PPG Industries (PPG) Q4 2024 earnings summary

Executive summary

• Adjusted EPS grew 6% year-over-year to $7.87, with portfolio optimization through divestitures of silica products and U.S./Canada Architectural Coatings, improving margins and focus.

• Full-year 2024 net sales from continuing operations were $15.8B, with segment EBITDA margin improving to 20%, up 70bps year-over-year.

• Record results in Aerospace Coatings, Automotive Refinish, and Latin America Architectural Coatings, with strong share gains in key businesses.

• Organic sales declined low single digits year-over-year due to weak macro environment, but growth achieved in Mexico, China, and select segments.

• Returned $1.4B to shareholders in 2024 via $750M in share repurchases and $620M in dividends.

Financial highlights

• Adjusted EPS for 2024 was $7.87, up from $7.42 in 2023.

• Adjusted EBITDA for 2024 was $2.86B, with an adjusted EBITDA margin of 18.1%, up 100bps year-over-year.

• Operating cash flow for 2024 was $1.4B; year-end cash and short-term investments totaled $1.4B; net debt was $4.5B.

• Fourth quarter 2024 adjusted EPS was $1.61, up 3% year-over-year, with net sales of $3.7B.

• Q4 segment EBITDA margin expanded to 18.0% from 17.7% year-over-year.

Outlook and guidance

• 2025 adjusted EPS guidance: $7.75–$8.05, midpoint implies 7% operational EPS growth, weighted to the second half.

• Organic sales growth for 2025 expected at low single digits, with Q1 flat to slightly down and stronger second half.

• $400M in share repurchases planned for Q1 2025.

• Cost reduction program targeting $60M in gross pre-tax savings in 2025; $175M in structural cost savings targeted overall.

• Capital expenditures for 2025 expected at $725M–$775M.