Financial Performance - Revenue for the quarter ended December 2024 was $3.73 billion, a 14.3% decrease compared to the same period last year [1] - EPS for the quarter was $1.61, up from $1.53 in the year-ago quarter [1] - The revenue missed the Zacks Consensus Estimate of $4.01 billion by -6.90% [1] - EPS missed the consensus estimate of $1.65 by -2.42% [1] Key Metrics Analysis - Net Sales for Industrial Coatings were $1.59 billion, matching the average estimate but representing an 8.6% year-over-year decline [4] - Net Sales for Performance Coatings were $1.26 billion, significantly below the $2.42 billion estimate and showing a 51.7% year-over-year decrease [4] - Segment Income for Industrial Coatings was $185 million, slightly below the $193.54 million estimate [4] - Segment Income for Performance Coatings was $259 million, well below the $390 million estimate [4] Stock Performance - PPG Industries' shares returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently has a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - PPG Industries reported quarterly earnings of $1.61 per share, missing the Zacks Consensus Estimate of $1.65 per share, representing an earnings surprise of -2.42% [1][2] Financial Performance - The company posted revenues of $3.73 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.90%, and down from $4.35 billion year-over-year [2] - Over the last four quarters, PPG Industries has surpassed consensus EPS estimates only once [2] Stock Performance - PPG Industries shares have increased by approximately 2.5% since the beginning of the year, compared to the S&P 500's gain of 2.7% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.87 on revenues of $3.74 billion, and for the current fiscal year, it is $8.58 on revenues of $15.68 billion [7] - The estimate revisions trend for PPG Industries is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which PPG Industries belongs, is currently in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

Financial Performance - Net sales from continuing operations for Q4 2024 were $3.7 billion, a decrease of 5% year over year[2]. - Full-year 2024 net sales totaled $15.8 billion, down 2% from the previous year, with adjusted EPS increasing by 6% to $7.87[24][27]. - Net sales for Q4 2024 were $3.729 billion, down from $3.912 billion in Q4 2023, while full year net sales decreased to $15.845 billion from $16.242 billion[41]. - Total net sales for the company decreased to $15,845 million in 2024, down 2.4% from $16,242 million in 2023[49]. - Net sales for the Industrial Coatings segment decreased to $6,687 million in 2024, down 5.7% from $7,089 million in 2023[49]. Earnings and EPS - Adjusted EPS for Q4 2024 was $1.61, reflecting a 3% increase compared to Q4 2023[3]. - Adjusted net income from continuing operations for the full year 2024 was $1.848 billion, with an EPS of $7.87, an increase from $1.762 billion and $7.42 EPS in 2023[40]. - Adjusted EPS for 2025 is projected to be in the range of $7.75 to $8.05, indicating a potential growth of 7%[30]. Cash Flow and Shareholder Returns - The company generated $1.4 billion in operating cash flow for the full year, returning $1.4 billion to shareholders through share repurchases and dividends[4]. - The company plans to deploy approximately $400 million toward share repurchases in Q1 2025[9]. - The company repurchased $750 million of stock in 2024, with approximately $2.8 billion remaining on its current share repurchase authorization[28]. - Cash from operating activities decreased to $1,420 million in 2024 from $2,411 million in 2023, a decline of 41%[46]. - The company paid dividends of $622 million in 2024, an increase from $598 million in 2023[46]. Operating Performance - Segment EBITDA margin improved to 18.1% for the full year, an increase of 100 basis points year over year[24]. - Adjusted EBITDA for Q4 2024 was $594 million, slightly up from $606 million in Q4 2023, with a margin of 15.9%[41]. - PPG's total segment EBITDA for the full year 2024 was $1,624 million, down from $1,584 million in 2023[44]. - The company reported a segment income of $562 million for the three months ended December 31, 2024, down from $580 million in the same period of 2023[49]. Costs and Expenses - Business restructuring-related costs for Q4 2024 amounted to $362 million, significantly higher than $16 million in Q4 2023[40]. - The company incurred business restructuring-related costs of $234 million in Q4 2024, compared to only $1 million in Q4 2023[45]. - The company incurred acquisition-related amortization expenses of $32 million in Q4 2024, compared to $44 million in Q4 2023[41]. - Research and development expenses were $106 million in Q4 2024, slightly down from $109 million in Q4 2023[45]. - Depreciation and amortization expenses totaled $102 million for Global Architectural, $142 million for Performance Coatings, and $207 million for Industrial Coatings segments[53]. Taxation - The effective tax rate on continuing operations for Q4 was 86%, with an adjusted effective tax rate of 22%[29]. - The effective tax rate for continuing operations in 2024 was 25.6%, compared to 25.3% in 2023[41]. - The adjusted effective tax rate for continuing operations, excluding certain items, was 22.9% for the full year 2024, compared to 22.2% in 2023[41]. Other Notable Items - PPG anticipates potential risks affecting future performance, including global economic conditions and competition, which may impact actual results compared to forward-looking statements[36]. - The company recognized a gain of $129 million from the sale of its silicas products business in Q4 2024[43]. - The company recorded accumulated foreign currency translation losses of $110 million related to its exit from Argentina operations in Q4 2024[43]. - An impairment charge of $146 million was recognized for remaining operations in Russia, classified as held for sale[54]. - Argentina's currency devaluation in December 2023 led to foreign currency translation losses included in other charges[54].

Core Viewpoint - PPG Industries is expected to report its fourth-quarter 2024 results on January 30, with mixed performance indicators suggesting challenges due to weak demand, particularly in Europe, despite some benefits from acquisitions and cost-saving measures [1][2]. Financial Performance - The Zacks Consensus Estimate for PPG's sales in the upcoming quarter is $4,005.5 million, reflecting a decline of approximately 7.9% year-over-year [5]. - The Industrial Coatings segment is projected to generate net sales of $1,627.4 million, indicating a 6.2% decline year-over-year, while the Performance Coatings segment is expected to see a slight increase of 0.8% to $2,637.2 million [5]. Cost Management and Restructuring - PPG is actively pursuing a cost-cutting and restructuring strategy aimed at optimizing its global cost structure, with expected savings of around $35 million for the full year 2024 [6]. - The company has initiated a cost-cutting program projected to yield annualized pre-tax savings of approximately $175 million, with $60 million expected in 2025 [6]. Market Conditions and Demand - Weak global industrial production is anticipated to negatively impact demand in the Industrial Coatings unit, particularly due to lower automotive OEM build rates and softer industrial production in the U.S. and Europe [9][10]. - The ongoing crisis between Russia and Ukraine, along with low consumer confidence, is further affecting demand in Europe [9]. Earnings Prediction - PPG's Earnings ESP is currently at -0.65%, indicating a lower likelihood of an earnings beat this quarter, with the Most Accurate Estimate at $1.64 compared to the Zacks Consensus Estimate of $1.65 [12]. - The company holds a Zacks Rank of 4 (Sell), suggesting a challenging outlook for the upcoming earnings report [12].

Company Overview - PPG Industries is expected to report a year-over-year increase in earnings of +7.8%, with an estimated EPS of $1.65 for the quarter ended December 2024 [3] - Revenues are projected to be $4.04 billion, reflecting a decrease of 7.1% compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on January 30, 2025, and could influence stock movement depending on whether the results exceed or fall short of expectations [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for PPG Industries is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.32%, suggesting a bearish outlook from analysts [10] - The company currently holds a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat [11] Historical Performance - In the last reported quarter, PPG Industries was expected to post earnings of $2.15 per share but delivered $2.13, resulting in a surprise of -0.93% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Chemical - Specialty industry, Ashland is expected to report earnings of $0.20 per share, indicating a significant year-over-year decline of -55.6% [17] - Ashland's revenue is anticipated to be $439.38 million, also down 7.1% from the previous year [17] - Despite a recent upward revision of 5.9% in consensus EPS estimates for Ashland, it has an Earnings ESP of -6.56% and a Zacks Rank of 5 (Strong Sell), making predictions of an earnings beat difficult [18]

Group 1 - The article expresses a beneficial long position in PPG shares through stock ownership, options, or other derivatives [1] - The author emphasizes that the article is not financial advice and that investors should conduct their own due diligence [2] - It is noted that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Core Insights - PPG Industries Inc. has divested 100% of its architectural coatings business in the U.S. and Canada for $550 million to American Industrial Partners, while retaining its architectural coatings businesses in other global regions [1][2] - The divestment is part of PPG's strategy to optimize its portfolio, enhancing organic growth and financial returns, allowing for better resource allocation to areas of competitive advantage [2][3] - The architectural coatings business in the U.S. and Canada represented approximately $2 billion of PPG's total net sales in 2023, with a low single-digit EBITDA margin [3] Financial Performance - Excluding the divested architectural coatings business, PPG's overall sales volume performance would have increased by over 200 basis points on a pro forma basis over three years [3] - The Performance Coatings segment's operational income, excluding the U.S. and Canada architectural coatings EBIT, would have seen an approximate 300-basis point increase in segment margins for 2023 [3] - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15-$8.30 range for 2024 [6] Strategic Context - The transaction follows PPG's strategic review of alternatives for the architectural coatings business, initially announced on February 26, 2024 [4] - Goldman Sachs & Co. LLC acted as the sole financial advisor for PPG, with Hogan Lovells U.S. LLP serving as the legal advisor [4] Market Performance - PPG's shares have declined by 12% over the past year, compared to an 8.1% decline in the industry [5] - PPG currently holds a Zacks Rank of 4 (Sell), while other companies in the basic materials sector, such as Carpenter Technology Corporation, DuPont de Nemours, Inc., and CF Industries Inc., have better rankings [7]

Group 1: Company Developments - PPG Industries Inc. has received its 50th order for the electrostatic application of marine fouling control coatings, specifically for the VLCC SIDR oil tanker [1] - The PPG NEXEON 810 antifouling coating will be applied at the Asyad Drydock Company shipyard in Oman [1] - PPG has tailored its hull coatings for electrostatic application, which has been introduced to the shipping sector over the past year [2] Group 2: Industry Trends - Ship owners and shipyards are seeking new methods to comply with stricter environmental standards and sustainability goals, including low-friction hull coatings [3] - Electrostatic applications are gaining traction among significant shipping companies and shipyards in Europe, Singapore, and China [3] - Traditional fouling control coatings are often not suitable for electrostatic applications, but PPG's formulations enable this method [4] Group 3: Operational Efficiency - Electrostatic application offers higher transfer efficiency than airless spraying, resulting in reduced overspray and waste, leading to environmental benefits [2] - The process provides a cleaner operation and better work environment for applicators, saving time and money for shipyards [5] Group 4: Financial Performance - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full-year 2024 [7] - PPG's shares have declined by 11.5% over the past year, compared to a 7.9% decline in the industry [6]

Core Viewpoint - PPG Industries Inc. has completed the divestment of its silicas products business to QEMETICA for approximately $310 million in pre-tax proceeds, marking a strategic shift for the company [1][4]. Group 1: Divestment Details - The silicas products division accounted for 1-2% of PPG's overall net sales in 2023, indicating its relatively small contribution to the company's total revenue [2]. - The divestment includes manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands, along with leased operations in Barberton, OH, and Monroeville, PA [2]. Group 2: QEMETICA Overview - QEMETICA is a leading European chemical manufacturer with a focus on expanding its global presence through strategic acquisitions and diversifying its portfolio [3]. - The company aims to blend modern business practices with a commitment to long-term development [3]. Group 3: Financial Performance and Outlook - PPG anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for the full year 2024 [6]. - PPG's shares have declined by 8.4% over the past year, slightly better than the industry's decline of 8.5% [5].

Partnership and Market Expansion - PPG Industries Inc has partnered with SARO/Siccardi, Italy's largest distributor of powder coatings, to strengthen its distribution network in Italy and enhance customer access to high-quality products and services [1] - The collaboration leverages PPG's global leadership in powder coating technology and SARO/Siccardi's market expertise and strong regional presence to provide superior product protection and an efficient purchasing experience for customers [2] - The partnership will enable closer collaboration with customers, offering specialized solutions, technical support, competitive pricing, and faster access to PPG's advanced powder coating technology through SARO/Siccardi's extensive distribution network [3] Strategic Focus on Powder Coatings - Since 2019, PPG has prioritized expanding its powder coating business through strategic alliances, acquisitions, R&D investments, and capacity enhancements to meet the growing demand for sustainable manufacturing solutions [4] - Powder coatings, which are solvent-free and emit no VOCs, align with PPG's goal of deriving 50% of sales from environmentally advantageous products and processes by 2030 [4] Financial Performance and Outlook - PPG's shares have declined 11.3% over the past year, underperforming the industry's 10.3% decline during the same period [5] - The company anticipates flat organic sales and adjusted earnings per share in the range of $8.15 to $8.30 for full-year 2024 [6] Industry Comparison and Stock Performance - Carpenter Technology Corporation (CRS) has outperformed with a 157.2% share price increase over the past year and an average earnings surprise of 14.1% in the last four quarters [8] - IAMGOLD Corporation (IAG) has seen a 112% share price rally and a 522.2% year-over-year earnings growth estimate, with an average earnings surprise of 203.4% in the last four quarters [9] - CF Industries Inc (CF) has rallied 13.1% over the past year, with an average earnings surprise of 10.3% in the last four quarters [10]