01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
PPG Industries, Inc. reported net sales of $4,195 milliona for the three months ended June 30, 2025, compared with $4,235 million in the prior-year quarter, and $7,879 million for the six months, versus $8,084 million a year earlier.
Income from continuing operations for the quarter was $458 millionb, down from $502 million, and net income attributable to PPG was $450 million, versus $528 million in the second quarter of 2024, which included discontinued operations. Diluted EPS from continuing operations was $1.98, compared with $2.09, and adjusted diluted EPS, as reconciled by the company, was $2.22 versus $2.35. The company attributed the decline primarily to raw material, wage and other cost inflation and divestitures, partially offset by manufacturing productivity and cost control.
By segment, Performance Coatings was the only reportable segment with higher segment income in the quarter ($356 millionc, up from $326 million), while Global Architectural Coatings ($160 million, down from $211 million) and Industrial Coatings ($227 million, down from $259 million) declined. Operating cash flow from continuing operations for the six months was $371 million, up from $348 million, and cash and cash equivalents rose to $1,561 million. Total debt increased, with long-term debt at $5,919 million and short-term debt and current portion at $1,413 million at June 30, 2025, following the issuance of €900 million of 3.250% notes due 2032 and the repayment of a €300 million note.
The filing also flags a legal matter with Westlake Corporation over the Di Gregório litigation. A Brazilian court award against PPG, which Westlake informed PPG could be approximately $350 milliond after simple prejudgment interest, is pending, and a Delaware Court of Chancery bench trial was held in May 2025 with a decision expected in the third quarter of 2025.
PPG states it believes the risk of loss on this matter is remote. The company also notes the enactment of the One Big Beautiful Bill Act on July 4, 2025, which it is still assessing.
02—Key points
Key Highlights
- Net sales of $4,195 million in Q2 2025 versus $4,235 million in Q2 2024; six-month net sales of $7,879 million versus $8,084 million.
- Income from continuing operations of $458 million in Q2 2025 versus $502 million; diluted EPS from continuing operations of $1.98 versus $2.09.
- Adjusted diluted EPS of $2.22 versus $2.35 in the prior-year quarter, with declines attributed to raw material, wage and other cost inflation and divestitures.
- Performance Coatings segment income rose to $356 million from $326 million, while Global Architectural Coatings ($160 million) and Industrial Coatings ($227 million) segment income declined.
- Cash from operating activities from continuing operations was $371 million for the six months, up from $348 million, and cash and cash equivalents reached $1,561 million at June 30, 2025.
- Issued €900 million of 3.250% notes due 2032 for $940 million in net cash proceeds; total long-term debt was $5,919 million at June 30, 2025.
- Westlake Di Gregório litigation: a Brazilian court award against PPG, which Westlake estimated at approximately $350 million, is pending, and a Delaware Chancery decision is expected in Q3 2025; PPG believes the risk of loss is remote.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, PPG Industries kept $0.11.
- Revenue$4.20B100.0%
- Cost of revenue−$2.43B58.0%
- Gross profit$1.76B42.0%
- Operating costs−$1.02B24.3%
- Operating income$743.0M17.7%
- Interest, other & tax−$293.0M7.0%
- Net income$450.0M10.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.20B$4.24B | −0.9% |
| Cost of Revenue | $2.43B$2.45B | −0.7% |
| Gross Profit | $1.76B$1.78B | −1.2% |
| SG&A Expenses | $872.00M$858.00M | +1.6% |
| Operating Income | $743.00M$796.00M | −6.7% |
| Interest Expense | $62.00M$62.00M | 0.0% |
| Net Income | $450.00M$528.00M | −14.8% |
| EPS (Basic) | $1.98$2.25 | −12.0% |
| EPS (Diluted) | $1.98$2.24 | −11.6% |
| Shares Outstanding (Basic) | 226.80M234.50M | −3.3% |
| Shares Outstanding (Diluted) | 227.70M235.70M | −3.4% |
05—Questions
Frequently Asked Questions
How did PPG's sales and earnings change in the second quarter of 2025?
Net sales were $4,195 million, compared with $4,235 million a year earlier. Income from continuing operations fell to $458 million from $502 million, and diluted EPS from continuing operations was $1.98 versus $2.09. The filing attributes the pressure primarily to raw material, wage and other cost inflation and to divestitures, partly offset by productivity gains and cost control.
Which segments drove performance, and which weakened?
Performance Coatings improved, with segment income of $356 million versus $326 million, driven by higher organic sales of technology-advantaged products and digital subscriptions. Global Architectural Coatings segment income fell to $160 million from $211 million, and Industrial Coatings fell to $227 million from $259 million, reflecting lower volumes, divestitures, and index-based price decreases.
How is PPG's balance sheet and liquidity position?
Cash and cash equivalents were $1,561 million at June 30, 2025, up from $1,270 million at year-end 2024. Total debt rose, with long-term debt of $5,919 million and short-term debt and current portion of $1,413 million. The Credit Agreement, a $2.3 billion revolving facility with no amounts outstanding, requires a Total Indebtedness to Total Capitalization ratio of 60% or less, and PPG reported 48% as of June 30, 2025.
What is the status of the Westlake Di Gregório litigation?
A Brazilian court entered an award against PPG, which remains the nominal defendant. Westlake informed PPG that, with prejudgment interest, fees and costs, it would exceed $700 million, and later that simple prejudgment interest would bring the final award to approximately $350 million. PPG sued Westlake in Delaware Chancery, where a bench trial was held in May 2025 and a decision is expected in the third quarter of 2025. PPG states that it believes the risk of loss is remote.
What capital allocation actions did PPG take in the first half of 2025?
PPG purchased $540 million of treasury stock and paid $308 million in dividends on common stock in the six months ended June 30, 2025. It repurchased 1,345,474 shares in the second quarter at an average price of $111.48, leaving 19,593,166 shares available under its repurchase program. Capital expenditures were $330 million, and total 2025 capital spending is expected to be approximately $725 million to $775 million.
06—Continue