PPG Industries (PPG) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were $3.7 billion, down 4–4.3% year-over-year, mainly due to unfavorable foreign currency, divestitures, and lower volumes in some segments, but organic sales grew 1% with higher volumes and prices.

• Performance Coatings achieved record sales and earnings, with strong growth in aerospace, protective & marine, and traffic solutions; Industrial Coatings saw volume growth in all regions despite soft auto OEM demand.

• Global Architectural Coatings faced sluggish demand in Europe and paused investment in Mexico, impacting segment results; EMEA was flat organically, while Latin America and Asia Pacific volumes declined.

• Adjusted EPS was $1.72, down from $1.87 in Q1 2024; segment EBITDA margin was 19.4%.

• Major divestitures included the sale of the U.S. and Canada architectural coatings business and the remaining Russia business.

Financial highlights

• Adjusted EPS for Q1 2025 was $1.72; segment EBITDA margin was 19.4%, a record for Q1 in Performance Coatings.

• Net income from continuing operations was $375 million; adjusted net income was $396 million.

• Cash and short-term investments at quarter end were $1.9 billion; net debt stood at $5.4 billion.

• Share repurchases totaled $400 million in Q1; $1.2 billion over six quarters.

• Dividends paid were $160 million in Q1; $930 million over six quarters.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance reaffirmed at $7.75–$8.05.

• Q2 2025: Global Architectural and Performance Coatings expect flat to low single-digit organic sales growth; Industrial Coatings projects a low to mid single-digit decrease.

• Segment margin projected to decline 80–100 bps year-over-year in Q2 2025.

• $75 million in annual savings expected from self-help cost actions in 2025.

• Total capital spending for 2025 is expected to be $725–$775 million.