Financial Performance - Net sales for the three months ended September 30, 2025, were approximately $4.1 billion, a 1% increase compared to the prior year, driven by higher selling prices and sales volumes [122]. - Income before income taxes was $556 million for the three months ended September 30, 2025, a decrease of $22 million from the prior year, primarily due to wage and cost inflation [123]. - Selling, general and administrative expenses decreased by $24 million to $824 million for the three months ended September 30, 2025, due to cost-control measures [128]. - Earnings per diluted share from continuing operations increased by 3.2% to $1.96 for the three months ended September 30, 2025, attributed to higher selling prices and cost-control actions [135]. - Segment income was $675 million, a decrease of 5% versus the prior year, primarily due to lower index-based selling prices and the unfavorable impact of the divestiture of the silicas products business [174]. Sales Performance by Segment - Global Architectural Coatings net sales for the nine months ended September 30, 2025, decreased by 5.0% to $2,887 million, with segment income down 17.5% to $462 million [145]. - Performance Coatings net sales increased by 5.4% year-over-year for the nine months ended September 30, 2025, reaching $4,191 million, while segment income rose 2.2% to $902 million [154]. - Industrial Coatings segment net sales for the nine months ended September 30, 2025, decreased by 4.3% to $4,883 million, with segment income down 4.7% to $675 million [165]. - Aerospace coatings organic sales increased by a double-digit percentage year-over-year, with customer order backlogs reaching approximately $310 million [161]. - Automotive OEM coatings organic sales increased by a mid-single-digit percentage due to higher sales volumes, particularly in Brazil and China [166]. - Packaging coatings organic sales increased by a double-digit percentage year-over-year, driven by higher sales volumes in the U.S., Canada, and Asia Pacific [170]. - Specialty products organic sales increased by a low single-digit percentage year over year, primarily due to higher sales volumes [174]. Cost and Expenses - Depreciation expense increased by 19.1% to $106 million for the three months ended September 30, 2025, primarily due to higher accelerated depreciation related to restructuring actions [129]. - Research and development expenses increased by 3.9% to $106 million for the three months ended September 30, 2025 [125]. - Other charges/(income), net increased by $24 million primarily due to net impairment and related charges in the Performance Coatings segment [130]. Cash Flow and Capital Expenditures - Cash from operating activities for the nine months ended September 30, 2025, was $1,047 million, a decrease of $9 million compared to $1,056 million in 2024 [180]. - Cash used for investing activities decreased to $417 million for the nine months ended September 30, 2025, from $501 million in 2024 [184]. - Total capital spending is expected to be approximately $725 million to $775 million in 2025 to support future organic growth opportunities [184]. Tax and Indebtedness - The effective tax rate for the three months ended September 30, 2025, was 21.2%, a decrease of 0.9% from the prior year [135]. - As of September 30, 2025, Total Indebtedness to Total Capitalization was 47%, below the 60% threshold required by credit agreements [189]. Currency and Market Risk - The U.S. dollar weakened against several currencies, resulting in an increase of consolidated net assets by $849 million compared to December 31, 2024 [193]. - A 10% weakening of the U.S. dollar against European currencies would result in unrealized translation losses of $535 million at September 30, 2025, compared to $369 million at December 31, 2024 [208]. - There were no material changes in the Company's exposure to market risk from December 31, 2024, to September 30, 2025 [210].

Financial Highlights - Net sales reached $4.1 billion, a 2% increase organically[5] - Adjusted EPS was a record $2.13, up 5%[5] - The company repurchased approximately $150 million in shares[6] Segment Performance - Global Architectural Coatings net sales were $1.012 billion, with flat organic sales growth[13] - Performance Coatings net sales were $1.414 billion, with 2% organic sales growth[16] - Industrial Coatings net sales were $1.656 billion, with 4% organic sales growth[27] Aerospace Growth - Record quarterly aerospace coatings sales and earnings were achieved[5] - The company is investing over $0.5 billion to expand aerospace capabilities[22] - Aerospace net sales are expected to have a mid-single-digit to high-single-digit CAGR from 2025-2028[20] Balance Sheet and Cash Flow - Net debt stood at $5.4 billion as of September 30, 2025[30] - The cash balance was $1.9 billion as of September 30, 2025[30] - $310 million was deployed to shareholders through dividends and share repurchases in Q3 2025[30] 2025 Financial Projections - Full year 2025 adjusted EPS is projected to be $7.60 - $7.70 per share[31] - Full year 2025 organic sales are expected to grow at a low-single-digit rate[31] - Corporate expense (net of TSA) is projected to be $340 million - $350 million for full year 2025[31]

Core Insights - PPG Industries reported a third-quarter 2025 profit of $444 million or $1.96 per share, an increase from $1.90 per share a year ago, with adjusted earnings per share at $2.13, surpassing estimates [1][8] - The company's revenues reached $4,082 million, reflecting a 1.2% year-over-year increase and exceeding the Zacks Consensus Estimate of $4,036.1 million [1] Segment Review - The Global Architectural Coatings segment experienced a 1% year-over-year sales increase to $1,012 million, driven by higher selling prices and favorable foreign currency translation, despite divestitures and reduced sales volumes [2] - The Performance Coatings segment saw a 3% year-over-year sales rise to $1,414 million, although it missed estimates. The growth was attributed to higher selling prices and favorable currency translation, with organic sales growing 2% [3] - The Industrial Coatings segment's sales remained flat at $1,656 million, missing estimates due to the divestiture of the silicas products business and lower pricing offsetting higher volumes [4] Financials - As of the end of the quarter, PPG had $1,832 million in cash and cash equivalents, with net debt increasing to $5.4 billion, up $228 million from the previous year [5] Outlook - PPG anticipates adjusted earnings per share of $7.60 to $7.70 for the full year 2025, citing ongoing share gains and benefits from cost initiatives, with stronger performance expected in aerospace and protective coatings [6] Price Performance - PPG shares have declined by 16.8% over the past year, compared to an 8.7% decline in its industry [7]

Financial Data and Key Metrics Changes - The company reported a 2% increase in organic sales growth, achieving a record high Q3 EPS of $2.13, reflecting a 5% year-over-year increase in adjusted EPS [5][6][14]. - The adjusted EPS increase was driven by solid sales improvement and aggressive cost management [6][14]. - The company completed approximately $150 million in share repurchases and paid $160 million in dividends, totaling $1.2 billion delivered to shareholders year to date [14]. Business Line Data and Key Metrics Changes - The performance coatings segment delivered double-digit organic sales growth in aerospace coatings and protective and marine coatings, while automotive refinish saw a double-digit percentage decline in organic sales [6][10][11]. - The industrial coatings segment experienced a 4% increase in sales volumes, with automotive OEM coatings growing by 8% [13][14]. - The global architectural coatings segment saw mid-single-digit organic sales growth in Mexico, but lower volumes in Europe impacted overall performance [7][8]. Market Data and Key Metrics Changes - Organic sales grew in the U.S. and Canada by a low single-digit percentage, marking the third consecutive quarter of year-over-year increases in this region [6][8]. - Sales volumes in Latin America and Asia Pacific increased, while Europe remained flat [6][8]. - The company expects stronger retail sales and modest recovery in project-related spending in Mexico for the fourth quarter [8][16]. Company Strategy and Development Direction - The company is focused on driving consistent organic sales and earnings growth, even in a challenging macroeconomic environment [15][17]. - Significant investments are being made in aerospace and protective and marine coatings to capture growth opportunities, with over $0.5 billion allocated for these initiatives [12][13]. - The company aims to maintain its competitive edge through technology-differentiated products and customer productivity solutions [17]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalization of collision claims by mid-2026, which is expected to positively impact the automotive refinish business [20][22]. - The macroeconomic environment remains challenging, with expectations of continued uncertainty in global trade affecting customer spending [27][30]. - The company anticipates a softer first half of 2026, but is optimistic about organic growth momentum and cost management efforts [30][31]. Other Important Information - The company has consistently delivered price growth in architectural coatings for nine consecutive years, demonstrating strong brand value [7][8]. - The aerospace business has grown at a mid-single-digit CAGR over the past decade and is expected to continue this trend [11][12]. - The company is actively managing its supply chain and procurement strategies to mitigate inflation impacts on raw materials [72][73]. Q&A Session Summary Question: Concerns about the refinish business decline - Management acknowledged the decline in the refinish business due to destocking and normalization of collision claims, but expressed confidence in the productivity solutions driving market share gains [19][20][21]. Question: Outlook for volume growth and market performance - Management indicated that while the macro environment remains challenging, there are signs of stabilization in several markets, and the company is focused on organic growth and cost management [26][27][30]. Question: Changes in full-year guidance - The reduction in Q4 guidance was primarily attributed to the unexpected decline in the refinish business and distributor destocking [34][35]. Question: Architectural coatings performance - Management highlighted that soft demand in key European markets is impacting architectural coatings, but aggressive cost actions are being taken to manage the situation [38][41]. Question: M&A environment and strategy - The company remains open to M&A opportunities but emphasizes organic growth as the primary focus, looking for the right assets at the right price [88][90][91].

Financial Data and Key Metrics Changes - PPG Industries reported a 2% increase in organic sales growth for Q3 2025, marking the third consecutive quarter of sales volume growth [5][6] - Adjusted EPS increased by 5% year over year, reaching a record high of $2.13 for Q3 [6][14] - The company completed approximately $150 million in share repurchases and paid $160 million in dividends, totaling $1.2 billion delivered to shareholders year to date [14] Business Line Data and Key Metrics Changes - The performance coatings segment achieved double-digit organic sales growth in aerospace coatings and protective and marine coatings, while automotive refinish saw a double-digit decline in organic sales [6][10] - The industrial coatings segment experienced a 4% increase in sales volumes, outpacing industry demand, with automotive OEM business net sales increasing by 8% [13][14] - The global architectural coatings segment saw mid-single-digit organic sales growth in Mexico, but lower volumes in Europe impacted overall performance [7][8] Market Data and Key Metrics Changes - Organic sales grew in the U.S. and Canada, Latin America, and Asia Pacific, while remaining flat in Europe [6][8] - The macroeconomic environment was described as choppy, with expectations of low single-digit inflation for the year due to tariffs [15][16] - The company anticipates a year-over-year decline in organic sales in the architectural coatings segment due to distributor inventory management [15] Company Strategy and Development Direction - PPG Industries is focused on driving consistent organic sales and earnings growth, emphasizing operational excellence and innovation [17] - The company plans to increase investments in aerospace and protective and marine coatings to capitalize on growth opportunities [12][13] - M&A remains a consideration for the company, but organic growth and margin improvement are prioritized [89][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover from current challenges in the refinish business, expecting normalization of collision claims by mid-2026 [20][22] - The outlook for 2026 is cautious, with anticipated challenges in the first half due to macroeconomic conditions and normalization effects [27][30] - Management highlighted the importance of productivity solutions in maintaining market share during tough market conditions [20][78] Other Important Information - The company is channeling additional growth-related investments into the protective and marine coatings business due to strong performance and opportunities in various end markets [10][12] - PPG's aerospace business has grown at a mid-single-digit CAGR over the past 10 years and is expected to continue this trend [11][12] Q&A Session Summary Question: Concerns about the refinish business decline - Management acknowledged the decline in the refinish business due to destocking and normalization of collision claims, but expressed confidence in the long-term growth potential driven by productivity solutions [19][20] Question: Outlook for volume growth and market performance - Management indicated that while the macro environment remains challenging, there are signs of stabilization in several markets, and the company is focused on organic growth and cost management [26][27] Question: Changes in full-year guidance - The reduction in Q4 guidance was primarily attributed to the refinish business challenges and distributor inventory management [34][35] Question: Architectural coatings performance - Management noted soft demand in key European markets and emphasized ongoing efforts to control costs and maintain pricing power [38][41] Question: Chinese OEM vehicle outlook - Management expects low to mid-single-digit growth in the Chinese automotive market, despite recent challenges faced by competitors [44][45] Question: Performance coatings margins - The decline in operating income for performance coatings was attributed to mix issues related to the refinish business and increased investments in aerospace and protective coatings [48][49] Question: M&A environment - Management remains open to M&A opportunities but emphasizes that organic growth and margin improvement are the primary focus [89][90]

Financial Data and Key Metrics Changes - PPG Industries reported a record high Q3 EPS of $2.13, reflecting a 5% year-over-year increase in adjusted EPS [5][15] - Organic sales growth increased by 2%, marking the third consecutive quarter of sales volume growth [4][5] - The company completed approximately $150 million in share repurchases and paid $160 million in dividends year-to-date, totaling $1.2 billion delivered to shareholders [15] Business Line Data and Key Metrics Changes - The performance coatings segment achieved double-digit organic sales growth in aerospace coatings and protective and marine coatings, while automotive refinish saw a double-digit percentage decline in organic sales [5][10] - The industrial coatings segment experienced a 4% increase in sales volumes, outpacing industry demand, with automotive OEM coatings growing by 8% [13][15] - Organic sales in the global architectural coatings segment were impacted by lower volumes in Europe, although mid single-digit growth was noted in Mexico [6][7] Market Data and Key Metrics Changes - Organic sales grew in the U.S. and Canada by a low single-digit percentage, marking the third consecutive quarter of year-over-year increases [5] - Sales volumes in Latin America and Asia Pacific increased, while Europe remained flat [5][6] - The macroeconomic environment was described as choppy, with expectations of low single-digit inflation for the year due to tariffs [16] Company Strategy and Development Direction - PPG Industries is focused on driving consistent organic sales and earnings growth, emphasizing operational excellence and innovation [16][18] - The company plans to increase investments in aerospace and protective and marine coatings, anticipating mid to high single-digit sales growth CAGR over the next three years [12][18] - M&A remains a consideration for the company, but organic growth and margin improvement are prioritized [105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging macroeconomic environment, with expectations for normalization in the refinish business by mid-2026 [23][34] - The company anticipates continued share gains in various segments, supported by productivity solutions and technology differentiation [84][85] - Management acknowledged the need for aggressive cost management and operational excellence to offset market challenges [34][35] Other Important Information - The company highlighted the importance of its strong balance sheet, which provides financial flexibility for future investments [15][105] - PPG Industries is channeling additional growth-related investments into its aerospace business, with a new manufacturing facility planned for commissioning in 2027 [12] Q&A Session Summary Question: Concerns about the refinish business decline - Management acknowledged a significant decline in the refinish business due to destocking and normalization of collision claims, but expressed confidence in the long-term productivity solutions [20][22] Question: Outlook for 2026 and macroeconomic conditions - Management indicated a muted outlook for the first half of 2026, with expectations for continued organic growth and cost management to offset challenges [34][35] Question: Changes in full-year guidance - The reduction in Q4 guidance was primarily attributed to the refinish business challenges and distributor destocking [40][41] Question: Architectural coatings performance - Management noted soft demand in key European markets, but emphasized ongoing price increases and cost management efforts [43][45] Question: M&A environment and strategy - The company remains open to M&A opportunities but prioritizes organic growth and margin improvement as the main focus [105] Question: Differences in U.S. and European markets - Management highlighted that insurance premiums in the U.S. are significantly impacting claims, while European markets are experiencing a more stable claims environment [108][109]

Core Viewpoint - PPG Industries reported quarterly earnings of $2.13 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, with revenues of $4.08 billion, surpassing estimates by 1.14% [1][2] Financial Performance - The company achieved an earnings surprise of +1.91% for the quarter, maintaining the same earnings per share as the previous year [1] - PPG Industries' revenues decreased from $4.58 billion a year ago to $4.08 billion this quarter [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and revenue estimates three times [2] Stock Performance - PPG Industries shares have declined approximately 11.7% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.76 on revenues of $3.81 billion, and for the current fiscal year, it is $7.81 on revenues of $15.73 billion [7] - The outlook for the Chemical - Specialty industry, where PPG operates, is currently in the bottom 35% of Zacks industries, which may negatively impact stock performance [8]

Core Viewpoint - PPG Industries exceeded Wall Street expectations for third-quarter profit, attributed to increased sales and prices in its performance coatings and global architectural coatings segments [1] Group 1: Financial Performance - The company reported higher sales and prices, contributing to a strong performance in the third quarter [1] - PPG Industries' profit surpassed analyst forecasts, indicating robust demand in its key segments [1] Group 2: Market Segments - The performance coatings segment showed significant growth, driven by increased sales [1] - Global architectural coatings also experienced higher sales and pricing, enhancing overall profitability [1]

Core Viewpoint - The Pittsburgh paint and coatings company projects full-year earnings between $7.60 and $7.70 per share, anticipating customer inventory management in automotive refinish coatings towards the end of the year [1] Summary by Relevant Categories Earnings Outlook - The company expects full-year earnings to be in the range of $7.60 to $7.70 per share [1] Market Dynamics - There is an expectation of customer inventory management specifically in the automotive refinish coatings segment as the year concludes [1]

Financial Performance - Net sales for Q3 2025 were $4.1 billion, an increase of 1% compared to Q3 2024[6] - Adjusted EPS reached a record $2.13, reflecting a 5% increase year over year[6] - Reported net income from continuing operations for Q3 2025 was $444 million, with earnings per diluted share (EPS) of $1.96, compared to $444 million and EPS of $1.90 in Q3 2024[33] - Total net sales for Q3 2025 reached $4,082 million, a slight increase from $4,032 million in Q3 2024[37] - Income before income taxes for Q3 2025 was $556 million, down from $578 million in Q3 2024, a decrease of 3.8%[41] - For the nine months ended September 30, 2025, total net sales were $11,961 million, a decrease from $12,116 million in the same period of 2024, representing a decline of 1.3%[41] Sales Growth - Organic sales increased by 2% year over year, driven by higher sales volumes and prices[6] - The company expects to deliver organic growth in Q4 2025 despite a challenging macro environment[9] - Aerospace coatings achieved record quarterly sales with double-digit percentage organic sales growth[20] - The Global Architectural Coatings segment saw net sales increase by 1% year over year, driven by higher selling prices and foreign currency translation[14] - Performance Coatings segment reported net sales of $1,414 million in Q3 2025, up from $1,373 million in Q3 2024, reflecting a growth of 3.0%[41] - Industrial Coatings segment maintained stable sales at $1,656 million in Q3 2025, compared to $1,655 million in Q3 2024[41] Segment Performance - Segment EBITDA for Global Architectural Coatings was $213 million in Q3 2025, with an EBITDA margin of 21.0%, compared to $209 million and 20.8% in Q3 2024[35] - Segment EBITDA margin for the Industrial Coatings segment improved by 180 basis points to 17.0%[24] - Performance Coatings segment reported net sales of $1,414 million in Q3 2025, with segment income of $272 million, down from $306 million in Q3 2024[35] - Industrial Coatings segment achieved net sales of $1,656 million in Q3 2025, with segment income increasing to $233 million from $200 million in Q3 2024[35] - Segment income for Global Architectural Coatings was $184 million in Q3 2025, slightly up from $183 million in Q3 2024[41] - Total segment income remained flat at $689 million for both Q3 2025 and Q3 2024[41] Cash and Debt Management - Share repurchases in Q3 totaled approximately $150 million, with $1.2 billion deployed year to date[8] - The company reported cash and short-term investments of $1.9 billion, with net debt at $5.4 billion[15] - Current assets as of September 30, 2025, totaled $8,223 million, up from $6,557 million at the end of 2024[39] - Long-term debt increased to $5,904 million as of September 30, 2025, compared to $4,876 million at the end of 2024[39] - Cash from operating activities for the nine months ended September 30, 2025, was $1,054 million, compared to $1,074 million in the same period of 2024[38] Tax and Expenses - The effective tax rate for continuing operations in Q3 2025 was 21.2%, slightly improved from 22.1% in Q3 2024[33] - Corporate unallocated expenses, exclusive of depreciation and amortization, improved to $(59) million in Q3 2025 from $(72) million in Q3 2024[41] - The company recorded net impairment charges of $24 million in Q3 2025 related to a consolidated joint venture in the Performance Coatings segment[41] Working Capital - Operating working capital as a percentage of quarterly sales, annualized, was 19.6% as of September 30, 2025, compared to 15.6% at the end of 2024[40]