PPG (NYSE:PPG) today reported financial results for the third quarter 2026.

Third Quarter 2026 Consolidated Results

$ in millions, except EPS

3Q 2026

3Q 2025

YOY change

Net sales

$4,353

$4,082

+7%

Net income (a)

$473

$444

+7%

Adjusted net income (a)(b)

$502

$481

+4%

EPS (a)

$2.12

$1.96

+8%

Adjusted EPS (a)(b)

$2.25

$2.13

+6%

(a) From continuing operations

(b) Reconciliations of reported to adjusted figures are included below

Chairman and CEO Comments

Tim Knavish, PPG chairman and chief executive officer, commented on the quarter:

I am extremely encouraged by our performance as we delivered record third quarter EPS, an increase of +6% year over year. Our teams around the world executed with strong discipline, driving a solid 5% increase in organic sales, which marks our seventh consecutive quarter of growth. We outpaced the industry by 300 basis points, reflecting the quality of our businesses and the impact of our commercial actions. Adjusted EBITDA was 18.2% supported by exceptional results in our differentiated aerospace and architectural coatings Latin America businesses.

Our Global Architectural Coatings segment achieved 2% organic sales growth and expanded EBITDA margin by 300 basis points to 24% led by performance in Latin America and selling price actions in all regions. Our European Architectural business is benefiting from the execution of our strategy, including productivity enhancements, footprint optimization, and structural cost actions that are improving efficiency and driving year-to-date earnings and margin expansion.

Organic sales in our Performance Coatings segment grew 8%, with contributions from higher sales volumes and selling prices. We benefited from strong demand for our aerospace and protective and marine coatings products, as well as higher automotive refinish organic sales. Adjusted EBITDA margin expanded by 220 basis points to 24% as sales mix improved and we offset cost of goods sold inflation.

Our Industrial Coatings segment delivered selling price increases of 2% during the quarter as we are beginning to realize the benefits of lagging index pricing. However, cost of goods sold inflation remains high resulting in year-over-year adjusted EBITDA margin contraction, which is consistent with expectations. Sales volumes also grew 2% as we executed on previously communicated share gains across all three businesses. This improvement was due to double-digit percentage growth in packaging coatings and high single-digit percentage growth in industrial coatings. Share gains in automotive original equipment manufacturer (OEM) coatings enabled the business to deliver sales volumes that outperformed global automotive industry production.

During the third quarter, the company’s commercial actions fully offset the impact of cost of goods sold inflation, reflecting pricing discipline across the portfolio. We remain focused on achieving appropriate value for our differentiated products and solutions and will continue to pursue targeted actions where necessary to address cost inflation and market-specific dynamics.

Looking ahead, we expect low single-digit percentage organic growth in the fourth quarter, led by aerospace, architectural coatings in Latin America, and packaging coatings. We are raising the midpoint of our full-year adjusted earnings per share outlook and narrowing the guidance range to $7.90 to $8.10. Our improved outlook reflects growth momentum, realized pricing benefits, and execution of productivity programs.

Thank you to the PPG team around the world for their focus and execution. Our strong performance this quarter would not be possible without the dedication of our employees who serve our customers, create value for our shareholders, and deliver on our purpose every day: We protect and beautify the world®.

Additional Financial Information

  • Net sales in the quarter increased 7% year over year due to higher selling prices of 3%, higher sales volumes of 2%, positive foreign currency translation of 1% and acquisitions of 1%

  • At quarter end, the company had cash and short-term investments totaling $1.6 billion

  • Net debt was $5.2 billion, a decrease of approximately $200 million from the third quarter 2025

  • Corporate expenses were $92 million in the third quarter, $83 million exclusive of depreciation and amortization

  • Third quarter net interest expense was $22 million

  • In the third quarter, the effective tax rate was 24.2%

Third Quarter 2026 Reportable Segment Financial Results

Global Architectural Coatings Segment

$ in millions

3Q 2026

3Q 2025

YOY change

Net sales

$1,055

$1,012

+4%

Sales volumes

 

 

(2)%

Selling prices

 

 

+4%

Foreign currency translation

 

 

+2%

Segment income

$225

$184

+22%

Segment income %

21.3%

18.2%

 

Segment EBITDA (a)

$253

$213

+19%

Segment EBITDA %

24.0%

21.0%

 

(a) Reconciliations of reported to adjusted figures are included below

Global Architectural Coatings segment net sales increased 4% compared to the third quarter 2025 driven by organic sales growth of 2% due to higher selling prices, partially offset by lower sales volumes.

Organic sales for architectural coatings EMEA increased by a low single-digit percentage compared to the third quarter 2025, with higher selling prices partially offset by lower sales volumes. Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage year over year driven by higher selling prices and volume growth in Latin America supported by strong retail sales and improved project-related sales in Mexico.

Segment EBITDA increased 19% and segment EBITDA margin improved 300 basis points compared to the prior year with realization of higher selling prices and productivity actions partially offset by inflation on cost of goods sold. In the fourth quarter, the company expects organic sales in the range of flat to growth of a low single-digit percentage year over year and EBITDA margin expansion.

Performance Coatings Segment

$ in millions

3Q 2026

3Q 2025

YOY change

Net sales

$1,554

$1,414

+10%

Sales volumes

 

 

+5%

Selling prices

 

 

+3%

Acquisitions

 

 

+2%

Segment income

$332

$272

+22%

Segment income %

21.4%

19.2%

 

Segment EBITDA (a)

$372

$307

+21%

Segment EBITDA %

23.9%

21.7%

 

(a) Reconciliations of reported to adjusted figures are included below

Performance Coatings segment net sales increased 10% and organic sales increased 8% with contributions from higher sales volumes and selling prices. Net sales also included a benefit from acquisitions.

Organic sales improved compared to the prior year led by aerospace, protective and marine coatings, and automotive refinish coatings, partially offset by traffic solutions. Aerospace achieved exceptional quarterly sales with double-digit percentage organic sales growth, while our order backlog remained near $300 million. Organic sales in automotive refinish coatings increased by a mid-single-digit percentage driven by higher selling prices and higher automotive refinish sales volumes. Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 14th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific.

Compared to third quarter 2025, segment EBITDA increased by 21% and segment EBITDA margin improved 220 basis points, driven by higher selling prices and sales volumes, which were partially offset by higher inflation on cost of goods sold. In the fourth quarter, the company expects organic sales growth in the range of a low single-digit percentage to a mid-single-digit percentage year over year and EBITDA margin expansion driven by pricing actions and automotive refinish stabilization.

Industrial Coatings Segment

$ in millions

3Q 2026

3Q 2025

YOY change

Net sales

$1,744

$1,656

+5%

Sales volumes

 

 

+2%

Selling prices

 

 

+2%

Foreign currency translation

 

 

+1%

Segment income

$200

$233

(14)%

Segment income %

11.5%

14.1%

 

Segment EBITDA (a)

$251

$281

(11)%

Segment EBITDA %

14.4%

17.0%

 

(a) Reconciliations of reported to adjusted figures are included below

Industrial Coatings segment net sales increased 5% compared to the third quarter 2025, led by higher sales volumes and selling prices and a benefit from foreign currency translation. Organic sales increased 4%, reflecting the benefits from share gains.

Automotive OEM coatings organic sales decreased by a low single-digit percentage, with share gains supporting a change in sales volume that outpaced global automotive industry production. Industrial coatings organic sales improved by a high single-digit percentage driven by sales volume and selling price growth in all regions, marking the second consecutive quarter of growth. Packaging coatings organic sales increased by a double-digit percentage versus the prior year period, and sales volumes were up over 20% on a two-year stacked basis due to share gains as customers adopt our leading technologies.

Segment EBITDA decreased 11% and segment EBITDA margin declined 260 basis points compared to the third quarter 2025. This margin decline was driven by inflation on cost of goods sold partially offset by higher selling prices and sales volumes. In the fourth quarter, the company expects organic sales in the range of up or down a low single-digit percentage year over year and EBITDA margin compression due to the timing of index-based pricing.

Outlook

The company expects fourth quarter organic sales growth of a low single-digit percentage and company adjusted EBITDA margin in the range of flat to an increase of 100 basis points year over year. We are improving our earnings outlook, resulting in a higher midpoint with a full-year adjusted earnings per share guidance range of $7.90 to $8.10.

Additional information related to 2026 financial projections is posted within the slides associated with the third quarter earnings documents on the Investors section of PPG.com.

The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

Additional Information

PPG will provide additional information regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, October 27. The company will hold a conference call to review its third quarter 2026 financial performance on October 28, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/attendee/129179062. The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A web replay will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Tuesday, October 26, 2027.

Forward-Looking Statements

Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2025 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.

All information in this release speaks only as of October 27, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.

Regulation G Reconciliation

PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies. PPG is not able to provide a reconciliation of fourth quarter 2026 or full-year 2026 expected adjusted earnings per diluted share or adjusted EBITDA to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.

Regulation G Reconciliation – Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income

($ in millions, except per-share amounts and percentages)

 

Third Quarter

2026

 

Third Quarter

2025

 

$

 

EPS(a)

 

$

 

EPS (a)

Reported net income from continuing operations

$473

 

 

$2.12

 

 

$444

 

$1.96

Acquisition-related amortization expense

20

 

 

0.09

 

 

24

 

0.11

Business restructuring-related costs, net(b)

11

 

 

0.05

 

 

7

 

0.03

Resolution of tax matter(c)

2

 

 

0.01

 

 

—

 

—

Portfolio optimization(d)

(2

)

 

(0.01

)

 

—

 

—

Insurance recovery(e)

(2

)

 

(0.01

)

 

—

 

—

Impairment and other related charges, net(f)

—

 

 

—

 

 

6

 

0.03

Adjusted net income from continuing operations, excluding certain items

$502

 

 

$2.25

 

 

$481

 

$2.13

 

Third Quarter

2026

 

Third Quarter

2025

 

Income

Before

Income

Taxes

 

Tax

Expense

 

Effective

Tax Rate

 

Income

Before

Income

Taxes

 

Tax

Expense

 

Effective

Tax Rate

Effective tax rate, continuing operations

$631

 

 

$153

 

 

24.2

%

 

$556

 

$118

 

21.2

%

Acquisition-related amortization expense

26

 

 

6

 

 

24.5

%

 

32

 

8

 

24.4

%

Business restructuring-related costs, net(b)

15

 

 

4

 

 

21.9

%

 

11

 

4

 

38.5

%

Resolution of tax matter(c)

3

 

 

1

 

 

30.0

%

 

—

 

—

 

—

%

Portfolio optimization(d)

(3

)

 

(1

)

 

24.3

%

 

2

 

2

 

94.5

%

Insurance recovery(e)

(3

)

 

(1

)

 

24.3

%

 

—

 

—

 

—

%

Impairment and other related charges, net(f)

—

 

 

—

 

 

—

%

 

24

 

6

 

24.3

%

Adjusted effective tax rate, continuing operations, excluding certain items

$669

 

 

$162

 

 

24.2

%

 

$625

 

$138

 

22.1

%

 

Third Quarter

 

2026

 

2025

Reported net income from continuing operations

$473

 

 

$444

 

Interest expense, net of interest income

22

 

 

23

 

Income tax expense

153

 

 

118

 

Net income/(loss) attributable to noncontrolling interests

5

 

 

(6

)

Earnings before interest and taxes (“EBIT”)

653

 

 

579

 

Depreciation

102

 

 

94

 

Amortization

26

 

 

32

 

EBITDA

$781

 

 

$705

 

Business restructuring-related costs, net(b)

15

 

 

11

 

Resolution of tax matter(c)

3

 

 

—

 

Portfolio optimization(d)

(3

)

 

2

 

Insurance recovery(e)

(3

)

 

—

 

Impairment and other related charges, net(f)

—

 

 

24

 

Adjusted EBITDA

$793

 

 

$742

 

 

 

 

 

Net sales

$4,353

 

 

$4,082

 

Net income margin

10.9

%

 

10.9

%

EBIT margin

15.0

%

 

14.2

%

Adjusted EBITDA margin

18.2

%

 

18.2

%

(a)

Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.
 

(b)

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other (income)/charges, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other (income)/charges, net on the consolidated statement of income.
 

(c)

In the third quarter 2026, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes.
 

(d)

Portfolio optimization includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. Portfolio optimization includes a $3 million gain recognized in the third quarter of 2026 related to the sale of a non-core business, which is included in Other (income)/charges, net on the condensed consolidated statement of income. Portfolio optimization also includes charges related to the step-up of acquired inventory. These costs are included in Cost of sales, exclusive of depreciation and amortization on the condensed consolidated statement of income.
 

(e)

In the third quarter 2026, the Company received an insurance reimbursement under policies covering legacy asbestos-related matters. These insurance recoveries are included in Other (income)/charges, net on the consolidated statement of income.
 

(f)

In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Other (income)/charges, net on the condensed consolidated statement of income. Net loss of $12 million related to the impairment charge was attributable to noncontrolling interests.

 

Third Quarter

 

2026

 

2025

Global Architectural Coatings

 

 

 

Net sales

$1,055

 

$1,012

Segment income

$225

 

$184

Segment depreciation and amortization

28

 

29

Segment EBITDA

$253

 

$213

Segment EBITDA %

24.0%

 

21.0%

Performance Coatings

 

 

 

Net sales

$1,554

 

$1,414

Segment income

$332

 

$272

Segment depreciation and amortization

40

 

35

Segment EBITDA

$372

 

$307

Segment EBITDA %

23.9%

 

21.7%

Industrial Coatings

 

 

 

Net sales

$1,744

 

$1,656

Segment income

$200

 

$233

Segment depreciation and amortization

51

 

48

Segment EBITDA

$251

 

$281

Segment EBITDA %

14.4%

 

17.0%

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited)

(All amounts in millions except per-share data)

 

Three Months Ended

September 30

 

Nine Months Ended

September 30

 

2026

 

2025

 

2026

 

2025

Net sales

$4,353

 

$4,082

 

$12,778

 

$11,961

Cost of sales, exclusive of depreciation and amortization

2,589

 

2,426

 

7,551

 

7,000

Selling, general and administrative

876

 

824

 

2,692

 

2,534

Depreciation

108

 

106

 

321

 

297

Amortization

26

 

32

 

79

 

97

Research and development, net

106

 

106

 

326

 

314

Interest expense

67

 

65

 

199

 

183

Interest income

(45)

 

(42)

 

(124)

 

(129)

Other (income)/charges, net

(5)

 

9

 

17

 

9

Income before income taxes

$631

 

$556

 

$1,717

 

$1,656

Income tax expense

153

 

118

 

412

 

380

Income from continuing operations

$478

 

$438

 

$1,305

 

$1,276

(Loss)/income from discontinued operations, net of tax

(22)

 

9

 

(24)

 

7

Net income attributable to controlling and noncontrolling interests

$456

 

$447

 

$1,281

 

$1,283

Net (income)/loss attributable to noncontrolling interests

(5)

 

6

 

(11)

 

(7)

Net income (attributable to PPG)

$451

 

$453

 

$1,270

 

$1,276

 

 

 

 

 

 

 

 

Amounts attributable to PPG:

 

 

 

 

 

 

 

Income from continuing operations, net of tax

$473

 

$444

 

$1,294

 

$1,269

(Loss)/income from discontinued operations, net of tax

(22)

 

9

 

(24)

 

7

Net income (attributable to PPG)

$451

 

$453

 

$1,270

 

$1,276

 

 

 

 

 

 

 

 

Earnings per common share (attributable to PPG):

 

 

 

 

 

 

 

Income from continuing operations, net of tax

$2.13

 

$1.97

 

$5.80

 

$5.59

(Loss)/income from discontinued operations, net of tax

(0.10)

 

0.04

 

(0.11)

 

0.03

Earnings per common share (attributable to PPG)

$2.03

 

$2.01

 

$5.69

 

$5.62

 

 

 

 

 

 

 

 

Earnings per common share (attributable to PPG) – assuming dilution:

 

 

 

 

 

 

 

Income from continuing operations, net of tax

$2.12

 

$1.96

 

$5.78

 

$5.57

(Loss)/income from discontinued operations, net of tax

(0.10)

 

0.04

 

(0.11)

 

0.03

Earnings per common share (attributable to PPG) – assuming dilution

$2.02

 

$2.00

 

$5.67

 

$5.60

 

 

 

 

 

 

 

 

Average shares outstanding

222.2

 

225.7

 

223.0

 

226.9

 

 

 

 

 

 

 

 

Average shares outstanding – assuming dilution

223.2

 

226.5

 

223.8

 

227.7

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited)

($ in millions)

 

Nine Months Ended

September 30

 

2026

 

2025

Cash from operating activities:

 

 

 

Cash from operating activities – continuing operations

$1,160

 

$1,047

Cash (used for)/from operating activities – discontinued operations

($2)

 

$7

Cash from operating activities

$1,158

 

$1,054

Cash used for investing activities – continuing operations:

 

 

 

Capital expenditures

$464

 

$477

Cash used for financing activities – continuing operations:

 

 

 

Dividends paid on PPG common stock

$482

 

$468

Purchase of treasury stock

$322

 

$687

PPG INDUSTRIES, INC. AND SUBSIDIARIES

 

 

CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited)

 

 

($ in millions)

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

2026

 

2025

 

2025

Current assets:

 

 

 

 

 

Cash and cash equivalents

$1,593

 

$2,163

 

$1,832

Short-term investments

49

 

56

 

76

Receivables, net

3,857

 

3,336

 

3,718

Inventories

2,236

 

1,996

 

2,182

Other current assets

507

 

408

 

415

Total current assets

$8,242

 

$7,959

 

$8,223

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt and current portion of long-term debt

$686

 

$706

 

$1,410

Accounts payable and accrued liabilities

4,339

 

3,957

 

3,947

Current portion of operating lease liabilities

127

 

138

 

140

Restructuring reserves

69

 

99

 

115

Total current liabilities

$5,221

 

$4,900

 

$5,612

 

 

 

 

 

 

Long-term debt

$6,155

 

$6,602

 

$5,904

 

 

 

 

 

 

 

 

 

 

 

 

PPG OPERATING METRICS (unaudited)

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

2026

 

2025

 

2025

Operating Working Capital(a)

$3,323

 

$2,748

 

$3,202

As a percent of quarter sales, annualized

19.1 %

 

17.6 %

 

19.6 %

 

 

 

 

 

 

(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities.

 

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