Core Insights - PPG Industries reported revenue of $4.2 billion for the quarter ended June 2025, reflecting a 12.5% decline year-over-year, with EPS at $2.22 compared to $2.50 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.13 billion by 1.53%, while the EPS met the consensus estimate [1] Financial Performance - Net Sales in Performance Coatings were $1.51 billion, surpassing the average estimate of $1.48 billion, but showing a significant year-over-year decline of 50.4% [4] - Global Architectural Coatings reported Net Sales of $1.02 billion, slightly below the average estimate of $1.03 billion [4] - Industrial Coatings achieved Net Sales of $1.67 billion, exceeding the average estimate of $1.64 billion, with a year-over-year decline of 4.6% [4] Segment Income - Segment Income for Performance Coatings was $356 million, higher than the estimated $327.83 million [4] - Global Architectural Coatings had Segment Income of $160 million, below the estimated $184.59 million [4] - Industrial Coatings reported Segment Income of $227 million, slightly above the average estimate of $219.24 million [4] Stock Performance - PPG Industries' shares returned +0.2% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - PPG Industries reported quarterly earnings of $2.22 per share, matching the Zacks Consensus Estimate, but down from $2.5 per share a year ago [1] - The company had revenues of $4.2 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.53%, but down from $4.79 billion year-over-year [2] - PPG Industries has surpassed consensus EPS estimates only once in the last four quarters [1] Group 2: Stock Performance and Outlook - PPG Industries shares have declined approximately 4.6% year-to-date, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.12 for the next quarter and $7.89 for the current fiscal year [4][7] - The Zacks Rank for PPG Industries is currently 3 (Hold), indicating expected performance in line with the market [6] Group 3: Industry Context - The Chemical - Specialty industry, to which PPG Industries belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) PPG reported Q2 2025 net sales of $4.2 billion, a 1% decrease, with 2% organic growth and adjusted EPS of $2.22, down 6% Q2 2025 Consolidated Results ($ in millions, except EPS) | Indicator | 2Q 2025 | 2Q 2024 | YOY change | | :--- | :--- | :--- | :--- | | **Net sales** | $4,195 | $4,235 | (1)% | | **Net income** | $450 | $493 | (9)% | | **Adjusted net income** | $504 | $555 | (9)% | | **EPS** | $1.98 | $2.09 | (5)% | | **Adjusted EPS** | $2.22 | $2.35 | (6)% | - **Organic Sales:** Increased **2%** year-over-year, driven by both higher sales volumes and prices[4](index=4&type=chunk) - **Segment Margin:** Achieved **17.7%** with a segment EBITDA margin of **20.3%**[4](index=4&type=chunk) - **Share Repurchases:** Totaled approximately **$150 million** in the quarter and **$540 million** year-to-date[4](index=4&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management highlighted 2% organic sales growth and record Performance Coatings, reaffirming full-year adjusted EPS guidance of $7.75 to $8.05 [Chairman and CEO Comments](index=1&type=section&id=Chairman%20and%20CEO%20Comments) CEO highlighted 2% organic sales growth, record Performance Coatings, flat Industrial Coatings volumes, and varied architectural coatings demand - Delivered **2%** organic sales growth with equal contributions from sales volumes and selling prices, reflecting strong product portfolio and commercial execution[3](index=3&type=chunk) - The Performance Coatings segment achieved record quarterly sales and earnings, with a **6%** increase in organic sales[3](index=3&type=chunk) - Industrial Coatings segment sales volumes were flat following several quarters of contraction, signaling initial benefits from share gains[3](index=3&type=chunk) - Regional architectural coatings performance was varied: Europe was lackluster, Mexico's retail demand was solid, and the U.S., Canada, and Latin America saw mid-single-digit organic growth[4](index=4&type=chunk)[5](index=5&type=chunk) [Outlook](index=2&type=section&id=Outlook) PPG anticipates accelerated volume growth and strong H2 2025 EPS growth, reaffirming full-year adjusted EPS guidance of $7.75 to $8.05 - Expects volume growth momentum to accelerate in H2 2025, driving high single-digit percentage EPS growth year-over-year[6](index=6&type=chunk) - Industrial Coatings segment is projected to have low single-digit percentage sales volume growth in Q3 and Q4 due to share gains[6](index=6&type=chunk) - The company reaffirmed its full-year 2025 adjusted earnings per share guidance of **$7.75 to $8.05**[7](index=7&type=chunk)[21](index=21&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Performance Coatings led with 7% net sales growth, while Industrial Coatings fell 5% due to divestiture, and Global Architectural Coatings declined 5% [Global Architectural Coatings Segment](index=2&type=section&id=Global%20Architectural%20Coatings%20Segment) Net sales decreased 5% to $1,018 million due to divestitures and lower volumes, with segment income down 24% Global Architectural Coatings Financials ($ in millions) | Indicator | 2Q 2025 | 2Q 2024 | YOY change | | :--- | :--- | :--- | :--- | | **Net sales** | $1,018 | $1,070 | (5)% | | Sales volumes | | | (2)% | | Selling prices | | | +1% | | Divestitures and other | | | (4)% | | **Segment income** | $160 | $211 | (24)% | | Segment income % | 15.7% | 19.7% | | - The net sales decrease was driven by the divestiture of the architectural coatings business in Russia and lower sales volumes, partially offset by higher selling prices[12](index=12&type=chunk) - Organic sales in EMEA and Latin America/Asia Pacific declined by a low single-digit percentage. In Mexico, solid retail sales were offset by paused business investment, which is expected to improve in H2 2025[13](index=13&type=chunk) [Performance Coatings Segment](index=3&type=section&id=Performance%20Coatings%20Segment) Net sales increased 7% to $1,512 million, driven by volume and price growth, boosting segment income by 9% to $356 million Performance Coatings Financials ($ in millions) | Indicator | 2Q 2025 | 2Q 2024 | YOY change | | :--- | :--- | :--- | :--- | | **Net sales** | $1,512 | $1,418 | +7% | | Sales volumes | | | +3% | | Selling prices | | | +3% | | **Segment income** | $356 | $326 | +9% | | Segment income % | 23.5% | 23.0% | | - Sales volume growth was led by strong performance in aerospace coatings (which achieved record quarterly sales), protective and marine coatings, and traffic solutions[16](index=16&type=chunk) - Automotive refinish coatings organic sales decreased by a low single-digit percentage but still outperformed the industry due to share gains and subscription revenue[16](index=16&type=chunk) [Industrial Coatings Segment](index=4&type=section&id=Industrial%20Coatings%20Segment) Net sales declined 5% to $1,665 million due to divestiture, with flat volumes indicating share gains, but segment income fell 12% Industrial Coatings Financials ($ in millions) | Indicator | 2Q 2025 | 2Q 2024 | YOY change | | :--- | :--- | :--- | :--- | | **Net sales** | $1,665 | $1,747 | (5)% | | Sales volumes | | | —% | | Selling prices | | | (1)% | | Divestitures and other | | | (5)% | | **Segment income** | $227 | $259 | (12)% | | Segment income % | 13.6% | 14.8% | | - The net sales decline was primarily due to the impact of the divestiture of the silicas products business in late 2024. Sales volumes were flat, reflecting benefits from share gains[18](index=18&type=chunk) - Packaging coatings organic sales increased by a high single-digit percentage driven by share gains, while automotive OEM coatings organic sales decreased by a low single-digit percentage[19](index=19&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) PPG maintained a strong balance sheet with $1.6 billion cash, $5.7 billion net debt, repurchasing $150 million in shares and retiring €300 million debt - The company repurchased approximately **$150 million** of shares in Q2, bringing the year-to-date total to **$540 million**[9](index=9&type=chunk) - At the end of Q2 2025, cash and short-term investments totaled **$1.6 billion**. Net debt was **$5.7 billion**, up **$479 million** from Q2 2024[11](index=11&type=chunk) - The company retired **€300 million** of debt at maturity in Q2 and has a **€600 million** debt maturity due in Q4 2025[11](index=11&type=chunk) Balance Sheet Highlights ($ in millions) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,561 | $1,115 | | Total current assets | $8,190 | $7,784 | | Total current liabilities | $5,762 | $5,225 | | Long-term debt | $5,919 | $5,765 | [Appendix: Financial Statements & Reconciliations](index=6&type=section&id=Appendix%3A%20Financial%20Statements%20%26%20Reconciliations) This section presents unaudited Q2 and H1 2025 financial statements and Regulation G reconciliations for non-GAAP measures [Regulation G Reconciliation](index=6&type=section&id=Regulation%20G%20Reconciliation) This section reconciles GAAP to non-GAAP figures, adjusting Q2 2025 reported net income ($450 million) to adjusted net income ($504 million) Reconciliation of Reported to Adjusted Net Income ($ in millions, except EPS) | Description | Q2 2025 $ | Q2 2025 EPS | | :--- | :--- | :--- | | **Reported net income from continuing operations** | **$450** | **$1.98** | | Acquisition-related amortization expense | $25 | $0.11 | | Business restructuring-related costs, net | $15 | $0.07 | | Portfolio optimization | $2 | $0.01 | | Legacy environmental remediation charges | $12 | $0.05 | | **Adjusted net income from continuing operations** | **$504** | **$2.22** | Segment EBITDA Reconciliation ($ in millions) | Segment | Net Sales | Segment Income | Segment EBITDA | | :--- | :--- | :--- | :--- | | Global Architectural Coatings | $1,018 | $160 | $187 | | Performance Coatings | $1,512 | $356 | $389 | | Industrial Coatings | $1,665 | $227 | $276 | | **Total** | **$4,195** | **$743** | **$852** | [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Unaudited financial statements show Q2 2025 net income of $450 million, $1.6 billion cash, and $371 million H1 2025 operating cash flow Condensed Consolidated Statement of Income (Three Months Ended June 30, $ in millions) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $4,195 | $4,235 | | Income before income taxes | $598 | $651 | | Net income (attributable to PPG) | $450 | $528 | Condensed Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30, $ in millions) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Cash from operating activities | $369 | $305 | | Capital expenditures | $330 | $367 | | Dividends paid on PPG common stock | $308 | $305 | | Purchase of treasury stock | $540 | $312 | [Consolidated Business Segment Information](index=11&type=section&id=Consolidated%20Business%20Segment%20Information) This table details net sales and segment income for PPG's three business segments for Q2 and H1 2025/2024, reconciling to consolidated income before taxes Segment Net Sales and Income (Three Months Ended June 30, $ in millions) | Segment | Net Sales 2025 | Net Sales 2024 | Segment Income 2025 | Segment Income 2024 | | :--- | :--- | :--- | :--- | :--- | | Global Architectural Coatings | $1,018 | $1,070 | $160 | $211 | | Performance Coatings | $1,512 | $1,418 | $356 | $326 | | Industrial Coatings | $1,665 | $1,747 | $227 | $259 | | **Total** | **$4,195** | **$4,235** | **$743** | **$796** |

Core Viewpoint - The market anticipates a year-over-year decline in earnings for PPG Industries due to lower revenues, with a focus on how actual results compare to estimates to influence stock price [1][2]. Earnings Expectations - PPG Industries is expected to report quarterly earnings of $2.22 per share, reflecting an 11.2% decrease year-over-year, and revenues of $4.13 billion, down 13.8% from the previous year [3]. - The earnings report is scheduled for July 29, and better-than-expected results could lead to a stock price increase, while missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.54% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for PPG Industries is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.14%, suggesting a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise History - In the last reported quarter, PPG Industries exceeded the expected earnings of $1.62 per share by delivering $1.72, resulting in a surprise of +6.17% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Context - In the Zacks Chemical - Specialty industry, RPM International is expected to post earnings of $1.6 per share for the same quarter, indicating a year-over-year increase of 2.6%, with revenues projected at $2.02 billion, up 0.4% [18]. - RPM International's consensus EPS estimate has been revised up by 0.1% over the last 30 days, but it currently has a negative Earnings ESP of -0.71%, making it challenging to predict a beat on the consensus EPS estimate [19].

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]