01—Abstract
Summary
Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.
PPG Industries, Inc. reported net sales of $4,082 milliona for the three months ended September 30, 2025, up from $4,032 million a year earlier, and income before income taxes of $556 million versus $578 million.
Net income attributable to PPG was $453 millionb ($2.01 per share) compared with $468 million ($2.01 per share) in the prior-year quarter. Diluted earnings per share from continuing operations were $1.96 versus $1.90, and adjusted diluted EPS was $2.13 versus $2.03. For the nine months, net sales were $11,961 million versus $12,116 million, and net income attributable to PPG was $1,276 million versus $1,396 million.
The filing attributes the quarterly sales increase primarily to higher selling prices, higher sales volumes and favorable foreign currency translation, partially offset by divestitures, and cites wage and other cost inflation and divestitures as headwinds to income. The balance sheet expanded over the period. Total assets rose to $22,144 millionc from $19,433 million at December 31, 2024, and long-term debt increased to $5,904 million from $4,876 million, following a €900 million 3.250% notes offering due 2032 completed in March 2025 with net proceeds of $940 million.
Cash and cash equivalents were $1,832 milliond. Operating cash flow from continuing operations was $1,047 million for the nine months, and the company spent $687 million on share repurchases and $468 million on dividends in that period. The company reported that its Total Indebtedness to Total Capitalization ratio was 47% against a covenant maximum of 60%.
Segment results were mixed. Global Architectural Coatings segment income was flat at $184 million for the quarter but fell 18% for the nine months to $462 million.
Performance Coatings segment income declined 11% to $272 million in the quarter, citing lower automotive refinish volumes, while Industrial Coatings segment income rose 16.5% to $233 million. The company also disclosed a Brazilian litigation matter (Di Gregório) in which Westlake is contractually responsible, with PPG expecting a Delaware Court of Chancery decision before the end of 2025 and describing the risk of loss as remote.
02—Key points
Key Highlights
- Third-quarter 2025 net sales rose to $4,082 million from $4,032 million, with higher selling prices, higher sales volumes and favorable foreign currency translation partially offset by divestitures.
- Third-quarter net income attributable to PPG was $453 million ($2.01 per share), compared with $468 million ($2.01 per share) a year earlier; diluted EPS from continuing operations was $1.96 versus $1.90.
- Adjusted diluted EPS from continuing operations was $2.13 for the quarter versus $2.03 in the prior-year quarter; for the nine months, adjusted diluted EPS was $6.06 versus $6.25.
- Nine-month net sales declined to $11,961 million from $12,116 million, and net income attributable to PPG fell to $1,276 million from $1,396 million.
- Total assets increased to $22,144 million and long-term debt rose to $5,904 million, reflecting a €900 million 3.250% notes offering due 2032 completed in March 2025.
- Segment income for the quarter was $689 million in both periods; Industrial Coatings rose 16.5% while Performance Coatings fell 11.1%, and Global Architectural Coatings was roughly flat.
- Total Indebtedness to Total Capitalization was 47% as of September 30, 2025, versus a covenant maximum of 60%, and the company was in full compliance with its restrictive covenants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, PPG Industries kept $0.11.
- Revenue$4.08B100.0%
- Cost of revenue−$2.43B59.4%
- Gross profit$1.66B40.6%
- Operating costs−$967.0M23.7%
- Operating income$689.0M16.9%
- Interest, other & tax−$236.0M5.8%
- Net income$453.0M11.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 29, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.08B$4.03B | +1.2% |
| Cost of Revenue | $2.43B$2.38B | +1.9% |
| Gross Profit | $1.66B$1.65B | +0.3% |
| SG&A Expenses | $824.00M$848.00M | −2.8% |
| Operating Income | $689.00M$689.00M | 0.0% |
| Interest Expense | $65.00M$67.00M | −3.0% |
| Net Income | $453.00M$468.00M | −3.2% |
| EPS (Basic) | $2.01$2.01 | 0.0% |
| EPS (Diluted) | $2.00$2.00 | 0.0% |
| Shares Outstanding (Basic) | 225.70M233.30M | −3.3% |
| Shares Outstanding (Diluted) | 226.50M234.30M | −3.3% |
05—Questions
Frequently Asked Questions
How did PPG's third-quarter 2025 performance compare with the prior year?
Net sales increased to $4,082 million from $4,032 million, and income before income taxes decreased to $556 million from $578 million. Net income attributable to PPG was $453 million compared with $468 million, and diluted EPS was $2.00 in both periods. The filing attributes higher selling prices, higher volumes and favorable currency translation to the sales increase, and cites wage and other cost inflation, divestitures and higher other charges as drags on income.
What drove the decline in year-to-date earnings?
For the nine months ended September 30, 2025, net sales decreased to $11,961 million from $12,116 million and net income attributable to PPG fell to $1,276 million from $1,396 million. The filing cites raw material, wage and other cost inflation, divestitures and unfavorable foreign currency translation as primary causes, partially offset by higher selling prices, cost-control actions and increased manufacturing productivity.
How did PPG's segments perform?
In the third quarter, Global Architectural Coatings segment income was $184 million, essentially flat, while Performance Coatings segment income fell 11% to $272 million on lower automotive refinish volumes. Industrial Coatings segment income rose to $233 million from $200 million, driven by higher sales volumes, cost-control actions and manufacturing efficiencies. For the nine months, Global Architectural Coatings segment income fell 17.5% to $462 million.
How did PPG's debt and capital allocation change?
Long-term debt increased to $5,904 million from $4,876 million at year-end 2024, following the March 2025 issuance of €900 million 3.250% notes due 2032 with net proceeds of $940 million. Over the nine months, PPG repurchased $687 million of treasury stock and paid $468 million in common dividends, while capital expenditures totaled $477 million. In October 2025, PPG amended its Credit Agreement to extend maturities on a $2.3 billion unsecured revolving facility.
What legal matter did PPG highlight, and what is its expected timing?
PPG is pursuing a lawsuit against Westlake Corporation in the Delaware Court of Chancery regarding the Di Gregório litigation in Brazil, which involves a judgment against PPG as the nominal defendant. The filing states that a bench trial was held in May 2025, final oral argument occurred in July 2025, and PPG expects the trial court to issue its final decision before the end of 2025. PPG states it believes the risk of loss associated with this matter is remote.
06—Continue