PPG Industries (PPG) Q3 2025 earnings summary

Executive summary

• Net sales reached $4.1 billion, up 1% year-over-year, with organic sales growth of 2% driven by higher volumes and prices, led by aerospace, protective/marine, packaging, and automotive OEM segments.

• Achieved record Q3 adjusted EPS of $2.13, up 5% year-over-year, marking the third consecutive quarter of sales volume growth despite a challenging macroeconomic environment.

• Performance driven by strong commercial execution, share gains in industrial and packaging coatings, and double-digit organic growth in aerospace and protective/marine coatings.

• Share repurchases totaled $150 million in the quarter, with $1.2 billion returned to shareholders year-to-date.

• Lower sales volumes in automotive refinish due to distributor order patterns and industry-wide decline in collision claims.

Financial highlights

• Adjusted EPS increased 5% year-over-year to $2.13, a Q3 record; reported EPS was $1.96.

• Segment EBITDA margin reached 20% for the quarter; segment EBITDA up 12% year-over-year in industrial coatings.

• Net income from continuing operations was $444 million; adjusted net income was $481 million.

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

• Operating working capital was $3.2 billion, 19.6% of annualized quarter sales.

Outlook and guidance

• Full-year adjusted EPS guidance updated to $7.60–$7.70 per diluted share.

• Expect continued organic sales and earnings growth, with low single-digit inflation for the year.

• Q4 outlook includes structural strength in aerospace and protective/marine coatings, offset by lower automotive refinish and architectural coatings sales.

• Anticipate muted industrial environment and continued volume challenges in refinish through mid-2026, with normalization expected thereafter.

• Total capital spending for 2025 projected at $725–$775 million; restructuring savings expected to reach $75 million for the year.