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PPG Industries 8-K Report, Financial Results (Jan 31, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 31, 2025
Period End
January 30, 2025
Security
PPG
In the record · 2016–202610-K1210-Q338-K141

PPG filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Restatement8-K · Jun ’18Jun ’18
  2. Restructuring8-K · Jun ’20Jun ’20
  3. Material agreement8-K · May ’22May ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed January 31, 2025. Cited figures are marked; the original filing is the authoritative source.

PPG Industries, Inc. reported fourth-quarter and full-year 2024 results on January 30, 2025, with the financials recast to show the architectural coatings U.S. and Canada business as discontinued operations.

Fourth-quarter net sales from continuing operations were $3,729 milliona, down 5% from $3,912 million a year earlier. Reported diluted EPS from continuing operations was $0.01, versus $0.43 in the prior-year quarter, while adjusted EPS rose 3% to $1.61. Reported EPS was depressed by $1.21 per share of losses from discontinued operations, which includes a $285 million loss on the sale of the architectural coatings U.S. and Canada business, and by $314 million of business restructuring-related costs, net.

For full-year 2024, net sales from continuing operations were $15,845 millionb, down 2%, and adjusted EPS was $7.87, up 6%. Adjusted EBITDA margin improved to 18.1% from 17.1%, and operating cash flow was $1,420 million. Management said organic sales declined a low single-digit percentage in both the fourth quarter and full year, with weakness in automotive OEM, industrial and European architectural coatings offsetting growth in aerospace, protective and marine, and traffic solutions.

Management expects 2025 adjusted EPS of $7.75 to $8.05c, and it anticipates a slow start, with first-quarter organic sales flat to slightly down and growth weighted toward the second half. PPG also plans to deploy about $400 million toward share repurchases in the first quarter of 2025. The company is expanding its segment reporting by creating a separate Global Architectural Coatings segment, while the Performance Coatings and Industrial Coatings segments will continue to be reported as before.

The filing furnishes the earnings press release as Exhibit 99 under Item 2.02, and the information is not deemed filed for purposes of Section 18 of the Exchange Act. The company ended 2024 with cash and short-term investments of $1.4 billiond and net debt of $4.5 billion.

02—Key points

Key Highlights

  1. Fourth-quarter 2024 net sales from continuing operations were $3,729 million, down 5% year over year, and reported EPS from continuing operations was $0.01 versus $0.43 a year earlier.
  2. Adjusted EPS was $1.61 in the fourth quarter, up 3%, and full-year 2024 adjusted EPS was $7.87, up 6%.
  3. Full-year 2024 adjusted EBITDA margin was 18.1%, up from 17.1%, and segment EBITDA margin was 19.9%, up from 19.2%.
  4. Fourth-quarter reported results include a $285 million loss on the sale of the architectural coatings U.S. and Canada business, representing a $1.22 EPS impact, and $314 million of business restructuring-related costs, net.
  5. 2025 adjusted EPS guidance is $7.75 to $8.05, with growth weighted toward the second half and first-quarter organic sales expected flat to slightly down.
  6. PPG plans to deploy about $400 million toward share repurchases in the first quarter of 2025, after repurchasing about $750 million of stock in 2024.
  7. Full-year 2024 operating cash flow was $1.4 billion, with net debt of $4.5 billion at year end.

03—Questions

Frequently Asked Questions

  1. How did PPG perform in the fourth quarter of 2024?

    Net sales from continuing operations were $3,729 million, down 5% year over year. Adjusted EPS rose 3% to $1.61, while reported EPS from continuing operations was $0.01, reflecting restructuring costs and the loss on the sale of the architectural coatings U.S. and Canada business.

  2. What is PPG's 2025 earnings outlook?

    PPG expects full-year 2025 adjusted EPS in the range of $7.75 to $8.05, with growth weighted toward the second half. Management anticipates first-quarter 2025 organic sales to be flat to slightly down, and expects more than $100 million in annualized share gains in Industrial Coatings beginning in the second half.

  3. Why did reported earnings differ so much from adjusted earnings?

    Reported results included business restructuring-related costs, net of $314 million in the fourth quarter, acquisition-related amortization, portfolio optimization items, and $1.21 per share of losses from discontinued operations. Adjusted EPS excludes these items.

  4. What changed in PPG's segment reporting?

    PPG created a separate Global Architectural Coatings segment that includes all architectural coatings businesses, which was previously part of Performance Coatings. The Performance Coatings and Industrial Coatings segments will continue to be reported as before.

  5. How is PPG returning capital to shareholders?

    PPG repurchased about $750 million of stock in 2024, representing approximately 3% of outstanding shares, and paid about $620 million in dividends. It plans to deploy about $400 million toward share repurchases in the first quarter of 2025 and ended 2024 with about $2.8 billion remaining on its share repurchase authorization.

04—Continue

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