Group 1 - PPG's shares increased by up to 6.1% following its first-quarter earnings report and full-year guidance, indicating positive investor sentiment despite economic uncertainties [1] - Management maintained guidance for adjusted earnings per share (EPS) between $7.75 and $8.05, driven by improvements in the performance coatings segment [2] - Performance coatings saw a 6% increase in volumes, particularly in the aerospace sector and automotive refinish, suggesting areas of economic strength [3] Group 2 - Global architectural and industrial coatings experienced volume declines of 3% and 1%, respectively, attributed to a slowdown in project-related business and governmental spending in Mexico due to geopolitical uncertainties [4] - In industrial coatings, growth in packaging volumes was not sufficient to counterbalance the decline in the automotive OEM market, as automakers are reducing production in 2025 due to economic concerns [4] - CEO Tim Knavish noted that over 95% of PPG's purchases are locally sourced or tariff-free, indicating that the company's exposure to tariffs is limited, with end markets currently performing adequately [6]

Financial Performance - The company reported sales of $3.7 billion for Q1 2025, a decrease of 4% compared to Q1 2024, primarily due to unfavorable foreign currency translation and business divestitures [8][10] - The first quarter segment EBITDA margin was 19.4%, and adjusted earnings per diluted share were $1.72 [10] - The company repurchased approximately $400 million of its stock and maintained a strong balance sheet [10][20] Business Segment Performance - In the Global Architectural Coatings segment, net sales were significantly impacted by unfavorable foreign currency translation, decreasing sales by 7% [11] - The Performance Coatings segment saw a 9% increase in organic sales, with double-digit growth in Aerospace [13] - The Industrial Coatings segment experienced a decline in net sales due to foreign currency translation and divestiture impacts, with organic sales down less than 2% [16][19] Regional Market Performance - Organic sales growth in Asia was driven by strong performance in China, India, and Vietnam [8] - The U.S. achieved 4% organic sales growth after six quarters of declines, supported by share gains and improved industrial production [9] - European organic sales were down 1%, showing significant improvement compared to prior quarters [9] Company Strategy and Industry Competition - The company is focused on its enterprise growth strategy launched in 2023, optimizing its portfolio and investing in innovation [10] - The company is managing costs aggressively and maintaining a disciplined capital allocation strategy [10][21] - The company has a balanced global business portfolio, minimizing reliance on any single country or market [21] Management Commentary on Economic Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, citing structural advantages and a strong balance sheet [20][22] - The company anticipates project spending in Mexico to resume as economic conditions stabilize [34] - Management reaffirmed full-year earnings per share guidance of $7.75 to $8.50 [27] Other Important Information - The company has seen stable customer order backlogs at $300 million, indicating strong demand for its technology-advantaged products [13] - The company is executing contingency plans for its supply chain and monitoring customer order patterns closely [24][25] Q&A Session Summary Question: How do you expect margins to trend in Q2 for Global Architectural? - Management expects some margin benefit from sequential volume improvement, with positive pricing in the segment [29] Question: How much was the COMEX business down in Q1? - Management noted a pause in project-related spending in Mexico but highlighted solid core retail sales [31] Question: What is happening in the Refinish industry? - Management indicated that the lumpiness in sales does not affect pricing ability, attributing it to the two-step distribution model [37] Question: Can you unpack the sales guidance for Global Architectural Coatings? - Management expects project pauses in Mexico to continue into Q2 but sees potential for improvement in Europe [46] Question: What are the expectations for Performance Coatings volume this year? - Management is confident in achieving higher growth due to strong performance across various business units [50] Question: What is the outlook for Europe? - Management noted stabilization in industrial production and better order patterns in Western Europe [56] Question: How is the company positioned regarding tariffs? - Management stated minimal impact from tariffs due to a localized sourcing strategy and flexibility in operations [60] Question: What is the capital allocation strategy moving forward? - Management emphasized a focus on organic growth while remaining open to M&A opportunities that fit their strategy [81]

Financial Data and Key Metrics Changes - The company reported sales of $3.7 billion for Q1 2025, a decrease of 4% compared to Q1 2024, primarily due to unfavorable foreign currency translation and business divestitures [7][9] - The first quarter segment EBITDA margin was 19.4%, and adjusted earnings per diluted share was $1.72 [9] - Approximately $400 million of stock was repurchased during the quarter, maintaining a strong balance sheet [9][20] Business Line Data and Key Metrics Changes - In the Global Architectural Coatings segment, net sales were significantly impacted by unfavorable foreign currency translation, decreasing sales by 7% [11] - Performance Coatings segment saw a 9% increase in organic sales, with double-digit growth in Aerospace [13] - Industrial Coatings segment net sales declined due to foreign currency translation and divestiture impacts, with organic sales down less than 2% [16][17] Market Data and Key Metrics Changes - Organic sales growth in Asia was driven by strong performance in China, India, and Vietnam [7] - The U.S. achieved 4% organic sales growth after six quarters of declines, while European organic sales were down 1%, showing improvement compared to prior quarters [8] - Latin America saw slight organic sales growth, tempered by geopolitical uncertainties [8] Company Strategy and Development Direction - The company is focused on executing its enterprise growth strategy launched in 2023, optimizing its portfolio, and investing in innovation [9][10] - PPG aims to navigate the current economic conditions by leveraging its diversified global business portfolio and flexible manufacturing processes [21][22] - The company is committed to driving shareholder value through disciplined capital allocation and share repurchases [20][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties due to its structural advantages and strong cash generation capabilities [22][24] - The company anticipates project spending in Mexico to resume as economic conditions stabilize, despite current pauses [32][33] - Management reaffirmed full-year earnings per share guidance of $7.75 to $8.50, reflecting confidence in operational momentum and share gains [26][68] Other Important Information - The company issued €900 million of debt at 3.25% during the quarter, with upcoming euro debt maturities [19] - Management highlighted the importance of monitoring customer order patterns and adjusting operations accordingly in response to macroeconomic changes [22][24] Q&A Session Summary Question: How do you expect margins to trend in Q2 for Global Architectural? - Management expects margin recovery driven by sequential volume improvement and positive pricing [28][29] Question: How much was the COMEX business down in Q1? - The business was impacted by a pause in project-related spending, but core retail sales remained solid [30][31] Question: What is happening in the Refinish industry? - The lumpiness in sales is due to the two-step distribution model, but pricing remains strong due to the value proposition offered [35][36] Question: Can you unpack the sales guidance for Global Architectural Coatings? - Management expects project pauses in Mexico to continue into Q2, but anticipates improvements in Europe [42][46] Question: What are the expectations for Performance Coatings volume this year? - Management is confident in achieving mid-single-digit growth due to strong performance across various business units [50][52] Question: What is the impact of tariffs on the company? - The company has minimal impact from tariffs due to its localized sourcing strategy and is prepared to adjust pricing as necessary [60][61] Question: What is the split between residential and commercial in the COMEX business? - The core business is mostly residential, with recent expansions into project business [115] Question: What is the updated full-year currency EPS headwind? - The company expects a $0.09 impact from currency in Q1, which will diminish in subsequent quarters [117]

Core Viewpoint - PPG Industries reported a decline in profit and revenues for the first quarter of 2025, with adjusted earnings per share surpassing estimates despite overall sales decreases attributed to unfavorable currency translations and business divestments [1][2]. Financial Performance - The company reported a profit of $396 million or $1.64 per share, down from $443 million or $1.71 per share in the same quarter last year [1]. - Adjusted earnings per share fell to $1.72 from $1.87 year-over-year, exceeding the Zacks Consensus Estimate of $1.62 [1]. - Revenues for the quarter were $3,684 million, a decrease of approximately 4% year-over-year, but above the Zacks Consensus Estimate of $3,655.9 million [2]. Segment Performance - The Global Architectural Coatings segment experienced an 11% decline in sales to $857 million, missing the estimate of $967.9 million due to adverse foreign currency translation and lower sales volumes [2]. - The Performance Coatings segment saw a 7% increase in sales to $1,265 million, surpassing the estimate of $1,199.3 million, driven by growth in aerospace coatings and traffic solutions [3]. - The Industrial Coatings segment's sales declined 8% year-over-year to $1,562 million, but exceeded the estimate of $1,556.8 million, impacted by foreign currency translation and divestment of the silicas products business [4]. Financial Position - At the end of the first quarter, PPG had cash and cash equivalents of $1,830 million, an increase of approximately 56.7% year-over-year [5]. - Long-term debt decreased by around 6.2% to $5,574 million compared to the prior-year quarter [5]. - The company repurchased shares worth roughly $400 million during the reported quarter [5]. Outlook - PPG reaffirmed its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by share gains and self-help efforts amid current global economic conditions [6]. Stock Performance - PPG's shares have declined by 19.5% over the past year, compared to a 3.3% decline in the industry [7]. Zacks Rank & Comparisons - PPG currently holds a Zacks Rank 3 (Hold), with better-ranked stocks in the basic materials sector including Hawkins, Inc. (Rank 1), SSR Mining Inc. (Rank 2), and Intrepid Potash, Inc. (Rank 2) [8].

Financial Highlights - First quarter net sales reached $3.7 billion, a 1% increase organically[5] - Adjusted EPS was $1.72[5] - Segment EBITDA margin stood at 19.4%[5] - Approximately $400 million was allocated for share repurchases[6] Segment Performance - Global Architectural Coatings net sales decreased to $857 million[14] - Performance Coatings net sales increased to $1.265 billion[19] - Industrial Coatings net sales decreased to $1.562 billion[24] Projections and Outlook - Second quarter organic sales are projected to be flat to a low-single-digit increase[35] - The company anticipates low-single-digit inflation in raw material and enacted tariff costs for the second quarter[35] - Full-year EPS guidance remains unchanged at $7.85 - $8.05[32] Balance Sheet and Cash Flow - Net debt as of March 31, 2025, was $5.4 billion[30] - Cash balance as of March 31, 2025, was $1.9 billion[30] - $550 million was deployed to shareholders through dividends and share repurchases in the first quarter[30]

Core Insights - PPG Industries reported a revenue of $3.68 billion for the quarter ended March 2025, reflecting a 14.5% decline year-over-year, while EPS decreased to $1.72 from $1.86 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.77%, and the EPS surpassed the consensus estimate by 6.17% [1] Financial Performance - Net Sales in Performance Coatings reached $1.27 billion, exceeding the average estimate of $1.20 billion, but showing a significant year-over-year decline of 51.6% [4] - Net Sales in Architectural Coatings were reported at $857 million, below the average estimate of $918.35 million [4] - Net Sales in Industrial Coatings amounted to $1.56 billion, slightly above the average estimate of $1.53 billion, with an 8% year-over-year decline [4] Segment Income - Segment Income for Performance Coatings was $274 million, slightly above the average estimate of $273.54 million [4] - Segment Income for Architectural Coatings was $118 million, below the average estimate of $142.24 million [4] - Segment Income for Industrial Coatings reached $215 million, exceeding the average estimate of $173.71 million [4] Stock Performance - PPG Industries' shares have returned -5.8% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

PPG Industries (PPG) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.62 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.17%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $1.65 per share when it actually produced earnings of $1.61, delivering a surprise of -2.42%.Over the last four quarters ...

News PPG Media Contact: Mark Silvey Corporate Communications +1-412-434-3046 silvey@ppg.com Exhibit 99 PPG Investor Contact: Alex Lopez Investor Relations +1-412-434-3466 alejandrolopez@ppg.com investor.ppg.com PPG reports first quarter 2025 financial results PITTSBURGH, April 29, 2025 – PPG (NYSE:PPG) today reported financial results for the first quarter 2025. (c) Includes an unfavorable year-over-year foreign currency translation impact of $0.09 and business divestitures impact of $0.03 Chairman and CEO ...

Core Viewpoint - PPG Industries is expected to report its first-quarter 2025 results on April 29, with mixed performance indicators suggesting potential challenges and benefits from restructuring and acquisitions [1][2]. Group 1: Earnings Performance - PPG Industries missed the Zacks Consensus Estimate for earnings in two of the last four quarters, with an average negative earnings surprise of approximately 0.6% [2]. - The Earnings ESP for PPG is +1.35%, with the Zacks Consensus Estimate for the first quarter set at $1.62 [6]. - PPG currently holds a Zacks Rank 3, indicating a neutral outlook [7]. Group 2: Revenue Estimates - The Zacks Consensus Estimate for PPG's sales in the upcoming quarter is $3,655.9 million, reflecting a decline of about 15.2% year-over-year [7]. - Estimated net sales for the Industrial Coatings segment are projected at $1,556.8 million, indicating an 8.4% decline year-over-year [8]. - The Performance Coatings segment is expected to see net sales of $1,199.3 million, suggesting a 1.3% year-over-year increase, while the Global Architectural Coatings segment is estimated at $967.9 million, indicating a 0.2% rise [8]. Group 3: Strategic Initiatives - PPG is implementing aggressive cost-cutting and restructuring strategies, anticipating around $45 million in restructuring savings for the full year 2025 [9]. - A comprehensive cost reduction program is expected to yield pre-tax savings of $60 million in 2025, primarily targeting structural costs in Europe and other global operations [9]. - The company is also raising selling prices across its segments to counteract cost inflation and enhance profitability [10]. Group 4: Market Challenges - PPG faces challenges from weak global industrial production, particularly affecting demand in the Industrial Coatings unit [12]. - Lower automotive OEM build rates and reduced industrial production in the U.S. and Europe are anticipated to negatively impact volumes and sales [12][13]. - Weak consumer confidence in Europe is further contributing to decreased demand [12].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for PPG Industries in the upcoming earnings report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - PPG Industries is expected to report quarterly earnings of $1.62 per share, reflecting a year-over-year decrease of 12.9% [3]. - Revenues are projected to be $3.65 billion, down 15.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.39% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +4.16% suggests analysts have recently become more optimistic about PPG's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - PPG Industries currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, PPG Industries was expected to post earnings of $1.65 per share but delivered $1.61, resulting in a surprise of -2.42% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While PPG Industries is seen as a potential earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].