Core Viewpoint - PPG Industries reported strong earnings and revenue for Q3 2025, surpassing estimates, but there are concerns about future performance due to a downward trend in estimates [3][4][10]. Financial Performance - Q3 2025 profit was $444 million or $1.96 per share, compared to $444 million or $1.90 per share a year ago [3]. - Adjusted earnings per share were $2.13, up from $2.03 year-over-year, exceeding the Zacks Consensus Estimate of $2.09 [3]. - Revenues for the quarter were approximately $4.08 billion, reflecting a 1.2% year-over-year increase and beating the Zacks Consensus Estimate of $4.04 billion [4]. Segment Review - Global Architectural Coatings segment sales rose 1% year-over-year to $1.01 billion, exceeding estimates due to higher selling prices and favorable foreign currency translation, despite a divestiture in Russia [5]. - Performance Coatings segment sales increased 3% year-over-year to $1.41 billion, but missed estimates, driven by higher selling prices and favorable foreign currency translation, offset by lower sales volumes [6]. - Industrial Coatings segment sales remained flat at around $1.65 billion, missing estimates, impacted by a divestiture and lower pricing [7]. Financial Position - The company had approximately $1.83 billion in cash and cash equivalents at the end of the quarter, with net debt increasing to $5.4 billion, up $228 million from the prior year [8]. Outlook - PPG expects adjusted earnings per share of $7.60 to $7.70 for full-year 2025, driven by share gains and cost initiatives, but anticipates softer demand in certain segments [9]. - There has been a downward trend in consensus estimates, with a shift of -9.01% noted [10]. - The stock has a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [13].

Core Viewpoint - Sherwin-Williams Company is experiencing stock price challenges despite reporting positive fiscal results, indicating a complex market environment for the company and the Basic Materials sector [3][4][6]. Company Overview - Sherwin-Williams, based in Cleveland, Ohio, develops, manufactures, and sells a variety of paints, coatings, and related products, with a market capitalization of approximately $83.8 billion [1][2]. Stock Performance - The company's shares are currently trading about 15.6% below their November 2024 high of $400.42, with a nearly 8% decline over the past three months, which is worse than the 5.1% drop in the S&P 500 Materials Sector SPDR [3][4]. - Year-to-date, SHW stock has seen a slight decline and is down 15.7% over the past 52 weeks, contrasting with a 3.4% increase in the XLB sector index during 2025 [4][5]. Technical Indicators - SHW stock has been trading below its 50-day and 200-day moving averages since mid-October, indicating persistent downside pressure despite recent rallies that failed to break above these averages [5]. Financial Performance - In the third quarter of fiscal 2025, Sherwin-Williams reported a revenue increase of 3.2% year-over-year to $6.36 billion, surpassing estimates, while adjusted EPS grew 6.5% to $3.59, exceeding the forecast of $3.46 [6][7]. - The company generated $2.36 billion in net operating cash and returned $2.13 billion to shareholders through dividends and share repurchases in the first nine months of 2025 [7]. Future Outlook - For the full fiscal year 2025, Sherwin-Williams anticipates consolidated net sales to increase in the low single digits compared to 2024, with adjusted EPS projected between $11.25 and $11.45 [7].

Core Insights - PPG Industries is navigating challenges from demand weakness, particularly in Europe, while benefiting from cost discipline, acquisitions, and pricing actions [1] Cost Management and Restructuring - PPG is implementing a cost-cutting and restructuring strategy, focusing on regions and end markets with weak business conditions, realizing an additional $20 million in structural cost savings in Q2 2025, and expecting around $60 million in restructuring savings for the full year 2025 [2][9] - A comprehensive cost reduction program is expected to deliver annualized pre-tax savings of approximately $175 million once fully implemented, primarily targeting structural costs in Europe and other global businesses [3][9] Acquisitions and Growth Strategy - The company is pursuing inorganic growth through value-creating acquisitions, with contributions from acquisitions like Tikkurila, Worwag, Cetelon, and Arsonsisi's powder coatings business expected to enhance its top line [4][9] Financial Performance and Shareholder Returns - PPG has a strong track record of returning cash to shareholders, having returned $1.4 billion in 2024 through dividends and share repurchases, including $620 million in dividends and $750 million in share buybacks [5] - The company raised its quarterly dividend by 4% in July 2025, reflecting robust financial performance with operating cash flow reaching around $1.4 billion in 2024 [5] Market Challenges - PPG faces challenges from soft global industrial production, impacting demand in the Industrial Coatings segment, with lower automotive OEM build rates and weak consumer confidence in Europe contributing to reduced volumes and sales [6][8] - Overall organic growth is expected to be limited due to these factors, with industrial coatings demand anticipated to remain under pressure in the third quarter [7][9] Earnings Guidance - PPG maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by continued share gains and internal improvement initiatives while considering current global economic conditions [9]

Core Viewpoint - PPG Industries has shown a positive stock performance of approximately 5.5% since its last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1]. Financial Performance - PPG Industries reported Q2 2025 profit of $450 million, or $1.98 per share, a decrease from $493 million, or $2.09 per share, in the same quarter last year [2]. - Adjusted earnings per share, excluding one-time items, fell to $2.22 from $2.35 year-over-year, meeting the Zacks Consensus Estimate [2]. - Revenues for the quarter were approximately $4.19 billion, down 1% year-over-year, but exceeded the Zacks Consensus Estimate of $4.13 billion [3]. Segment Review - The Global Architectural Coatings segment experienced a 5% year-over-year decline in sales to $1.02 billion, surpassing estimates of $1 billion, primarily due to the divestiture of the architectural coatings business in Russia and lower sales volumes, partially offset by higher selling prices [4]. - The Performance Coatings segment saw a 7% year-over-year increase in sales to $1.51 billion, exceeding estimates of $1.44 billion, driven by a 6% rise in organic sales and increases in selling prices and volume [5]. - The Industrial Coatings segment's sales declined 5% year-over-year to $1.67 billion, surpassing estimates of $1.63 billion, mainly due to the divestiture of the silicas products business in late 2024 [6]. Financial Position - As of the end of the quarter, the company had $1.56 billion in cash and cash equivalents, with net debt increasing to $5.7 billion, up $479 million from the prior year [7]. Outlook - The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by continued market share gains and internal improvement initiatives, while considering current global economic conditions and varied demand trends [8]. - Recent estimates for the stock have shown a downward trend, indicating a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]. Industry Comparison - PPG Industries operates within the Zacks Chemical - Specialty industry, where RPM International, a peer, has gained 6% over the past month, reporting revenues of $2.08 billion for the last quarter, reflecting a year-over-year increase of 3.7% [13].

Core Insights - PPG Industries is experiencing challenges due to demand weakness, particularly in Europe, but is benefiting from cost discipline, acquisitions, and pricing actions [1][6][9] Financial Performance - PPG's second-quarter adjusted earnings were $2.22 per share, matching estimates but down from $2.35 a year earlier [1] - The company reported a roughly 1% decline in revenue, with higher sales in the Performance Coatings unit offset by declines in Global Architectural Coatings and Industrial Coatings segments [1] Cost Management and Restructuring - PPG is implementing a cost-cutting and restructuring strategy, realizing an additional $20 million in structural cost savings in Q2 2025, with expectations of around $60 million in total savings for the full year [2][9] - A comprehensive cost reduction program is expected to deliver annualized pre-tax savings of approximately $175 million once fully implemented, focusing on structural costs mainly in Europe [3] Acquisitions and Growth Strategy - The company is pursuing inorganic growth through acquisitions, including Tikkurila, Worwag, Cetelon, and Arsonsisi's powder coatings business, which are expected to contribute positively to its revenue [4][9] Shareholder Returns - PPG has a strong track record of returning cash to shareholders, having returned $1.4 billion in 2024 through dividends and share buybacks, with a quarterly dividend increase of 4% in July 2025 [5] Market Challenges - The company faces challenges from soft global industrial production, particularly affecting the Industrial Coatings segment, with lower automotive OEM build rates and weak consumer confidence in Europe [6][8] - Demand in the Global Architectural Coatings segment fell by 5% due to lower sales volumes and weaker consumer confidence in Europe [8] Future Outlook - PPG maintains its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by share gains and internal improvement initiatives despite current economic conditions [9]

Core Insights - PPG Industries, Inc. reported a second-quarter 2025 profit of $450 million or $1.98 per share, a decrease from $493 million or $2.09 per share in the same quarter last year [1] - Adjusted earnings per share for the quarter were $2.22, down from $2.35 year-over-year, meeting the Zacks Consensus Estimate [1] - Revenues for the quarter were $4,195 million, a 1% decline year-over-year, but exceeded the Zacks Consensus Estimate of $4,131.6 million [1] Segment Review - The Global Architectural Coatings segment experienced a 5% year-over-year decline in sales to $1,018 million, surpassing estimates of $1,002.6 million, primarily due to the divestiture of the architectural coatings business in Russia and lower sales volumes, partially offset by higher selling prices [2] - The Performance Coatings segment saw a 7% year-over-year increase in sales to $1,512 million, exceeding estimates of $1,439.3 million, driven by a 6% rise in organic sales along with increases in selling prices and volume [3] - The Industrial Coatings segment's sales declined 5% year-over-year to $1,665 million, surpassing estimates of $1,632.2 million, mainly due to the divestiture of the silicas products business in late 2024 [4] Financials - As of the end of the quarter, the company had $1,561 million in cash and cash equivalents, with net debt increasing to $5.7 billion, up $479 million from the prior-year quarter [5] Outlook - The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05, supported by continued share gains and internal improvement initiatives, while considering current global economic conditions and varied demand trends [6] Price Performance - PPG shares have declined by 11.6% over the past year, compared to a 3.3% decline in its industry [7]

Financial Performance - The company reported net sales of $4.2 billion, with a 2% increase in organic sales, driven by aerospace coatings, protective and marine coatings, and packaging coatings [8][9] - The quarterly segment EBITDA margin was 20.3%, and adjusted earnings per diluted share were $2.22 [9] - The company repurchased approximately $150 million of stock during the quarter, totaling $540 million year-to-date, and raised its quarterly dividend per share by 4% [9][19] Business Segment Performance - In the Global Architectural Coatings segment, positive selling prices were offset by lower volumes and the impact of a divestiture, with organic sales growth in the Nordic region and the UK, but lower demand in Eastern Europe [10][11] - The Performance Coatings segment saw a 6% increase in organic sales, with aerospace delivering high single-digit percentage organic sales growth [11][12] - Protective and Marine Coatings achieved double-digit percentage organic sales growth, marking the ninth consecutive quarter of positive year-over-year sales volume growth [13][14] - The Industrial Coatings segment's sales volumes were flat, with selling prices declining by 1% due to index-based customer contracts [15][16] Market Performance - Organic growth was delivered in both the United States and Latin America, while demand in Europe was tepid and some softening was noted in Asia [9][10] - The company expects project-related spending in Mexico to improve in the second half of the year, with organic growth in Mexico projected to be modestly up to mid-single digits [10][90] Company Strategy and Industry Competition - The company is focused on leveraging its technology advantage in the Performance Coatings segment, particularly in aerospace and protective and marine coatings [21][22] - The company anticipates continued growth in the aerospace sector, with high single-digit to double-digit growth expected for the foreseeable future [80] - The company is committed to driving shareholder value through disciplined capital allocation and a strong balance sheet [20][23] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic macro environment, with expectations for sales and earnings growth momentum in the second half of the year [20][22] - The company is monitoring tariff situations and plans to react accordingly with pricing actions to mitigate financial impacts [20][21] - Management expects to achieve a mid-single-digit percentage increase in EPS for the third quarter and a low double-digit percentage increase for the fourth quarter [22] Other Important Information - The company retired €300 million of debt during the quarter and has another €600 million of euro debt maturing in the fourth quarter [19][20] - The company is investing in both operational and capital expenditures in aerospace to support future growth [11][80] Q&A Session Summary Question: Global Architectural Coatings segment performance - Management noted that Eastern Europe did not recover as expected, impacting margins, while Mexico showed signs of retail recovery [28][30] Question: Volume growth expectations for Q3 and Q4 - Management expects low single-digit growth in volumes for the second half of the year, with confidence in share gains [33][34] Question: Outlook for Performance Coatings and Refinish - Refinish is expected to be soft in Q3, with a return to normalization in Q4, while Protective and Marine Coatings are anticipated to continue strong growth [36][38] Question: Raw material inflation compared to peers - Management explained that raw material inflation is influenced by the company's significant purchases in Mexico and specific material costs like epoxy [44][45] Question: Buyback activity and M&A considerations - Management confirmed ongoing buyback activity and indicated that any M&A would be small and not materially affect cash allocation [47][50] Question: Share gains and margin impacts - Management indicated that share gains would improve net margins through fixed cost leverage and manufacturing efficiencies [77] Question: Aerospace growth outlook - Management anticipates high single-digit to double-digit growth in aerospace, supported by strong forecasts from industry CEOs [80] Question: Mexico architectural market outlook - Management expressed confidence in project spending recovery in Mexico, with expectations for modest growth in the second half of the year [88][90]

Core Insights - PPG Industries reported revenue of $4.2 billion for the quarter ended June 2025, reflecting a 12.5% decline year-over-year, with EPS at $2.22 compared to $2.50 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.13 billion by 1.53%, while the EPS met the consensus estimate [1] Financial Performance - Net Sales in Performance Coatings were $1.51 billion, surpassing the average estimate of $1.48 billion, but showing a significant year-over-year decline of 50.4% [4] - Global Architectural Coatings reported Net Sales of $1.02 billion, slightly below the average estimate of $1.03 billion [4] - Industrial Coatings achieved Net Sales of $1.67 billion, exceeding the average estimate of $1.64 billion, with a year-over-year decline of 4.6% [4] Segment Income - Segment Income for Performance Coatings was $356 million, higher than the estimated $327.83 million [4] - Global Architectural Coatings had Segment Income of $160 million, below the estimated $184.59 million [4] - Industrial Coatings reported Segment Income of $227 million, slightly above the average estimate of $219.24 million [4] Stock Performance - PPG Industries' shares returned +0.2% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Kennametal Inc. announced the election of Shelley Bausch to its Board of Directors, effective May 1, 2025, replacing Cindy L. Davis, who will retire on September 1, 2025 [1] - Shelley Bausch has over 30 years of experience in leading global manufacturing businesses, with a strong track record in driving growth and transforming businesses [3] - Bausch previously served as President of Global Industrial Coatings at Axalta, where she led various industrial coatings businesses and expanded into new markets [2][4] Group 2 - William M. Lambert, Chairman of Kennametal's Board, expressed confidence in Bausch's ability to contribute to the company's strategy and shareholder value [3] - Sanjay Chowbey, President & CEO of Kennametal, highlighted Bausch's expertise in operational excellence, strategic execution, and P&L leadership [3] - Kennametal has over 85 years of experience in industrial technology, generating $2 billion in revenues in fiscal 2024, and employs approximately 8,400 people globally [8]

Group 1 - PPG's shares increased by up to 6.1% following its first-quarter earnings report and full-year guidance, indicating positive investor sentiment despite economic uncertainties [1] - Management maintained guidance for adjusted earnings per share (EPS) between $7.75 and $8.05, driven by improvements in the performance coatings segment [2] - Performance coatings saw a 6% increase in volumes, particularly in the aerospace sector and automotive refinish, suggesting areas of economic strength [3] Group 2 - Global architectural and industrial coatings experienced volume declines of 3% and 1%, respectively, attributed to a slowdown in project-related business and governmental spending in Mexico due to geopolitical uncertainties [4] - In industrial coatings, growth in packaging volumes was not sufficient to counterbalance the decline in the automotive OEM market, as automakers are reducing production in 2025 due to economic concerns [4] - CEO Tim Knavish noted that over 95% of PPG's purchases are locally sourced or tariff-free, indicating that the company's exposure to tariffs is limited, with end markets currently performing adequately [6]