PPG INDUSTRIES INC

Previous wording

Net sales were approximately $4.2 billion for the three months ended June 30, 2025, a decrease of 1% compared to the prior year, primarily due to the divestiture of the global silicas business and the architectural coatings business in Russia, partially offset by increases in both sales volumes and selling prices.

Current wording

Net sales were approximately $4.1 billion for the three months ended September 30, 2025, an increase of 1% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation, partially offset by the divestiture of the silicas products business and the architectural coatings business in Russia.

Previous wording

Income before income taxes was $598 million for the three months ended June 30, 2025, a decrease of $53 million compared to the prior year, primarily due to the unfavorable impact of raw material, wage and other cost inflation and the impact of divestitures, partially offset by increased manufacturing productivity and cost control measures.

Current wording

Income before income taxes was $556 million for the three months ended September 30, 2025, a decrease of $22 million compared to the prior year, primarily due to the unfavorable impact of wage and other cost inflation, divestitures and higher other charges/(income), partially offset by increased manufacturing productivity and cost-control measures.

Previous wording

Selling, general and administrative expense increased $14 million primarily due to the cost of providing transition services related to the recent divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transaction services agreements, the unfavorable impact of foreign currency translation and overhead cost inflation, partially offset by the impact of divestitures and cost control measures.

Current wording

Selling, general and administrative expense decreased $24 million primarily due to cost-control measures and the impact of divestitures, partially offset by overhead cost inflation, the unfavorable impact of foreign currency translation, and the cost of providing transition services related to the recently divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transition services agreements.

Previous wording

Depreciation expense increased $13 million primarily due to higher accelerated depreciation related to approved restructuring actions.

Current wording

Depreciation expense increased $17 million primarily due to higher accelerated depreciation related to approved restructuring actions.

Previous wording

Other charges, net increased by $7 million primarily due to higher net foreign currency translation expense, partially offset by income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business and lower environmental remediation charges.

Current wording

Other charges/(income), net increased by $24 million primarily due to net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment and higher net foreign currency translation expense, partially offset by gains recognized on the sale of non-core assets, a sales and use tax refund received during the third quarter 2025, and income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business.

Previous wording

Cost of sales, exclusive of depreciation and amortization, decreased by $81 million primarily due to the impact of divestitures, partially offset by increases in sales volumes.

Current wording

Cost of sales, exclusive of depreciation and amortization, decreased by $36 million primarily due to divestitures and increased manufacturing productivity, partially offset by increases in sales volumes.

Previous wording

Selling, general and administrative expense increased by $2 million primarily due to overhead cost inflation and to the cost of providing transition services related to the recent divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transaction services agreements, offset by the impact of divestitures and cost control measures.

Current wording

Selling, general and administrative expense decreased by $22 million primarily due to cost-control measures and divestitures, partially offset by overhead cost inflation and the cost of providing transition services related to the recently divested U.S. and Canada architectural coatings business, which are fully reimbursed by the buyer under transition services agreements.

Previous wording

Depreciation expense increased by $7 million primarily due to higher accelerated depreciation related to approved restructuring actions.

Current wording

Depreciation expense increased by $24 million primarily due to higher accelerated depreciation related to approved restructuring actions.

Previous wording

Other charges, net decreased by $29 million primarily due to income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business, the absence of a second quarter 2024 non-cash loss on the sale of the traffic solutions business in Argentina, an insurance reimbursement received in the first quarter 2025 related to damages incurred at a southern U.S. factory from a winter storm in 2021 and a gain recognized on the sale of the Company's remaining Russia business in the first quarter 2025, partially offset by higher net foreign currency translation expense.

Current wording

Other charges/(income), net decreased by $5 million primarily due to income recognized in connection with transition services agreements with the buyer of PPG's recently divested U.S. and Canada architectural coatings business, gains recognized on the sale of non-core assets, the absence of a second quarter 2024 non-cash loss on the sale of the traffic solutions business in Argentina and a sales and use tax refund received in the third quarter 2025, partially offset by impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment and higher net foreign currency translation expense.

Previous wording

Adjusted earnings per diluted share for the three months ended June 30, 2025 decreased year-over-year primarily due to the unfavorable impact of raw material, wage and other cost inflation and divestitures, partially offset by increased manufacturing productivity and cost control measures.

Current wording

Both Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the three months ended September 30, 2025 increased year over year due to higher selling prices, cost-control actions, increased manufacturing productivity and lower adjusted weighted average common shares outstanding due to share repurchases, partially offset by wage and other cost inflation and divestitures.

Previous wording

Adjusted earnings per diluted share for the six months ended June 30, 2025 decreased year-over-year primarily due to the unfavorable impact of raw material, wage and other cost inflation, foreign currency translation, and divestitures, partially offset by increased manufacturing productivity and cost control measures.

Current wording

Both Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the nine months ended September 30, 2025 decreased year-over-year primarily due to raw material, wage and other cost inflation, divestitures and the unfavorable impact of foreign currency translation, partially offset by higher selling prices, cost-control actions, increased manufacturing productivity and lower adjusted weighted average common shares outstanding due to share repurchases.

Previous wording

(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed consolidated statement of income and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the condensed consolidated statement of income.

Current wording

(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges/(income), net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed consolidated statement of income and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the condensed consolidated statement of income.

Previous wording

(c)Portfolio optimization includes gains and losses on the sale of non-core assets, including a gain recognized on the sale of a business in the first quarter 2025 and a loss recognized on the sale of the Company’s traffic solutions business in Argentina in the second quarter 2024, which are included in Other charges, net in the condensed consolidated statement of income. Portfolio optimization also includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. There was no tax expense associated with the gain recognized on the sale of a business in the first quarter 2025.

Current wording

(c)Portfolio optimization includes gains and losses on the sale of non-core assets, including net gains in the first and third quarter 2025 and a loss recognized on the sale of the Company’s traffic solutions business in Argentina in the second quarter 2024, which are included in Other charges/(income), net in the condensed consolidated statement of income. Portfolio optimization also includes advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. There was no tax expense associated with the gains recognized on the sales of non-core assets in the first and third quarter 2025.

Previous wording

(d)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges, net in the condensed consolidated statement of income.

Current wording

(e)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges/(income), net in the condensed consolidated statement of income.

Previous wording

(e)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021.

Current wording

(f)In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021.

Previous wording

Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") decreased by a low single-digit percentage compared to the prior-year quarter with lower sales volumes partially offset by higher selling prices. Overall demand for architectural coatings in Europe was lackluster with declines primarily in Eastern Europe, partially offset by organic sales growth in the Nordic region and the United Kingdom.

Current wording

Architectural coatings – EMEA net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") decreased by a low single-digit percentage compared to the prior year quarter with higher selling prices more than offset by lower sales volumes. Overall demand for architectural coatings in Europe was lackluster, with declines primarily in western Europe partially balanced by organic sales growth in eastern Europe.

Previous wording

Architectural coatings - Latin America and Asia Pacific decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices. In Mexico, retail sales volumes were solid during the quarter, and while project-related spending improved sequentially, it was lower than the prior year stemming from economic uncertainty.

Current wording

Architectural coatings - Latin America and Asia Pacific organic sales increased by a low single-digit percentage compared to the prior-year quarter driven by organic sales growth in the Latin America region. In Mexico, retail sales volumes were solid during the quarter, reflecting improving consumer demand, while project-related spending remained lower than the prior year stemming from economic uncertainty which has tempered government and business investment.

Previous wording

Architectural coatings – EMEA organic sales decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices. While overall demand for architectural coatings in Europe was lackluster, there was organic sales growth in the Nordic region during the period.

Current wording

Architectural coatings – EMEA organic sales decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices. Overall demand for architectural coatings in Europe was lackluster.

Previous wording

Architectural coatings - Latin America and Asia Pacific organic sales decreased by a low single-digit percentage compared to the prior-year quarter with lower sales volumes, partially offset by higher selling prices. In Mexico, retail demand for architectural coatings was solid and although project-related spending improved sequentially, it contracted year over year.

Current wording

Architectural coatings - Latin America and Asia Pacific organic sales decreased by a low single-digit percentage year over year with lower sales volumes, partially offset by higher selling prices.

Previous wording

Segment income was $278 million, a decrease of 26% versus the prior year, driven by lower sales volumes, raw material and other cost inflation and unfavorable currency translation, partially offset by pricing and cost-control actions.

Current wording

Segment income was $462 million, a decrease of 18% versus the prior year, driven by lower sales volumes, raw material and other cost inflation, divestitures and the unfavorable impact of foreign currency translation, partially offset by higher selling prices and cost-control actions.

Previous wording

In the second half of 2025, continued recovery of project-related spending in Mexico is expected and consumer sentiment in Europe is anticipated to be soft. Quarterly aggregate organic sales for the segment are expected to be in the range of lower by a low single digit percentage to flat compared to the third quarter 2024.

Current wording

In the fourth quarter of 2025, strong retail sales and modest recovery of project-related spending in Mexico is expected while consumer sentiment in Europe is anticipated to remain soft. Quarterly aggregate organic sales for the segment are expected to be in the range of flat to a positive low single-digit percentage compared to the fourth quarter 2024.

Previous wording

Aerospace coatings organic sales increased by a high single-digit percentage compared to the prior-year quarter, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs were stable, even with growth-related investments that improved our manufacturing output in the quarter. Global international and domestic air travel improved year over year and combined they are now in-line with pre-pandemic levels. The company remains focused on debottlenecking and further expanding manufacturing capabilities to drive further sales volume and earnings growth.

Current wording

Aerospace coatings organic sales increased by a double-digit percentage compared to the prior-year quarter, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs increased, even with improved manufacturing output stemming from growth-related investments. Global international and domestic air travel levels increased year over year, and combined are now above pre-pandemic levels. As demand for PPG's technology-advantaged products grows, the Company remains focused on debottlenecking and further expanding manufacturing capabilities to drive additional sales volume and earnings growth.

Previous wording

Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior-year quarter, including higher sales volumes in the Asia-Pacific region. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.

Current wording

Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior-year quarter driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.

Previous wording

Traffic solutions organic sales increased a mid-single-digit percentage compared to the prior year quarter driven by higher sales volumes, partially offset by lower selling prices. Traffic solutions benefited from strong demand and increased sales volumes across the U.S. and Canada.

Current wording

Traffic solutions organic sales increased by a mid-single-digit percentage compared to the prior year quarter driven by strong demand and share gains.

Previous wording

Aerospace coatings organic sales increased by a high single-digit percentage year over year, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs were stable at $300 million, even with growth-related investments that improved our output in the quarter.

Current wording

Aerospace coatings organic sales increased by a double-digit percentage year over year, led by higher selling prices and sales volumes. Demand remained strong, and customer order backlogs increased to approximately $310 million.

Previous wording

Protective and marine coatings organic sales increased by a double-digit percentage year over year including higher sales volumes in Europe and the Asia-Pacific region. Increased sales volumes were driven by share gains, reflecting demand for PPG's sustainably-advantaged products.

Current wording

Protective and marine coatings organic sales increased by a double-digit percentage year over year, including higher sales volumes in the United States and the Asia Pacific region. Increased sales volumes were driven by share gains, reflecting demand for PPG's sustainably advantaged products.

Previous wording

Continued strength is anticipated in aerospace coatings as well as protective and marine coatings. While automotive refinish coatings continues to gain share through demand for the Company's bundled coatings and services business model, lower organic sales are anticipated due to customer order patterns and weak industry collision claims. Traffic solutions is expected to follow typical seasonal trends and is well positioned to continue to benefit in the near term from increased U.S. infrastructure spending. Third quarter aggregate organic sales for the segment are anticipated to increase by a low single-digit percentage to a mid-single-digit percentage compared to the third quarter 2024.

Current wording

Continued strength is anticipated in aerospace coatings as well as protective and marine coatings. While automotive refinish coatings continues to gain share through demand for the Company's bundled coatings and services business model, lower organic sales are anticipated due to lower industry demand and lighter sales volumes stemming from customer order patterns. Traffic solutions is expected to follow typical seasonal trends and is well positioned to continue to benefit in the near term from increased U.S. infrastructure spending. Fourth quarter organic sales for the segment are anticipated to within the range of down by a low single-digit percentage to flat compared to the fourth quarter 2024.

Previous wording

Industrial Coatings segment net sales decreased due to the following:

Current wording

Industrial Coatings segment net sales were essentially flat due to the following:

Previous wording

In the industrial coatings business, organic sales decreased by a low single-digit percentage compared to the prior- year quarter due to lower index-based selling prices. Sales volumes were flat with increases in Latin America offset by decreases in the U.S. and the Asia Pacific region. Sales in several product categories were above prior-year levels, including solid growth in general finishes and coil. The most pronounced weakness was in extrusion and consumer electronics as those markets slowed due to tariff uncertainty.

Current wording

In the industrial coatings business, organic sales decreased by a low single-digit percentage compared to the prior- year quarter due to lower sales volumes and lower indexed-based prices. In a challenging macro industrial environment, sales volumes were slightly lower as the business realized the benefit of share gains. Sales volumes were lower mostly in the U.S. and Europe partially offset by improvement in the Asia-Pacific region. Sales in several product categories were above prior-year levels, including solid growth in heavy duty equipment and transportation. The most pronounced weakness was in kitchen and bakeware, consumer electronics, and extrusion.

Previous wording

Packaging coatings organic sales increased by a high single-digit percentage compared to the prior-year quarter due to higher sales volumes in all regions driven by share gains, including in Europe aided by regional regulations, partially offset by lower, index-based prices. Globally, beverage, food, and personal care packaging demand is solid, and PPG sales volume growth is outpacing the market.

Current wording

Packaging coatings organic sales increased by a double-digit percentage compared to the prior-year quarter with higher sales volumes partially offset by lower index-based prices. Results reflect the positive momentum from share gains in the U.S. and Canada, the Asia Pacific region and Europe, including those in aided by expanding regional regulations. Globally, beverage and food packaging demand is solid, and PPG sales volume growth is outpacing the market.

Previous wording

Specialty products organic sales increased by a mid-single-digit percentage compared to the prior-year due to higher sales volumes and selling prices.

Current wording

Specialty products organic sales were flat compared to the prior-year quarter with higher sales volumes in Europe offset by lower sales volumes in the United States.

Previous wording

Segment income was $227 million, a decrease of 12% versus the prior year, driven by lower organic sales, including price decreases due to index-based contracts, and the unfavorable impact of the divestiture of the global silicas business, partially offset by cost-control actions and manufacturing efficiencies.

Current wording

Segment income was $233 million, an increase of 17% versus the prior year, driven by higher sales volumes, cost-control actions and manufacturing efficiencies, partially offset by lower index-based selling prices and the unfavorable impact of the divestiture of the silicas products business.

Previous wording

Automotive OEM coatings organic sales decreased by a low single-digit percentage year over year driven by lower sales volumes and lower index-based selling prices for certain customer contracts. Sales volumes decreased in the U.S. and Europe due to lower automotive industry build rates, partially offset by sales volume growth in China and Latin America.

Current wording

Automotive OEM coatings organic sales decreased slightly year over year. Sales volumes decreased in the U.S. and Europe, partially offset by sales volume growth in China and Latin America.

Previous wording

In the industrial coatings business, organic sales decreased by a low single-digit percentage year over year, driven by lower index-based prices. Sales volumes increased slightly, with higher sales volumes in the U.S., Europe and Latin America partially offset by lower sales volumes in the Asia Pacific region.

Current wording

In the industrial coatings business, organic sales decreased by a low single-digit percentage year over year, driven by lower index-based prices. Sales volumes increased slightly due to higher sales volumes in Latin America.

Previous wording

Specialty products organic sales increased by a low single-digit percentage compared to the prior-year quarter due to higher sales volumes.

Current wording

Specialty products organic sales increased by a low single-digit percentage year over year primarily due to higher sales volumes.

Previous wording

Segment income was $442 million, a decrease of 13% versus the prior year, primarily due to lower organic sales, including price decreases due to index-based contracts, and the unfavorable impact of the divestiture of the global silicas business, partially offset by cost-control actions and manufacturing efficiencies.

Current wording

Segment income was $675 million, a decrease of 5% versus the prior year, primarily due to lower index-based selling prices and the unfavorable impact of the divestiture of the silicas products business, partially offset by higher sales volumes, cost-control actions and manufacturing efficiencies.

Previous wording

Global industrial production has flattened, and the macro environment in the third quarter is expected to be similar to the second quarter. The Company's share gains in packaging, industrial and automotive OEM are yielding benefits, and the automotive OEM coatings business is expected to outperform the market beginning in the third quarter. As a result, aggregate organic sales for the segment are anticipated to be in the range of flat to positive a low single-digit percentage compared to the third quarter 2024.

Current wording

The Industrial Coatings segment is expected to outperform the market in the fourth quarter, with share gains in automotive OEM, packaging and industrial coatings yielding benefits. As a result, fourth quarter aggregate organic sales for the segment are anticipated to be in the range of flat to a positive low single-digit percentage compared to the fourth quarter 2024.

Previous wording

PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs. The current global macroeconomic environment is highly dynamic, and we continue to monitor changes to tariffs and the corresponding impacts on our business. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during the first six months of 2025. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions.

Current wording

PPG is impacted by the economic and political conditions in the markets we serve, which includes effects related to the imposition and magnitude of tariffs. The current global macroeconomic environment is highly dynamic, and we continue to monitor changes to tariffs and the corresponding impacts on our business. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during the first nine months of 2025. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions.

Previous wording

PPG had cash and short-term investments totaling $1.6 billion and $1.4 billion at June 30, 2025 and December 31, 2024, respectively.

Current wording

PPG had cash and short-term investments totaling $1.9 billion and $1.4 billion at September 30, 2025 and December 31, 2024, respectively.

Previous wording

The Company continues to believe that cash on hand and short-term investments, cash from operations and the Company's access to capital markets will be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and contractual obligations.

Current wording

The Company continues to believe that cash on hand and short-term investments, cash from operations and the Company's ability to access the capital markets will be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans and contractual obligations.