PPG · PPG Industries, Inc.

Summary

PPG delivered modest growth in revenue, gross profit, and net income for Q1 2026, supported by pricing and foreign currency tailwinds, while gross margin expanded to 42.1% — reflecting disciplined cost management amid stable demand and no significant tariff or raw material disruptions.

Key takeaways

• Revenue increased 6.7% year-over-year to $3.9B, with gross profit up 7.3% to $1.7B — both driven by favorable foreign currency translation and higher selling prices, as confirmed by the absence of significant raw material cost or tariff impacts in Q1.
• Gross margin improved to 42.1%, indicating pricing power and operational discipline outweighed modest input cost pressures, consistent with management’s observation that no significant raw material cost increases occurred during the quarter.
• Net income rose 2.4% to $382.0M and diluted EPS increased 4.3% to $1.70, reflecting leverage from higher gross profit despite elevated capital expenditures and ongoing investments in growth capacity.
• Increased sales volumes were driven by share gains in protective and marine coatings, tied directly to customer demand for PPG’s sustainably-advantaged products — a key business driver explicitly cited in management commentary.
• Demand remains robust with strong customer order backlogs, even as manufacturing output improved through debottlenecking investments — underscoring resilience in end markets and reinforcing the strategic focus on technology-advantaged product lines.