PPG Industries, Inc.

- The company ended the quarter with strong liquidity, holding about $1.6 billion in cash and short-term investments. - They repaid $700 million of debt that matured in the first quarter, indicating active debt management. - Cash deployment priorities include dividends, share repurchases, organic investments, and selective M&A. - There is no explicit mention of upcoming or planned fundraising through new debt or equity issuance. - Focus remains on maintaining a strong balance sheet and financial flexibility. - The company emphasizes disciplined capital allocation and is cautious with M&A, preferring the right asset, time, and price. - No announced plans were disclosed for issuing new equity or taking on new debt in the near term.

- $150 million invested recently in incremental debottlenecking to improve aerospace output, with benefits expected in late 2026 into 2027. - Announced a new $380 million aerospace plant planned for a step-change increase in volume around 2028. - Continuing engineering work for additional investments in aerospace, with further projects under consideration. - Focus on good organic investments, particularly in aerospace, prioritized before M&A. - Small recent acquisitions (e.g., ~$100 million revenue asset “Ozark”) are opportunistic, synergistic, and improve margin and cash generation, supporting further strategic investment. - Capital expenditure remains elevated but controlled, targeted toward growth and capability expansion, especially in aerospace and industrial segments.

- Aerospace: Expecting increases in output volume and revenue, with continuous improvements from investments; a new $380 million plant opening around 2028 will drive step-change growth. Balanced OEM and aftermarket market mitigates risks. - Automotive OEM: Flat sales volumes with low single-digit growth expected, supported by expanded total addressable market (TAM) and share gains. - Automotive Refinish: Muted volumes expected for 2026 with a recovery and volume growth anticipated in the second half of the year; overall flat volumes and 2-3% price growth expected structurally. - Industrial Coatings: Flat organic sales volume with ongoing share gains; additional share gains planned through 2026 and 2027. - Architectural Coatings: Mixed results by region; better volume and pricing in Latin America and Asia Pacific, with ongoing restructuring to reduce costs in Europe. - Packaging Coatings: Double-digit growth continuing with strong share gains. - Overall: Expect organic sales growth for Q2 2026 in the range of flat to low single digits, with solid growth momentum across key segments despite challenging markets.

- PPG expects adjusted earnings per share (EPS) growth in the range of flat to low single digits for Q2 2026 compared to prior year. (Page 4) - Full-year 2026 EPS guidance range reaffirmed at $7.70 to $8.10. (Page 3-4) - Organic sales growth momentum continues with 5 consecutive quarters of positive growth; second quarter organic sales expected to be flat to low single-digit growth. (Pages 3-4) - Price realization expected to be much faster than prior inflation cycles, offsetting raw material cost inflation. (Page 4) - Structural cost reductions, including $25 million fixed cost savings in 2027 from closure of 4 plants, contributing to ongoing earnings improvements. (Page 14) - Aerospace segment anticipated to drive consistent growth, supported by new investments and backlog. (Pages 3, 10) - Automotive OEM and industrial segments expected to normalize with modest growth and margin improvement. (Pages 3, 10) - Free cash flow targeted at about 10% of sales, supporting dividends, organic investments, selective M&A, and share repurchases. (Page 9)

- PPG reports no negative changes in order books despite geopolitical events such as the Iran conflict. - Packaging segment is performing well with double-digit growth and a strong order book. - The company has a good order book in PMC, which has been strong for a couple of quarters. - No observed negative impact on volumes or order books due to the current geopolitical environment. - PPG continues to see improving volume in sectors like Aerospace and Refinish, supporting a positive outlook for the second half of the year.