PPG Industries(US:PPG)2026-01-27 21:42Financial Performance - Fourth quarter net sales reached $3.9 billion, a 5% increase year over year from $3.7 billion[2] - Full-year 2025 net sales were $15.9 billion, flat compared to 2024, with a 1% increase in sales volumes and selling prices[25] - Fourth quarter adjusted EPS was $1.51, down 6% from $1.61 in the previous year, while full-year adjusted EPS was $7.58, a 4% decrease from $7.87[10] - Reported net income from continuing operations for Q4 2025 was $302 million, with an EPS of $1.34, compared to $2 million and $0.01 in Q4 2024[37] - Full year 2025 reported net income from continuing operations reached $1,571 million, translating to an EPS of $6.92, up from $1,344 million and $5.72 in 2024[37] - Adjusted net income from continuing operations for Q4 2025 was $341 million, or $1.51 per share, compared to $375 million and $1.61 in Q4 2024[37] - Full year 2025 adjusted net income from continuing operations was $1,722 million, with an EPS of $7.58, compared to $1,848 million and $7.87 in 2024[37] - The company reported a net income of $309 million in Q4 2025, compared to a net loss of $271 million in Q4 2024, marking a significant turnaround[41] - Earnings per diluted share for Q4 2025 was $1.33, compared to a loss of $1.20 in Q4 2024[41] Cash Flow and Capital Management - Operating cash flow for 2025 was $1.9 billion, an increase of over $500 million year over year[3] - The company repurchased approximately $100 million of stock in the fourth quarter and $790 million for the full year, representing about 3% of outstanding shares[10] - Cash from operating activities increased to $1,941 million in 2025 from $1,420 million in 2024, representing a growth of 36.5%[42] - The company paid dividends of $628 million in 2025, slightly up from $622 million in 2024[42] - Cash used for financing activities included a purchase of treasury stock amounting to $790 million in 2025, up from $752 million in 2024[42] Segment Performance - Organic sales growth for the fourth quarter was 3%, driven by higher selling prices and sales volume growth across all regions[3] - The Performance Coatings segment saw a 3% organic sales growth in the fourth quarter, with strong results in aerospace coatings[6] - The Industrial Coatings segment achieved a 4% organic sales growth year over year, with double-digit volume growth in packaging coatings[7] - Net sales for the Industrial Coatings segment reached $6,524 million in 2025, a decrease of 2.4% from $6,687 million in 2024[45] - Total segment income for the company was $2,622 million in 2025, down from $2,713 million in 2024, a decline of 3.4%[45] Earnings and Margins - EBITDA for Q4 2025 was $550 million, significantly higher than $215 million in Q4 2024, while full year EBITDA for 2025 was $2,631 million compared to $2,408 million in 2024[38] - Adjusted EBITDA margin for Q4 2025 was 15.2%, slightly down from 15.9% in Q4 2024, while the full year adjusted EBITDA margin was 17.3%, down from 18.1% in 2024[38] - Total segment EBITDA for Q4 2025 was $690 million, with an EBITDA margin of 17.6%, compared to $670 million and 18.0% in Q4 2024[40] Future Outlook - The company expects adjusted EPS for full-year 2026 to be in the range of $7.70 to $8.10, reflecting mid-single-digit percentage growth[28] - The company anticipates organic sales growth for 2026 to be flat to low single-digit percentage[28] Expenses and Liabilities - Acquisition-related amortization expense for 2025 was $125 million, with a corresponding EPS impact of $0.41, compared to $132 million and $0.42 in 2024[38] - Business restructuring-related costs for 2025 totaled $54 million, impacting EPS by $0.18, compared to $377 million and $1.39 in 2024[38] - The company incurred business restructuring-related costs of $1 million in Q4 2025, down from $234 million in Q4 2024[41] - Long-term debt increased significantly to $6,602 million in 2025 from $4,876 million in 2024, an increase of 35.4%[43] Assets and Working Capital - Total current assets rose to $7,959 million in 2025, up from $6,557 million in 2024, an increase of 21.4%[43] - Operating working capital as a percentage of quarterly sales increased to 17.6% in 2025 from 15.6% in 2024[44] - Average shares outstanding for Q4 2025 were 225.2 million, down from 232.8 million in Q4 2024[41]