Key Takeaways PPG Industries reported Q4 adjusted EPS of $1.51, missing estimates, while revenues rose 5% year over year.PPG Industries saw sales beats across segments, helped by higher prices and FX.PPG guided 2026 adjusted EPS of $7.70-$8.10, citing soft global production and mixed regional demand.PPG Industries, Inc. (PPG) reported a fourth-quarter 2025 profit (from continuing operations) of $302 million or $1.34 per share compared with $2 million or a penny per share a year ago.In the fourth quarter, ex ...

Fourth Quarter 2025 Financial Results January 27, 2026 Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company's current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words "aim," "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "foreca ...

Core Viewpoint - PPG Industries reported a revenue of $3.91 billion for Q4 2025, marking a 5% year-over-year increase, but the EPS of $1.51 showed a decline from $1.61 a year ago, indicating mixed performance against market expectations [1]. Financial Performance - Revenue of $3.91 billion exceeded the Zacks Consensus Estimate of $3.74 billion by 4.52% [1]. - EPS of $1.51 was below the consensus estimate of $1.57, resulting in a surprise of -3.82% [1]. - PPG Industries' shares returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3]. Segment Performance - Performance Coatings generated net sales of $1.32 billion, surpassing the four-analyst average estimate of $1.27 billion, with a year-over-year change of +4.8% [4]. - Global Architectural Coatings achieved net sales of $951 million, exceeding the average estimate of $906.28 million [4]. - Industrial Coatings reported net sales of $1.64 billion, slightly above the average estimate of $1.6 billion, with a year-over-year change of +3.5% [4]. - Segment Income for Performance Coatings was $246 million, above the average estimate of $235.86 million [4]. - Segment Income for Global Architectural Coatings reached $137 million, exceeding the average estimate of $124.12 million [4]. - Segment Income for Industrial Coatings was $200 million, below the average estimate of $208.55 million [4].

Core Insights - RPM International reported $1.91 billion in revenue for the quarter ended November 2025, a year-over-year increase of 3.5% [1] - The EPS for the same period was $1.20, down from $1.39 a year ago, and did not meet the consensus estimate of $1.41 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.93 billion, resulting in a surprise of -1.01% [1] Revenue Performance - Net Sales for the Construction Products Group (CPG) were $737.44 million, compared to the estimated $744.6 million, reflecting a year-over-year increase of +6.9% [4] - Net Sales for the Consumer Segment reached $638.65 million, below the estimated $657.21 million, with a year-over-year change of +8.2% [4] - Net Sales for the Performance Coatings Group (PCG) were $533.81 million, exceeding the estimated $529.3 million, and showing a significant year-over-year increase of +40.4% [4] Earnings Before Interest and Taxes (EBIT) Performance - Adjusted EBIT for the Consumer Segment was $90 million, below the average estimate of $103.51 million [4] - Adjusted EBIT for the Performance Coatings Group (PCG) was $82.83 million, slightly below the estimated $84.28 million [4] - Adjusted EBIT for the Construction Products Group (CPG) was $98.63 million, compared to the average estimate of $114.24 million [4] - Adjusted EBIT for Corporate/Other was -$44.82 million, worse than the average estimate of -$36.68 million [4] Stock Performance - RPM International's shares returned +0.3% over the past month, while the Zacks S&P 500 composite increased by +0.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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].

Transaction Overview - AkzoNobel and Axalta will combine in an all-stock merger of equals[21] - Axalta shareholders will receive 06539 shares of AkzoNobel common shares for each Axalta common share owned[21] - AkzoNobel expects to pay a special cash dividend to AkzoNobel shareholders equal to €25 billion minus regular dividends in 2026[21] - Pro forma ownership will be 55% AkzoNobel shareholders and 45% Axalta shareholders[21] Financial Benefits - The combination is expected to create ~$600 million in actionable cost and operational synergies[20, 39, 40] - The combined company's 2024A revenue is $169 billion[29] - The combined company's adjusted EBITDA is $33 billion, with a margin of ~195%[48] - The combined company's adjusted free cash flow is $15 billion[48] Strategic Advantages - The merger creates a top-tier portfolio with leading positions across key end-markets and globally recognized brands[20] - The combined company will have extensive scale, bringing global capabilities to local customers[20, 31] - The combined company will have a cutting-edge R&D and innovation platform, with ~$400 million in combined annual R&D spend[20, 34]

Core Viewpoint - PPG Industries exceeded Wall Street expectations for third-quarter profit, attributed to increased sales and prices in its performance coatings and global architectural coatings segments [1] Group 1: Financial Performance - The company reported higher sales and prices, contributing to a strong performance in the third quarter [1] - PPG Industries' profit surpassed analyst forecasts, indicating robust demand in its key segments [1] Group 2: Market Segments - The performance coatings segment showed significant growth, driven by increased sales [1] - Global architectural coatings also experienced higher sales and pricing, enhancing overall profitability [1]

Financial Data and Key Metrics Changes - Net sales were approximately $1.3 billion, down 2% year over year primarily due to macro headwinds in North America [12] - Adjusted EBITDA reached a record $294 million with a margin of 22.8%, marking 12 consecutive quarters of year-over-year growth [6][7] - Adjusted diluted EPS was $0.67, up 6% compared to the previous year [8][12] - Net leverage was maintained at 2.5 times, the lowest level in Axalta's history [8] Business Line Data and Key Metrics Changes - Performance Coatings segment net sales declined 6% year over year to $828 million, with adjusted EBITDA of $211 million and a margin of 25.5% [14][15] - Mobility Coatings net sales increased 4% to $460 million, with adjusted EBITDA rising 20% year over year to $83 million and a margin of 18% [15][16] - Refinish segment net sales were $517 million, slightly up sequentially but down year over year due to lower body shop activity [14] Market Data and Key Metrics Changes - Global auto production forecast for 2025 is approximately 91 million builds, a 2% increase from 2024 [6] - The broader macro environment remains challenging, particularly in North America, while trends in Europe are more stable [5][6] Company Strategy and Development Direction - The company aims to achieve its A plan target, focusing on enhanced profitability and operational excellence [8][10] - Plans to repurchase up to $250 million of stock in the fourth quarter, reflecting confidence in future growth [17][19] - The company is positioned for growth in the refinish market as claims stabilize and destocking headwinds abate [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while the external environment in North America and Europe did not improve as expected, they remain focused on execution and operational excellence [18][19] - The company anticipates a significant increase in free cash flow in the fourth quarter, projecting around $450 million for the year [19] - Expectations for 2026 include improved refinish demand and stable light vehicle production [20][21] Other Important Information - The company executed $100 million in share repurchases, reducing shares outstanding by over 3% since 2023 [7][17] - Interest expense decreased by 15% year to date, contributing to adjusted diluted EPS performance [10][16] Q&A Session Summary Question: Regarding the auto refinish component's decline - Management indicated that the market is down mid to high single digits, with destocking also contributing to the decline [24][25] Question: On cost management and future strategies - Management highlighted ongoing cost discipline and structural reductions, with expectations for continued improvement in margins [30][34] Question: Expectations for other end markets - Management expects muted performance in commercial vehicles and stable conditions in industrial markets, with potential growth in Latin America and China [38][40] Question: Discussion on dividends and capital allocation - Management noted that share repurchases are currently prioritized over dividends, with discussions ongoing regarding future capital allocation strategies [44][46] Question: Drivers in the refinish business - Management reported that accident rates are stable, but insurance premiums have increased, impacting claims and overall demand [50][51] Question: On raw material costs and tariffs - Management indicated that raw material costs are stable, with expectations of continued stability in the coming quarters [72][74] Question: Expectations for refinish revenue and volume - Management expects volumes to turn positive in Q2 2026, driven by new body shop wins and stabilization in the market [76][78] Question: On market share gains and competition - Management expressed confidence in maintaining market share and leveraging strengths in the refinish space despite competitive pressures [84][86]

Core Insights - RPM International (RPM) is expected to report quarterly earnings of $1.87 per share, a 1.6% increase year-over-year, with revenues projected at $2.04 billion, reflecting a 3.8% increase compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock performance [2] Revenue Forecasts - Analysts predict 'Net Sales- Construction Products Group/CPG' to reach $828.27 million, a 4.3% increase from the previous year [4] - 'Net Sales- Performance Coatings Group/PCG' is forecasted at $434.20 million, indicating a year-over-year change of 16.8% [4] - The 'Net Sales- Consumer Segment' is expected to be $678.10 million, reflecting a 7.9% increase [4] - 'Net Sales- Specialty Products Group/SPG' is estimated at $174.84 million, showing a slight increase of 0.2% [5] Adjusted EBIT Estimates - 'Adjusted EBIT- Consumer Segment' is projected to reach $125.46 million, up from $116.21 million year-over-year [5] - 'Adjusted EBIT- Performance Coatings Group/PCG' is expected to be $77.54 million, compared to $64.59 million last year [6] - The consensus for 'Adjusted EBIT- Construction Products Group/CPG' stands at $171.02 million, an increase from $159.90 million year-over-year [6] - 'Adjusted EBIT- Specialty Products Group/SPG' is estimated at $17.98 million, slightly down from $18.11 million last year [7] Stock Performance - RPM International shares have decreased by 7.4% over the past month, contrasting with a 2.7% increase in the Zacks S&P 500 composite [7]

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].