PPG Industries Inc Earnings
PPG Industries Inc has reported another strong performance in the third quarter of 2025, showcasing its resilience and adaptability in a challenging market environment. The company achieved record earnings per diluted share (EPS) of $1.96 and an adjusted EPS of $2.13, which represents a 5% increase year over year. These earnings results reflect PPG's successful strategies in overcoming market challenges and leveraging its technology-advantaged products to drive organic sales growth. The company delivered an impressive 2% organic sales increase, marking the third consecutive quarter of sales volume growth despite facing a complex macroeconomic landscape.
PPG Industries Inc Results
The financial performance of PPG Industries in Q3 2025 is summarized in the table below, providing a snapshot of the company's key financial metrics and highlighting its year-over-year achievements:
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Sales ($ Billion) | 4.1 | 4.06 | +1% |
| Reported EPS ($) | 1.96 | 1.87 | +5% |
| Adjusted EPS ($) | 2.13 | 2.03 | +5% |
| Segment Margin (%) | 17 | Not Provided | Not Provided |
| Segment EBITDA Margin (%) | 20 | Not Provided | Not Provided |
PPG's net sales rose by 1% compared to the previous year, reaching $4.1 billion. The company effectively managed cost through strategic self-help actions, including a restructuring initiative that is expected to save approximately $75 million for the year.
Revenue Breakdown
The table below provides an overview of the performance across PPG's major segments during Q3 2025:
| Segment | Net Sales ($ Million) | YoY Change |
|---|---|---|
| Global Architectural Coatings | Not provided | Growth in LATAM |
| Performance Coatings | Not provided | +3% |
| Industrial Coatings | Not provided | Flat |
In-Depth Analysis
The Performance Coatings segment experienced a 3% increase in net sales, driven by higher selling prices and favorable currency translation. This growth was achieved despite lower sales volumes. Notably, aerospace coatings achieved record quarterly sales with double-digit percentage organic sales growth, further bolstered by an order backlog of approximately $310 million.
Conversely, automotive refinish coatings saw a decrease in organic sales largely due to distributor order patterns and lower industry demand in the U.S., which saw a decline in collision claims. However, the Protective and Marine Coatings continued its streak of double-digit growth for the 10th consecutive quarter, with strong performance in the Asia Pacific market.
The Industrial Coatings segment remained flat year-over-year. The segment benefited from a 4% sales volume improvement due to share gains and increased automotive industry production. However, this was offset by a 4% negative impact due to the divestiture of the silicas products business.
Key Developments
PPG Industries made significant progress toward its business goals, particularly in advancing its operational excellence strategy. The company's self-help efforts and restructuring initiatives resulted in $75 million of expected savings by the end of 2025. Additionally, PPG made notable share gains in several markets and sustained its momentum through technology investment and strong commercial execution.
Comments from Company Officers
Tim Knavish, the Chairman and CEO of PPG, remarked:
"PPG delivered an organic sales increase of 2%, including our third consecutive quarter of sales volume growth in a challenging macro environment. This result reflects the benefits of PPG's global breadth and the team's strong commercial execution across our businesses, which is driving share gains."
Knavish also highlighted the company's advantage from its portfolio of technology-advantaged products and services, which has been instrumental in achieving positive selling prices and volumes moving into 2025.
Dividends and Share Repurchases
PPG Industries continued its commitment to returning value to shareholders. The company deployed $1.2 billion toward share repurchases and dividends year-to-date, including approximately $150 million in share repurchases and $160 million in dividends during the third quarter. These actions underscore PPG's strong financial position and its focus on rewarding its shareholders.
PPG Industries Inc Stock Forecast
In light of the company's robust performance and strategic initiatives, analysts can expect PPG Industries Inc's stock to remain resilient in the coming months. Based on current trends and strategic growth initiatives, the stock price could reach a high of $187.50 and a low of $173.00. This projection is supported by the company's ongoing technology advancements, operational excellence, and strategic investments, along with favorable market conditions in key sectors like aerospace and coatings.
In conclusion, PPG Industries Inc has demonstrated a strong financial performance in Q3 2025, reinforcing its position as a leader in the coatings industry. With continued strategic investments, operational efficiencies, and a focus on technology-driven solutions, PPG is poised to maintain its trajectory of sustained growth and shareholder returns.
