此次活动是PPG"多彩社区"全球十大旗舰项目之一。除旗舰项目外，PPG还宣布将"多彩社区"项目延长 十年，并追加投资1500万美元，以持续推动全球社区的美化与振兴。为进一步扩大项目影响力，PPG及 其基金会还将在今年向全球100个历届及现有"多彩社区"合作伙伴发放总额达100万美元的庆祝资助。 中化新网讯 近日，PPG公司在天津市教育科学研究院附属滨海泰达小学举办以"拾光绘彩，育见未来"为 主题的"多彩社区"活动。 活动共有100名来自PPG天津工厂和天津涂料创新研究院的员工志愿者参与。他们对天津滨海泰达小学 的阳光大厅、图书室、体育馆等区域进行了墙绘创作与色彩焕新，并带来一场充满创意与想象力的美育 科创课堂，激发学生的艺术兴趣与探索精神。 图为活动现场。(PPG供图) ...

Core Insights - PPG reported Q2 2025 net sales of $4.2 billion, a 1% year-over-year decline, primarily due to business divestitures [1] - Net income for the quarter was $450 million, down 9% year-over-year, while adjusted net income also fell by 9% to $504 million [1] - Organic sales increased by 2% year-over-year, driven by a combination of higher sales volume and pricing [1] Financial Performance - Diluted earnings per share (EPS) stood at $1.98, with adjusted EPS at $2.22 [1] - The high-performance coatings segment achieved record sales and profitability, with organic sales growth of 6% due to strong demand for advanced product offerings [1] - The industrial coatings segment stabilized after several quarters of contraction, showing initial benefits from market share expansion [1] Future Outlook - The company anticipates accelerated sales growth momentum in the second half of the year, which is expected to drive strong year-over-year profit growth [1]

Core Insights - PPG's "Colorful Community Project" marks its 10th anniversary in Tianjin, symbolizing a commitment to social responsibility and community engagement [2][3][6] - The project has expanded globally, impacting over 10.2 million people across more than 50 countries, with over 600 projects completed [2][3] - PPG plans to invest $15 million in the next decade (2025-2035) to continue supporting community initiatives [6] Group 1: Project Overview - The Tianjin station of the Colorful Community Project is a collaboration with local government, schools, and communities, focusing on integrating aesthetic education, technological innovation, and reading inspiration [2][3] - The project has invested over 14 million RMB in various themes such as biodiversity protection and rural revitalization across multiple Chinese cities [3] Group 2: Community Engagement - On the launch day, 100 PPG volunteers painted 1,276.3 square meters of walls at Binhai TEDA Primary School, creating an immersive "Color Reading Experience Hall" [5] - PPG's engineers conducted a "COLOR-X Power Car Experience Class," combining color design, environmental knowledge, and STEAM education to inspire students [5] Group 3: Future Commitment - PPG's Asia Pacific President emphasized the importance of understanding community needs for sustainable change [6] - The company and its foundation will donate $1 million to 100 long-term partners in 2025, reinforcing their commitment to community development [6]

Core Viewpoint - PPG Industries stock is currently viewed as unattractive, with a price around $105, due to multiple significant concerns regarding its valuation and operational performance [2][3]. Valuation Comparison - PPG stock is valued comparably to the broader market in terms of cost per dollar of sales or profit [4]. Revenue Performance - PPG Industries has experienced a decline in revenues over recent years, with a quarterly revenue drop of 4.3% to $3.7 billion from $3.8 billion year-over-year, contrasting with a 4.5% increase for the S&P 500 [5][6]. Profitability Metrics - PPG's profit margins are less favorable compared to most companies in the Trefis coverage universe, with a price-to-sales (P/S) ratio of 1.7 versus 3.1 for the S&P 500, and a price-to-free cash flow (P/FCF) ratio of 30.9 compared to 20.3 for the S&P 500 [7][8]. Operating Performance - The company's operating income over the last four quarters was $2.2 billion, resulting in an operating margin of 14.8%, which is lower than the S&P 500's 18.3% [8]. Financial Stability - PPG Industries has a moderate debt-to-equity ratio of 32.5%, with total debt of $7.9 billion against a market capitalization of $24 billion, indicating a decent balance sheet [9]. Downturn Resilience - PPG stock has underperformed the S&P 500 during recent downturns, including a 40.5% drop during the inflation shock of 2022, compared to a 25.4% decline for the S&P 500 [10][11]. Overall Performance Assessment - The overall performance of PPG Industries is categorized as very weak across growth, profitability, downturn resilience, and financial stability metrics, leading to the conclusion that it is a poor investment choice at this time [15].

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show decreased net sales and net income for Q2 2025 compared to the prior year [Condensed Consolidated Statement of Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) Net sales and net income declined in the second quarter and first half of 2025 versus 2024 Condensed Consolidated Statement of Income (Unaudited) | ($ in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $4,195 | $4,235 | $7,879 | $8,084 | | Income before income taxes | $598 | $651 | $1,100 | $1,193 | | **Net income (attributable to PPG)** | **$450** | **$528** | **$823** | **$928** | | **Earnings per common share - assuming dilution** | **$1.98** | **$2.24** | **$3.60** | **$3.93** | [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) Total assets, liabilities, and shareholders' equity all increased as of June 30, 2025 Condensed Consolidated Balance Sheet (Unaudited) | ($ in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $8,190 | $6,557 | | **Total assets** | **$22,099** | **$19,433** | | **Total current liabilities** | $5,762 | $5,014 | | **Total liabilities** | **$14,355** | **$12,471** | | **Total PPG shareholders' equity** | **$7,577** | **$6,785** | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash from operations increased slightly, while proceeds from debt issuance drove a positive financing cash flow Condensed Consolidated Statement of Cash Flows (Unaudited) | ($ in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Cash from operating activities** | **$369** | **$305** | | Cash used for investing activities | ($288) | ($370) | | Cash from/(used for) financing activities | $37 | ($185) | | **Net increase/(decrease) in cash and cash equivalents** | **$291** | **($378)** | | Cash and cash equivalents, end of period | $1,561 | $1,115 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail divestitures, restructuring, new debt issuance, and a revised segment reporting structure - In December 2024, PPG completed the sale of its architectural coatings business in the U.S. and Canada, now presented as **discontinued operations**[23](index=23&type=chunk)[29](index=29&type=chunk) - The company completed the sale of its remaining Russian business in Q1 2025, following a **$146 million impairment charge** in Q4 2024[31](index=31&type=chunk) - In March 2025, PPG issued **€900 million in 3.250% Notes due 2032** and repaid **€300 million** of maturing notes in June 2025[45](index=45&type=chunk)[46](index=46&type=chunk) - Effective December 31, 2024, the company revised its reportable business segments to three: **Global Architectural Coatings, Performance Coatings, and Industrial Coatings**[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes a 1% Q2 sales decrease to divestitures, which offset volume and price gains [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 net sales decreased slightly due to divestitures, while adjusted EPS fell 5.5% from the prior year Q2 2025 vs Q2 2024 Performance | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $4,195 | $4,235 | (0.9)% | | Income before income taxes | $598 | $651 | (8.1)% | - Q2 2025 net sales change was driven by: **Divestiture-related sales (-3%)**, **higher selling prices (+1%)**, and **higher sales volumes (+1%)**[131](index=131&type=chunk)[134](index=134&type=chunk) Adjusted Earnings Per Diluted Share | | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | | **2025** | $2.22 | $3.93 | | **2024** | $2.35 | $4.22 | | **% Change** | (5.5)% | (6.9)% | [Performance of Reportable Business Segments](index=34&type=section&id=Performance%20of%20Reportable%20Business%20Segments) Performance Coatings sales grew, while Global Architectural and Industrial Coatings sales declined in Q2 Q2 2025 Segment Performance vs Q2 2024 | Segment | Net Sales ($M) | % Change | Segment Income ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Global Architectural Coatings** | $1,018 | (4.9)% | $160 | (24.2)% | | **Performance Coatings** | $1,512 | 6.6% | $356 | 9.2% | | **Industrial Coatings** | $1,665 | (4.7)% | $227 | (12.4)% | - Performance Coatings growth was led by a **high single-digit increase in aerospace coatings** and a **double-digit increase in protective and marine coatings**[160](index=160&type=chunk)[161](index=161&type=chunk) - Industrial Coatings decline was driven by the divestiture of the global silicas business and lower automotive OEM coatings sales, partially offset by **high single-digit growth in packaging coatings**[170](index=170&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.6 billion in cash and projects capital spending up to $775 million - Cash and short-term investments totaled **$1.6 billion** at June 30, 2025[182](index=182&type=chunk) - Cash from operating activities for the first six months of 2025 was **$371 million**, up from $348 million in the prior year[183](index=183&type=chunk) - Total capital spending for 2025 is expected to be approximately **$725 million to $775 million**[187](index=187&type=chunk) - The company expects restructuring savings of approximately **$75 million in 2025**, with related cash outlays of about **$125 million**[194](index=194&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign currency and interest rate risks using derivative instruments - The company is exposed to foreign currency transaction and translation risk; a hypothetical adverse change in exchange rates could reduce pre-tax income by **$495 million** as of June 30, 2025[207](index=207&type=chunk) - PPG manages interest rate risk by balancing fixed and variable rate debt, with interest rate swaps converting **$375 million** of fixed-rate debt to variable-rate[210](index=210&type=chunk) - A **10% increase in interest rates** would increase annual interest expense on variable rate debt by **$3 million**[210](index=210&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures are effective** as of the end of the reporting period[212](index=212&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the second quarter of 2025[214](index=214&type=chunk) [Part II. Other Information](index=43&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) PPG is managing litigation related to a divested business and asbestos claims, believing its risk is remote - PPG is in a legal dispute with Westlake Corporation regarding the 'Di Gregório litigation', for which liability was transferred to a Westlake predecessor in 2013; a Brazilian court has entered an award against PPG, which could be between **$350 million and $700 million**[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - PPG has filed a lawsuit against Westlake in Delaware to enforce Westlake's obligations to cover the award and all related costs; a decision is expected in Q3 2025 and PPG believes its **risk of loss is remote**[223](index=223&type=chunk)[224](index=224&type=chunk) - The company continues to be a defendant in lawsuits involving claims of personal injury from **asbestos exposure**[225](index=225&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported since the 2024 Annual Report - **No material changes** in the Company's risk factors were reported compared to the 2024 Form 10-K[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased over 1.3 million shares of its common stock during the second quarter of 2025 Issuer Purchases of Equity Securities (Q2 2025) | Month | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 656,169 | $111.37 | | June 2025 | 689,305 | $111.60 | | **Total** | **1,345,474** | **$111.48** | - The board of directors authorized an additional **$2.5 billion for share repurchases** in April 2024, with no expiration date[227](index=227&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) The Chief Financial Officer adopted a Rule 10b5-1 trading plan in May 2025 - On May 2, 2025, CFO Vincent J. Morales adopted a **Rule 10b5-1 trading plan** for the potential sale of up to **34,872 shares** of common stock upon exercise of stock options[228](index=228&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including officer certifications and XBRL data - Exhibits filed include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[233](index=233&type=chunk) - The filing includes financial statements and notes formatted in **Inline XBRL**[235](index=235&type=chunk)

Core Insights - PPG Industries, Inc. reported a second-quarter 2025 profit of $450 million or $1.98 per share, a decrease from $493 million or $2.09 per share in the same quarter last year [1] - Adjusted earnings per share for the quarter were $2.22, down from $2.35 year-over-year, meeting the Zacks Consensus Estimate [1] - Revenues for the quarter were $4,195 million, a 1% decline year-over-year, but exceeded the Zacks Consensus Estimate of $4,131.6 million [1] Segment Review - The Global Architectural Coatings segment experienced a 5% year-over-year decline in sales to $1,018 million, surpassing estimates of $1,002.6 million, primarily due to the divestiture of the architectural coatings business in Russia and lower sales volumes, partially offset by higher selling prices [2] - The Performance Coatings segment saw a 7% year-over-year increase in sales to $1,512 million, exceeding estimates of $1,439.3 million, driven by a 6% rise in organic sales along with increases in selling prices and volume [3] - The Industrial Coatings segment's sales declined 5% year-over-year to $1,665 million, surpassing estimates of $1,632.2 million, mainly due to the divestiture of the silicas products business in late 2024 [4] Financials - As of the end of the quarter, the company had $1,561 million in cash and cash equivalents, with net debt increasing to $5.7 billion, up $479 million from the prior-year quarter [5] Outlook - The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by continued share gains and internal improvement initiatives, while considering current global economic conditions and varied demand trends [6] Price Performance - PPG shares have declined by 11.6% over the past year, compared to a 3.3% decline in its industry [7]

Financial Performance - The company reported net sales of $4.2 billion, with a 2% increase in organic sales, driven by aerospace coatings, protective and marine coatings, and packaging coatings [8][9] - The quarterly segment EBITDA margin was 20.3%, and adjusted earnings per diluted share were $2.22 [9] - The company repurchased approximately $150 million of stock during the quarter, totaling $540 million year-to-date, and raised its quarterly dividend per share by 4% [9][19] Business Segment Performance - In the Global Architectural Coatings segment, positive selling prices were offset by lower volumes and the impact of a divestiture, with organic sales growth in the Nordic region and the UK, but lower demand in Eastern Europe [10][11] - The Performance Coatings segment saw a 6% increase in organic sales, with aerospace delivering high single-digit percentage organic sales growth [11][12] - Protective and Marine Coatings achieved double-digit percentage organic sales growth, marking the ninth consecutive quarter of positive year-over-year sales volume growth [13][14] - The Industrial Coatings segment's sales volumes were flat, with selling prices declining by 1% due to index-based customer contracts [15][16] Market Performance - Organic growth was delivered in both the United States and Latin America, while demand in Europe was tepid and some softening was noted in Asia [9][10] - The company expects project-related spending in Mexico to improve in the second half of the year, with organic growth in Mexico projected to be modestly up to mid-single digits [10][90] Company Strategy and Industry Competition - The company is focused on leveraging its technology advantage in the Performance Coatings segment, particularly in aerospace and protective and marine coatings [21][22] - The company anticipates continued growth in the aerospace sector, with high single-digit to double-digit growth expected for the foreseeable future [80] - The company is committed to driving shareholder value through disciplined capital allocation and a strong balance sheet [20][23] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic macro environment, with expectations for sales and earnings growth momentum in the second half of the year [20][22] - The company is monitoring tariff situations and plans to react accordingly with pricing actions to mitigate financial impacts [20][21] - Management expects to achieve a mid-single-digit percentage increase in EPS for the third quarter and a low double-digit percentage increase for the fourth quarter [22] Other Important Information - The company retired €300 million of debt during the quarter and has another €600 million of euro debt maturing in the fourth quarter [19][20] - The company is investing in both operational and capital expenditures in aerospace to support future growth [11][80] Q&A Session Summary Question: Global Architectural Coatings segment performance - Management noted that Eastern Europe did not recover as expected, impacting margins, while Mexico showed signs of retail recovery [28][30] Question: Volume growth expectations for Q3 and Q4 - Management expects low single-digit growth in volumes for the second half of the year, with confidence in share gains [33][34] Question: Outlook for Performance Coatings and Refinish - Refinish is expected to be soft in Q3, with a return to normalization in Q4, while Protective and Marine Coatings are anticipated to continue strong growth [36][38] Question: Raw material inflation compared to peers - Management explained that raw material inflation is influenced by the company's significant purchases in Mexico and specific material costs like epoxy [44][45] Question: Buyback activity and M&A considerations - Management confirmed ongoing buyback activity and indicated that any M&A would be small and not materially affect cash allocation [47][50] Question: Share gains and margin impacts - Management indicated that share gains would improve net margins through fixed cost leverage and manufacturing efficiencies [77] Question: Aerospace growth outlook - Management anticipates high single-digit to double-digit growth in aerospace, supported by strong forecasts from industry CEOs [80] Question: Mexico architectural market outlook - Management expressed confidence in project spending recovery in Mexico, with expectations for modest growth in the second half of the year [88][90]

Financial Data and Key Metrics Changes - The company reported net sales of $4.2 billion, with an organic sales increase of 2% [7] - Adjusted earnings per diluted share were $2.22, and the quarterly segment EBITDA margin was 20.3% [8] - The company repurchased approximately $150 million of stock during the quarter, totaling $540 million year-to-date [8][19] Business Line Data and Key Metrics Changes - In the Global Architectural Coatings segment, positive selling prices were offset by lower volumes and the impact of a divestiture [9] - The Performance Coatings segment achieved record net sales and earnings, with a 6% increase in organic sales driven by higher selling prices and sales volumes [11] - Protective and Marine Coatings delivered double-digit percentage organic sales growth, marking the ninth consecutive quarter of positive year-over-year sales volume growth [13] Market Data and Key Metrics Changes - Organic growth was delivered in both the United States and Latin America, while demand in Europe was tepid and some softening was noted in Asia [8] - In Architectural Coatings Latin America, organic sales growth was seen in Mexico, aided by solid retail sales [10] - The company expects project-related spending in Mexico to improve as the year progresses [10] Company Strategy and Development Direction - The company is committed to using its strong balance sheet for shareholder value creation and has raised its quarterly dividend per share by 4% [8][19] - The company anticipates continued growth in its Performance Coatings segment, driven by technology advantages in Aerospace and Protective and Marine [20] - The company is focused on aggressive self-help and discretionary cost management programs to drive future growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic macro environment, expecting sales and earnings growth momentum for the second half of the year [19] - The company is monitoring the tariff situation and plans to react accordingly with pricing actions to mitigate financial impacts [19] - Management expects to achieve high single-digit percentage year-over-year earnings growth for the second half of the year [21] Other Important Information - The company retired €300 million of debt during the quarter and has another €600 million of euro debt maturing in the fourth quarter [19] - The company is investing in both OpEx and CapEx in aerospace to support continued growth [11] Q&A Session Summary Question: Global Architectural Coatings segment performance - Management noted that Eastern Europe did not recover as expected, impacting overall performance, but there was positive momentum in the Nordic region and the UK [26][28] Question: Volume growth expectations for Q3 and Q4 - Management expects low single-digit volume growth to continue into the second half of the year [34][35] Question: Outlook for Performance Coatings and Refinish - Management anticipates a soft Q3 for Refinish due to distributor order patterns but expects normalization in Q4 [39] Question: Raw material pricing and inflation - Management explained that raw material inflation is influenced by the company's significant operations in Mexico and specific material costs like epoxy [44][45] Question: Buyback activity and M&A plans - Management confirmed ongoing buyback activity and indicated that there are no significant M&A plans on the horizon [48][49] Question: Outlook for auto OEM and production dynamics - Management highlighted share gains and long-term fundamentals in the auto OEM sector, expecting to outperform the industry [92][94] Question: Architectural margins and cost impacts - Management discussed the mix impact from Mexico and the normalization of FX impacts in the second half of the year [107][108]

Second Quarter 2025 Financial Performance - Net sales reached $4.2 billion, reflecting a 2% organic sales increase[5] - Adjusted EPS was $2.22[5] - Segment EBITDA margin stood at 20.3%[5] - The company executed approximately $150 million in share repurchases[6] Segment Results - Global Architectural Coatings segment net sales were $1.018 billion, down from $1.070 billion in the prior year[13] - Performance Coatings segment net sales increased to $1.512 billion from $1.418 billion, driven by a 6% organic sales growth[19] - Industrial Coatings segment net sales were $1.665 billion, compared to $1.747 billion in the prior year, with flat volume reflecting share gains offsetting end-market declines[25] Balance Sheet and Cash Deployment - Net debt as of June 30, 2025, was $5.7 billion, with a cash balance of $1.6 billion[30] - The company deployed $300 million in dividends and share repurchases during the second quarter of 2025[30] Third Quarter and Full-Year 2025 Projections - The company projects flat to low-single-digit (LSD) organic sales growth for the third quarter of 2025[31] - Full-year 2025 adjusted EPS is projected to be between $7.75 and $8.05 per share[31] - The company anticipates low-single-digit (LSD) inflation in raw material and enacted tariff costs for both the third quarter and full year 2025[31]

Analyst's Disclosure:I/we have a beneficial long position in the shares of BA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns w ...