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PPG Stock Trails Market Amid Volume Declines
20 Aug
Summary
- PPG's stock has underperformed the S&P 500 and materials ETF over the past year.
- Volume declines in construction and manufacturing impacted PPG's performance.
- PPG's Q2 adjusted EPS missed expectations, though revenue surpassed forecasts.
PPG Industries, headquartered in Pittsburgh, Pennsylvania, and a major producer of paints, coatings, and specialty materials, has experienced stock performance lagging behind the broader market. Over the past year, PPG's shares saw a modest 1.7% gain, significantly trailing the S&P 500's 19.3% rally. This underperformance extends to the State Street Materials Select Sector SPDR ETF (XLB), which gained 15.7% over the same period.
The company's struggles are attributed to declining volumes in crucial markets like commercial construction and general manufacturing. Additionally, specific segment pressures within its automotive refinish coatings division, exacerbated by lower body shop demand and shifting customer order patterns, have squeezed margins. Input cost inflation for raw materials, energy, and logistics further challenged profitability throughout the recent past.
On July 28, 2026, PPG reported its second-quarter financial results. While revenue of $4.5 billion exceeded Wall Street's $4.4 billion forecast, its adjusted earnings per share of $2.23 did not meet the expected $2.26. For the full year, PPG anticipates adjusted EPS to be in the range of $7.70 to $8.10.
