PPG Industries(US:PPG)2025-10-28 20:11Financial 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]