01—Abstract
Summary
Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.
PPG Industries, Inc. reported first quarter 2025 results in an earnings press release furnished as Exhibit 99.
Net sales were $3.7 billiona ($3,684 million), down 4% from the prior year, driven by unfavorable foreign currency translation of 3% and business divestitures of 2%, while organic sales rose 1% on higher sales volumes. Reported EPS from continuing operations was $1.64 (versus $1.71 a year earlier), and adjusted EPS was $1.72 (versus $1.87). Net income from continuing operations attributable to PPG was $375 million, compared with $405 million.
Segment performance was mixed. Performance Coatings was the standout, with net sales up 7% to $1,265 millionb, 9% organic sales growth, and segment EBITDA up 8% to $307 million. Global Architectural Coatings net sales fell 11% to $857 million and segment EBITDA fell 25% to $144 million, reflecting currency and lower volumes in Latin America and Asia Pacific.
Industrial Coatings net sales declined 8% to $1,562 millionc, with segment EBITDA down 13% to $263 million, mainly on currency and lower automotive OEM production. Capital allocation and balance sheet items were also notable. Share repurchases totaled approximately $400 million in the quarter, and net debt at quarter end was $5.4 billion, up $340 million year over year.
Cash and short-term investments totaled $1.9 billiond. PPG reaffirmed full-year 2025 adjusted EPS guidance of $7.75 to $8.05.
02—Key points
Key Highlights
- Net sales of $3,684 million, down 4% year over year; organic sales up 1% on higher sales volumes
- Reported EPS from continuing operations of $1.64 and adjusted EPS of $1.72, versus $1.71 and $1.87 in the prior-year quarter
- Performance Coatings delivered 9% organic sales growth, with net sales up 7% and segment EBITDA up 8% to $307 million
- Global Architectural Coatings segment EBITDA fell 25% to $144 million, driven by unfavorable currency (notably the Mexican peso) and lower volumes
- Industrial Coatings segment EBITDA declined 13% to $263 million on currency, index-based pricing declines and lower automotive OEM production
- Share repurchases of approximately $400 million in the quarter; net debt of $5.4 billion, up $340 million from a year earlier
- Full-year 2025 adjusted EPS guidance of $7.75 to $8.05 was reaffirmed
03—Questions
Frequently Asked Questions
How did PPG perform in the first quarter of 2025?
Net sales were $3,684 million, down 4% from $3,849 million a year earlier. Currency translation (3%) and divestitures (2%) more than offset 1% organic growth. Net income from continuing operations was $375 million, versus $405 million, and adjusted EPS was $1.72, versus $1.87.
Which segment performed best, and which struggled?
Performance Coatings performed best, with net sales up 7% to $1,265 million, 9% organic sales growth, and segment EBITDA up 8% to $307 million, helped by aerospace coatings and protective and marine coatings. Global Architectural Coatings was weakest, with net sales down 11% and segment EBITDA down 25% to $144 million. Industrial Coatings also declined, with segment EBITDA down 13% to $263 million.
What did PPG say about its full-year 2025 outlook?
PPG reaffirmed its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05. The company said the range reflects share gains, self-help actions, global economic activity, foreign exchange rates, and mixed demand across regions and businesses. It also expects $75 million in annual savings from accelerated self-help cost actions this year.
How is PPG's balance sheet and capital allocation position?
Cash and short-term investments totaled $1.9 billion at quarter end, and net debt was $5.4 billion, up $340 million from the first quarter of 2024. PPG repurchased approximately $400 million of shares in the quarter. In March it issued €900 million of debt, with maturities of €300 million due in the second quarter and €600 million due in the fourth quarter.
04—Continue