olivLaw · US equity research
PPG Industries, Inc. PPG
Paints, Varnishes, Lacquers, Enamels & Allied Prods · SIC 2851 · Vertical: Chemicals and allied products (SIC 28xx)
PPG Industries is a global maker of paints, coatings and specialty products, with net sales of about 15.9 billion USD in 2025. In the second quarter of 2026 net sales rose 7% and organic sales rose 4%. The company reaffirmed its full-year 2026 adjusted EPS guidance range of 7.70 to 8.10 USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, PPG Industries, Inc. (PPG) stock was 127.27 USD (+4.97% on the day), with market capitalisation 28.1 bn USD, P/E 18.2 on diluted EPS of 7.00 USD over the last 12 months, dividend yield 2.26%, beta 1.00, 52-week range 94.34–131.56 USD. Latest reported quarter (Q3 2026): revenue of 4.4 bn USD (+6.6% YoY), net income of 451.0 m USD (−0.4% YoY), diluted EPS 2.02 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.0
- overbought (≥ 70)
- Bollinger (20, 2)
- 97.90 – 126.35
- above the upper band · %B 1.03 · band width 25.4%
- SMA 50 / 200
- 109.43 / 112.66
- mixed trend
- MACD (12, 26, 9)
- 4.32 / 2.53
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +20.9% | −1.1% | +22.0 pp | — |
| 3 months | +6.8% | −0.5% | +7.3 pp | — |
| 6 months | +14.1% | +4.4% | +9.7 pp | — |
| Year to date | +24.2% | +12.3% | +11.9 pp | — |
| 1 year | +34.1% | +13.5% | +20.5 pp | +28.5% |
| 3 years | −0.8% | +76.4% | −77.2 pp | +48.6% |
| 5 years | −22.0% | +63.7% | −85.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.7 bn | 3.7 bn | 4.2 bn | 4.1 bn | 3.9 bn | 3.9 bn | 4.5 bn | 4.4 bn |
| Cost of revenue | 2.2 bn | 2.1 bn | 2.4 bn | 2.4 bn | 2.3 bn | 2.3 bn | 2.7 bn | 2.6 bn |
| SG&A | 835.0 m | 838.0 m | 872.0 m | 824.0 m | 905.0 m | 885.0 m | 931.0 m | 876.0 m |
| Operating income | — | 607.0 m | 743.0 m | 689.0 m | — | 636.0 m | 743.0 m | 757.0 m |
| Depreciation & amortisation | 119.0 m | 121.0 m | 135.0 m ≈ | 138.0 m ≈ | 134.0 m | 132.0 m | 134.0 m ≈ | 134.0 m ≈ |
| Interest expense | 57.0 m | 56.0 m | 62.0 m | 65.0 m | 58.0 m | 61.0 m | 71.0 m | 67.0 m |
| Pre-tax income | 81.0 m | 502.0 m | 598.0 m | 556.0 m | 389.0 m | 517.0 m | 569.0 m | 631.0 m |
| Income tax | 70.0 m | 122.0 m | 140.0 m | 118.0 m | 78.0 m | 132.0 m | 127.0 m | 153.0 m |
| Net income | -280.0 m | 373.0 m | 450.0 m | 453.0 m | 300.0 m | 382.0 m | 437.0 m | 451.0 m |
| Diluted EPS | -1.20 ≈ | 1.63 | 1.98 | 2.00 | 1.33 ≈ | 1.70 | 1.95 | 2.02 |
| Operating cash flow | 346.0 m | -18.0 m | 387.0 m ≈ | 685.0 m ≈ | 887.0 m | 33.0 m | 559.0 m ≈ | 566.0 m ≈ |
| Capex | 208.0 m | 209.0 m | 121.0 m ≈ | 147.0 m ≈ | 301.0 m | 196.0 m | 113.0 m ≈ | 155.0 m ≈ |
| Dividends paid | 158.0 m | 154.0 m | 154.0 m ≈ | 160.0 m ≈ | 160.0 m | 159.0 m | 158.0 m ≈ | 165.0 m ≈ |
| Share repurchases | 241.0 m | 394.0 m | 146.0 m ≈ | 147.0 m ≈ | 103.0 m | 96.0 m | 79.0 m ≈ | 147.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 18 percentile of its own 44-quarter history (min 14.8, median 23.9, max 33.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 15.4 bn | 15.1 bn | 13.8 bn | 16.8 bn | 15.6 bn | 16.2 bn | 15.8 bn | 15.9 bn |
| Revenue YoY | +4.2% | −1.5% | −8.7% | +21.5% | −7.1% | +4.0% | −2.4% | +0.2% |
| Net income | 1.3 bn | 1.2 bn | 1.1 bn | 1.4 bn | 1.0 bn | 1.3 bn | 1.1 bn | 1.6 bn |
| Net income YoY | −15.9% | −7.3% | −14.8% | +35.9% | −28.7% | +23.8% | −12.1% | +41.2% |
| Diluted EPS | 5.47 | 5.22 | 4.45 | 6.01 | 4.32 | 5.35 | 4.75 | 6.94 |
| Diluted EPS YoY | −11.5% | −4.6% | −14.8% | +35.1% | −28.1% | +23.8% | −11.2% | +46.1% |
| net % | 8.7% | 8.2% | 7.7% | 8.6% | 6.6% | 7.8% | 7.0% | 9.9% |
| Free cash flow | 1.1 bn | 1.7 bn | 1.8 bn | 1.2 bn | 477.0 m | 1.9 bn | 699.0 m | 1.2 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.2 bn USD
- Financial debt
- 7.3 bn USD
- Net debt
- 5.1 bn USD
- Equity
- 8.1 bn USD
- Total assets
- 22.1 bn USD
- Debt / equity
- 0.90x
- Current ratio
- 1.62x
- ROE
- 20.9%
- ROA
- 7.6%
- FCF margin
- 7.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 13.8 bn | 16.8 bn | 15.6 bn | 16.2 bn | 15.8 bn | 15.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 7.8 bn | 10.3 bn | 10.0 bn | 9.7 bn | 9.3 bn | 9.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 6.1 bn ≈ | 6.5 bn ≈ | 5.6 bn ≈ | 6.6 bn ≈ | 6.6 bn ≈ | 6.6 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Research & development | 401.0 m | 463.0 m | 457.0 m | 446.0 m | 447.0 m | 446.0 m | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 3.4 bn | 3.8 bn | 3.0 bn | 3.4 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 2.1 bn | 2.2 bn | 2.0 bn | 2.7 bn | — | — | SEC (XBRL)· 15 Feb 2024verified |
| Depreciation & amortisation | 509.0 m | 561.0 m | 502.0 m | 514.0 m | 492.0 m | 528.0 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 2.6 bn ≈ | 2.7 bn ≈ | 2.5 bn ≈ | 3.2 bn ≈ | — | — | SEC (XBRL)· 15 Feb 2024derived |
| Interest expense | 138.0 m | 121.0 m | 167.0 m | 247.0 m | 241.0 m | 241.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Pre-tax income | 1.4 bn | 1.8 bn | 1.4 bn | 1.7 bn | 1.9 bn | 2.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 291.0 m | 374.0 m | 320.0 m | 428.0 m | 475.0 m | 458.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 1.1 bn | 1.4 bn | 1.0 bn | 1.3 bn | 1.1 bn | 1.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 4.45 | 6.01 | 4.32 | 5.35 | 4.75 | 6.94 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 237.9 m | 239.4 m | 237.3 m | 237.2 m | 234.9 m | 227.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividend per share | 2.10 | 2.26 | 2.42 | 2.54 | 2.66 | 2.78 | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.8 bn | 1.0 bn | 1.1 bn | 1.5 bn | 1.3 bn | 2.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 2.4 bn | 2.7 bn | 2.8 bn | 2.6 bn | 2.5 bn | 2.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 1.7 bn | 2.2 bn | 2.3 bn | 1.9 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 6.8 bn | 6.8 bn | 7.2 bn | 7.4 bn | 6.6 bn | 8.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 3.1 bn | 3.4 bn | 3.3 bn | 3.5 bn | 3.5 bn | 4.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 5.1 bn | 6.2 bn | 6.0 bn | 6.1 bn | 5.7 bn | 6.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 2.4 bn | 2.8 bn | 2.4 bn | 2.3 bn | 1.9 bn | 2.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 19.6 bn | 21.4 bn | 20.7 bn | 21.6 bn | 19.4 bn | 22.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 3.8 bn | 4.4 bn | 4.1 bn | 4.2 bn | 3.7 bn | 4.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 578.0 m | 9.0 m | 313.0 m | 306.0 m | 939.0 m | 706.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 5.2 bn | 6.6 bn | 6.5 bn | 5.7 bn | 4.9 bn | 6.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 4.8 bn | 4.8 bn | 4.7 bn | 5.1 bn | 5.0 bn | 4.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 13.7 bn | 14.9 bn | 14.0 bn | 13.6 bn | 12.5 bn | 14.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 5.8 bn | 6.4 bn | 6.7 bn | 8.0 bn | 7.0 bn | 8.1 bn | SEC (XBRL)· 19 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.1 bn | 1.6 bn | 963.0 m | 2.4 bn | 1.4 bn | 1.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 304.0 m | 371.0 m | 486.0 m | 516.0 m | 721.0 m | 778.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 1.8 bn ≈ | 1.2 bn ≈ | 477.0 m ≈ | 1.9 bn ≈ | 699.0 m ≈ | 1.2 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -1.4 bn | -2.4 bn | -461.0 m | -556.0 m | 107.0 m | -700.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | -59.0 m | 93.0 m | -409.0 m | -1.6 bn | -1.4 bn | -545.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividends paid | 496.0 m | 536.0 m | 570.0 m | 598.0 m | 622.0 m | 628.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 0 | 210.0 m | 190.0 m | 86.0 m | 752.0 m | 790.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 63 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 28.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation68
- Balance sheet65
- Quality61
- Growth52
- Returns72
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 36.53 – 300.68 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)66.53 – 123.09 (Mid 87.64)WACC 8.4% · starting FCFF 1.5 bn USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 14.2%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E118.06 – 300.68 (Mid 201.09)18 companies used · median multiple 28.7x · quartiles 16.9x – 42.9xABT, ALNY, BMY, CF, CHD, CL, DD, ECL, EXEL, IDXX, KVUE, LYB, PFE, REGN, RPRX, UTHR, VRTX, ZTS
- Dividend discount (DDM)36.53 – 49.13 (Mid 41.90)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 63/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 9.4% | 48 (vs peers) | 10% |
| FCF conversion · Quality | 81.5% | 74 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 0.6% | 5 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 17.1% | 100 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.6x | 65 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 18.2x | 76 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.6% | 57 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.8% | 54 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 50.2% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial65/100 · 1/3 factors with a value
- Growth52/100 · 2/2 factors with a value
- Quality61/100 · 2/3 factors with a value
- Returns72/100 · 2/2 factors with a value
- Valuation68/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PPG INDUSTRIES INC (PPG). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 15.9 bn USD in 2025; YoY growth 0.2%; net margin 9.4%; ROE 19.3%.
The estimated value range is 66.53–123.09 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 87.64 USD, the price of 127.27 USD leaves a potential of -31.1% (value / price − 1) and a margin of safety of -45.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 63/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 81.5%
- EPS CAGR 3Y: 17.1%
- P/E (TTM): 18.2x
- Payout ratio (FCF): 50.2%
What contradicts it
- Revenue CAGR 3Y: 0.6%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Chemicals and allied products (SIC 28xx) · same major group (2-digit SIC) · compared with 29 companies
Only companies with a capitalisation between 3.2 bn and 201.7 bn (within 8× of the company's); 606 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GILDGilead Sciences, Inc. | 216.4 bn | — | -22.3% | -12.5% | +2.4% | +39% / +128% |
| ABTAbbott Laboratories | 200.1 bn | 43.0 | 9.2% | 9.7% | +5.7% | −10% / +11% |
| PFEPfizer Inc | 175.5 bn | 43.9 | 4.4% | 6.3% | −1.6% | +20% / +1% |
| VRTXVertex Pharmaceuticals Inc | 139.2 bn | 35.3 | 20.8% | 30.7% | +8.9% | +27% / +55% |
| BMYBristol-Myers Squibb Company | 131.2 bn | 14.2 | 44.1% | 18.5% | −0.2% | +30% / +30% |
| MRNAModerna, Inc. | 103.2 bn | — | -39.0% | -141.4% | −39.9% | +895% / +233% |
| ECLEcolab Inc. | 88.4 bn | 42.9 | 20.7% | 12.0% | +2.2% | +14% / +64% |
| CLColgate-Palmolive Company | 78.5 bn | 38.7 | 358.9% | 9.6% | +1.4% | +23% / +25% |
| APDAir Products And Chemicals, Inc. | 71.0 bn | — | -0.3% | -0.4% | −0.5% | +22% / +18% |
| IDXXIdexx Laboratories Inc | 55.0 bn | 47.1 | 68.9% | 25.4% | +10.4% | −7% / +50% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.4 | 6.6% | 3.6% | +4.3% | +56% / +326% |
| RVMDRevolution Medicines, Inc. | 43.2 bn | — | -93.6% | -946.8% | unavailable | +157% / +756% |
| BIIBBiogen Inc. | 37.6 bn | 108.8 | 1.9% | 3.4% | +2.2% | +40% / +9% |
| KVUEKenvue Inc. | 37.1 bn | 21.9 | 16.3% | 10.9% | −2.1% | +34% / +4% |
| ZTSZoetis Inc. | 36.9 bn | 14.7 | 64.4% | 27.5% | +2.3% | −30% / −50% |
| PPGPpg Industries Inc | 28.1 bn | 18.2 | 19.3% | 9.4% | +0.2% | +34% / −1% |
| ROIVRoivant Sciences Ltd. | 27.6 bn | — | -6.2% | -3,535.0% | −71.6% | +84% / +300% |
| CHDChurch & Dwight Co., Inc. | 26.4 bn | 34.5 | 17.8% | 12.4% | +1.6% | +32% / +16% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 25.9 bn | 23.0 | 19.1% | 38.6% | +10.6% | +25% / +154% |
| INSMInsmed Inc | 24.1 bn | — | -72.5% | -39.9% | +66.7% | −47% / +340% |
| DOWDow Inc. | 23.7 bn | — | -4.3% | -1.7% | −7.0% | +37% / −37% |
| VTRSViatris Inc. | 22.1 bn | — | -23.6% | -23.9% | −3.0% | +80% / +109% |
| IFFInternational Flavors & Fragrances Inc | 22.0 bn | 122.1 | 1.3% | 1.6% | −5.2% | +26% / +16% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.6 bn | 8.1 | 126.6% | 52.8% | +65.2% | −64% / −4% |
1- and 3-year price returns: for PPG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 73.34 Total return -41% · Per year -41% | 129.91 Total return 4% · Per year 4% | 196.03 Total return 57% · Per year 57% |
| 3 years | 65.64 Total return -44% · Per year -17% | 131.35 Total return 10% · Per year 3% | 218.41 Total return 80% · Per year 22% |
| 5 years | 58.75 Total return -46% · Per year -12% | 132.81 Total return 16% · Per year 3% | 243.35 Total return 107% · Per year 16% |
- Exit P/E± 32.84
- Net margin± 22.99
- Annual revenue growth± 19.61
- Annual dilution± 1.93
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
In brief
PPG Industries is a global maker of paints, coatings and specialty products, with net sales of about 15.9 billion USD in 2025 1. In the second quarter of 2026 net sales rose 7% and organic sales rose 4% 23. The company reaffirmed its full-year 2026 adjusted EPS guidance range of 7.70 to 8.10 USD 3.
SWOT
Strengths
- A diversified product portfolio and wide international presence reduce dependence on any single market or region 1.
- Strong technology positions in aerospace, protective and marine and packaging, where the company has gained share 13.
- A demonstrated ability to pass cost increases to customers through pricing, with management describing recovery as faster than before 3.
Weaknesses
Opportunities
Risks
- Raw material costshigh
Rising or scarce raw materials could weigh on margins if they cannot be passed on to customers quickly 1.
- Weak demand in Europe and industrymedium
If demand in Europe and global industrial markets stays weak, sales in the affected segments could decline 1.
- Currency exposuremedium
Exchange-rate movements affect dollar-denominated sales and profit, and the effect can be significant over a short period 1.
- Litigation and environmental liabilitiesmedium
The company is involved in lawsuits and environmental claims, whose outcomes are hard to predict and can be costly 12.
- Tax changeslow
Changes to tax regimes, including the global minimum tax, could raise the effective tax rate and reduce profit 1.
Investment thesis
What would need to be true (bull case)
- Organic sales growth for six consecutive quarters and share gains in several businesses suggest real momentum, if the trend persists 3.
- Fast price recovery against cost inflation, and the reaffirmed 2026 guidance, could support margins in the near term 3.
- The position in aerospace and packaging could bring durable growth, especially if demand in these niches stays solid 13.
What would break the thesis
- Income before income taxes fell in the second quarter of 2026, and the automotive refinish problems show not all segments are growing together 2.
- If cost inflation outpaces price recovery, margins could stay under pressure, particularly in Industrial Coatings 3.
- Weakness in Europe and trade uncertainty could slow growth if they persist 1.
What to watch
- Recovery in automotive refinish sales and stabilization of Performance Coatings marginQ3 2026
- Full coverage of cost of goods sold inflation through price, targeted for the fourth quarterQ4 2026
- Development of European demand and the effect of tariffs on supply chains2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
The business
Research and development costs were about 2.8% of annual net sales in 2025, focused on sustainability and productivity 1. Raw materials such as resins, solvents and titanium dioxide are the largest production cost component, and their prices fluctuate with energy and global supply and demand 1. International operations add currency and trade risks, which the company seeks to offset through a diversified geographic footprint 1.
Segments
Performance Coatings
The segment supplies aerospace, protective and marine, automotive refinish and traffic solutions coatings 1. In the second quarter of 2026 organic sales grew 3%, led by aerospace and protective and marine, while automotive refinish sales volumes fell 3. Segment EBITDA margin declined by 300 basis points, and management expects margin expansion in the second half of 2026 3.
Industrial Coatings
The segment supplies automotive OEM coatings, packaging coatings and industrial coatings, plus specialty products such as Teslin and OLED materials 1. In the second quarter of 2026 sales volumes rose 5%, driven by share gains in packaging and automotive OEM 3. Segment EBITDA margin fell by 70 basis points due to cost inflation, and index-based pricing timing could add pressure in the second half 3.
Market context
The coatings industry is highly competitive, with a few large global firms and many regional producers 1. Demand varies by segment and region: aerospace and protective and marine grew at double-digit rates in 2025, while automotive refinish was hit by fewer collision claims in the United States 1. Global automotive OEM production rose about 4% in 2025, with stronger demand in Asia and Latin America and weaker demand in the United States and Europe 1.
Trends
- Cost inflation and price recoverymixed
Raw materials, energy and logistics have become more expensive, and PPG raised prices to offset them, with price realization described as faster than in past cycles 3. If the recovery holds, margins could recover, while otherwise cost pressure could persist.
- Aerospace and packaging demandtailwind
Aerospace coatings grew at double-digit organic rates and packaging coatings grew at double-digit rates on share gains 3. If this demand stays robust, it could support group growth even where other regions are weak.
- Weakness in automotive refinishheadwind
Automotive refinish coatings sales declined in the second half of 2025 and in the second quarter of 2026, due to fewer collision claims and a difficult order pattern 13. Management says stabilization could come in the second half of 2026.
Competitive position
In each segment PPG competes with the largest global coatings companies, most of which have global operations, and with many regional firms 1. Key competitive factors include product performance, technology, quality, technical service, price, customer productivity and brand recognition 1. PPG also has alliances, such as with Asian Paints in India and Kansai Paints for Japanese automotive customers in North America and Europe 1.
Competition can reduce margins, lower volumes or force price cuts, which could weigh on results unless offset by innovation and service 1. The company's position in aerospace and protective coatings is one way it seeks to differentiate from the broader peer group 13.
- The Sherwin-Williams CompanySHW
Global competitor named in the architectural, performance and industrial segments of PPG's filing 1.
- Akzo Nobel N.V.
Major global competitor named across all three PPG segments, not US-listed 1.
- RPM International Inc.RPM
Competitor named in the Performance Coatings segment, particularly for protective and industrial coatings 1.
- Axalta Coating Systems Ltd.AXTA
Competitor named in Performance Coatings and Industrial Coatings, with an emphasis on automotive refinish and OEM coatings 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Is PPG Industries Stock Underperforming the Dow?Yahoo Finance — News · 14 Sept 2026 · EN
The latest news item in our archive is from 14 Sept 2026; the newest SEC filing is from 28 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report28 Oct 2026
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Apr 2026
- Current report28 Apr 2026Results of operations · Financial statements and exhibits
- Current report28 Apr 2026Departure or appointment of officers · Financial statements and exhibits
- Current report21 Apr 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report15 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement05 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / PPG Industries, Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / PPG Industries, Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / PPG Industries, Inc. · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.