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]