PPG shares rise 7.9% after hours after Q3 profit beat

PPG Industries Inc. (PPG) said on Oct. 27 that third-quarter adjusted earnings per share rose 6% to $2.25, above the $2.14 consensus estimate compiled by Finnhub. The company also raised the midpoint of its full-year 2026 adjusted EPS forecast.

Shares rose 7.9% in after-hours trading as of 5:20 p.m. ET, from a regular-session close of $113.45.

The results were disclosed in a press release furnished with a regulatory filing under Item 2.02. The Pittsburgh company sells paints, coatings and specialty products in more than 50 countries and reported net sales of $15.9 billion in 2025.

Here's how the company did:

• Adjusted EPS: $2.25 vs. $2.13 a year earlier, $2.14 expected, according to Finnhub
• Reported diluted EPS: $2.12 vs. $1.96 a year earlier
• Revenue: $4.35 billion vs. $4.08 billion a year earlier, $4.33 billion expected, according to Finnhub

Net sales rose 7% from a year earlier. Revenue was in line with the $4.33 billion estimate. Organic sales increased 5%, led by aerospace and architectural coatings in Latin America.

Chairman and CEO Tim Knavish said, "I am extremely encouraged by our performance as we delivered record third quarter EPS, an increase of +6% year over year." He added that the company's commercial actions fully offset cost of goods sold inflation during the quarter.

2026 guidance

PPG now expects full-year 2026 adjusted EPS of $7.90 to $8.10. The range is narrower than the $7.70 to $8.10 it gave on July 28.

For the fourth quarter, the company expects low single-digit percentage organic sales growth and adjusted EBITDA margin flat to up 100 basis points year over year.

Segment results

Global Architectural Coatings sales were $1,055 million, up 4%. Segment EBITDA rose 19% to $253 million, and the segment's EBITDA margin improved 300 basis points to 24.0%.

Performance Coatings sales were $1,554 million, up 10%, and organic sales rose 8%. Segment EBITDA increased 21% to $372 million.

Industrial Coatings sales were $1,744 million, up 5%. Segment EBITDA fell 11% to $251 million, and the company attributed the margin decline to inflation on cost of goods sold, partly offset by higher selling prices and sales volumes.

Cash and capital returns

The company said cash from operating activities was about $1.2 billion year to date, $100 million higher than a year earlier. It repurchased about $150 million of shares in the quarter and $320 million year to date. Net debt was $5.2 billion.

PPG will host a conference call on Oct. 28 at 8:00 a.m. ET to review the quarter.