PPG INDUSTRIES INC
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 29, 2026
PPG$122.38-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0000079879-25-000311
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0000079879-26-000170
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 131 previous paragraphs and 104 current paragraphs.
48 unchanged; 34 reworded; 22 added; 44 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Net sales increased $246 million due to the following:
Current report
● Favorable foreign currency translation (+6%)
Current report
Cost of sales, exclusive of depreciation and amortization, increased $133 million primarily due to the unfavorable impact of foreign currency translation.
Current report
Selling, general and administrative expense increased $47 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.
Current report
Depreciation expense increased $16 million primarily due to higher capital spending in 2025.
Current report
Other income, net decreased by $18 million primarily due to the absence of a first quarter 2025 gain on an insurance reimbursement related to damages incurred at a southern U.S. factory from a winter storm in 2021, the absence of a first quarter 2025 gain on the sale of the Company's remaining Russia business, and a decrease in income recognized in connection with transition services agreements with the buyer of PPG's U.S. and Canada architectural coatings business.
Current report
● Favorable foreign currency translation (+12%)
Current report
Partially offset by:
Current report
● Divestiture-related sales (-1%)
Current report
Segment income of $155 million was 31% higher than the prior year. The increase was driven by higher selling prices, favorable foreign currency translation and the positive impact of cost-control actions.
Current report
● Favorable foreign currency translation (+3%)
Current report
● Acquisitions (+1%)
Current report
Partially offset by:
Current report
Automotive refinish coatings organic sales decreased by a double-digit percentage versus the prior year. As expected, results were impacted by lower organic sales, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025. Automotive refinish coatings organic sales are anticipated to improve for PPG in the second half of the year, and we are already seeing early signs of demand improvement in the U.S. refinish market. Automotive insurance claims have been down a low single digit percentage in February and March, which reflects a more normalized level for the industry.
Current report
First quarter organic sales for the traffic solutions business increased by a high single-digit percentage compared to the prior-year, outpacing the industry. The first quarter was the eighth consecutive quarter with year-over-year sales volume increases. Seasonally, first and fourth quarter sales in the business are typically lower, at about half of the second and third quarter levels, due to the difficulty of applying traffic markings in colder temperatures.
Current report
● Higher sales volumes (+1%)
Current report
Organic sales for automotive OEM coatings decreased by a low single-digit percentage compared to the first quarter 2025 driven by lower indexed-based selling prices. Sales volumes were flat, including share gains, which outpaced the decline in global automotive industry production by about 300 basis points. Margins in the first quarter were negatively impacted by regional mix as China automotive production dropped in comparison to a particularly high level in the first quarter of last year. Global auto industry production in the second quarter is expected to be flat compared to the prior-year quarter with year over year declines in Europe and North America offset by growth in Asia Pacific and Latin America.
Current report
Segment income was $193 million, a decrease of 10% versus the prior year, driven by lower index-based selling prices and unfavorable sales mix, partially offset by the impact of cost-control actions.
Current report
Middle East Conflict and Price Increases
Current report
In the first quarter 2026, a military conflict commenced in the Middle East involving the United States, Israel and Iran. Although we do not have material operations in the Middle East, we continue to assess the impact of the conflict. In recent weeks, the global petrochemical, energy and transportation markets have experienced significant volatility and supply constraints, driven by factors outside the control of individual suppliers or manufacturers. This is resulting in higher costs for raw materials, energy, logistics and packaging across the coatings value chain. Considering our capabilities and assuming a macro environment with petrochemical feedstock prices at the spot price during April and May, the impact to PPG is expected to be a mid-single-digit percentage increase in the cost of goods sold for the remainder of the year. To ensure continuity of supply and service for customers worldwide, PPG has begun implementing a price increase of up to 20% across all product lines and services on a customer-by-customer basis or as existing contracts allow. Certain product categories, technologies and regions may require higher price adjustments to fully offset current cost inflation, and additional price increases may occur in the future as market conditions continue to evolve.
Current report
Cash from operating activities for the three months ended March 31, 2026 was $33 million and cash used for operating activities for the three months ended March 31, 2025 was $18 million. The $51 million increase was primarily due to higher income from continuing operations and lower increases in working capital compared to the prior year.
Current report
Cash used for financing activities for the three months ended March 31, 2026 was $334 million and cash from financing activities for the three months ended March 31, 2025 was $698 million. The $1,032 million increase in cash used for financing activities was primarily due to net debt activity, including the repayment of the $700 million 1.2% notes, which matured in the quarter.
Removed paragraphs (44)
Previous report
Net sales increased $50 million due to the following:
Previous report
● Favorable foreign currency translation (+2%)
Previous report
Cost of sales, exclusive of depreciation and amortization, increased $45 million primarily due to higher sales volumes and the unfavorable impact of foreign currency translation, partially offset by divestitures.
Previous report
Selling, general and administrative expense decreased $24 million primarily due to cost-control measures and the impact of divestitures, partially offset by overhead cost inflation, the unfavorable impact of foreign currency translation, and the cost of providing transition services related to the recently divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transition services agreements.
Previous report
Depreciation expense increased $17 million primarily due to higher accelerated depreciation related to approved restructuring actions.
Previous report
Other charges/(income), net increased by $24 million primarily due to net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment and higher net foreign currency translation expense, partially offset by gains recognized on the sale of non-core assets, a sales and use tax refund received during the third quarter 2025, and income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business.
Previous report
Net sales decreased $155 million due to the following:
Previous report
Cost of sales, exclusive of depreciation and amortization, decreased by $36 million primarily due to divestitures and increased manufacturing productivity, partially offset by increases in sales volumes.
Previous report
Selling, general and administrative expense decreased by $22 million primarily due to cost-control measures and divestitures, partially offset by overhead cost inflation and the cost of providing transition services related to the recently divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transition services agreements.
Previous report
Depreciation expense increased by $24 million primarily due to higher accelerated depreciation related to approved restructuring actions.
Previous report
Other charges/(income), net decreased by $5 million primarily due to income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business, gains recognized on the sale of non-core assets, the absence of a second quarter 2024 non-cash loss on the sale of the traffic solutions business in Argentina and a sales and use tax refund received in the third quarter 2025, partially offset by impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment and higher net foreign currency translation expense.
Previous report
(d)In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Other charges/(income), net on the condensed consolidated statement of income. Net loss of $12 million related to the impairment charge was attributable to noncontrolling interests.
Previous report
(e)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges/(income), net in the condensed consolidated statement of income.
Previous report
● Lower sales volumes (-2%)
Previous report
Segment income of $184 million was relatively unchanged from the prior year, with higher selling prices, cost-control actions and favorable foreign currency translation offset by the business divestiture and lower sales volumes.
Previous report
Global Architectural Coatings net sales decreased due to the following:
Previous report
● Lower sales volumes (-2%)
Previous report
● Unfavorable foreign currency translation (-1%)
Previous report
Segment income was $462 million, a decrease of 18% versus the prior year, driven by lower sales volumes, raw material and other cost inflation, divestitures and the unfavorable impact of foreign currency translation, partially offset by higher selling prices and cost-control actions.
Previous report
● Higher selling prices (+4%)
Previous report
● Favorable foreign currency translation (+1%)
Previous report
Automotive refinish coatings organic sales decreased by a double-digit percentage versus the prior year quarter. Results were impacted by lower organic sales in the U.S. as distributors managed their order patterns toward the first half of 2025 to optimize their pricing, with the business delivering flat organic sales in the first half of 2025 in a negative market demand environment. Business demand is being suppressed by lower U.S. collision claims including the effect from significant increases in automotive insurance premiums. However, organic business sales year to date are outperforming the double-digit percentage declines in U.S. collision claims. Increases in insurance premiums were high over the past two years, but the rate of decline in claims is moderating.
Previous report
Traffic solutions organic sales increased by a mid-single-digit percentage compared to the prior year quarter driven by strong demand and share gains.
Previous report
Segment income was $272 million, a decrease of 11% versus the prior year, primarily due to lower automotive refinish sales volumes, partially offset by higher selling prices.
Previous report
● Higher sales volumes (+2%)
Previous report
Automotive refinish coatings organic sales decreased by a mid-single-digit percentage year over year due to lower sales volumes, partially offset by higher selling prices. On a year-to-date basis, the automotive refinish coatings business outperformed lower U.S. industry collision claims.
Previous report
Aerospace coatings organic sales increased by a double-digit percentage year over year, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs increased to approximately $310 million.
Previous report
Protective and marine coatings organic sales increased by a double-digit percentage year over year, including higher sales volumes in the United States and the Asia Pacific region. Increased sales volumes were driven by share gains, reflecting demand for PPG's sustainably advantaged products.
Previous report
Traffic solutions organic sales increased by a mid-single-digit percentage year over year driven by higher sales volumes, partially offset by lower selling prices. Traffic solutions benefited from strong demand and increased sales volumes across the U.S. and Canada.
Previous report
Industrial Coatings segment net sales were essentially flat due to the following:
Previous report
● Higher sales volumes (+4%)
Previous report
● Favorable foreign currency translation (+1%)
Previous report
● Divestiture-related sales (-4%)
Previous report
Automotive OEM coatings organic sales increased by a mid-single-digit percentage due to higher sales volumes, partially offset by lower selling prices. Sales volumes increased in all regions, including share gains in Brazil, and outpaced higher automotive industry production. In China, automotive industry retail sales increased during the third quarter and exports have grown year to date compared to the prior year.
Previous report
Specialty products organic sales were flat compared to the prior-year quarter with higher sales volumes in Europe offset by lower sales volumes in the United States.
Previous report
Segment income was $233 million, an increase of 17% versus the prior year, driven by higher sales volumes, cost-control actions and manufacturing efficiencies, partially offset by lower index-based selling prices and the unfavorable impact of the divestiture of the silicas products business.
Previous report
● Divestiture-related sales (-4%)
Previous report
Automotive OEM coatings organic sales decreased slightly year over year. Sales volumes decreased in the U.S. and Europe, partially offset by sales volume growth in China and Latin America.
Previous report
In the industrial coatings business, organic sales decreased by a low single-digit percentage year over year, driven by lower index-based prices. Sales volumes increased slightly due to higher sales volumes in Latin America.
Previous report
Packaging coatings organic sales increased by a mid-single-digit percentage year over year due to higher sales volumes in all regions, partially offset by lower index-based prices.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (34)
Previous wording
Net sales were approximately $4.1 billion for the three months ended September 30, 2025, an increase of 1% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation, partially offset by the divestiture of the silicas products business and the architectural coatings business in Russia.
Current wording
Net sales were approximately $3.9 billion for the three months ended March 31, 2026, an increase of 7% compared to the prior year primarily due to the favorable impact of foreign currency translation and higher selling prices.
Previous wording
Income before income taxes was $556 million for the three months ended September 30, 2025, a decrease of $22 million compared to the prior year, primarily due to the unfavorable impact of wage and other cost inflation, divestitures and higher other charges/(income), partially offset by increased manufacturing productivity and cost-control measures.
Current wording
Income before income taxes was $517 million for the three months ended March 31, 2026, an increase of $15 million compared to the prior year, primarily due to higher selling prices, the favorable impact of foreign currency translation, and cost-control measures, partially offset by higher net interest costs and higher depreciation expense.
Previous wording
● Lower index-based selling prices (-1%)
Current wording
● Higher selling prices (+1%)
Previous wording
Both Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the nine months ended September 30, 2025 decreased year-over-year primarily due to raw material, wage and other cost inflation, divestitures and the unfavorable impact of foreign currency translation, partially offset by higher selling prices, cost-control actions, increased manufacturing productivity and lower adjusted weighted average common shares outstanding due to share repurchases.
Current wording
Both Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the three months ended March 31, 2026 increased year over year due to higher selling prices, the favorable impact of foreign currency translation, cost-control actions and lower adjusted weighted average common shares outstanding due to share repurchases.
Previous wording
PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items. PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share and the adjusted effective tax rate may not be comparable to similarly titled measures as reported by other companies.
Current wording
PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items along with segment income before interest, taxes, depreciation and amortization ("Segment EBITDA"). PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items along with segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate and segment EBITDA may not be comparable to similarly titled measures as reported by other companies.
Previous wording
(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges/(income), net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed consolidated statement of income and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the condensed consolidated statement of income.
Current wording
(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other income, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other income, net on the consolidated statement of income.
Previous wording
(c)Portfolio optimization includes gains and losses on the sale of non-core assets, including net gains in the first and third quarter 2025 and a loss recognized on the sale of the Company’s traffic solutions business in Argentina in the second quarter 2024, which are included in Other charges/(income), net in the condensed consolidated statement of income. Portfolio optimization also includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. There was no tax expense associated with the gains recognized on the sales of non-core assets in the first and third quarter 2025.
Current wording
(c)Portfolio optimization includes a $6 million charge related to the step‑up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. Portfolio optimization also includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income.
Previous wording
(f)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021.
Current wording
(d)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021, which is included in Other income, net on the condensed consolidated statement of income.
Previous wording
Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") decreased by a low single-digit percentage compared to the prior year quarter with higher selling prices more than offset by lower sales volumes. Overall demand for architectural coatings in Europe was lackluster, with declines primarily in western Europe partially balanced by organic sales growth in eastern Europe.
Current wording
Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") decreased by a low single-digit percentage compared to the prior year with higher selling prices more than offset by lower sales volumes. Overall demand for architectural coatings in Europe was mixed by country.
Previous wording
Architectural coatings - Latin America and Asia Pacific organic sales increased by a low single-digit percentage compared to the prior-year quarter driven by organic sales growth in the Latin America region. In Mexico, retail sales volumes were solid during the quarter, reflecting improving consumer demand, while project-related spending remained lower than the prior year stemming from economic uncertainty which has tempered government and business investment.
Current wording
Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage compared to the prior-year quarter driven by strength in Latin America. In Mexico, retail sales volumes were solid in the quarter, reflecting strong consumer demand, while project-related spending recovered somewhat with increased government and local investment. Economic uncertainty continues to temper foreign direct business investment.
Previous wording
In the fourth quarter of 2025, strong retail sales and modest recovery of project-related spending in Mexico is expected while consumer sentiment in Europe is anticipated to remain soft. Quarterly aggregate organic sales for the segment are expected to be in the range of flat to a positive low single-digit percentage compared to the fourth quarter 2024.
Current wording
In the second quarter of 2026, the company expects further year-over-year strengthening in retail sales and a modest recovery of project-related spending in Mexico, while consumer sentiment in Europe is anticipated to remain mixed. Quarterly aggregate organic sales for the segment are expected to be in the range of flat to a positive low single-digit percentage compared to the second quarter 2025.
Previous wording
Aerospace coatings organic sales increased by a double-digit percentage compared to the prior-year quarter, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs increased, even with improved manufacturing output stemming from growth-related investments. Global international and domestic air travel levels increased year over year, and combined are now above pre-pandemic levels. As demand for PPG's technology-advantaged products grows, the Company remains focused on debottlenecking and further expanding manufacturing capabilities to drive additional sales volume and earnings growth.
Current wording
Aerospace coatings organic sales increased by a double-digit percentage compared to the first quarter 2025, led by higher selling prices and sales volumes. Demand is robust, and customer order backlogs remained strong, even with improved manufacturing output stemming from growth-related debottlenecking investments. Global international and domestic air travel improved year over year, and combined are above pre-pandemic levels. As demand for our technology-advantaged products grows, the company is focused on further manufacturing debottlenecking and capacity expansion through greenfield investment to drive additional volume growth in this resilient business.
Previous wording
Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior-year quarter driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.
Current wording
Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior-year first quarter driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.
Previous wording
Segment income was $902 million, an increase of 2% versus the prior year, primarily due to higher selling prices, partially offset by lower automotive refinish sales volumes and raw material, wage and other cost inflation.
Current wording
Segment income was $288 million, an increase of 5% versus the prior year, primarily due to higher selling prices, partially offset by the impact of lower automotive refinish sales volumes and higher growth-related investment spending in aerospace coatings and protective and marine coatings.
Previous wording
Continued strength is anticipated in aerospace coatings as well as protective and marine coatings. While automotive refinish coatings continues to gain share through demand for the Company's bundled coatings and services business model, lower organic sales are anticipated due to lower industry demand and lighter sales volumes stemming from customer order patterns. Traffic solutions is expected to follow typical seasonal trends and is well positioned to continue to benefit in the near term from increased U.S. infrastructure spending. Fourth quarter organic sales for the segment are anticipated to within the range of down by a low single-digit percentage to flat compared to the fourth quarter 2024.
Current wording
We anticipate continued strength in aerospace coatings as well as protective and marine coatings. While automotive refinish coatings continues to gain share through demand for the company's bundled coatings and digital services business model, we expect lower organic sales year over year in the second quarter due to customer order patterns in 2025. Automotive refinish coatings organic sales are anticipated to improve for PPG in the second half of the year. Traffic solutions is expected to follow typical seasonal trends. Second quarter organic sales for the segment are anticipated to be within the range of flat to a positive low single-digit percentage compared to the second quarter 2025.
Previous wording
Industrial Coatings segment net sales decreased due to the following:
Current wording
Industrial Coatings segment net sales increased due to the following:
Previous wording
In the industrial coatings business, organic sales decreased by a low single-digit percentage compared to the prior- year quarter due to lower sales volumes and lower indexed-based prices. In a challenging macro industrial environment, sales volumes were slightly lower as the business realized the benefit of share gains. Sales volumes were lower mostly in the U.S. and Europe partially offset by improvement in the Asia-Pacific region. Sales in several product categories were above prior-year levels, including solid growth in heavy duty equipment and transportation. The most pronounced weakness was in kitchen and bakeware, consumer electronics, and extrusion.
Current wording
First quarter industrial coatings organic sales declined by a low single-digit percentage compared to the prior year driven by higher selling prices which were more than offset by lower sales volumes, mostly in the U.S. Sales in some product categories were above prior-year levels, including growth in heavy duty equipment and coil. The most pronounced weakness was in kitchen and bakeware, consumer electronics and appliances.
Previous wording
Packaging coatings organic sales increased by a double-digit percentage compared to the prior-year quarter with higher sales volumes partially offset by lower index-based prices. Results reflect the positive momentum from share gains in the U.S. and Canada, the Asia Pacific region and Europe, including those in aided by expanding regional regulations. Globally, beverage and food packaging demand is solid, and PPG sales volume growth is outpacing the market.
Current wording
First quarter organic sales in packaging coatings increased by a double-digit percentage compared to the prior year, with higher sales volumes partially offset by lower index-based prices. Results reflect the positive momentum from share gains in the U.S. and Canada, Asia Pacific and Europe, aided by expanding European regulations. Globally, beverage and food packaging demand is solid, and PPG sales volume growth is expected to outpace the market.
Previous wording
The Industrial Coatings segment is expected to outperform the market in the fourth quarter, with share gains in automotive OEM, packaging and industrial coatings yielding benefits. As a result, fourth quarter aggregate organic sales for the segment are anticipated to be in the range of flat to a positive low single-digit percentage compared to the fourth quarter 2024.
Current wording
Our share gains in automotive OEM coatings and packaging coatings are yielding benefits, and we expect to outperform the respective markets again in the second quarter. As a result, aggregate organic sales for the segment are anticipated to be in the range of flat to a positive low single-digit percentage compared to the second quarter 2025 driven by flat selling prices and higher sales volumes.
Previous wording
PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs. The current global macroeconomic environment is highly dynamic, and we continue to monitor changes to tariffs and the corresponding impacts on our business. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during the first nine months of 2025. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions.
Current wording
PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs. The current global macroeconomic environment is highly dynamic, and we continue to monitor changes to tariffs and the corresponding impacts on our business. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during the first three months of 2026. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions.
Previous wording
PPG had cash and short-term investments totaling $1.9 billion and $1.4 billion at September 30, 2025 and December 31, 2024, respectively.
Current wording
PPG had cash and short-term investments totaling $1.6 billion and $2.2 billion at March 31, 2026 and December 31, 2025, respectively.
Previous wording
Cash from operating activities - continuing operations
Current wording
Cash from operating activities
Previous wording
Cash used for investing activities - continuing operations
Current wording
Cash used for investing activities
Previous wording
Cash used for investing activities - continuing operations for the nine months ended September 30, 2025 and 2024 was $417 million and $501 million, respectively. The $84 million decrease in cash used for investing activities was primarily due to lower capital expenditures compared to the prior year.
Current wording
Cash used for investing activities for the three months ended March 31, 2026 and 2025 was $279 million and $168 million, respectively. The $111 million increase in cash used for investing activities was primarily due to business acquisitions in the current year.
Previous wording
Total capital spending is expected to be approximately $725 million to $775 million in 2025 in support of future organic growth opportunities.
Current wording
Total capital spending is expected to be approximately $650 million to $700 million in 2026 in support of future organic growth opportunities.
Previous wording
Cash used for financing activities - continuing operations
Current wording
Cash used for financing activities
Previous wording
In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan"). The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million. In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million. In January 2025, PPG borrowed the additional €300 million.
Current wording
In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan"). The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million. In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million. In January 2025, PPG borrowed the additional €300 million. In January 2026, the Term Loan was amended to extend its maturity. Based on this amendment, the Term Loan terminates and all amounts outstanding are payable in January 2029.
Previous wording
In July 2023, PPG amended and restated its five-year credit agreement (the "Credit Agreement") dated as of August 30, 2019, extending the term through July 2028. In October 2025, PPG amended the Credit Agreement to extend its maturity as to certain commitments. The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of September 30, 2025 and December 31, 2024.
Current wording
In October 2025, PPG amended its five-year credit agreement (the "Credit Agreement") dated as of August 30, 2019 to extend its maturity. The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of March 31, 2026 and December 31, 2025.
Previous wording
The Term Loan and the Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan and the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of September 30, 2025, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 47%.
Current wording
The Term Loan and the Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan and the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of March 31, 2026, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 45%.
Previous wording
The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were no commercial paper borrowings outstanding as of September 30, 2025 and December 31, 2024.
Current wording
The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. Commercial paper borrowings outstanding under the Credit Agreement were $567 million as of March 31, 2026 and zero as of December 31, 2025.
Previous wording
In June 2025, PPG's €300 million 1.875% notes matured, and the Company repaid this obligation using cash on hand.
Current wording
In March 2026, PPG's $700 million 1.2% notes matured, and the Company repaid this obligation using cash on hand.
Previous wording
Aggregate restructuring savings were approximately $20 million in the third quarter 2025. Total restructuring savings are expected to be approximately $75 million in 2025. In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 6, “Business Restructuring” in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs. We expect cash outlays related to restructuring actions of approximately $80 million to $100 million in 2025.
Current wording
Aggregate restructuring savings were approximately $20 million in the first quarter 2026. Total restructuring savings are expected to be approximately $60 million in 2026. In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 5, “Business Restructuring” in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs. We expect cash outlays related to restructuring actions of approximately $80 million to $100 million in 2026.
Previous wording
Comparing spot exchange rates at September 30, 2025 and at December 31, 2024, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso and the euro. As a result, consolidated net assets at September 30, 2025 increased by $849 million compared to December 31, 2024.
Current wording
Comparing spot exchange rates at March 31, 2026 and at December 31, 2025, the U.S. dollar was relatively stable against the currencies of many countries within the regions PPG operates, resulting in no impact to consolidated net assets at March 31, 2026 compared to December 31, 2025.
Previous wording
Comparing average exchange rates during the first nine months of 2025 to those of the first nine months of 2024, the U.S. dollar strengthened against the currencies of many countries where PPG operates, including the Mexican peso. This had an unfavorable impact on Income before income taxes for the nine months ended September 30, 2025 of $19 million from the translation of these foreign earnings into U.S. dollars.
Current wording
Comparing average exchange rates during the first three months of 2026 to those of the first three months of 2025, the U.S. dollar weakened against the currencies of many countries where PPG operates, including the Mexican peso, partially offset by strengthening against the euro. This had an favorable impact on Income before income taxes for the three months ended March 31, 2026 of $29 million from the translation of these foreign earnings into U.S. dollars.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.
Previous report — wording carried elsewhere
Both Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the three months ended September 30, 2025 increased year over year due to higher selling prices, cost-control actions, increased manufacturing productivity and lower adjusted weighted average common shares outstanding due to share repurchases, partially offset by wage and other cost inflation and divestitures.
Previous report — wording carried elsewhere
Architectural coatings – EMEA organic sales decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices. Overall demand for architectural coatings in Europe was lackluster.
Previous report — wording carried elsewhere
Architectural coatings - Latin America and Asia Pacific organic sales decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices.
Previous report — wording carried elsewhere
Performance Coatings net sales increased due to the following: