PPG Industries (PPG) Q4 2025 earnings summary

Executive summary

• Achieved solid commercial, operational, innovation, and financial performance in 2025, with consistent organic growth and four consecutive quarters of higher sales volumes and prices, despite a mixed macroeconomic environment.

• Net sales for 2025 reached $15.9 billion, with 2% organic growth, and adjusted EPS of $7.58; $1.4 billion was returned to shareholders through dividends and share repurchases.

• Fourth quarter net sales were $3.9 billion, up 5% year-over-year, with adjusted EPS of $1.51 and segment EBITDA margin at 18%.

• Portfolio pruning and divestitures in 2024, including silicas and Russian architectural coatings, sharpened focus on high-margin, technology-driven businesses and innovation, including digital and AI investments.

• Operating cash flow for 2025 was $1.9 billion, up over $500 million year-over-year.

Financial highlights

• Full-year 2025 net sales: $15.9 billion; organic growth: 2%; segment EBITDA margin: 19%.

• Adjusted EPS for 2025: $7.58; cash from operations: $1.9 billion; capital expenditures: $780 million.

• Q4 net sales: $3.9 billion, up 5% year-over-year with 3% organic growth; Q4 adjusted EPS: $1.51.

• Free cash flow yield for 2025 was 5%; net debt at year-end was $5.1 billion.

• Adjusted net income for 2025 was $1.72 billion, with notable adjustments for restructuring, portfolio optimization, legal settlements, and tax matters.

Outlook and guidance

• 2026 organic sales growth expected to be flat to low single-digit percentage, with volume growth led by Aerospace, Architectural Coatings in Mexico, and Industrial Coatings share gains.

• 2026 adjusted EPS projected at $7.70–$8.10, with growth weighted toward the second half; segment EBITDA margin improvement up to +100 bps year-over-year.

• $50 million in cost reductions targeted through operational excellence and restructuring programs.

• Capital expenditures for 2026 expected at $650 million–$700 million, returning to historical levels (~3% of sales) by 2027.