$PPG · PPG INDUSTRIES INC
PPG Industries filed its Q3 FY2026 10-Q, reporting net sales of $4.353B (+6.6% YoY), GAAP diluted EPS of $2.02, and net income attributable to PPG of $451M. Segment income totaled $757M, with Performance Coatings delivering $332M (+22% YoY) while Industrial Coatings declined to $200M (-14% YoY). Operating margin was 17.4%.
- Q3 net sales rose 6.6% YoY to $4.353B, driven by higher selling prices (+3%) and volumes (+2%).
- GAAP EPS from continuing operations was $2.13; diluted EPS attributable to PPG was $2.02.
- Operating margin reached 17.4% on income before taxes of $631M, up $75M YoY.
- Performance Coatings segment income jumped 22% YoY to $332M; Industrial Coatings fell 14% to $200M.
- Cash from operations from continuing operations was $1.16B for the nine months, up from $1.05B YoY.
PPG shares rose 5.61% to $119.80 in the regular session, reflecting a positive reaction to the 6.6% revenue growth and strong Performance Coatings segment results despite the Industrial Coatings margin compression.
PPG's divergent segment performance — 22% income growth in Performance Coatings versus 14% decline in Industrial Coatings — signals a portfolio in transition with aerospace and architectural strength offsetting auto OEM weakness.
PPG's 6.6% revenue growth and 17.4% operating margin reflect broad-based coatings demand recovery, with Asia Pacific (+10.2%) and Latin America (+9.6%) leading regional growth. The Performance Coatings strength contrasts with peers facing similar industrial end-market softness.
Industrial Coatings segment income dropped 14% YoY to $200M, with automotive OEM coatings volumes declining. Raw material cost inflation pressured cost of sales, which rose 6.7% to $2.59B. Discontinued operations posted a $22M loss in Q3 versus a $9M gain last year.