Core Insights - PPG Industries reported a revenue of $3.68 billion for the quarter ended March 2025, reflecting a 14.5% decline year-over-year, while EPS decreased to $1.72 from $1.86 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.77%, and the EPS surpassed the consensus estimate by 6.17% [1] Financial Performance - Net Sales in Performance Coatings reached $1.27 billion, exceeding the average estimate of $1.20 billion, but showing a significant year-over-year decline of 51.6% [4] - Net Sales in Architectural Coatings were reported at $857 million, below the average estimate of $918.35 million [4] - Net Sales in Industrial Coatings amounted to $1.56 billion, slightly above the average estimate of $1.53 billion, with an 8% year-over-year decline [4] Segment Income - Segment Income for Performance Coatings was $274 million, slightly above the average estimate of $273.54 million [4] - Segment Income for Architectural Coatings was $118 million, below the average estimate of $142.24 million [4] - Segment Income for Industrial Coatings reached $215 million, exceeding the average estimate of $173.71 million [4] Stock Performance - PPG Industries' shares have returned -5.8% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - PPG Industries reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.62 per share, but down from $1.86 per share a year ago, indicating a 7.5% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $3.68 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.77%, but down from $4.31 billion in the same quarter last year, reflecting a year-over-year revenue decline of approximately 14.6% [2] - Over the last four quarters, PPG Industries has exceeded consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance - PPG Industries shares have decreased by about 13.8% since the beginning of the year, while the S&P 500 has declined by 6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.24 on revenues of $4.18 billion, and for the current fiscal year, it is $7.79 on revenues of $15.8 billion [7] - The outlook for the Chemical - Specialty industry, to which PPG Industries belongs, is currently in the bottom 40% of Zacks industries, which may negatively impact stock performance [8]

First Quarter 2025 Financial Highlights This section summarizes PPG's first quarter 2025 financial performance, including consolidated results, CEO commentary, and key financial metrics [Consolidated Results Overview](index=1&type=section&id=First%20Quarter%202025%20Consolidated%20Results) PPG reported a decrease in net sales, net income, and EPS for the first quarter of 2025 compared to the prior year, with adjusted figures also showing a decline | $ in millions, except EPS | 1Q 2025 | 1Q 2024 | YOY change | | :------------------------ | :------ | :------ | :--------- | | Net sales | $3,684 | $3,849 | (4)% | | Net income | $375 | $405 | (7)% | | Adjusted net income | $396 | $443 | (11)% | | EPS | $1.64 | $1.71 | (4)% | | Adjusted EPS | $1.72 | $1.87 | (8)% | [Chairman and CEO Commentary](index=1&type=section&id=Chairman%20and%20CEO%20Comments) CEO Tim Knavish highlighted positive organic sales growth driven by increased volumes and selling prices, particularly in the Performance Coatings segment and the U.S. The company is realizing benefits from its enterprise growth strategy, expecting $75 million in annual cost savings, and reaffirms its full-year EPS guidance - PPG is beginning to realize benefits from its enterprise growth strategy, delivering **positive organic sales growth** with increases in both sales volumes and selling prices[4](index=4&type=chunk) - The Performance Coatings segment delivered **9% organic sales growth**, with strong performance in automotive refinish, traffic solutions, aerospace, and protective and marine coatings[4](index=4&type=chunk) - The company expects to deliver **$75 million in annual savings** from self-help cost actions this year[7](index=7&type=chunk) - PPG is maintaining its full-year earnings per share guidance range of **$7.75 to $8.05**[8](index=8&type=chunk) [Key Financial and Operational Metrics](index=1&type=section&id=Key%20Financial%20and%20Operational%20Metrics%20Summary) For Q1 2025, net sales decreased 4% to $3.7 billion, while organic sales increased 1%. Reported EPS was $1.64 and adjusted EPS was $1.72. The company repurchased approximately $400 million in shares, and net debt increased to $5.4 billion | Metric | Value | YOY Change | | :---------------------- | :---------- | :--------- | | Net sales | $3.7 billion| (4)% | | Organic sales | +1% | | | Reported EPS | $1.64 | | | Adjusted EPS | $1.72 | | | Segment margin | 16.5% | | | Segment EBITDA margin | 19.4% | | | Share repurchases | ~$400 million| | | Net debt (quarter end) | $5.4 billion| +$340 million| [Additional Financial Information](index=2&type=section&id=Additional%20Financial%20Information) During the first quarter, PPG repurchased approximately $400 million in shares and issued €900 million of debt. The company's cash and short-term investments totaled $1.9 billion, with net debt at $5.4 billion, reflecting a $340 million increase from the prior year - Share repurchases in the first quarter totaled approximately **$400 million**[10](index=10&type=chunk) - In March, the company issued **€900 million of debt**[10](index=10&type=chunk) Cash and Debt Metrics | Metric | Q1 2025 | Q1 2024 | | :------------------------------ | :---------- | :---------- | | Cash and short-term investments | $1.9 billion| N/A | | Net debt | $5.4 billion| $5.06 billion (implied) | | Corporate expenses | $95 million | N/A | | Net interest expense | $13 million | N/A | | Reported effective tax rate | 24.3% | N/A | | Adjusted effective tax rate | 24.5% | N/A | Segment Performance Analysis This section analyzes the financial performance of PPG's individual business segments, detailing sales, income, and key drivers [Global Architectural Coatings Segment](index=2&type=section&id=Global%20Architectural%20Coatings%20Segment) Net sales for the Global Architectural Coatings segment decreased 11% year-over-year, primarily due to unfavorable foreign currency translation and lower sales volumes, partially offset by higher selling prices. Segment income and EBITDA saw significant declines Global Architectural Coatings Financials | $ in millions | 1Q 2025 | 1Q 2024 | YOY change | | :------------------ | :------ | :------ | :--------- | | Net sales | $857 | $966 | (11)% | | Sales volumes | | | (3)% | | Selling prices | | | +1% | | Foreign currency | | | (7)% | | Divestitures | | | (2)% | | Segment income | $118 | $166 | (29)% | | Segment income % | 13.8% | 17.2% | | | Segment EBITDA | $144 | $192 | (25)% | | Segment EBITDA % | 16.8% | 19.9% | | - Organic sales for architectural coatings EMEA were **flat year over year**, with increased organic sales in Central Europe and the Nordic region offset by Western Europe[12](index=12&type=chunk) - Organic sales for architectural coatings Latin America and Asia Pacific declined by a **mid-single-digit percentage**[13](index=13&type=chunk) [Performance Coatings Segment](index=3&type=section&id=Performance%20Coatings%20Segment) The Performance Coatings segment achieved 9% organic sales growth, with net sales increasing 7% to $1,265 million. This growth was driven by strong sales volumes and higher selling prices, leading to an 8% increase in Segment EBITDA and an improved EBITDA margin Performance Coatings Financials | $ in millions | 1Q 2025 | 1Q 2024 | YOY change | | :------------------ | :------ | :------ | :--------- | | Net sales | $1,265 | $1,184 | +7% | | Sales volumes | | | +6% | | Selling prices | | | +3% | | Foreign currency | | | (1)% | | Divestitures & other| | | (1)% | | Segment income | $274 | $251 | +9% | | Segment income % | 21.7% | 21.2% | | | Segment EBITDA | $307 | $285 | +8% | | Segment EBITDA % | 24.3% | 24.1% | | - The Performance Coatings segment delivered **9% organic sales growth**, partially offset by unfavorable foreign currency translation and divestitures[15](index=15&type=chunk) - Sales volumes increased **6% year over year**, led by aerospace coatings (record sales, double-digit organic growth), protective and marine coatings (double-digit organic growth), and traffic solutions[16](index=16&type=chunk) [Industrial Coatings Segment](index=4&type=section&id=Industrial%20Coatings%20Segment) Net sales for the Industrial Coatings segment declined 8%, primarily due to foreign currency translation and the divestiture of the silicas business. Selling prices decreased due to index-based contracts, and sales volumes were down due to lower automotive industry production, despite some strength in other subsegments Industrial Coatings Financials | $ in millions | 1Q 2025 | 1Q 2024 | YOY change | | :------------------ | :------ | :------ | :--------- | | Net sales | $1,562 | $1,699 | (8)% | | Sales volumes | | | (1)% | | Selling prices | | | (1)% | | Foreign currency | | | (2)% | | Divestitures | | | (4)% | | Segment income | $215 | $249 | (14)% | | Segment income % | 13.8% | 14.7% | | | Segment EBITDA | $263 | $301 | (13)% | | Segment EBITDA % | 16.8% | 17.7% | | - Automotive OEM coatings organic sales decreased by a **mid-single-digit percentage** due to lower U.S. and European industry build rates, partially offset by growth in China and Latin America[19](index=19&type=chunk) - Packaging coatings organic sales increased by a **low single-digit percentage** year over year driven by share gains[19](index=19&type=chunk) Outlook and Company Information This section provides PPG's financial outlook, a company profile, and important disclaimers regarding forward-looking statements [Outlook](index=4&type=section&id=Outlook) PPG reaffirms its adjusted earnings per share guidance for the full-year 2025, citing momentum from share gains and self-help actions, while also considering global economic conditions and mixed demand - The company reaffirms its adjusted earnings per share guidance of **$7.75 to $8.05** for the full-year 2025[21](index=21&type=chunk) [Company Profile](index=5&type=section&id=PPG%3A%20WE%20PROTECT%20AND%20BEAUTIFY%20THE%20WORLD%C2%AE) PPG is a global leader in paints, coatings, and specialty materials, operating in over 70 countries and serving diverse markets including construction, consumer products, industrial, and transportation. The company reported net sales of $15.8 billion in 2024 - PPG develops and delivers paints, coatings, and specialty materials, trusted by customers for over 140 years[24](index=24&type=chunk) - The company operates and innovates in **more than 70 countries**[24](index=24&type=chunk) - PPG reported net sales of **$15.8 billion in 2024**[24](index=24&type=chunk) [Additional Information & Forward-Looking Statements](index=5&type=section&id=Additional%20Information%20%26%20Forward-Looking%20Statements) This section provides details for accessing PPG's Q1 2025 financial performance commentary and conference call. It also includes a standard disclaimer regarding forward-looking statements, highlighting various risks and uncertainties that could impact future results - PPG will provide detailed commentary and hold a conference call to review its first quarter 2025 financial performance[26](index=26&type=chunk) - Forward-looking statements involve risks and uncertainties that may affect PPG's operations, as discussed in SEC filings[27](index=27&type=chunk) - Factors that could cause actual results to differ materially include global economic conditions, raw material costs, competition, and foreign exchange rates[27](index=27&type=chunk) Non-GAAP Reconciliations This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, offering additional insights [Regulation G Reconciliation](index=6&type=section&id=Regulation%20G%20Reconciliation) PPG provides non-GAAP financial measures such as adjusted net income, adjusted EPS, and segment EBITDA to offer insights into ongoing performance by excluding items not expected to recur or not attributable to primary operations. These measures are not substitutes for GAAP figures - PPG discloses non-GAAP measures like adjusted net income, EPS, and segment EBITDA to enhance investors' understanding of ongoing performance[29](index=29&type=chunk) - These non-GAAP measures exclude the impact of items that are not reasonably expected to recur quarterly or are not attributable to primary operations[29](index=29&type=chunk) Reconciliation of Reported to Adjusted Net Income and EPS (Continuing Operations) | | First Quarter 2025 | First Quarter 2024 | | :------------------------------------------------ | :------- | :------- | | Reported net income from continuing operations | $375 | $405 | | Acquisition-related amortization expense | 24 | 26 | | Business restructuring-related costs, net | 7 | 8 | | Portfolio optimization | (6) | 4 | | Insurance recovery | (4) | — | | Adjusted net income from continuing operations | $396 | $443 | Reconciliation of Effective Tax Rate (Continuing Operations) | | First Quarter 2025 | First Quarter 2024 | | :------------------------------------------------ | :------- | :------- | | Effective tax rate, continuing operations | 24.3 % | 23.6 % | | Acquisition-related amortization expense | 24.4 % | 24.6 % | | Business restructuring-related costs, net | 19.7 % | 27.4 % | | Portfolio optimization | N/A | 24.2 % | | Insurance recovery | 24.3 % | — % | | Adjusted effective tax rate, continuing operations| 24.5 % | 23.9 % | Segment EBITDA Reconciliation | | First Quarter 2025 | First Quarter 2024 | | :-------------------------- | :------- | :------- | | Global Architectural Coatings | | | | Net sales | $857 | $966 | | Segment income | $118 | $166 | | Segment EBITDA | $144 | $192 | | Segment EBITDA % | 16.8 % | 19.9 % | | Performance Coatings | | | | Net sales | $1,265 | $1,184 | | Segment income | $274 | $251 | | Segment EBITDA | $307 | $285 | | Segment EBITDA % | 24.3 % | 24.1 % | | Industrial Coatings | | | | Net sales | $1,562 | $1,699 | | Segment income | $215 | $249 | | Segment EBITDA | $263 | $301 | | Segment EBITDA % | 16.8 % | 17.7 % | | Total Segment EBITDA | | | | Net sales | $3,684 | $3,849 | | Segment income | $607 | $666 | | Segment EBITDA | $714 | $778 | | Segment EBITDA % | 19.4 % | 20.2 % | Condensed Consolidated Financial Statements (Unaudited) This section presents PPG's unaudited condensed consolidated financial statements, including income, cash flows, and balance sheet highlights [Condensed Consolidated Statement of Income](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20INCOME%20%28unaudited%29) The unaudited condensed consolidated statement of income shows a decrease in net sales and income from continuing operations for Q1 2025 compared to Q1 2024, with diluted EPS from continuing operations at $1.64 Condensed Consolidated Statement of Income | (All amounts in millions except per-share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $3,684 | $3,849 | | Cost of sales, exclusive of depreciation and amortization | 2,142 | 2,205 | | Selling, general and administrative | 838 | 850 | | Depreciation | 89 | 95 | | Amortization | 32 | 35 | | Research and development, net | 102 | 107 | | Interest expense | 56 | 55 | | Interest income | (43) | (42) | | Other (income)/charges, net | (34) | 2 | | Income before income taxes | $502 | $542 | | Income tax expense | 122 | 128 | | Income from continuing operations | $380 | $414 | | Loss from discontinued operations, net of tax | (2) | (5) | | Net income attributable to controlling and noncontrolling interests | $378 | $409 | | Net income attributable to noncontrolling interests | (5) | (9) | | Net income (attributable to PPG) | $373 | $400 | | Earnings per common share (attributable to PPG) - assuming dilution | | | | Income from continuing operations, net of tax | $1.64 | $1.71 | | Loss from discontinued operations, net of tax | (0.01) | (0.02) | | Net income (attributable to PPG) | $1.63 | $1.69 | [Condensed Consolidated Statement of Cash Flows Highlights](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS%20HIGHLIGHTS%20%28unaudited%29) The condensed consolidated statement of cash flows highlights for Q1 2025 show cash used for operating activities of $18 million, capital expenditures of $209 million, and significant share repurchases totaling $394 million Condensed Consolidated Statement of Cash Flows Highlights | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Cash used for operating activities | ($18) | ($60) | | Capital expenditures | $209 | $252 | | Dividends paid on PPG common stock | $154 | $153 | | Purchase of treasury stock | $394 | $149 | [Condensed Consolidated Balance Sheet Highlights](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20HIGHLIGHTS%20%28unaudited%29) As of March 31, 2025, PPG reported total current assets of $7,901 million and total current liabilities of $5,837 million. Cash and cash equivalents significantly increased to $1,830 million from $1,168 million a year prior, while long-term debt stood at $5,574 million Condensed Consolidated Balance Sheet Highlights | ($ in millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------------------- | :------------- | :---------------- | :------------- | | Cash and cash equivalents | $1,830 | $1,270 | $1,168 | | Short-term investments | 63 | 88 | 54 | | Receivables, net | 3,429 | 2,985 | 3,233 | | Inventories | 2,115 | 1,846 | 2,100 | | Other current assets | 464 | 368 | 1,116 | | Total current assets | $7,901 | $6,557 | $7,671 | | Short-term debt and current portion of long-term debt | $1,688 | $939 | $311 | | Accounts payable and accrued liabilities | 3,885 | 3,731 | 4,004 | | Current portion of operating lease liabilities | 134 | 126 | 125 | | Restructuring reserves | 130 | 128 | 86 | | Other current liabilities | — | 90 | 417 | | Total current liabilities | $5,837 | $5,014 | $4,943 | | Long-term debt | $5,574 | $4,876 | $5,940 | [Operating Metrics](index=10&type=section&id=PPG%20OPERATING%20METRICS%20%28unaudited%29) PPG's operating working capital increased to $2,843 million as of March 31, 2025, representing 19.3% of annualized quarter sales, up from 17.3% in the prior year PPG Operating Metrics | ($ in millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------------------ | :------------- | :---------------- | :------------- | | Operating Working Capital | $2,843 | $2,331 | $2,668 | | As a percent of quarter sales, annualized | 19.3 % | 15.6 % | 17.3 % | [Consolidated Business Segment Information](index=11&type=section&id=CONSOLIDATED%20BUSINESS%20SEGMENT%20INFORMATION%20%28unaudited%29) This section provides a detailed breakdown of net sales and segment income across PPG's three primary business segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings, along with unallocated corporate items Consolidated Business Segment Information | ($ in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | | | | Global Architectural Coatings | $857 | $966 | | Performance Coatings | 1,265 | 1,184 | | Industrial Coatings | 1,562 | 1,699 | | Total | $3,684 | $3,849 | | Segment income | | | | Global Architectural Coatings | $118 | $166 | | Performance Coatings | 274 | 251 | | Industrial Coatings | 215 | 249 | | Total | $607 | $666 | | Items not allocated to segments | | | | Corporate / non-segment unallocated, exclusive of depreciation and amortization | (81) | (76) | | Corporate / non-segment unallocated depreciation and amortization | (14) | (18) | | Interest expense, net of interest income | (13) | (13) | | Business restructuring-related costs, net | (9) | (11) | | Portfolio optimization | 6 | (6) | | Insurance recovery | 6 | — | | Income before income taxes | $502 | $542 |

Core Viewpoint - PPG Industries is expected to report its first-quarter 2025 results on April 29, with mixed performance indicators suggesting potential challenges and benefits from restructuring and acquisitions [1][2]. Group 1: Earnings Performance - PPG Industries missed the Zacks Consensus Estimate for earnings in two of the last four quarters, with an average negative earnings surprise of approximately 0.6% [2]. - The Earnings ESP for PPG is +1.35%, with the Zacks Consensus Estimate for the first quarter set at $1.62 [6]. - PPG currently holds a Zacks Rank 3, indicating a neutral outlook [7]. Group 2: Revenue Estimates - The Zacks Consensus Estimate for PPG's sales in the upcoming quarter is $3,655.9 million, reflecting a decline of about 15.2% year-over-year [7]. - Estimated net sales for the Industrial Coatings segment are projected at $1,556.8 million, indicating an 8.4% decline year-over-year [8]. - The Performance Coatings segment is expected to see net sales of $1,199.3 million, suggesting a 1.3% year-over-year increase, while the Global Architectural Coatings segment is estimated at $967.9 million, indicating a 0.2% rise [8]. Group 3: Strategic Initiatives - PPG is implementing aggressive cost-cutting and restructuring strategies, anticipating around $45 million in restructuring savings for the full year 2025 [9]. - A comprehensive cost reduction program is expected to yield pre-tax savings of $60 million in 2025, primarily targeting structural costs in Europe and other global operations [9]. - The company is also raising selling prices across its segments to counteract cost inflation and enhance profitability [10]. Group 4: Market Challenges - PPG faces challenges from weak global industrial production, particularly affecting demand in the Industrial Coatings unit [12]. - Lower automotive OEM build rates and reduced industrial production in the U.S. and Europe are anticipated to negatively impact volumes and sales [12][13]. - Weak consumer confidence in Europe is further contributing to decreased demand [12].

麦加芯彩新材料科技（上海） 股份有限公司 MEGA P&C Advanced Materials (Shanghai) Company Limited （上海市嘉定区马陆镇思诚路 1515 号） 首次公开发行股票并在主板上市 招股说明书 （注册稿） 保荐机构（主承销商） （北京市西城区金融大街 7 号英蓝国际金融中心 12 层 F1201-F1210、F1211B- F1215A、F1231-F1232 单元、15 层 F1519-F1521、F1523-F1531 单元） 本公司的发行申请尚需经上海证券交易所及中国证监会履行相应程序。本招股说明书不 具有据以发行股票的法律效力，仅供预先披露之用。投资者应当以正式公告的招股说明 书作为投资决定的依据。 麦加芯彩新材料科技（上海）股份有限公司 招股说明书（注册稿） 重要声明 中国证监会、交易所对本次发行所作的任何决定或意见，均不表明其对发 行人注册申请文件及所披露信息的真实性、准确性、完整性作出保证，也不表 明其对发行人的盈利能力、投资价值或者对投资者的收益作出实质性判断或保 证。任何与之相反的声明均属虚假不实陈述。 根据《证券法》的规定，股票依法发行后，发行人 ...