PPG Industries 10-Q 2026-06-30

Filed 2026-07-29. 8 sections, 201K characters. Original on sec.gov · Markdown · JSON

Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-Q

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☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 1-1687

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PPG INDUSTRIES INC.

(Exact name of registrant as specified in its charter)

25-0730780

(I.R.S. Employer Identification No.)

Pennsylvania

(State or Other Jurisdiction of Incorporation or Organization)

One PPG Place, Pittsburgh, Pennsylvania

(Address of Principal Executive Offices)

15272

(Zip Code)

(412) 434-3131

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.66 2/3	PPG	New York Stock Exchange
1.400% Notes due 2027	PPG 27	New York Stock Exchange
2.750% Notes due 2029	PPG 29A	New York Stock Exchange
3.250% Notes due 2032	PPG 32	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

As of June 30, 2026, 222.3 million shares of the Registrant’s common stock, par value $1.66 2/3 per share, were outstanding.

PPG INDUSTRIES, INC. AND SUBSIDIARIES

INDEX


		PAGE
Part I. Financial Information
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Statement of Income	2
	Condensed Consolidated Statement of Comprehensive Income	3
	Condensed Consolidated Balance Sheet	4
	Condensed Consolidated Statement of Shareholders' Equity	5
	Condensed Consolidated Statement of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
Part II. Other Information
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 5.	Other Information	40
Item 6.	Exhibits	40
Signatures		42

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Income (Unaudited)


	Three Months Ended June 30		Six Months Ended June 30
($ in millions, except per share amounts)	2026	2025	2026	2025
Net sales	$4,495	$4,195	$8,425	$7,879
Cost of sales, exclusive of depreciation and amortization	2,687	2,432	4,962	4,574
Selling, general and administrative	931	872	1,816	1,710
Depreciation	108	102	213	191
Amortization	26	33	53	65
Research and development, net	107	106	220	208
Interest expense	71	62	132	118
Interest income	(42)	(44)	(79)	(87)
Other charges, net	38	34	22	—
Income before income taxes	$569	$598	$1,086	$1,100
Income tax expense	127	140	259	262
Income from continuing operations	$442	$458	$827	$838
Loss from discontinued operations, net of tax	(2)	—	(2)	(2)
Net income attributable to controlling and noncontrolling interests	$440	$458	$825	$836
Net income attributable to noncontrolling interests	(3)	(8)	(6)	(13)
Net income (attributable to PPG)	$437	$450	$819	$823
Amounts attributable to PPG:
Income from continuing operations, net of tax	$439	$450	$821	$825
Loss from discontinued operations, net of tax	(2)	—	(2)	(2)
Net income (attributable to PPG)	$437	$450	$819	$823

Earnings per common share:
Income from continuing operations, net of tax	$1.97	$1.98	$3.68	$3.63
Loss from discontinued operations, net of tax	(0.01)	—	(0.01)	(0.01)
Earnings per common share (attributable to PPG)	$1.96	$1.98	$3.67	$3.62

Earnings per common share – assuming dilution:
Income from continuing operations, net of tax	$1.96	$1.98	$3.66	$3.61
Loss from discontinued operations, net of tax	(0.01)	—	(0.01)	(0.01)
Earnings per common share (attributable to PPG) - assuming dilution	$1.95	$1.98	$3.65	$3.60

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Comprehensive Income (Unaudited)


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2026	2025	2026	2025
Net income attributable to controlling and noncontrolling interests	$440	$458	$825	$836
Other comprehensive (loss)/income, net of tax:
Defined benefit pension and other postretirement benefits	(5)	(2)	(7)	(7)
Unrealized foreign currency translation adjustments	127	498	121	779

Other comprehensive income, net of tax:	$122	$496	$114	$772
Total comprehensive income	$562	$954	$939	$1,608
Less: amounts attributable to noncontrolling interests:
Net income	(3)	(8)	(6)	(13)
Unrealized foreign currency translation adjustments	—	(5)	6	(6)
Comprehensive income attributable to PPG	$559	$941	$939	$1,589

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet (Unaudited)


($ in millions)	June 30, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$1,520	$2,163
Short-term investments	74	56
Receivables, net	3,912	3,336
Inventories	2,226	1,996
Other current assets	529	408
Total current assets	$8,261	$7,959
Property, plant and equipment (net of accumulated depreciation of $4,821 and $4,724)	4,024	4,005
Goodwill	6,163	6,149
Identifiable intangible assets, net	1,949	1,971
Deferred income taxes	530	481
Investments	374	332
Operating lease right-of-use assets	590	604
Other assets	643	597
Total assets	$22,534	$22,098
**Liabilities and Shareholder

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the notes thereto included in the condensed consolidated financial statements in Part I, Item 1, “Financial Statements,” of this report and in conjunction with the 2025 Form 10-K.

Highlights

Net sales were approximately $4.5 billion for the three months ended June 30, 2026, an increase of 7% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation.

Income before income taxes was $569 million for the three months ended June 30, 2026, a decrease of $29 million compared to the prior year. Earnings growth in the aerospace and architectural coatings Latin America businesses was offset by lower sales volumes in automotive refinish coatings.

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Results of Operations


	Three Months Ended June 30		Percent Change		Six Months Ended June 30		Percent Change
($ in millions, except percentages)	2026	2025	2026 vs. 2025		2026	2025	2026 vs. 2025
Net sales	$4,495	$4,195	7.2	%	$8,425	$7,879	6.9	%
Cost of sales, exclusive of depreciation and amortization	$2,687	$2,432	10.5	%	$4,962	$4,574	8.5	%
Selling, general and administrative	$931	$872	6.8	%	$1,816	$1,710	6.2	%
Depreciation	$108	$102	5.9	%	$213	$191	11.5	%
Amortization	$26	$33	(21.2)	%	$53	$65	(18.5)	%
Research and development, net	$107	$106	0.9	%	$220	$208	5.8	%
Interest expense	$71	$62	14.5	%	$132	$118	11.9	%
Interest income	($42)	($44)	(4.5)	%	($79)	($87)	(9.2)	%

Other charges, net	$38	$34	11.8	%	$22	$—	N/A

Net Sales by Region


	Three Months Ended June 30		Percent Change		Six Months Ended June 30		Percent Change
($ in millions, except percentages)	2026	2025	2026 vs. 2025		2026	2025	2026 vs. 2025
United States and Canada	$1,519	$1,495	1.6	%	$2,781	$2,779	0.1	%
EMEA	1,547	1,434	7.9	%	2,970	2,706	9.8	%
Asia Pacific	820	727	12.8	%	1,518	1,374	10.5	%
Latin America	609	539	13.0	%	1,156	1,020	13.3	%
Total	$4,495	$4,195	7.2	%	$8,425	$7,879	6.9	%

Three Months Ended June 30, 2026

Net sales increased $300 million due to the following:

● Higher sales volumes (**+**2%)

● Higher selling prices (**+**2%)

● Favorable foreign currency translation (+2%)

● Acquisitions (+1%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

Cost of sales, exclusive of depreciation and amortization, increased $255 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Selling, general and administrative expense increased $59 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Six Months Ended June 30, 2026

Net sales increased $546 million due to the following:

● Favorable foreign currency translation (+4%)

● Higher selling prices (+2%)

● Higher sales volumes (+1%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

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Cost of sales, exclusive of depreciation and amortization, increased $388 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Selling, general and administrative expense increased $106 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Depreciation expense increased $22 million primarily due to higher capital spending in 2025.

Other charges, net increased by $22 million primarily due to higher environmental remediation charges and the settlement of a legal matter.

Effective Tax Rate and Earnings Per Diluted Share


	Three Months Ended June 30					Percent Change		Six Months Ended June 30						Percent Change
($ in millions, except percentages and amounts per share)	2026		2025			2026 vs. 2025		2026			2025			2026 vs. 2025
Income tax expense	$127		$140			(9.3)	%	$259			$	262		(1.1)	%
Effective tax rate	22.3	%	23.4		%	(1.1)	%	23.8		%	23.8		%	—	%
Adjusted effective tax rate, continuing operations*	22.5	%	23.5		%	(1.0)	%	23.9		%	23.9		%	—	%

Earnings per diluted share, continuing operations	$1.96		$	1.98		(1.0)	%	$	3.66		$	3.61		1.4	%
Adjusted earnings per diluted share*	$2.23		$2.22			0.5	%	$4.06			$3.93			3.3	%
*See Regulation G Reconciliation below

For the three months ended June 30, 2026, earnings per diluted share, continuing operations declined slightly while adjusted earnings per diluted share increased slightly, as the impact of lower earnings was offset by lower adjusted weighted average common shares outstanding due to share repurchases.

Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the six months ended June 30, 2026 increased year over year due to higher organic sales, the favorable impact of foreign currency translation, cost-control actions and lower adjusted weighted average common shares outstanding due to share repurchases, partially offset by the impact of cost inflation.

Regulation G Reconciliations - Results from Operations

PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items along with segment income before interest, taxes, depreciation and amortization ("Segment EBITDA"). PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items along with segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate and segment EBITDA may not be comparable to similarly titled measures as reported by other companies.

Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below.

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	Three Months Ended June 30, 2026
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$569	$127	22.3	%	$439	$1.96
Adjusted for:
Acquisition-related amortization expense	26	6	24.5	%	20	0.09
Business restructuring-related costs, net(b)	13	3	22.0	%	10	0.04
Portfolio optimization(c)	5	1	24.2	%	4	0.02
Legacy environmental remediation charges(d)	25	6	24.3	%	19	0.08
Legal settlement(e)	11	3	24.3	%	8	0.04
Adjusted, continuing operations, excluding certain items	$649	$146	22.5	%	$500	$2.23


	Three Months Ended June 30, 2025
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$598	$140	23.4	%	$450	$1.98
Adjusted for:
Acquisition-related amortization expense	33	8	24.4	%	25	0.11
Business restructuring-related costs, net(b)	20	5	23.3	%	15	0.07
Portfolio optimization(c)	2	—	24.3	%	2	0.01
Legacy environmental remediation charges(d)	16	4	24.3	%	12	0.05
Adjusted, continuing operations, excluding certain items	$669	$157	23.5	%	$504	$2.22


	Six Months Ended June 30, 2026
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$1,086	$259	23.8	%	$821	$3.66
Adjusted for:
Acquisition-related amortization expense	53	13	24.4	%	40	0.18
Business restructuring-related costs, net(b)	18	4	22.6	%	14	0.06
Portfolio optimization(c)	12	3	24.9	%	9	0.04
Legacy environmental remediation charges(d)	25	6	24.3	%	19	0.08
Legal settlement(e)	11	3	24.3	%	8	0.04
Adjusted, continuing operations, excluding certain items	$1,205	$288	23.9	%	$911	$4.06


	Six Months Ended June 30, 2025
($ in millions, except percentages and per share amounts)	Income Before Income Taxes	Income Tax Expense	Effective Tax Rate		Net Income (attributable to PPG)	Earnings Per Diluted Share(a)
As reported, continuing operations	$1,100	$262	23.8	%	$825	$3.61
Adjusted for:
Acquisition-related amortization expense	65	16	24.4	%	49	0.21
Business restructuring-related costs, net(b)	29	7	24.1	%	22	0.10
Portfolio optimization(c)	(4)	—	10.0	%	(4)	(0.02)
Legacy environmental remediation charges(d)	16	4	24.3	%	12	0.05
Insurance recovery(f)	(6)	(2)	24.3	%	(4)	(0.02)
Adjusted, continuing operations, excluding certain items	$1,200	$287	23.9	%	$900	$3.93

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(a)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges, net on the consolidated statement of income.

(c)Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. Portfolio optimization also includes charges related to the step-up of acquired inventory. These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025, which is included in Other charges, net on the condensed consolidated statement of income. There was no tax expense associated with that gain.

(d)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges, net in the condensed consolidated statement of income.

(e)In the second quarter 2026, the Company settled a legal matter. The related charge is included in Other charges, net on the consolidated statement of income.

(f)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021, which is included in Other charges, net on the condensed consolidated statement of income.

Performance of Reportable Business Segments

Global Architectural Coatings


	Three Months Ended June 30		$ Change	% Change		Six Months Ended June 30		$ Change		% Change
($ in millions, except percentages)	2026	2025	2026 vs. 2025	2026 vs. 2025		2026	2025	2026 vs. 2025		2026 vs. 2025
Net sales	$1,098	$1,018	$80	7.9	%	$2,063	$1,875	$	188	10.0	%
Segment income	$185	$160	$25	15.6	%	$340	$278	$	62	22.3	%
Depreciation and amortization expense	$28	$27	$1	3.7	%	$58	$53	$	5	9.4	%
Segment income before interest, taxes, depreciation and amortization (EBITDA)	$213	$187	$26	13.9	%	$398	$331	$	67	20.2	%

Three Months Ended June 30, 2026

Global Architectural Coatings net sales increased due to the following:

● Favorable foreign currency translation (+6%)

● Higher selling prices (+3%)

Partially offset by:

● Lower sales volumes (-1%)

Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased by a low single-digit percentage compared to the prior year with higher selling prices partially offset by lower sales volumes. Overall demand for architectural coatings in Europe was mixed by country.

Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales were strong, and project-related sales improved compared to lower prior-year local business investment.

Segment income of $185 million was 16% higher than the prior year. The increase was driven by higher selling prices, favorable foreign currency translation and the positive impact of cost-control actions, partially offset by the impact of inflation.

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Six Months Ended June 30, 2026

Global Architectural Coatings net sales increased due to the following:

● Favorable foreign currency translation (+9%)

● Higher selling prices (+2%)

Partially offset by:

● Divestiture-related sales (-1%)

Architectural coatings – EMEA organic sales were flat compared to the prior year with higher selling prices offset by lower sales volumes. Overall demand for architectural coatings in Europe was mixed by country.

Architectural coatings - Latin America and Asia Pacific organic sales increased by a mid-single-digit percentage year over year driven by volume growth in Latin America and higher selling prices. In Mexico, retail sales volumes were solid, reflecting strong consumer demand, while project-related spending improved with increased government and local investment.

Segment income of $340 million was 22% higher than the prior year. The increase was driven by higher selling prices, favorable foreign currency translation and cost-control actions partially offset by cost of goods sold inflation.

Looking Ahead

In the third quarter of 2026, the company expects further year-over-year strengthening in retail sales and a modest recovery of project-related spending in Mexico. While consumer sentiment in Europe is anticipated to remain mixed, we expect higher prices and self-help actions to increase earnings. Quarterly aggregate organic sales for the segment are expected to be in the range of flat to growth of a low single-digit percentage compared to the third quarter 2025.

Performance Coatings


	Three Months Ended June 30		$ Change	% Change		Six Months Ended June 30		$ Change	% Change
($ in millions, except percentages)	2026	2025	2026 vs. 2025	2026 vs. 2025		2026	2025	2026 vs. 2025	2026 vs. 2025
Net sales	$1,619	$1,512	$107	7.1	%	$2,953	$2,777	$176	6.3	%
Segment income	$329	$356	($27)	(7.6)	%	$617	$630	($13)	(2.1)	%
Depreciation and amortization expense	$39	$33	$6	18.2	%	$78	$66	$12	18.2	%
Segment EBITDA	$368	$389	($21)	(5.4)	%	$695	$696	($1)	(0.1)	%

Three Months Ended June 30, 2026

Performance Coatings net sales increased due to the following:

● Higher selling prices (+3%)

● Acquisitions (+3%)

● Favorable foreign currency translation (+1%)

Automotive refinish coatings organic sales decreased by a double-digit percentage as sales volumes were lower, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025 and slower recovery in underlying industry demand.

Aerospace organic sales increased by a double-digit percentage compared to the second quarter 2025, led by higher selling prices and sales volumes. Demand is robust, and customer order backlogs remained strong.

Protective and marine coatings organic sales increased by a double digit percentage compared to the prior-year second quarter driven by higher sales volumes and selling prices.

Second quarter organic sales for the traffic solutions business increased by a mid-single-digit percentage compared to the prior-year.

Segment income was $329 million, a decrease of 8% versus the prior year, driven by lower automotive refinish coatings sales volumes.

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Six Months Ended June 30, 2026

Performance Coatings net sales increased due to the following:

● Higher selling prices (+3%)

● Acquisitions (+2%)

● Favorable foreign currency translation (+2%)

Partially offset by:

● Lower sales volumes (-1%)

Automotive refinish coatings organic sales decreased by a double-digit percentage versus the prior year. As expected, results were impacted by lower organic sales, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025 and slower recovery in underlying industry demand.

Aerospace organic sales increased by a double-digit percentage compared to the prior year, led by higher selling prices and sales volumes. Demand is robust, and customer order backlogs remained strong even with improved manufacturing output stemming from growth-related debottlenecking investments.

Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior-year driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.

Organic sales for the traffic solutions business increased by a mid-single-digit percentage compared to the prior-year driven by higher sales volumes.

Segment income was $617 million, a decrease of 2% versus the prior year, as higher selling prices were more than offset by lower automotive refinish coatings sales volumes and cost of goods sold inflation.

Looking Ahead

We anticipate continued strength in aerospace. Automotive refinish coatings organic sales are anticipated to improve in the second half of the year due to customer order patterns in 2025. Protective and marine coatings growth is expected to normalize as we lap prior year share gains, and traffic solutions will follow typical seasonal trends. In the third quarter, the company expects organic sales growth for the segment in the range of a mid-single-digit percentage to a high single-digit percentage year over year.

Industrial Coatings


	Three Months Ended June 30		$ Change	% Change		Six Months Ended June 30		$ Change	% Change
($ in millions, except percentages)	2026	2025	2026 vs. 2025	2026 vs. 2025		2026	2025	2026 vs. 2025	2026 vs. 2025
Net sales	$1,778	$1,665	$113	6.8	%	$3,409	$3,227	$182	5.6	%
Segment income	$229	$227	$2	0.9	%	$422	$442	($20)	(4.5)	%
Depreciation and amortization expense	$53	$49	$4	8.2	%	$104	$96	$8	8.3	%
Segment EBITDA	$282	$276	$6	2.2	%	$526	$538	($12)	(2.2)	%

Three Months Ended June 30, 2026

Industrial Coatings segment net sales increased due to the following:

● Higher sales volumes (+5*%)*

● Favorable foreign currency translation (+2%)

Automotive OEM coatings organic sales increased a low single-digit percentage, with mid-single-digit percentage sales volume growth, including share gains, outpacing the decline in global automotive industry production by about 500 basis points.

Second quarter industrial coatings organic sales improved a mid-single-digit percentage driven by sales volume and selling price growth in Asia Pacific, Europe and North America.

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Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20% on a two-year stacked basis, driven by share gains as customers adopt our leading technologies.

Segment income was $229 million, an increase of 1% versus the prior year, driven by higher sales volumes, partially offset by raw material and other cost inflation.

Six Months Ended June 30, 2026

Industrial Coatings segment net sales increased due to the following:

● Higher sales volumes (+3*%)*

● Favorable foreign currency translation (+3%)

Organic sales for automotive OEM coatings increased by a low single-digit percentage compared to the prior year driven by higher sales volumes partially offset by lower indexed-based selling prices.

Industrial coatings organic sales increased by a low single-digit percentage compared to the prior year driven by higher selling prices and higher sales volumes.

Organic sales in packaging coatings increased by a double-digit percentage compared to the prior year, driven by higher sales volumes. Results reflect the positive momentum from share gains in the U.S. and Canada, Asia Pacific and Europe, aided by expanding European regulations.

Segment income was $422 million, a decrease of 5% versus the prior year driven by cost inflation partially offset by manufacturing and overhead cost savings and volume growth.

Looking Ahead

Our share gains in automotive OEM coatings, industrial coatings and packaging coatings are yielding benefits, and we expect to outperform the respective markets again in the third quarter. In the third quarter, the company expects organic sales for the segment in the range of flat to growth of a low single-digit percentage year over year.

Tariff Impact and Mitigation

PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs. The current global macroeconomic environment is highly dynamic, and we continue to monitor changes to tariffs and the corresponding impacts on our business. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during the first six months of 2026. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions.

Middle East Conflict and Price Increases

In the first quarter of 2026, a military conflict commenced in the Middle East involving the United States, Israel and Iran. Although we do not have material operations in the Middle East, we continue to assess the impact of the conflict. Costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. The company has proactively made price adjustments globally and across all our businesses, resulting in a 2% selling price improvement in the second quarter. In the second quarter, this selling price improvement offset approximately 90% of the cost of goods sold inflation, and we currently anticipate that 100% of cost of goods sold inflation will be offset by higher selling prices and productivity initiatives by the fourth quarter.

Liquidity and Capital Resources

PPG had cash and short-term investments totaling $1.6 billion and $2.2 billion at June 30, 2026 and December 31, 2025, respectively.

The Company continues to believe that cash on hand and short-term investments, cash from operations and the Company's ability to access the capital markets will be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and contractual obligations.

Cash from operating activities

Cash from operating activities for the six months ended June 30, 2026 and 2025 was $592 million and $369 million, respectively. The $223 million increase was primarily due to improved working capital performance compared to the prior year.

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Operating Working Capital

Operating working capital is a subset of total working capital and represents (1) trade receivables – net of the allowance for doubtful accounts (2) FIFO inventories and (3) trade liabilities. We believe operating working capital represents the key components of working capital under the operating control of our businesses. A key metric we use to measure our working capital management is operating working capital as a percentage of sales (current quarter sales annualized).


($ in millions, except percentages)	June 30, 2026		December 31, 2025		June 30, 2025
Trade receivables, net	$3,508		$2,783		$3,314
Inventories, FIFO	2,411		2,177		$2,404
Trade creditors’ liabilities	2,640		2,212		$2,469
Operating working capital	$3,279		$2,748		$3,249
Operating working capital as a % of sales	18.2	%	17.6	%	19.4	%
Days sales outstanding	63		59		64

Environmental


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2026	2025	2026	2025
Cash outlays for environmental remediation activities	$7	$7	$18	$10


($ in millions)			Remainder of 2026						Annually 2027 - 2030
Projected future cash outlays for environmental remediation activities			$20 - $40						$20 - $60

Cash used for investing activities

Cash used for investing activities for the six months ended June 30, 2026 and 2025 was $458 million and $288 million, respectively. The $170 million increase in cash used for investing activities was primarily due to business acquisitions in the current year.

Total capital spending is expected to be approximately $650 million to $700 million in 2026 in support of future organic growth opportunities.

Cash used for financing activities

Cash used for financing activities for the six months ended June 30, 2026 and 2025 was $778 million and cash from financing activities for the six months ended June 30, 2025 was $37 million. The $815 million increase in cash used for financing activities was primarily due to net debt activity, including the repayment of the $700 million 1.2% notes, which matured in the first quarter 2026.

Credit Agreements

In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan"). The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million. In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million. In January 2025, PPG borrowed the additional €300 million. In January 2026, the Term Loan was amended to extend its maturity. Based on this amendment, the Term Loan terminates and all amounts outstanding are payable in January 2029.

In October 2025, PPG amended its five-year credit agreement (the "Credit Agreement") dated as of August 30, 2019 to extend its maturity. The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions

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precedent. In May 2026, PPG entered into a €250 million unsecured revolving credit agreement (the “Euro Credit Agreement”) that expires in May 2028. The Company has the right, subject to certain conditions set forth in the Credit Agreement and the Euro Credit Agreement, to designate certain subsidiaries of the Company as borrowers. In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the applicable agreement. There were no amounts outstanding under either the Credit Agreement or the Euro Credit Agreement as of June 30, 2026 and December 31, 2025.

The Term Loan, Credit Agreement and Euro Credit Agreement also require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time. As of June 30, 2026, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 44%.

The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. Commercial paper borrowings outstanding under the Credit Agreement were zero as of both June 30, 2026 and December 31, 2025.

Other Debt Issued and Repaid

In June 2026, PPG completed an offering of 180 million Swiss francs 1.2175% Notes due 2030 and 140 million Swiss francs 1.6648% Notes due 2034. Refer to Note 6, “Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

In March 2026, PPG's $700 million 1.2% notes matured, and the Company repaid this obligation using cash on hand.

In March 2025, PPG completed a public offering of €900 million 3.250% Notes due 2032. Refer to Note 6, “Borrowings” in Part I, Item 1 of this Form 10-Q for additional information.

Other Liquidity Information

Restructuring

Aggregate restructuring savings were approximately $15 million in the second quarter 2026. Total restructuring savings are expected to be approximately $50 million in 2026. In addition, the Company continues to review its cost structure to identify additional cost savings opportunities. Refer to Note 5, “Business Restructuring” in Part I, Item 1 of this Form 10-Q for further details on the Company's business restructuring programs. We expect cash outlays related to restructuring actions of approximately $80 million to $100 million in 2026.

Currency

Comparing spot exchange rates at June 30, 2026 and at December 31, 2025, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso. As a result, consolidated net assets at June 30, 2026 increased by $127 million compared to December 31, 2025.

Comparing average exchange rates during the first six months of 2026 to those of the first six months of 2025, the U.S. dollar weakened against the currencies of many countries where PPG operates, including the Mexican peso, partially offset by strengthening against the euro. This had a favorable impact on Income before income taxes for the six months ended June 30, 2026 of $43 million from the translation of these foreign earnings into U.S. dollars.

New Accounting Standards

Refer to Note 2, “New Accounting Standards” in Part I, Item 1 of this Form 10-Q for further details on recently issued accounting guidance.

Commitments and Contingent Liabilities, including Environmental Matters

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. See Part II, Item 1, “Legal Proceedings” of this Form 10-Q and Note 13, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q for a description of certain of these lawsuits.

As discussed in Part II, Item 1 and Note 13, although the result of any future litigation of such lawsuits and claims is inherently unpredictable, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG, including asbestos-related claims, will not have a material effect on PPG’s consolidated financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

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As also discussed in Note 13, PPG has significant reserves for environmental contingencies. Refer to the Environmental Matters section of Note 13 for details of these reserves. It is PPG’s policy to accrue expenses for contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time.

Critical Accounting Estimates

Management has evaluated the accounting policies used in the preparation of the financial statements and related notes presented in this Form 10-Q and believes those policies to be reasonable and appropriate. We believe that the most critical accounting estimates made in the preparation of our financial statements are those related to accounting for contingencies, under which we accrue a loss when it is probable that a liability has been incurred and the amount can be reasonably estimated, and to accounting for pensions, other postretirement benefits, business combinations, goodwill and other identifiable intangible assets with indefinite lives because of the importance of management judgment in making the estimates necessary to apply these policies.

For a comprehensive discussion of the Company’s critical accounting estimates, see Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2025 Form 10-K. There were no material changes in the Company’s critical accounting estimates from the 2025 Form 10-K.

Forward-Looking Statements

Management’s Discussion and Analysis and other sections of this Quarterly Report contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the SEC. Also, note the following cautionary statements.

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, cybersecurity events, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and government investigations. However, it is not possible to predict or identify all such factors.

Consequently, while the list of factors presented here and in the 2025 Form 10-K under Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of the 2025 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

We conduct operations in many countries around the world. Our results of operations are subject to both currency transaction risk and currency translation risk. Certain foreign currency forward contracts outstanding during 2026 and 2025 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts were net assets of $5 million and $1 million as of June 30, 2026 and December 31, 2025, respectively. The potential reduction in PPG's Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies was $430 million for the six months ended June 30, 2026 and $447 million for the year ended December 31, 2025.

PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $375 million as of both June 30, 2026 and December 31, 2025. The fair value of these contracts were net assets of $19 million and $11 million as of June 30, 2026 and December 31, 2025, respectively. A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $37 million and $40 million at June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, PPG had non-U.S. dollar denominated borrowings outstanding of $4.4 billion and $4.1 billion, respectively. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses on these borrowings of $489 million at June 30, 2026 and $457 million at December 31, 2025.

Interest Rate Risk

The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both June 30, 2026 and December 31, 2025. The fair values of these contracts were liabilities of $9 million and $6 million as of June 30, 2026 and December 31, 2025, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased annual interest expense by $2 million for both the periods ended June 30, 2026 and December 31, 2025. Considering the debt balance outstanding at June 30, 2026 and December 31, 2025, a 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $4 million and $3 million for the periods ended June 30, 2026 and December 31, 2025, respectively. Further a 10% reduction in interest rates would have increased the fair value of the Company's fixed rate debt by approximately $81 million and $73 million at June 30, 2026 and December 31, 2025, respectively; however, such changes would not have had an effect on PPG's Income before income taxes or cash flows.

There were no other material changes in the Company’s exposure to market risk from December 31, 2025 to June 30, 2026. Refer to Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” in Part I, Item 1 of this Form 10-Q for a description of our instruments subject to market risk.

Item 4. Controls and Procedures

a. Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by this Form 10-Q, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

b. Changes in internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, asbestos exposure, antitrust, employment, securities and other matters arising out of the conduct of PPG’s current and past business activities. To the extent these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and other insurers may contest coverage. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to environmental, asbestos and other matters.

From the late 1880’s until the early 1970’s, PPG owned property located in Cadogan and North Buffalo Townships, Pennsylvania which was used for the disposal of solid waste from PPG’s former glass manufacturing facility in Ford City, Pennsylvania. In October 2018, the Pennsylvania Department of Environmental Protection (the “DEP”) approved PPG’s cleanup plan for the Cadogan Property. In April 2019, PPG and the DEP entered into a consent order and agreement (“CO&A”) which incorporated PPG’s approved cleanup plan and a draft final permit for the collection and discharge of seeps emanating from the former disposal area. The CO&A includes a civil penalty of $1.2 million for alleged past unauthorized discharges. PPG’s former disposal area is also the subject of a citizens’ suit filed by the Sierra Club and PennEnvironment seeking remedial measures beyond the measures specified in PPG’s approved cleanup plan, a civil penalty in addition to the penalty included in the CO&A and plaintiffs’ attorneys fees. PPG and the plaintiffs settled plaintiffs’ claims for injunctive relief and PPG agreed to enhancements to the DEP approved cleanup plan and a $250,000 donation to a Pennsylvania nonprofit organization. This settlement has been memorialized by an amendment to the CO&A which was appended to a Consent Agreement between PPG and the plaintiffs which has been entered by the federal court. The remaining claims in the case for attorneys’ fees and a civil penalty are not affected by this settlement. A trial on the issue of a civil penalty under the Clean Water Act was held in June 2024. Following the trial, the parties filed Proposed Findings of Fact and Conclusions of Law and the matter is now ready for a decision by the Court. With regard to plaintiffs’ motion for attorneys’ fees, the Court appointed a Special Master to review the parties' positions regarding the amount of fees that should be awarded.

In 2006, a lawsuit was filed in Manaus, Brazil, captioned Di Gregório Navegação LTDA v. PPG Industries, Inc. (the “Di Gregório litigation”). The lawsuit asserted claims arising from a November 1998 fire on a cargo ship off the coast of Brazil; the lawsuit alleges the fire was caused by PPG chemical products that were part of the ship’s cargo. The plaintiff, a charterer of the ship, brought claims for various alleged damages. This litigation was pending as of July 18, 2012 when PPG and Eagle Spinco Inc. (“Eagle Spinco”) signed a Separation Agreement setting forth the separation of the assets and liabilities of PPG’s commodity chemicals business to an entity to be later identified by Eagle Spinco. The assets and liabilities identified in the Separation Agreement specifically included all liabilities relating to the Di Gregório litigation. On January 22, 2013, PPG and Eagle US 2, LLC (“Eagle US 2”) signed a Contribution Agreement, by which PPG transferred to Eagle US 2 the assets and liabilities as set forth in the Separation Agreement. Georgia Gulf Corporation then acquired Eagle Spinco and Eagle US 2 in a merger transaction after which Georgia Gulf was renamed Axiall Corporation (“Axiall”). Thereafter, Axiall owned Eagle Spinco and Eagle US 2. Under the terms of the Contribution Agreement, Eagle US 2 acquired the assets and liabilities as defined in the Separation Agreement, including the Di Gregório litigation. In 2016, Westlake Corporation acquired Axiall and its subsidiaries, including Eagle Spinco and Eagle US 2. For convenience, Westlake Corporation, Axiall, Eagle Spinco, and Eagle US 2 collectively are referred to as “Westlake.”

Under the Separation Agreement and Contribution Agreement, Eagle US 2 assumed the Di Gregório litigation liability, and Eagle Spinco and Eagle US 2 were required to remove PPG as an obligor for this liability. To the extent PPG was not removed as an obligor, the Separation Agreement provides that Eagle Spinco and Axiall must act as agents or subcontractors of PPG and pay any liability in the matter on PPG’s behalf. The Separation Agreement also provides PPG an uncapped right of indemnification for all damages PPG incurs arising from the Di Gregório litigation and for any breach of the Separation Agreement or Contribution Agreement.

Since 2013, Westlake exclusively has controlled the defense of the Di Gregório litigation. In 2024, PPG learned that Westlake never substituted itself into the case in place of PPG or otherwise informed the Brazilian court that Westlake is the real party in interest and assumed all liability for the matter. On May 30, 2024, Westlake informed PPG that the Brazilian court entered an award against PPG (which remains the nominal defendant) that with prejudgment interest, fees, and costs would total over $700 million. More recently, Westlake informed PPG that it believes simple prejudgment interest applies to the judgment which would result in the final award being approximately $350 million. Westlake informed PPG that although it will continue to defend the case and pursue an

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appeal of the award, it will not post any bond, pay any judgment, or take any steps to prevent the plaintiff from attempting to execute on the judgment against PPG.

On May 17, 2024, Eagle Spinco filed a lawsuit against PPG in Delaware Superior Court alleging breach of the Separation Agreement and requesting declaratory relief (the “Eagle Spinco Lawsuit”). In its lawsuit, Eagle Spinco sought to have the Di Gregório liability determined to be one in which its obligation is only to indemnify PPG for any damages PPG incurs net of any insurance coverage available from PPG’s insurers.

On June 13, 2024, PPG filed a lawsuit against Westlake in the Court of Chancery in Delaware (the “PPG Lawsuit”), asserting claims for specific performance, declaratory relief, breach of contract, and equitable estoppel. The PPG Lawsuit asserts: (a) Westlake assumed all liability for the Di Gregório litigation, (b) Westlake is obligated to remove PPG as an obligor in the litigation and has a continuing duty to act as PPG’s agent to satisfy any award if PPG is not removed as an obligor in the case, (c) Westlake has the duty to pay any award, bond, court fees and other costs awarded in the Di Gregório litigation, (d) Westlake’s obligations are unconditional and not contingent upon the recovery of any insurance proceeds and Westlake did not acquire any right to PPG’s insurance assets, and (e) PPG has an uncapped right of indemnification if Westlake fails to satisfy its obligations under the Separation Agreement and Contribution Agreement. Eagle Spinco filed counterclaims in the PPG Lawsuit restating the claims originally asserted in the Eagle Spinco Lawsuit, and dismissed the Eagle Spinco Lawsuit.

PPG intends to vigorously enforce its rights under the Separation Agreement and Contribution Agreement and to hold Westlake accountable for any damages PPG suffers as a result of Westlake’s breach of contract. A bench trial for the PPG Lawsuit was held in the Delaware Court of Chancery in May 2025. The court ordered post-trial briefing, and an oral argument was held in July 2025. An additional hearing has been scheduled for August 2026. PPG expects the trial court to issue its final decision in 2026. PPG believes the risk of loss associated with this matter is remote.

For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos. PPG has also been named as a defendant in lawsuits alleging bodily injury from the purported inhalation of ethylene oxide air emissions. For a description of asbestos and ethylene oxide litigation affecting the Company, see Note 13, “Commitments and Contingent Liabilities” in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors

There were no material changes in the Company’s risk factors from the risks disclosed in the 2025 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table summarizes the Company's stock repurchase activity for the three months ended June 30, 2026:


Month	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Programs	Maximum Number of Shares That May Yet Be Purchased Under the Programs (1)
April 2026
Repurchase program	—	$—	—	17,314,968
May 2026
Repurchase program	—	$—	—	16,628,377
June 2026
Repurchase program	639,383	$117.46	639,383	14,869,933
Total quarter ended June 30, 2026
Repurchase program	639,383	$117.46	639,383	14,869,933

(1)In April 2024, PPG’s Board of Directors approved a $2.5 billion share repurchase plan. The remaining shares yet to be purchased under the program have been calculated using PPG’s closing stock price on the last business day of the respective month. The repurchase program does not have an expiration date.

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Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended June 30, 2026, none of the Company's directors or officers, as defined in Section 16 of the Securities Exchange Act of 1934, adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K of the Securities Exchange Act of 1934.

Item 6. Exhibits

See the Index to Exhibits on page 44.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Index to Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Form 10-Q.


†31.1						Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
†31.2						Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
††32.1						Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
††32.2						Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
†10.1						Offer letter with Jamie A. Beggs dated April 13, 2026.
10.2						Form of Market Stock Unit Agreement was filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on April 21, 2026.
10.3						PPG Industries, Inc. 2026 Omnibus Incentive Plan, was filed as Annex B to the Registrant’s Definitive Proxy Statement for its 2026 Annual Meeting of Shareholders filed on March 5, 2026.
101.INS*						Inline XBRL Instance Document
101.SCH**						Inline XBRL Taxonomy Extension Schema Document
101.CAL**						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE**						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

† Filed herewith.

†† Furnished herewith.

*The instance document does not appear in the Interactive Data File because its XBRL (Extensible Business Reporting Language) tags are embedded within the Inline XBRL document.

**Attached as Exhibit 101 to this report are the following documents formatted in Inline XBRL: (i) the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2026 and 2025, (ii) the Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2026 and 2025, (iii) the Condensed Consolidated Balance Sheet at June 30, 2026 and December 31, 2025, (iv) the Condensed Consolidated Statement of Shareholders' Equity for the three and six months ended June 30, 2026 and 2025. (v) the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025, and (vi) Notes to Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			PPG INDUSTRIES, INC.
			(Registrant)

Date:	July 29, 2026	By:	/s/ Jamie A. Beggs
			Jamie A. Beggs
			Senior Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer)

			/s/ Brian R. Williams
			Brian R. Williams
			Vice President and Controller (Principal Accounting Officer and Duly Authorized Officer)