01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
PPG Industries, Inc. reported net sales of approximately $15.9 billiona for 2025, flat compared to 2024, with higher selling prices, sales volume growth and favorable foreign currency translation offset by the impact of divestitures.
Income before income taxes rose to $2,045 millionb from $1,852 million, primarily due to lower business restructuring and impairment charges, higher selling prices, improved manufacturing productivity and restructuring savings, partially offset by unfavorable sales mix and cost inflation. Diluted earnings per share from continuing operations were $6.92, compared with $5.72 in 2024, while adjusted diluted EPS from continuing operations was $7.58, down from $7.87. Management reported organic sales growth of 2% for the year, and cash from operating activities from continuing operations was $1,936 million.
For 2026, PPG anticipates organic sales growth in the range of flat to a positive low single-digit percentage, driven by aerospace coatings, architectural coatings in Mexico and share gains in Industrial Coatings, while demand in Europe and global industrial end-use markets is expected to remain challenged. The company expects its 2026 effective tax rate from continuing operations to be 24% to 25%, and capital expenditures of approximately $650 million to $700 millionc. Total Indebtedness to Total Capitalization under the Credit Agreement was 47% at year-end, and the company ended 2025 with approximately $2.2 billion in cash and short-term investments.
A material open matter is the Di Gregório litigation in Brazil, for which Westlake has informed PPG that the award against PPG would be approximately $350 milliond after a revised interest calculation, down from an earlier figure of over $700 million. PPG is pursuing its Delaware Chancery claims against Westlake, which the company believes carry remote risk of loss, with a trial-court decision expected in 2026. Management believes that, in the aggregate, pending lawsuits and environmental contingencies will not have a material effect on the consolidated financial position or liquidity.
02—Key points
Key Highlights
- Net sales were $15,875 million in 2025, essentially flat versus $15,845 million in 2024, with higher selling prices, higher sales volumes and favorable currency offset by divestitures (-3%).
- Income before income taxes increased to $2,045 million from $1,852 million, driven by lower restructuring and impairment charges, higher selling prices and improved manufacturing productivity.
- Diluted EPS from continuing operations rose to $6.92 from $5.72, while adjusted diluted EPS from continuing operations declined to $7.58 from $7.87.
- Segment results: Performance Coatings net sales rose 5.3% to $5,513 million, while Global Architectural Coatings fell 2.1% to $3,838 million and Industrial Coatings fell 2.4% to $6,524 million.
- Cash from operating activities from continuing operations increased 39.2% to $1,936 million; PPG returned $790 million through share repurchases and $628 million through dividends in 2025.
- 2026 guidance calls for organic sales growth of flat to a positive low single-digit percentage and an effective tax rate of 24% to 25%.
- Westlake-related Di Gregório litigation in Brazil: an award against PPG was reported at over $700 million earlier, and Westlake now estimates approximately $350 million; PPG's Delaware claims against Westlake are pending, with a decision expected in 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, PPG Industries kept $0.10.
- Revenue$15.88B100.0%
- Cost of revenue−$9.32B58.7%
- Gross profit$6.56B41.3%
- Operating costs−$4.99B31.4%
- Operating income$1.57B9.9%
- Interest, other & tax$5.0M0.0%
- Net income$1.58B9.9%
Where FY2025 revenue went
$15.88B- Cost of revenue: $9.32B, 59% of revenue
- SG&A: $3.44B, 22% of revenue
- Operating income: $1.57B, 9.9% of revenue
- R&D: $446.0M, 2.8% of revenue
- Other operating costs: $1.10B, 6.9% of revenue
Kept 9.9% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $15.88B$15.85B | +0.2% |
| Cost of Revenue | $9.32B$9.25B | +0.7% |
| Gross Profit | $6.56B$6.59B | −0.5% |
| R&D Expenses | $446.00M$447.00M | −0.2% |
| SG&A Expenses | $3.44B$3.39B | +1.4% |
| Operating Income | $1.57B$1.34B | +16.9% |
| Net Income | $1.58B$1.12B | +41.2% |
| EPS (Basic) | $6.96$4.77 | +45.9% |
| EPS (Diluted) | $6.94$4.75 | +46.1% |
| Shares Outstanding (Basic) | 226.30M233.80M | −3.2% |
| Shares Outstanding (Diluted) | 227.10M234.90M | −3.3% |
05—Questions
Frequently Asked Questions
How did PPG perform financially in 2025?
Net sales were about $15.9 billion, flat versus 2024. Income before income taxes was $2,045 million, up from $1,852 million, and diluted EPS from continuing operations was $6.92 versus $5.72. Adjusted diluted EPS from continuing operations was $7.58, down from $7.87 in 2024.
What drove the increase in reported earnings?
The filing attributes the increase primarily to lower business restructuring and impairment and other related charges, higher selling prices, improved manufacturing productivity and restructuring savings. These were partially offset by unfavorable sales mix and overhead and other cost inflation.
What is PPG's outlook for 2026?
PPG expects organic sales growth in the range of flat to a positive low single-digit percentage, driven by aerospace coatings, architectural coatings in Mexico and Industrial Coatings share gains. It anticipates continued challenges in Europe and global industrial end-use markets, a 2026 effective tax rate from continuing operations of 24% to 25%, and capital expenditures of approximately $650 million to $700 million.
What is the status of the Di Gregório litigation?
The case is pending in Brazil, where a court entered an award against PPG as nominal defendant. Westlake, which PPG says assumed the liability, informed PPG that the award with interest would be over $700 million, and more recently estimated it at approximately $350 million. PPG's Delaware Court of Chancery lawsuit against Westlake had a bench trial in May 2025, and the company expects a decision in 2026. PPG believes the risk of loss associated with this matter is remote.
How strong is PPG's balance sheet and liquidity?
PPG ended 2025 with approximately $2.2 billion in cash and short-term investments and $6,602 million of long-term debt. Total Indebtedness to Total Capitalization was 47% as defined under the Credit Agreement, versus a 60% maximum covenant. The company had no amounts outstanding under its $2.3 billion revolving credit facility.
06—Continue