PPG Industries' Earnings Lag Estimates in Q4, Revenues Up Y/Y

Core Insights - PPG Industries reported a fourth-quarter 2025 profit of $302 million or $1.34 per share, a significant increase from $2 million or a penny per share a year ago, but adjusted earnings per share of $1.51 fell short of the Zacks Consensus Estimate of $1.57 [1][9] - The company's revenues reached $3,914 million, reflecting a 5% year-over-year increase and surpassing the Zacks Consensus Estimate of $3,744.6 million [2][9] Segment Review - The Global Architectural Coatings segment experienced an 8% year-over-year sales increase to $951 million, exceeding estimates due to higher selling prices and favorable foreign currency translation, partially offset by the divestiture of the architectural coatings business in Russia [3] - The Performance Coatings segment saw a 5% year-over-year sales rise to $1,322 million, driven by higher selling prices and favorable currency impacts, despite reduced sales volumes; organic sales grew 3% year over year [4] - The Industrial Coatings segment's sales grew 3% year-over-year to $1,641 million, benefiting from foreign currency translation gains and improved volumes, surpassing estimates [5] Financials - As of the end of the quarter, PPG had $2,163 million in cash and cash equivalents, a 70% increase year over year; long-term debt rose to $6.6 billion, up 35% from the prior-year quarter [6] Outlook - PPG anticipates adjusted earnings per share of $7.70 to $8.10 for full-year 2026, citing ongoing soft global industrial production and mixed regional demand; organic sales are expected to show flat to low single-digit percentage growth [7][9] Price Performance - PPG shares have declined by 11.7% over the past year, contrasting with a 0.4% rise in its industry [8]