2026, adjusted EPS adjustments included:

• Acquisition-related amortization expense: \$0.09 for Q1 2026, \$0.10 for Q1 2025.
• Business restructuring-related costs, net: \$0.02 for Q1 2026, \$0.03 for Q1 2025.
• Portfolio optimization: \$0.02 charge in Q1 2026 (includes a \$6 million charge related to step-up of acquired inventory); Q1 2025 included a \$7 million gain from a business sale.
• Insurance recovery: No impact in Q1 2026; Q1 2025 included a \$0.02 gain related to an insurance reimbursement for damages from a 2021 winter storm.

This reconciliation is important, as PPG’s management believes it provides deeper insight into ongoing performance. However, the company notes it cannot reasonably predict all items that could affect future adjusted EPS, and as such, comprehensive reconciliation for Q2 2026 guidance is not provided.

Potential Price-Sensitive Information for Shareholders

• Outperformance vs. Guidance: PPG’s indication that Q1 2026 results will exceed prior guidance is a strong positive signal and could drive upward share price movement upon the official results announcement.
• Ongoing Growth and Margin Expansion: The continuation of organic sales growth for a fifth consecutive quarter and margin expansion—especially in high-value segments like aerospace and Latin America—demonstrates operational strength.
• Future Guidance: The company’s cautious but positive outlook for Q2 2026 (flat to low single-digit growth) suggests management expects challenging but manageable market conditions.
• Risks and Forward-Looking Statements: PPG highlighted many factors that could impact future performance, including raw material costs, competition, economic conditions, potential litigation, and global events. These risks should be carefully considered by investors.

What Investors Should Watch For

• The detailed Q1 2026 earnings report and teleconference scheduled for April 28-29, 2026, will provide further clarity on segment performance and future outlook.
• Any updates on cost-saving initiatives, acquisition integrations, and market trends in key regions (especially Latin America and aerospace) will be important for assessing the sustainability of recent results.
• Management’s commentary on raw material prices, supply chain, and competitive dynamics will be closely monitored.

About PPG Industries

PPG Industries is a global leader in paints, coatings, and specialty materials, with a 140+ year history and a presence in over 50 countries. The company’s broad industry exposure and track record of innovation support its market position.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking statements in the company’s release are subject to risks and uncertainties that could cause actual results to differ materially. Investors should review PPG’s official filings and consult their financial advisor before making investment decisions.