PPG Reports 2Q 2025 Financial Results

PPG reports financial results for the second quarter 2025.

Net sales were $4,195 billion, down 1% from 2Q 2024. Net income was $450 million, a drop of 9%.

Tim Knavish, PPG chairman and chief executive officer, commented on the quarter:

“I am pleased with our growth momentum as we delivered 2% organic sales growth with equal contributions from sales volumes and selling prices. This organic growth reflects the benefits of PPG’s strong product portfolio and our commercial execution across our global business in an increasingly dynamic macro environment.

“The Performance Coatings segment achieved record quarterly sales and earnings with a 6% increase in organic sales supported by strong customer demand for our technology-advantaged products and services.

“In the Industrial Coatings segment, following several quarters of contraction, sales volumes were flat as we realized the initial benefits of share gains.

“Overall demand for architectural coatings in Europe was lackluster with declines primarily in the east, which were partially offset by organic sales growth in the Nordic region and the United Kingdom. In Mexico, retail demand for architectural coatings was solid, and although project-related spending improved sequentially, it remained lower year over year.

“Regionally, organic sales grew a mid-single-digit percentage in the U.S. and Canada, representing the second consecutive quarter of year-over-year increases, and Latin America delivered comparable organic growth.

“As we look ahead, our positive volume growth momentum is expected to accelerate in the second half of the year, and we expect to deliver strong year-over-year earnings growth. This is due to growing benefits from share gains in our Industrial Coatings segment driving low single-digit percentage sales volume growth for the segment in the third and fourth quarters, including expected above-market growth in automotive original equipment manufacturer (OEM) coatings, packaging coatings and industrial coatings.

“In the Performance Coatings segment, we expect solid organic growth across most businesses, partially offset by a decrease in refinish sales due to lower industry activity and softer PPG demand stemming from customer order patterns. In addition, we expect benefits in our architectural coatings business in Mexico as project-related demand is anticipated to improve during the second half of 2025. The accelerated momentum in volume growth and execution of our self-help actions is expected to drive year-over-year EPS growth of a high single-digit percentage in the second half of the year.

“PPG’s diverse, global business portfolio, execution of self-help actions and demonstrated track record of consistent cash generation, coupled with our strong balance sheet, gives me confidence in delivering on our full-year commitments. We are reaffirming our full-year earnings per share guidance range of $7.75 to $8.05,” Knavish concludes.

Additional Financial Information:

• Net sales in the quarter benefited from sales volumes growth of 1% and higher selling prices of 1% offset by business divestitures which reduced year-over-year sales by 3%.

• At quarter end, the company had cash and short-term investments totaling $1.6 billion. Net debt was $5.7 billion, an increase of $479 million from the second quarter 2024.

• The company retired €300 million of debt at maturity in the second quarter and has a €600 million debt maturity due in the fourth quarter 2025.

The Global Architectural Coatings segment reports net sales of $1.018 billion, down 5% from Q2 2024. Sales volumes were down 2%, while selling prices rose 1%. Segment income was $160 million.

Global Architectural Coatings segment net sales were lower compared to the second quarter 2024 driven by the divestiture of PPG’s architectural coatings business in Russia and lower sales volumes. These declines were partially offset by higher selling prices.

Organic sales for architectural coatings EMEA declined by a low single-digit percentage year over year, with higher selling prices offset by lower sales volumes in Eastern Europe. Organic sales for architectural coatings Latin America and Asia Pacific declined by a low single-digit percentage compared to the second quarter 2024 as growth in Mexico was offset by a decline in Australia.

Segment EBITDA decreased by 21% versus the prior year driven by unfavorable currency translation, the business divestiture, and lower sales volumes, which were partially offset by pricing and cost-control actions.

Performance Coatings Segment sales were $1.512 billion in Q2 2025, up 7% from Q2 2024. Sales volumes and selling prices were both up 3%. Segment income was $356 million, up 9%.

The Performance Coatings segment delivered record quarterly sales and earnings, driven by 6% growth in organic sales with an increase in both selling prices and sales volumes.

Sales volumes increased 3% year over year led by aerospace coatings, protective and marine coatings and traffic solutions. Aerospace coatings achieved record quarterly sales driven by high single-digit percentage organic sales growth, while PPG’s order backlog remained approximately $300 million.

Organic sales in automotive refinish coatings decreased by a low single-digit percentage, outperforming lower industry collision claims due to share gains and subscription revenue. Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior year, including above-market marine sales volume growth in Europe and Asia Pacific. Traffic solutions benefited from strong demand across the U.S. and Canada.

Segment EBITDA increased by 8% versus the prior year, and segment EBITDA margin improved by 30 basis points year over year to 25.7% driven by higher organic sales stemming from PPG’s  technology-advantaged products and digital subscriptions partially offset by growth-related investments.

Industrial Coatings Segment sales were $1.665 billion in Q2 2025, down 5% from Q2 2024. Sales volumes were flat, and selling prices were down 1%. Segment income was $227 million, a decline of 12%.

Industrial Coatings segment net sales declined compared to the second quarter 2024, primarily due to the impact of the divestiture of the silicas products business in late 2024. Sales volumes were flat, reflecting growing benefits from share gains, as strength in packaging coatings and specialty products were offset by lower automotive industry production.

Automotive OEM coatings organic sales decreased by a low single-digit percentage due to lower U.S. and European industry build rates, partially offset by PPG sales volume growth in China and Latin America, including initial benefits from share gains in Brazil.

Industrial coatings organic sales declined a low single-digit percentage due to lower indexed-based pricing. Sales volume was flat driven by new customer conversions, which outpaced lower industry demand. Packaging coatings organic sales increased by a high single-digit percentage year over year driven by share gains.

Segment EBITDA decreased 12% and segment EBITDA margin declined by 130 basis points compared to the second quarter 2024 driven by the business divestiture and lower selling prices due to index-based contracts, which were partially offset by cost-control actions.