PPG Industries (PPG) PPG Q2 Financial Results Summary

# PPG Industries (PPG) Q2 2025 Financial Results Summary

PITTSBURGH, July 29, 2025 – PPG Industries reported its financial results for the second quarter of 2025.

## Key Financial Highlights

– **Net Sales**: $4.2 billion, a decrease of **1%** compared to Q2 2024, primarily due to business divestitures.
– **Organic Sales Growth**: Increased by **2%** year over year, driven by higher sales volumes and prices.
– **Earnings Per Share (EPS)**:
– Reported EPS: $1.98, a **5%** decrease from $2.09 in Q2 2024.
– Adjusted EPS: $2.22, down by **6%** from $2.35 in Q2 2024.
– **Net Income**: $450 million, a **9%** decline year-over-year from $493 million.
– **Adjusted Net Income**: $504 million, also down **9%** from $555 million in Q2 2024.
– **Segment Margin**: 17.7%
– **Segment EBITDA Margin**: 20.3%
– **Share Repurchases**: Approximately $150 million in Q2 2025 and $540 million year-to-date.

## Segment Financial Results

### Global Architectural Coatings
– **Net Sales**: $1.018 billion, a **5%** drop from $1.070 billion in Q2 2024.
– **Sales Volumes**: Decreased by **2%**.
– **Selling Prices**: Increased by **1%**.
– **Segment Income**: $160 million, down **24%** from $211 million.
– **Segment EBITDA**: $187 million, a **21%** decrease from $237 million.

### Performance Coatings
– **Net Sales**: $1.512 billion, an increase of **7%** from $1.418 billion year-over-year.
– **Sales Volumes**: Grew by **3%**.
– **Selling Prices**: Increased by **3%**.
– **Segment Income**: $356 million, up **9%** from $326 million.
– **Segment EBITDA**: $389 million, a **8%** increase from $360 million.

### Industrial Coatings
– **Net Sales**: $1.665 billion, a **5%** decline from $1.747 billion in Q2 2024.
– **Sales Volumes**: Flat, with improvements in share gains offsetting reductions.
– **Selling Prices**: Decreased by **1%**.
– **Segment Income**: $227 million, down **12%** from $259 million.
– **Segment EBITDA**: $276 million, also down **12%** from $312 million.

## Operational and Financial Position

– **Cash and Short-Term Investments**: $1.6 billion at quarter end.
– **Net Debt**: Increased to $5.7 billion, reflecting an increase of $479 million from Q2 2024.
– **Corporate Expenses**: $89 million for the quarter.
– **Net Interest Expense**: $18 million.
– **Effective Tax Rate**: Approximately **23.5%**.

## Dividends & Share Repurchase

– **Dividends Paid**: $308 million for the quarter.
– **Share Repurchase**: Approximately $150 million this quarter; $540 million year-to-date.

## CEO Remarks

Tim Knavish, Chairman and CEO, highlighted:
– The performance in the **Performance Coatings** segment, achieving record sales and earnings.
– A confident outlook for accelerating year-over-year earnings growth, expecting high single-digit EPS growth in the second half of 2025.
– A reaffirmation of adjusted EPS guidance for full-year 2025, ranging between $7.75 and $8.05.

## Outlook

– PPG anticipates positive momentum in organic sales growth and reaffirmed its earnings guidance.
– The company emphasizes the benefits of a diverse, global business portfolio, strong product lines, and effective response to market conditions.

This financial summary outlines PPG’s consecutive strategies, results, and future outlook, underscoring the company’s continual efforts to adapt and grow within a dynamic market environment while maintaining a commitment to shareholder value.