PPG Q4 revenue beats estimates on organic sales growth

Overview

• Paints and coatings firm's Q4 revenue rose 5%, beating analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company repurchased approximately $100 mln in shares during the quarter

Outlook

• PPG anticipates full-year 2026 adjusted EPS between $7.70 and $8.10

• Company expects organic sales growth in flat to low single-digit percentage for 2026

• PPG sees EPS growth weighted towards second half of 2026

Result Drivers

• ORGANIC SALES GROWTH - PPG reported 3% organic sales growth in Q4, driven by higher selling prices and sales volume growth across all regions

• SEGMENT PERFORMANCE - Global Architectural Coatings improved sequentially, with strong retail sales in Mexico, while Performance Coatings saw record sales in aerospace coatings

• INDUSTRIAL COATINGS - Industrial Coatings segment saw 4% organic sales growth, driven by share gains and double-digit volume growth in packaging coatings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for PPG Industries Inc is $120.00, about 6.5% above its January 26 closing price of $112.65

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw5rvFMna

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