PPG INDUSTRIES INC

Previous wording

Net sales were approximately $4.5 billion for the three months ended June 30, 2026, an increase of 7% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation.

Current wording

Net sales were approximately $4.4 billion for the three months ended September 30, 2026, an increase of 7% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation and acquisitions.

Previous wording

Income before income taxes was $569 million for the three months ended June 30, 2026, a decrease of $29 million compared to the prior year. Earnings growth in the aerospace and architectural coatings Latin America businesses was offset by lower sales volumes in automotive refinish coatings.

Current wording

Income before income taxes was $631 million for the three months ended September 30, 2026, an increase of $75 million compared to the prior year. Earnings growth in the aerospace, architectural coatings Latin America, and automotive refinish coatings businesses was partially offset by lower sales volumes in automotive OEM coatings.

Previous wording

Cost of sales, exclusive of depreciation and amortization, increased $255 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Current wording

Cost of sales, exclusive of depreciation and amortization, increased $163 million primarily due to raw material cost inflation, higher sales volumes and the unfavorable impact of foreign currency translation.

Previous wording

Selling, general and administrative expense increased $59 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Current wording

Selling, general and administrative expense increased $52 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by productivity actions.

Previous wording

Cost of sales, exclusive of depreciation and amortization, increased $388 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Current wording

Cost of sales, exclusive of depreciation and amortization, increased $551 million primarily due to raw material cost inflation, higher sales volumes and the unfavorable impact of foreign currency translation.

Previous wording

Selling, general and administrative expense increased $106 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Current wording

Selling, general and administrative expense increased $158 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by productivity actions.

Previous wording

Depreciation expense increased $22 million primarily due to higher capital spending in 2025.

Current wording

Depreciation expense increased $24 million primarily due to higher capital spending in 2025.

Previous wording

Other charges, net increased by $22 million primarily due to higher environmental remediation charges and the settlement of a legal matter.

Current wording

Other (income)/charges, net increased by $8 million primarily due to higher environmental remediation charges and the settlement of a legal matter.

Previous wording

Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the six months ended June 30, 2026 increased year over year due to higher organic sales, the favorable impact of foreign currency translation, cost-control actions and lower adjusted weighted average common shares outstanding due to share repurchases, partially offset by the impact of cost inflation.

Current wording

For the three and nine months ended September 30, 2026, Earnings per diluted share, continuing operations and Adjusted earnings per diluted share increased year over year primarily due to higher net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales"), the favorable impact of foreign currency translation and productivity actions, partially offset by the impact of cost inflation.

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, 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 charges, net on the 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)/charges, 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)/charges, net on the consolidated statement of income.

Previous wording

(c)Portfolio optimization 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. Portfolio optimization also includes charges related to the step-up of acquired inventory. These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025, which is included in Other charges, net on the condensed consolidated statement of income. There was no tax expense associated with that gain.

Current wording

(d)Portfolio optimization 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. Portfolio optimization includes a $3 million gain recognized in the third quarter of 2026 related to the sale of a non-core business, which is included in Other (income)/charges, net on the condensed consolidated statement of income. Portfolio optimization also includes charges related to the step-up of acquired inventory. These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025, which is included in Other (income)/charges, net on the condensed consolidated statement of income. There was no tax expense associated with that gain.

Previous wording

(d)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges, net in the condensed consolidated statement of income.

Current wording

(f)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the condensed consolidated statement of income.

Previous wording

(e)In the second quarter 2026, the Company settled a legal matter. The related charge is included in Other charges, net on the consolidated statement of income.

Current wording

(g)In the second quarter 2026, the Company settled a legal matter. The related charge is included in Other (income)/charges, net on the consolidated statement of income.

Previous wording

Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased by a low single-digit percentage compared to the prior year with higher selling prices partially offset by lower sales volumes. Overall demand for architectural coatings in Europe was mixed by country.

Current wording

Architectural coatings – EMEA organic sales increased by a low single-digit percentage compared to the prior year with higher selling prices partially 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 mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales were strong, and project-related sales improved compared to lower prior-year local business investment.

Current wording

Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage year over year driven by higher selling prices and volume growth in Latin America driven by strong retail sales and improved project-related sales in Mexico.

Previous wording

Segment income of $340 million was 22% higher than the prior year. The increase was driven by higher selling prices, favorable foreign currency translation and cost-control actions partially offset by cost of goods sold inflation.

Current wording

Segment income of $225 million was 22% higher than the prior year. The increase was driven by higher selling prices and productivity actions partially offset by cost of goods sold inflation.

Previous wording

Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales volumes were solid, reflecting strong consumer demand, while project-related spending improved with increased government and local investment.

Current wording

Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales volumes were solid, reflecting strong consumer demand, and project-related spending improved with increased government and local investment.

Previous wording

Segment income of $185 million was 16% 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, partially offset by the impact of inflation.

Current wording

Segment income of $565 million was 22% higher than the prior year. The increase was driven by higher selling prices, favorable foreign currency translation and productivity actions partially offset by the impact of inflation.

Previous wording

In the third 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, we expect higher prices and self-help actions to increase earnings. Quarterly aggregate organic sales for the segment are expected to be in the range of flat to growth of a low single-digit percentage compared to the third quarter 2025.

Current wording

In the fourth quarter of 2026, the company expects further year-over-year strengthening in retail sales in Mexico. While consumer sentiment in Europe is anticipated to remain mixed, we expect higher prices and productivity actions to increase earnings. Quarterly organic sales for the segment are expected to be in the range of flat to growth of a low single-digit percentage compared to the fourth quarter 2025.

Previous wording

Aerospace organic sales increased by a double-digit percentage compared to the second quarter 2025, led by higher selling prices and sales volumes. Demand is robust, and customer order backlogs remained strong.

Current wording

Aerospace organic sales increased by a double-digit percentage compared to the third quarter 2025, led by higher selling prices and sales volumes. Demand is robust, and customer order backlogs remained strong.

Previous wording

Protective and marine coatings organic sales increased by a double digit percentage compared to the prior-year second quarter driven by higher sales volumes and selling prices.

Current wording

Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior-year third quarter driven by higher sales volumes and selling prices.

Previous wording

Second quarter organic sales for the traffic solutions business increased by a mid-single-digit percentage compared to the prior-year.

Current wording

Third quarter organic sales for the traffic solutions business decreased by a mid-single-digit percentage compared to the prior-year.

Previous wording

Segment income was $229 million, an increase of 1% versus the prior year, driven by higher sales volumes, partially offset by raw material and other cost inflation.

Current wording

Segment income was $332 million, an increase of 22% versus the prior year, due to higher selling prices and sales volumes, partially offset by higher inflation of cost of goods sold.

Previous wording

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 and slower recovery in underlying industry demand.

Current wording

Automotive refinish coatings organic sales decreased by a high single-digit percentage versus the prior year. Results were impacted by lower organic sales in the first half of 2026, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half and slower recovery in underlying industry demand.

Previous wording

Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior-year 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 driven by higher sales volumes and selling prices. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably advantaged products.

Previous wording

Organic sales for the traffic solutions business increased by a mid-single-digit percentage compared to the prior-year driven by higher sales volumes.

Current wording

Organic sales for the traffic solutions business increased by a low single-digit percentage compared to the prior-year due to higher sales volumes and selling prices.

Previous wording

We anticipate continued strength in aerospace. Automotive refinish coatings organic sales are anticipated to improve in the second half of the year due to customer order patterns in 2025. Protective and marine coatings growth is expected to normalize as we lap prior year share gains, and traffic solutions will follow typical seasonal trends. In the third quarter, the company expects organic sales growth for the segment in the range of a mid-single-digit percentage to a high single-digit percentage year over year.

Current wording

In the fourth quarter 2026, we anticipate continued strength in aerospace. Automotive refinish coatings organic sales are anticipated to improve in the fourth quarter due to customer order patterns that were weighted to the first half 2025. Protective and marine coatings growth is expected to normalize as we lap prior year share gains, and traffic solutions will follow typical seasonal trends. In the fourth quarter, the company expects organic sales growth for the segment in the range of a low single-digit percentage to a mid-single-digit percentage year over year.

Previous wording

Automotive OEM coatings organic sales increased a low single-digit percentage, with mid-single-digit percentage sales volume growth, including share gains, outpacing the decline in global automotive industry production by about 500 basis points.

Current wording

Automotive OEM coatings organic sales decreased a low single-digit percentage, with share gains supporting a change in sales volume that outpaced global automotive industry production by approximately 100 basis points.

Previous wording

Second quarter industrial coatings organic sales improved a mid-single-digit percentage driven by sales volume and selling price growth in Asia Pacific, Europe and North America.

Current wording

Third quarter industrial coatings organic sales improved a high single-digit percentage due to sales volume and selling price growth in all regions.

Previous wording

Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20% on a two-year stacked basis, driven by share gains as customers adopt our leading technologies.

Current wording

Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20% on a two-year stacked basis, driven by share gains as customers adopt our technologies.

Previous wording

Organic sales for automotive OEM coatings increased by a low single-digit percentage compared to the prior year driven by higher sales volumes partially offset by lower indexed-based selling prices.

Current wording

Organic sales for automotive OEM coatings were flat compared to the prior year driven by higher sales volumes offset by lower indexed-based selling prices.

Previous wording

Industrial coatings organic sales increased by a low single-digit percentage compared to the prior year driven by higher selling prices and higher sales volumes.

Current wording

Industrial coatings organic sales increased by a mid-single-digit percentage compared to the prior year driven by higher selling prices and higher sales volumes.

Previous wording

Organic sales in packaging coatings increased by a double-digit percentage compared to the prior year, driven by higher sales volumes. Results reflect the positive momentum from share gains in the U.S. and Canada, Asia Pacific and Europe, aided by expanding European regulations.

Current wording

Organic sales in packaging coatings increased by a double-digit percentage compared to the prior year, driven by higher sales volumes. Results reflect the positive momentum from share gains in the U.S. and Canada, Asia Pacific and Europe, aided by expanding European sustainability regulations.

Previous wording

Segment income was $422 million, a decrease of 5% versus the prior year driven by cost inflation partially offset by manufacturing and overhead cost savings and volume growth.

Current wording

Segment income was $622 million, a decrease of 8% versus the prior year driven by cost of goods sold inflation partially offset by manufacturing and overhead cost savings and organic sales growth.

Previous wording

Our share gains in automotive OEM coatings, industrial coatings and packaging coatings are yielding benefits, and we expect to outperform the respective markets again in the third quarter. In the third quarter, the company expects organic sales for the segment in the range of flat to growth of a low single-digit percentage year over year.

Current wording

Our share gains in automotive OEM coatings, industrial coatings and packaging coatings are yielding benefits, and we expect to outperform the respective markets again in the fourth quarter. The company expects organic sales for the segment in the range of a low single-digit percentage decline to growth of a low single-digit percentage year over year.

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 six 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.

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 nine 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

In the first quarter of 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. Costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. The company has proactively made price adjustments globally and across all our businesses, resulting in a 2% selling price improvement in the second quarter. In the second quarter, this selling price improvement offset approximately 90% of the cost of goods sold inflation, and we currently anticipate that 100% of cost of goods sold inflation will be offset by higher selling prices and productivity initiatives by the fourth quarter.

Current wording

In the first quarter of 2026, a military conflict commenced in the Middle East. Although we do not have material operations in the Middle East, we continue to assess the impact of the conflict. Costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. The company has proactively made price adjustments globally and across all our businesses, resulting in a 3% selling price increase in the third quarter, fully offsetting inflation of cost of goods sold.

Previous wording

Cash from operating activities for the six months ended June 30, 2026 and 2025 was $592 million and $369 million, respectively. The $223 million increase was primarily due to improved working capital performance compared to the prior year.

Current wording

Cash from operating activities for the nine months ended September 30, 2026 and 2025 was $1,158 million and $1,054 million, respectively. The $104 million increase was primarily due to improved working capital performance compared to the prior year.

Previous wording

Cash used for investing activities for the six months ended June 30, 2026 and 2025 was $458 million and $288 million, respectively. The $170 million increase in cash used for investing activities was primarily due to business acquisitions in the current year.

Current wording

Cash used for investing activities for the nine months ended September 30, 2026 and 2025 was $653 million and $417 million, respectively. The $236 million increase in cash used for investing activities was primarily due to business acquisitions in the current year.

Previous wording

Cash used for financing activities for the six months ended June 30, 2026 and 2025 was $778 million and cash from financing activities for the six months ended June 30, 2025 was $37 million. The $815 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 first quarter 2026.

Current wording

Cash used for financing activities for the nine months ended September 30, 2026 and 2025 was $1,099 million and $269 million, respectively. The $830 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 first quarter 2026.