PPG US S&P 500Russell 1000 Earnings call · transcribed from the recording
PPG Industries (PPG) · Q3 2026 results and valuation
Share price: $124.97 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 29 Jul 2026
Net income up 2.5% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+2.5%
Net income vs Q2 2026
Outlook given
Net income 451.0M vs 440.0M
Revenue −3.2%
2 · How management spoke
Very upbeat
More upbeat than 91% of company calls
Answers to analysts: upbeat, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance
Looking ahead, PPG expects fourth quarter organic sales to range from flat to growth of low single digit percentage year over year, along with EBITDA…
Valuation
Is PPG Industries undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.6% growth a year (3-year revenue growth), the model's fair value is $33.87 a share — the stock trades 269% above it. Today's price assumes 12.9% growth a year.
Current price
$124.97
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.9% for 10 yrs
Fair value / share
$33.87
Buy below
$25.40
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
PPG expects the pace of EBITDA margin compression to moderate sequentially as index-based pricing and its productivity initiatives take hold.
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Figure
Quarter net sales grew 7% year over year to $4.4 billion.
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Fading
The good news is you could count on about $25 million of new business wins in that segment per quarter…
Source quote
“The good news is you could count on about $25 million of new business wins in that segment per quarter... So we've been talking about share gains in that business or in those businesses for 2 years, and it's starting to hit the P&L now as we launch at our customer facilities.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 88% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Industrial coatings delivered strong organic sales growth of a high single-digit percentage driven by sales volume and selling price growth in all regions.”
“we delivered record third quarter earnings and our teams around the world executed with exceptional discipline, driving a 5% increase in organic sales, including 2% volume growth.”
“The key themes will be organic growth momentum will continue, margin expansion momentum will continue.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 4.35B | 4.50B | −3.2% | 4.08B | +6.6% |
| Gross profit | 1.76B | 1.81B | −2.4% | 1.66B | +6.5% |
| Operating income | 757.0M | 743.0M | +1.9% | 689.0M | +9.9% |
| Net income | 451.0M | 440.0M | +2.5% | 453.0M | −0.4% |
| EPS | 2.02 | 1.95 | +3.6% | 2.00 | +1.0% |
| P/E today 15.0 | — | 15.2 | — | 25.7 | — |
Topics
Most discussed now
- PPG's cash deployment remains focused on maximizing shareholder value creation and maintaining a strong balance sheet.
- PPG's robust balance sheet continues to provide financial flexibility to invest in its businesses and return cash to shareholders.
- PPG delivered outstanding organic sales growth driven by both volume and price, fully offset cost of good sold inflation, expanded...
- Combined with PPG's flexible cost structure and solid financial position, these capabilities give us the capacity to invest and win.
- Its customers greatly value the innovative solutions that PPG provides.
Faded since Q2 2026
- Fading PPG is reaffirming its full year adjusted earnings per share guidance range of $7.70 to $8.10.
- Fading With a very unique portfolio, strong brands, technologies, an asset-light and flexible cost structure and consistent cash generation, PPG…
- Fading As Jamie was describing that working capital execution throughout the quarter, frankly, came in better than PPG expected.
- Fading A lot of the share gain this year is coming from Europe.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K