The market expects PPG Industries (PPG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better th ...

Company Overview - PPG Industries is headquartered in Pittsburgh and operates in the Basic Materials sector, specifically in paint and coatings [3] - The company's stock has experienced a price change of -0.98% this year [3] Dividend Information - PPG Industries currently pays a dividend of $0.68 per share, resulting in a dividend yield of 2.3%, which is higher than the Chemical - Specialty industry's yield of 0.94% and the S&P 500's yield of 1.52% [3] - The annualized dividend of $2.72 has increased by 2.3% from the previous year [4] - Over the past 5 years, PPG Industries has raised its dividend 5 times, achieving an average annual increase of 5.96% [4] - The current payout ratio is 34%, indicating that the company pays out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for PPG's earnings in 2025 is $7.89 per share, reflecting a year-over-year earnings growth rate of 0.25% [5] Investment Considerations - PPG Industries is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned well for income investors, especially compared to tech start-ups or growth businesses that typically do not offer dividends [6]

Core Insights - PPG Industries, Inc. showcased innovations in paints, coatings, and specialty products at the Coatings Innovation Center, emphasizing sustainable solutions to enhance customer productivity and drive organic growth [1][7] Product Innovations - The company highlighted award-winning technologies such as the Precision Application automotive OEM overspray-free coating system and the Low-temperature, expanded-bake electrocoat [2] - Other showcased products included PPG CORASEAL, PPG CORASHIELD 4-Wet Advantage, PPG STEELGUARD 951, and PPG NUTRISHIELD MAX metal packaging coatings [2] Sustainability Efforts - PPG featured advanced architectural and marine coatings that align with its sustainability goals, using an internal methodology to validate product attributes contributing to the UN Sustainable Development Goals [3] Financial Performance - PPG's stock has decreased by 13.9% over the past year, contrasting with a 0.1% decline in the industry [5] - The company reaffirmed its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by share gains, self-help efforts, and current global economic conditions [6] Market Position - PPG currently holds a Zacks Rank of 3 (Hold), while competitors like Akzo Nobel N.V. (Rank 1), Newmont Corporation (Rank 2), and Balchem Corporation (Rank 2) are performing better in the Basic Materials sector [7]

A month has gone by since the last earnings report for PPG Industries (PPG) . Shares have added about 1.6% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is PPG Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It tu ...

PPG Industries, Inc. (PPG) recently announced the launch of its new powder coatings, PPG EnviroLuxe Plus, which include up to 18% post-industrial recycled plastic (rPET). The product has combined the benefits of rPET in a formulation that is made without PFAS. The solution, being versatile, is expected to meet diverse application needs.PPG EnviroLuxe Plus powder coatings can achieve up to a 30% reduction in carbon footprint compared with traditional durable powder as a result of polytetrafluoroethylene fluo ...

Group 1: Company Overview - PPG Industries, Inc. will showcase total-system solutions for electric-vehicle battery packs at The Battery Show Europe from June 3 to June 5 [1] - The company aims to demonstrate how its advanced coatings and EV total system solutions drive innovation, enhance performance, and mitigate thermal runaway while improving manufacturing efficiency [2] Group 2: Technology and Innovations - PPG will highlight its key technologies, including thermal management, dielectric isolation, and battery fire protection [2] - The company will present its PPG RAYCRON Dielectric UV and PPG ENVIROCRON Dielectric Powder technology platforms, along with flame retardant powder coating and anti-blast fire protection solutions [3] Group 3: Market Position and Performance - PPG has established itself as a single source for customization, effective application, consistent quality, and full process support through collaborations with OEMs and Tier suppliers [4] - PPG's stock has decreased by 12.6% over the past year, contrasting with the industry's 0.7% increase [6]

Core Insights - PPG Industries, Inc. has launched new clearcoat products aimed at enhancing performance and productivity in the collision repair market in the U.S. [1][2] Product Launch - The new offerings include the PPG Super Value SC300 Series and PPG DELTRON NXT DC7020 Premium Glamour Speed Clearcoat, designed for value-focused and premium segments [2] - The Super Value Series provides a fast-drying, reliable, and cost-effective solution, while the DELTRON NXT DC7020 offers high efficiency and quality with significant energy savings [2] - Both products comply with U.S. EPA National Rule requirements and are compatible with PPG's existing basecoats for optimal performance [3] Financial Performance - PPG's stock has decreased by 15.9% over the past year, contrasting with a 3.1% decline in the industry [5] - The company has reaffirmed its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by share gains and self-help initiatives [6] Market Position - PPG currently holds a Zacks Rank of 3 (Hold), with better-ranked stocks in the Basic Materials sector including Akzo Nobel N.V. (Rank 1), Newmont Corporation (Rank 2), and Idaho Strategic Resources, Inc. (Rank 2) [7]

Core Viewpoint - PPG Industries, Inc. is investing $380 million in a new aerospace coatings and sealants manufacturing facility in Shelby, NC, set to begin construction in October 2025 and expected to be completed in the first half of 2027 [1][2]. Group 1: Investment and Employment - The new facility will create over 110 jobs to meet the increasing demands of the aerospace industry by producing a full line of PPG's aerospace coatings and sealants [2]. - The facility will span 198,000 square feet and is expected to enhance supply-chain management and operational efficiency due to its proximity to transport links [2]. Group 2: Environmental Considerations - PPG is focusing on environmental implications by incorporating advanced manufacturing technologies and practices aimed at reducing environmental impact while ensuring high standards of quality and safety [3]. Group 3: Market Performance - PPG's stock has declined by 16.3% over the past year, contrasting with a 1.4% decline in the industry [4].

Core Viewpoint - PPG reported a decline in net sales for Q1 2025, with a total of $3.684 billion, down 4.0% year-over-year, influenced by foreign currency translation and business divestitures, despite a 1% increase in organic sales [1][4][5] Financial Performance - The company achieved an operating profit of $380 million, a decrease of 8.21% year-over-year, with a segment profit margin of 16.5% and an EBITDA margin of 19.4% [1][4] - Net profit for the quarter was $375 million, down 7.0% year-over-year, while adjusted net profit was $396 million, reflecting an 11.0% decline [1][4] Segment Performance - The high-performance coatings segment saw a 9% organic sales growth, driven by strong demand in automotive refinish and aerospace coatings, with double-digit growth in several areas [4][15] - The architectural coatings segment reported net sales of $857 million, down 11.0% year-over-year, impacted by foreign currency translation and business divestitures [10][11] - The industrial coatings segment's net sales were $1.562 billion, down 8.0% year-over-year, with organic sales declining by 2% due to lower sales prices and volumes [20][21] Regional Performance - Organic sales in the Asia-Pacific region increased, while the U.S. saw a 4% organic sales growth, marking a recovery after six quarters of decline [4][7] - European organic sales decreased by 1%, showing improvement compared to previous quarters, indicating stabilizing demand [4][11] Cost Management and Shareholder Value - The company repurchased approximately $400 million in stock during the quarter, maintaining a strong balance sheet and focusing on shareholder value creation [4][5][23] - PPG anticipates annual savings of $75 million from cost management initiatives and is committed to adapting to economic uncertainties [5][7] Future Outlook - PPG maintains its adjusted earnings per share guidance for 2025 in the range of $7.75 to $8.05, supported by organic sales momentum and market share growth [5][29] - The company expects total organic sales for Q2 2025 to remain flat to low single-digit growth, with varying performance across segments [29]

Financial Performance - Net sales for the three months ended March 31, 2025, were approximately $3.7 billion, a decrease of 4.3% compared to the prior year, primarily due to unfavorable foreign currency translation and divestitures [116]. - Income before income taxes was $502 million, a decrease of $40 million year-over-year, mainly due to foreign currency translation impacts and cost inflation [117]. - The effective tax rate for the three months ended March 31, 2025, was 24.3%, compared to 23.6% in the prior year [126]. - Earnings per diluted share from continuing operations decreased to $1.64, down 4.1% from $1.71 in the prior year [126]. Segment Performance - Global Architectural Coatings net sales decreased by 11.3% to $857 million, with segment income down 28.9% to $118 million [131]. - Performance Coatings net sales increased by 6.8% to $1.265 billion, with segment income rising 9.2% to $274 million [138]. - Industrial Coatings segment net sales decreased by 8.1% to $1,562 million in Q1 2025 compared to $1,699 million in Q1 2024 [146]. - Automotive OEM coatings organic sales decreased by a mid-single-digit percentage in Q1 2025 due to lower sales volumes and indexed-based selling prices [147]. - Packaging coatings organic sales increased by a low single-digit percentage compared to the prior year, driven by higher sales volumes in Europe, Latin America, and Asia Pacific [149]. - Specialty coatings and materials organic sales increased by a mid-single-digit percentage compared to Q1 2024, with segment income at $215 million, a decrease of 14% year-over-year [150]. Sales Expectations - Organic sales in the Performance Coatings segment are expected to continue growing in the second quarter of 2025, driven by industry growth and share gains [141]. - The company anticipates aggregate organic sales for the Global Architectural Coatings segment to be flat to a low single-digit percentage increase compared to the second quarter of 2024 [137]. - In the second quarter, aggregate organic sales for the aerospace coatings and protective and marine coatings segments are expected to increase by a low to mid-single-digit percentage compared to Q2 2024 [144]. Cash and Investments - Cash and short-term investments totaled $1.9 billion as of March 31, 2025, up from $1.4 billion at December 31, 2024 [154]. - Cash used for operating activities in Q1 2025 was $16 million, compared to cash from operating activities of $7 million in Q1 2024, reflecting unfavorable changes in working capital [155]. Capital Expenditures and Restructuring - Total capital spending is expected to be approximately $725 million to $775 million in 2025 to support future organic growth opportunities [159]. - The Company expects total restructuring savings of $75 million in 2025, with cash outlays related to these actions projected at approximately $100 million [166]. Debt and Financial Risk - As of March 31, 2025, the Total Indebtedness to Total Capitalization ratio was 50%, within the required limit of 60% [163]. - As of March 31, 2025, PPG had non-U.S. dollar denominated borrowings of $4.8 billion, up from $3.3 billion as of December 31, 2024 [181]. - The fair value of foreign currency forward contracts was a net liability of $31 million as of March 31, 2025, compared to $53 million as of December 31, 2024 [179]. - A 10% increase in the value of the euro to the U.S. dollar would reduce the fair value of PPG's cross currency swap contracts by $36 million as of March 31, 2025 [180]. - A weakening of the U.S. dollar by 10% against European currencies would result in unrealized translation losses of $530 million at March 31, 2025 [181]. - PPG's interest rate swaps converted $375 million of fixed rate debt to variable rate debt, with fair values of liabilities at $11 million as of March 31, 2025 [182]. - An increase in variable interest rates of 10% would increase annual interest expense by $4 million for the period ended March 31, 2025 [182]. - The potential reduction in PPG's income before income taxes from adverse changes in exchange rates was $479 million for the three months ended March 31, 2025 [179]. - The fair value of cross currency swap contracts was a net asset of $39 million as of March 31, 2025, down from $50 million as of December 31, 2024 [180]. - A 10% increase in interest rates in the U.S., Canada, Mexico, and Europe would increase annual interest expense by $4 million [182]. - There were no material changes in the Company's exposure to market risk from December 31, 2024, to March 31, 2025 [183].