Abstract
PPG Industries Inc will report fourth-quarter results on January 27, 2026 Post Market, with investors watching guidance and segment trends amid soft industrial demand and pricing normalization.
Market Forecast
For the current quarter, the consensus embedded in the latest forecast shows PPG Industries Inc’s revenue estimated at USD 3.78 billion, down 6.67% year over year, with EBIT at USD 0.49 billion, EPS at USD 1.58, and implied pressure on margins versus last year; the year-over-year forecast growth rates are Revenue at -6.67%, EBIT at -5.49%, and EPS at -4.05. The company’s portfolio remains anchored by Industrial Coatings, Performance Coatings, and Global Architectural Coatings, with near-term momentum hinging on pricing discipline and volume stabilization; the most promising segment is Industrial Coatings, with last quarter revenue of USD 1.66 billion and share gains expected as supply chains normalize year over year.
Last Quarter Review
PPG Industries Inc posted last quarter revenue of USD 4.08 billion, a gross profit margin of 40.57%, GAAP net profit attributable to the parent company of USD 0.45 billion, a net profit margin of 11.10%, and adjusted EPS of USD 2.13, with year-over-year changes of Revenue at -10.78%, EBIT at -1.52%, and EPS above the pre-announced consensus. A key highlight was operational resilience, as EBIT of USD 0.65 billion exceeded estimates by USD 7.42 million, helped by efficiency gains and moderating input costs. Main business highlights: Industrial Coatings delivered USD 1.66 billion, Performance Coatings USD 1.41 billion, and Global Architectural Coatings USD 1.01 billion, with demand patterns mixed across geographies and end-markets.
Current Quarter Outlook
Industrial Coatings
Industrial Coatings remains central to PPG Industries Inc’s revenue base and near-term earnings trajectory. The expected soft patch in global manufacturing, particularly in European and North American durable goods, points to modest volume headwinds, yet pricing discipline should help defend margins. Watch for sequential volume stabilization tied to inventory normalization in customer channels and potential benefits from product mix upgrades. Currency effects could lightly offset revenue in select regions, but raw material costs have largely normalized, setting up a more predictable gross margin profile. The quarter’s stock reaction will likely hinge on management’s commentary about order trends across automotive OEM, general industrial applications, and protective coatings, and whether pricing can offset slower throughput.
Performance Coatings
Performance Coatings is positioned to deliver steady profitability due to its exposure to aftermarket and refinish coatings, which tend to be more resilient than cyclical OEM volumes. The segment’s margin quality has improved as input cost volatility moderated and pricing initiatives implemented over the past two years flowed through the P&L. Investors should look for signs of sustained refinish demand, continued adoption of premium systems, and service-level improvements that support customer retention. Geographic divergence may persist, with balanced demand in North America and selective softness in Europe, while Asia offers pockets of growth. Commentary around channel inventory, lead times, and order cadence will be pivotal to gauging how quickly the segment can regain volume momentum in calendar 2026.
Global Architectural Coatings
Global Architectural Coatings is likely to show mixed performance as residential repaint demand in North America normalizes and commercial activity varies by region. Price realization accumulated during the inflationary cycle remains a tailwind, but volume comparisons may be challenging where weather and project timing shift completions. Operational improvements in distribution, enhanced digital tools for contractors, and selective brand investments could underpin steady gross margins even if revenue moderates. Watch the balance between private-label and branded sales, as well as management’s comments on promotional intensity heading into spring season. The segment’s contribution to overall margin steadiness will be an important buffer if industrial volumes underwhelm.
Factors Most Impacting the Stock This Quarter
Investors will focus on whether PPG Industries Inc can maintain gross profit margin near last quarter’s 40.57% while absorbing lower year-over-year revenue, which would demonstrate pricing power and cost control. Guidance for the first quarter of calendar 2026 will carry outsized importance, particularly around volume trajectories and any incremental benefits from cost programs. The cadence of demand in automotive OEM, refinish channels, and protective coatings, coupled with commentary on China exposure and Europe’s industrial recovery timeline, will inform sentiment. Any indications of acquisition activity or portfolio optimization could also influence the multiple, given PPG Industries Inc’s track record of strategic M&A.
Analyst Opinions
The prevailing institutional stance is cautiously optimistic, with the majority highlighting resilient margins and disciplined pricing despite forecasted revenue softness. Several well-followed analysts point to manageable raw material inputs and sustained refinish demand that should support EPS near USD 1.58, while acknowledging that macro softness and foreign exchange could cap upside. There is attention on whether cost actions can bridge the gap between volume headwinds and EBIT expectations of USD 0.49 billion; forecast misses are seen as less likely if pricing and mix hold. The bullish case emphasizes operational execution and segment diversity that limit downside risk, and expects management’s commentary on early calendar 2026 demand to gradually turn constructive if industrial indicators stabilize.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments