PPG has reported stronger second-quarter sales and reaffirmed its full-year earnings guidance, despite softer-than-expected demand in its automotive refinish coatings business.
The global paints and coatings supplier recorded second-quarter net sales of US$4.5 billion, up seven per cent on the same period last year, driven by four per cent organic sales growth, higher volumes and improved selling prices. The company achieved organic growth across eight of its nine businesses, led by its aerospace coatings division.
Reported earnings per diluted share were US$1.96, while adjusted earnings per share edged up to US$2.23. Cash generated from operating activities reached approximately US$600 million year to date, more than US$220 million higher than a year earlier, as PPG continued to strengthen its balance sheet and return capital to shareholders through share buybacks.
PPG chairman and chief executive officer Tim Knavish said the company had now delivered its sixth consecutive quarter of organic sales growth despite a complex trading environment.
"I am proud to announce that PPG delivered its sixth consecutive quarter of organic sales growth, a solid increase of four per cent, with equal contributions from sales volumes and selling prices," Knavish said.
"We outpaced the industry by 300 basis points, achieving organic growth in all three segments and in eight of our nine businesses, demonstrating our ability to accelerate momentum in a complex and evolving environment."
For the automotive sector, the results were mixed. Performance Coatings sales increased seven per cent overall, supported by strong demand for aerospace, protective and marine coatings. However, automotive refinish coatings experienced a double-digit decline in organic sales as customer order patterns and a slower-than-expected recovery in insurance-related repair work weighed on demand.
Despite the weaker quarter, PPG expects automotive refinish coatings to return to growth during the second half of 2026, forecasting low to mid-single-digit organic sales growth as market conditions improve. The company also expects margin expansion in the business as recent pricing actions take effect.
Industrial Coatings also posted a seven per cent increase in sales, helped by market share gains in automotive original equipment manufacturer (OEM), industrial and packaging coatings. Automotive OEM coatings outperformed global vehicle production, with PPG estimating it exceeded industry production growth by around 500 basis points.
Looking ahead, PPG reaffirmed its full-year adjusted earnings per share guidance of US$7.70 to US$8.10, citing continued share gains, pricing initiatives and confidence in demand across most of its businesses, particularly aerospace and packaging coatings.