PPG Industries Inc【PPG】株式ニュース

PPG reports first quarter 2026 financial resultsApril 28, 2026 4:05 PM
Business Wire

Net sales of $3.9 billion, an increase of 7% versus prior year

Organic sales increased 1% year over year driven by higher selling prices

First quarter reported earnings per diluted share (EPS) of $1.70 and adjusted EPS of $1.83, an increase of 6% year over year

Segment margin of 16% and segment EBITDA margin of 19%

Share repurchases in the quarter totaled about $100 million

Reaffirms full-year 2026 EPS guidance range of $7.70 to $8.10

PPG (NYSE:PPG) today reported financial results for the first quarter 2026.

First Quarter 2026 Consolidated Results

$ in millions, except EPS

1Q 2026

1Q 2025

YOY change

Net sales

$3,930

$3,684

+7%

Net income (a)

$382

$375

+2%

Adjusted net income (a)(b)

$411

$396

+4%

EPS (a)

$1.70

$1.64

+4%

Adjusted EPS (a)(b)

$1.83

$1.72

+6%

(a) From continuing operations

(b) Reconciliations of reported to adjusted figures are included below

Chairman and CEO Comments

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

In the first quarter, PPG delivered organic sales growth of 1%, demonstrating our ability to maintain growth momentum in a challenging environment. We delivered higher selling prices, with further selling price realization targeted to offset any inflationary impact more quickly than prior cycles. Adjusted EPS increased 6% driven by strong results in our differentiated aerospace and architectural coatings Latin America businesses, reflecting the benefits of our technology-advantaged products and strong brand recognition, along with excellent commercial execution.

Our Global Architectural Coatings segment achieved low single-digit percentage organic sales growth and EBITDA margin improvement of 230 basis points driven by strength in Latin America. In Europe, demand remains mixed whereas in Mexico, project-related sales are recovering and retail sales were especially strong.

Performance Coatings segment organic sales grew a low single-digit percentage benefitting from strong demand for aerospace and protective and marine coatings products. Aerospace industry growth is expected to remain robust, and our order backlog positions us well to deliver consistent above-industry growth in this key end market.

In our Industrial Coatings segment, we are delivering on previously communicated share gains in automotive original equipment manufacturer (OEM) coatings and packaging coatings, which allowed us to grow above industry levels. However, margins in the first quarter were negatively impacted by regional mix as China automotive production dropped in comparison to a particularly high level in the first quarter of last year. Results for packaging coatings were outstanding as we increased both organic sales and EBITDA margin.

Looking ahead, we expect strong growth in aerospace, architectural coatings in Latin America, protective and marine coatings and packaging coatings. Automotive refinish coatings organic sales are anticipated to improve for PPG in the second half of the year related to the phasing of customer order patterns last year. We are also seeing early signs of demand improvement in the U.S. refinish market as insurance claims begin to normalize to historical levels.

In recent weeks, costs have risen for raw materials, energy, logistics and packaging across the coatings value chain. As a result, PPG has proactively announced price adjustments globally and across the portfolio. Given the scale of our differentiated portfolio, we are able to source raw materials globally, and compared to prior inflation cycles, we have an improved ability to offset inflation by increasing selling prices in step with raw material price increases.

In the second quarter, we expect both organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year earnings per share guidance range of $7.70 to $8.10. This guidance reflects confidence in our growth momentum, including share gains and realization of pricing and execution of self-help actions, which will serve to mitigate the raw material inflation impact.

Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: We protect and beautify the world®.

Additional Financial Information

Net sales in the quarter increased 7% year over year, including benefits from higher selling prices of 1% and positive foreign currency translation of 6%.

At quarter end, the company had cash and short-term investments totaling $1.6 billion. Net debt was $5.5 billion, an increase of $150 million from the first quarter 2025.

Cash from operating activities was $33 million, approximately $50 million higher year over year.

The company repaid $700 million of debt which matured in the first quarter.

Corporate expenses were $83 million in the first quarter.

First quarter net interest expense was $24 million.

In the first quarter, the effective tax rate was approximately 25.5%, up about 100 basis points year over year.

First Quarter 2026 Reportable Segment Financial Results

Global Architectural Coatings Segment

$ in millions

1Q 2026

1Q 2025

YOY change

Net sales

$965

$857

+13%

Sales volumes

—%

Selling prices

+2%

Foreign currency translation

+12%

Divestitures

(1)%

Segment income

$155

$118

+31%

Segment income %

16.1%

13.8%

Segment EBITDA (a)

$184

$144

+28%

Segment EBITDA %

19.1%

16.8%

(a) Reconciliations of reported to adjusted figures are included below

Global Architectural Coatings segment net sales increased 13% compared to the first quarter 2025 driven by higher selling prices and a benefit from foreign currency translation partially offset by divestitures.

Organic sales for architectural coatings Latin America and Asia Pacific increased by a mid-single-digit percentage compared to the first quarter 2025 driven by growth in Latin America. Organic sales for architectural coatings EMEA declined by a low single-digit percentage year over year, with higher selling prices more than offset by lower sales volumes. In Mexico, retail sales were especially strong in the quarter. Mexican project-related sales continued to recover and the company expects further incremental improvement in the second quarter aided by higher business and governmental project investment.

Segment EBITDA increased 28% and segment EBITDA margin improved 230 basis points compared to the prior year with realization of higher selling prices and cost-control actions.

Performance Coatings Segment

$ in millions

1Q 2026

1Q 2025

YOY change

Net sales

$1,334

$1,265

+5%

Sales volumes

(2)%

Selling prices

+3%

Foreign currency translation

+3%

Acquisitions

+1%

Segment income

$288

$274

+5%

Segment income %

21.6%

21.7%

Segment EBITDA (a)

$326

$307

+6%

Segment EBITDA %

24.4%

24.3%

(a) Reconciliations of reported to adjusted figures are included below

Performance Coatings segment net sales increased 5% driven by higher selling prices, foreign currency translation benefit, and acquisitions, partially offset by lower sales volumes.

Organic sales improved 1% compared to the prior year driven by aerospace, protective and marine coatings, and traffic solutions, partially offset by expected year-over-year sales volume declines in automotive refinish coatings. Aerospace achieved exceptional quarterly sales with double-digit percentage organic sales growth while our order backlog remained at about $315 million. Organic sales in automotive refinish coatings decreased by a double-digit percentage as sales volumes were lower, reflecting a difficult comparison to the prior year when customer order patterns were heavily weighted to the first half of 2025. Protective and marine coatings organic sales increased by a high single-digit percentage compared to the prior year, achieving its 12th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific. Organic sales in traffic solutions increased a high single-digit percentage driven by strong demand across the U.S. and Canada.

Compared to the first quarter 2025, segment EBITDA increased by 6% and segment EBITDA margin improved slightly, driven by higher selling prices partially offset by lower automotive refinish coatings sales volumes and higher growth-related investment spending in aerospace and protective and marine coatings.

Industrial Coatings Segment

$ in millions

1Q 2026

1Q 2025

YOY change

Net sales

$1,631

$1,562

+4%

Sales volumes

+1%

Selling prices

(1)%

Foreign currency translation

+4%

Segment income

$193

$215

(10)%

Segment income %

11.8%

13.8%

Segment EBITDA (a)

$245

$263

(7)%

Segment EBITDA %

15.0%

16.8%

(a) Reconciliations of reported to adjusted figures are included below

Industrial Coatings segment net sales increased 4% compared to the first quarter 2025 driven by foreign currency translation. Organic sales were flat, including sales volumes growth of 1%, reflecting the benefits from share gains offset by the impact of lower selling prices from certain index-based customer contracts.

Automotive OEM coatings organic sales decreased a low single-digit percentage, with flat sales volumes, including share gains, resulting in the business outpacing the decline in global automotive industry production by about 300 basis points. Industrial coatings organic sales declined a low single-digit percentage driven by soft demand in the United States which offset growth in other regions. Packaging coatings organic sales increased by a double-digit percentage versus the prior year period and sales volumes are up over 20 percent on a two-year stacked basis, driven by share gains, as customers adopt our leading technologies.

Segment EBITDA decreased 7% and segment EBITDA margin declined 180 basis points compared to the first quarter 2025. This was driven by regional mix and lower selling prices due to index-based contracts.

Outlook

The company expects both second quarter organic sales and adjusted earnings per share in the range of flat to growth of a low single-digit percentage. We are maintaining our full-year earnings per share guidance range of $7.70 to $8.10. This reflects the momentum of share gains and self-help actions, along with an updated view of current global economic activity, foreign exchange rates as well as regional and business mix.

Additional information related to 2026 financial projections is posted within the slides and prepared commentary associated with the first quarter earnings documents on the Investors section of PPG.com.

The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

Additional Information

PPG will provide detailed commentary regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, April 28. The company will hold a conference call to review its first quarter 2026 financial performance on April 29, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/analyst/616458242?pwd=9U5JS1Tl. The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A web replay will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Tuesday, April 28, 2027.

Forward-Looking Statements

Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2025 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.

All information in this release speaks only as of April 28, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.

Regulation G Reconciliation

PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies. PPG is not able to provide a reconciliation of second quarter 2026 or full-year 2026 expected adjusted earnings per diluted share to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.

Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income

($ in millions, except per-share amounts and percentages)

First Quarter

2026

First Quarter

2025

$

EPS(a)

$

EPS (a)

Reported net income from continuing operations

$382

$1.70

$375

$1.64

Acquisition-related amortization expense

20

0.09

24

0.10

Business restructuring-related costs, net(b)

4

0.02

7

0.03

Portfolio optimization(c)

5

0.02

(6

)

(0.03

)

Insurance recovery(d)

—

—

(4

)

(0.02

)

Adjusted net income from continuing operations, excluding certain items

$411

$1.83

$396

$1.72

First Quarter

2026

First Quarter

2025

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Effective tax rate, continuing operations

$517

$132

25.5

%

$502

$122

24.3

%

Acquisition-related amortization expense

27

7

24.3

%

32

8

24.4

%

Business restructuring-related costs, net(b)

5

1

23.2

%

9

2

19.7

%

Portfolio optimization(c)

7

2

25.6

%

(6

)

—

N/A

Insurance recovery(d)

—

—

—

%

(6

)

(2

)

24.3

%

Adjusted effective tax rate, continuing operations, excluding certain items

$556

$142

25.5

%

$531

$130

24.5

%

(a)

Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(b)

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other 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, Selling, general and administrative and Other income, net on the condensed consolidated statement of income.

(c)

Portfolio optimization includes a $6 million charge related to the step-up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. 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.

(d)

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, which is included in Other income, net on the condensed consolidated statement of income.

First Quarter

2026

2025

Global Architectural Coatings

Net sales

$965

$857

Segment income

$155

$118

Segment depreciation and amortization

29

26

Segment EBITDA

$184

$144

Segment EBITDA %

19.1

%

16.8

%

Performance Coatings

Net sales

$1,334

$1,265

Segment income

$288

$274

Segment depreciation and amortization

38

33

Segment EBITDA

$326

$307

Segment EBITDA %

24.4

%

24.3

%

Industrial Coatings

Net sales

$1,631

$1,562

Segment income

$193

$215

Segment depreciation and amortization

52

48

Segment EBITDA

$245

$263

Segment EBITDA %

15.0

%

16.8

%

Total Segment EBITDA

Net sales

$3,930

$3,684

Segment income

$636

$607

Segment depreciation and amortization

119

107

Segment EBITDA

$755

$714

Segment EBITDA %

19.2

%

19.4

%

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited)

(All amounts in millions except per-share data)

Three Months Ended

March 31

2026

2025

Net sales

$3,930

$3,684

Cost of sales, exclusive of depreciation and amortization

2,275

2,142

Selling, general and administrative

885

838

Depreciation

105

89

Amortization

27

32

Research and development, net

113

102

Interest expense

61

56

Interest income

(37

)

(43

)

Other income, net

(16

)

(34

)

Income before income taxes

$517

$502

Income tax expense

132

122

Income from continuing operations

$385

$380

Loss from discontinued operations, net of tax

—

(2

)

Net income attributable to controlling and noncontrolling interests

$385

$378

Net income attributable to noncontrolling interests

(3

)

(5

)

Net income (attributable to PPG)

$382

$373

Amounts attributable to PPG:

Income from continuing operations, net of tax

$382

$375

Loss from discontinued operations, net of tax

—

(2

)

Net income (attributable to PPG)

$382

$373

Earnings per common share:

Income from continuing operations, net of tax

$1.71

$1.64

Loss from discontinued operations, net of tax

—

(0.01

)

Earnings per common share (attributable to PPG)

$1.71

$1.63

Earnings per common share – assuming dilution:

Income from continuing operations, net of tax

$1.70

$1.64

Loss from discontinued operations, net of tax

—

(0.01

)

Earnings per common share (attributable to PPG) - assuming dilution

$1.70

$1.63

Average shares outstanding

223.7

228.0

Average shares outstanding - assuming dilution

224.4

228.9

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited)

($ in millions)

Three Months Ended

March 31

2026

2025

Cash from/(used for) operating activities:

Cash from/(used for) operating activities - continuing operations

$33

($16

)

Cash used for operating activities - discontinued operations

$—

($2

)

Cash from/(used for) operating activities

$33

($18

)

Cash used for investing activities - continuing operations:

Capital expenditures

$196

$209

Cash used for financing activities - continuing operations:

Dividends paid on PPG common stock

$159

$154

Purchase of treasury stock

$96

$394

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited)

($ in millions)

March 31

December 31

March 31

2026

2025

2025

Current assets:

Cash and cash equivalents

$1,573

$2,163

$1,830

Short-term investments

51

56

63

Receivables, net

3,676

3,336

3,429

Inventories

2,162

1,996

2,115

Other current assets

508

408

464

Total current assets

$7,970

$7,959

$7,901

Current liabilities:

Short-term debt and current portion of long-term debt

$736

$706

$1,688

Accounts payable and accrued liabilities

4,001

3,957

3,885

Current portion of operating lease liabilities

138

138

134

Restructuring reserves

78

99

130

Total current liabilities

$4,953

$4,900

$5,837

Long-term debt

$6,407

$6,602

$5,574

PPG OPERATING METRICS (unaudited)

($ in millions)

March 31

December 31

March 31

2026

2025

2025

Operating Working Capital(a)

$3,138

$2,748

$2,843

As a percent of quarter sales, annualized

20.0

%

17.6

%

19.3

%

(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities.

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited)

($ in millions)

Three Months Ended

March 31

2026

2025

Net sales

Global Architectural Coatings

$965

$857

Performance Coatings

1,334

1,265

Industrial Coatings

1,631

1,562

Total

$3,930

$3,684

Segment income

Global Architectural Coatings

$155

$118

Performance Coatings

288

274

Industrial Coatings

193

215

Total

$636

$607

Items not allocated to segments

Corporate / non-segment unallocated, exclusive of depreciation and amortization

(74

)

(81

)

Corporate / non-segment unallocated depreciation and amortization

(9

)

(14

)

Interest expense, net of interest income

(24

)

(13

)

Business restructuring-related costs, net (a)

(5

)

(9

)

Portfolio optimization (b)

(7

)

6

Insurance recovery (c)

—

6

Income before income taxes

$517

$502

(a)

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

(b)

Portfolio optimization includes a $6 million charge related to the step-up of acquired inventory in the first quarter 2026. Portfolio optimization also includes a $7 million gain recognized on the sale of a business in the first quarter 2025. There was no tax expense associated with that gain. 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.

(c)

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, which is included in Other income, net on the condensed consolidated statement of income.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428148185/en/
Media Contact:

Greta Edgar Borza

Corporate Communications

+1-724-316-7552

edgar@ppg.com

Investor Contact:

Alex Lopez

Investor Relations

+1-412-434-3466

alejandrolopez@ppg.com

investor.ppg.com

Original: PPG reports first quarter 2026 financial results

PPG reports fourth quarter and full-year 2025 financial resultsJanuary 27, 2026 9:05 PM
Business Wire
Fourth quarter highlights:

Net sales of $3.9 billion

Organic sales growth of 3% year over year due to higher selling prices and sales volume growth in all regions

Reported earnings per diluted share (EPS) of $1.34 and adjusted EPS of $1.51

Share repurchases of approximately $100 million in the quarter

Full-year 2025 highlights:

Net sales of $15.9 billion

Organic sales increased 2% year over year due to higher sales volumes and selling prices

Reported EPS of $6.92 and adjusted EPS of $7.58

Segment margin of 17% and segment EBITDA margin of 19%

Operating cash flow of $1.9 billion, an increase of more than $500 million year over year

Share repurchases and dividends totaling $1.4 billion

PPG (NYSE:PPG) today reported financial results for the fourth quarter and full-year 2025.

Fourth Quarter Consolidated Results

$ in millions, except EPS

4Q 2025

4Q 2024

YOY change

Net sales

$3,914

$3,729

+5%

Net income (a)

$302

$2

Adjusted net income (a)(b)

$341

$375

(9)%

EPS (a)

$1.34

$0.01

Adjusted EPS (a)(b)

$1.51

$1.61

(6)%

(a) From continuing operations

(b) Reconciliations of reported to adjusted figures are included below

Chairman and CEO Comments

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

In the fourth quarter, we accelerated our growth momentum by delivering 3% growth in organic sales, our highest performance in any quarter this year, with contributions from sales volume and selling prices, and all regions delivering sales volume growth.

Results for our Global Architectural Coatings segment improved sequentially each quarter of 2025, with organic sales growth of 2% in the fourth quarter as project-related sales in Mexico recovered sequentially and retail sales were strong. Overall demand in Europe remained mixed.

Performance Coatings segment organic sales grew 3% in the quarter as strong results in aerospace coatings and protective and marine coatings were partially offset by lower automotive refinish coatings demand, reflecting customer order patterns that were weighted toward the first half of the year. Fourth quarter pricing improved 4% year over year as a result of strong demand for our technology-advantaged products and services.

Industrial Coatings segment organic sales grew 4% year over year due to share gains. This was evident as we outpaced industry production in automotive original equipment manufacturer (OEM) coatings, industrial coatings, and especially in packaging coatings where we delivered double-digit volume growth in the quarter.

For the full year, we consistently delivered higher sales volumes and selling prices resulting in 2% organic sales growth. This strong performance was led by double-digit percentage growth in aerospace coatings and protective and marine coatings, and high single-digit percentage growth in packaging coatings. Additionally, our Performance Coatings segment delivered record sales and earnings.

In 2025, the company's decisive actions to reduce global structural costs have yielded benefits of $75 million, and we expect incremental restructuring savings of $50 million in 2026 as we execute our European manufacturing consolidation and other structural cost reductions.

Fourth quarter adjusted EPS was $1.51, and full-year 2025 adjusted EPS was $7.58. During the quarter, we repurchased approximately $100 million of stock and $790 million for the full year, which represented approximately 3% of our outstanding shares. Combined with our dividend, we returned $1.4 billion to our shareholders in 2025. We generated $1.9 billion in operating cash flow during 2025 and ended the year with $2.2 billion of cash and short-term investments, which provides us with ongoing financial flexibility to create increased value for shareholders.

Looking ahead, I am encouraged by our organic growth momentum and what we will achieve in 2026. We anticipate that demand in Europe and in global industrial end-use markets will remain challenged. Despite the macroeconomic environment, we expect growth will be driven by aerospace coatings and architectural coatings in Mexico as well as share gains in our Industrial Coatings segment, resulting in organic sales growth in the flat to a positive low single-digit percentage range and earnings per share growth of a mid-single-digit percentage for the year. This reflects the strength of our focused organization and our sharpened portfolio of technology-advantaged products and services.

The meaningful progress we made this year would not be possible without the dedication of our employees. Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: We protect and beautify the world®.

Additional Financial Information

Net debt was $5.1 billion, approximately $630 million higher year over year.

The company has a $700 million debt maturity due in the first-quarter 2026.

Corporate expenses were $114 million in the fourth quarter, higher than the prior year primarily due to higher medical claim expenses and the true-up of incentive-based compensation due to higher organic growth and strong cash generation in the fourth quarter.

Net interest expense was $34 million in the fourth quarter.

In the fourth quarter, the reported effective tax rate was approximately 20% and the adjusted effective tax rate was approximately 24%.

Fourth Quarter 2025 Reportable Segment Financial Results

Global Architectural Coatings segment

$ in millions

4Q 2025

4Q 2024

YOY change

Net sales

$951

$881

+8%

Sales volumes

—%

Selling prices

+2%

Foreign currency translation

+9%

Divestitures and other

(3)%

Segment income

$137

$118

+16%

Segment income %

14.4%

13.4%

Segment EBITDA (a)

$164

$144

+14%

Segment EBITDA %

17.2%

16.3%

(a) Reconciliations of reported to adjusted figures are included below

Global Architectural Coatings segment net sales increased 8% compared to the fourth quarter 2024, driven by higher selling prices and favorable foreign currency translation. This was partially offset by the divestiture of our architectural coatings business in Russia. Sales volume growth in Mexico was offset by declines in Europe.

Organic sales for architectural coatings Latin America and Asia Pacific increased by a high single-digit percentage compared to the prior-year fourth quarter driven by growth in Latin America. Organic sales for architectural coatings EMEA declined by a low single-digit percentage year over year, with higher selling prices more than offset by lower sales volumes. In Mexico, retail sales were strong in the quarter, and project-related sales continued to recover sequentially versus previous quarters this year. The company expects incremental improvements in the Mexican business and governmental project investment in the first quarter 2026.

Segment EBITDA increased by 14% versus the prior year, and segment EBITDA margin increased 90 basis points year over year primarily due to higher selling prices, favorable foreign currency translation driven by the Mexican peso, and cost-control actions partially offset by inflation.

Performance Coatings segment

$ in millions

4Q 2025

4Q 2024

YOY change

Net sales

$1,322

$1,262

+5%

Sales volumes

(1)%

Selling prices

+4%

Foreign currency translation

+2%

Segment income

$246

$259

(5)%

Segment income %

18.6%

20.5%

Segment EBITDA (a)

$279

$292

(4)%

Segment EBITDA %

21.1%

23.1%

(a) Reconciliations of reported to adjusted figures are included below

Performance Coatings segment net sales increased 5% driven by higher selling prices and favorable foreign currency translation partially offset by lower sales volumes.

Organic sales improved 3% led by growth in aerospace coatings and protective and marine coatings. Aerospace coatings achieved record fourth quarter sales with double-digit percentage organic sales growth, while our order backlog increased to approximately $315 million despite higher year-over-year output. Organic sales in automotive refinish coatings decreased by a high single-digit percentage as sales volumes were lower, reflecting customer order patterns stemming from distributors weighting their purchases to the first half of 2025. Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior year and achieved its 11th consecutive quarter of sales volume growth, including above-market marine sales volume growth in Asia Pacific. Traffic solutions organic sales declined a low single-digit percentage year over year in a seasonally slow quarter.

Segment EBITDA decreased by 4% versus the prior year, and segment EBITDA margin declined 200 basis points year over year to 21.1%, driven by lower automotive refinish coatings sales volumes and higher growth-related investment spending in aerospace coatings and protective and marine coatings partially offset by higher selling prices and improved manufacturing productivity.

Industrial Coatings segment

$ in millions

4Q 2025

4Q 2024

YOY change

Net sales

$1,641

$1,586

+3%

Sales volumes

+5%

Selling prices

(1)%

Foreign currency translation

+2%

Divestitures and other

(3)%

Segment income

$200

$185

+8%

Segment income %

12.2%

11.7%

Segment EBITDA (a)

$247

$234

+6%

Segment EBITDA %

15.1%

14.8%

(a) Reconciliations of reported to adjusted figures are included below

Industrial Coatings segment net sales increased 3% compared to the fourth quarter 2024. Sales volumes improved 5%, reflecting the benefits from share gains. The impact of lower selling prices from certain index-based customer contracts was more than offset by favorable foreign currency translation. The divestiture of the silicas products business in late 2024 impacted the year-over-year sales comparison by 3%.

Automotive OEM coatings net sales increased 6% due to above-market sales volume growth as we outpaced the global automotive industry for the second consecutive quarter. Industrial coatings organic sales were flat as sales volume growth in Europe and the Asia-Pacific region offset lower indexed-based pricing. Packaging coatings organic sales increased by a double-digit percentage year over year, driven by technology-advantaged share gains.

Segment EBITDA increased 6%, and segment EBITDA margin improved by 30 basis points compared to the fourth quarter 2024 driven by higher sales volumes and improved productivity, partially offset by lower selling prices due to index-based contracts and the absence of earnings due to the divestiture of the silicas products business.

Full-Year 2025 Financial Results

$ in millions, except EPS

2025

2024

YOY change

Net sales

$15,875

$15,845

—%

Net income (a)

$1,571

$1,344

+17%

Net income margin (a)

9.9%

8.5%

Adjusted net income (a)(b)

$1,722

$1,848

(7)%

EPS (a)

$6.92

$5.72

+21%

Adjusted EPS (a)(b)

$7.58

$7.87

(4)%

Adjusted EBITDA margin (a)(b)

17.3%

18.1%

(a) From continuing operations

(b) Reconciliations of reported to adjusted figures are included below

Full-year 2025 net sales were $15.9 billion, flat versus the prior year, with a 1% increase in sales volumes, a 1% increase in selling prices, and favorable foreign currency translation of 1%, while divestitures reduced net sales by 3%.

In a challenging macro environment, the company delivered adjusted EPS of $7.58, supported by sales of our technology-advantaged products and strong brands, as we delivered record results in several of our businesses, including aerospace coatings, protective and marine coatings, and packaging coatings.

In 2025, the company paid approximately $630 million in dividends. The company repurchased $790 million of stock in 2025 and ended the year with $2 billion remaining on its current share repurchase authorization. Capital expenditures totaled about $780 million.

Outlook

The company anticipates that adjusted earnings per share for the full-year 2026 will be in the range of $7.70 to $8.10, which at the mid-point represents EPS growth of a mid-single-digit percentage. This range is based on current global economic activity and foreign exchange rates, ongoing soft global industrial production, and mixed demand across the various regions where we operate. The company anticipates organic sales to be in the range of flat to low single-digit percentage growth for the full year. EPS growth is expected to be weighted toward the second half of 2026, with the first half of the year flat to low single-digit percentage growth and increasing to high single-digit percentage growth in the second half of the year.

Additional information related to 2026 financial projections is posted within the slides and prepared commentary associated with the fourth quarter earnings documents on the Investors section of PPG.com.

The term organic sales as used in this press release is defined as net sales excluding the impact of currency, acquisitions and divestitures.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

Additional Information

PPG will provide detailed commentary regarding its financial performance, including presentation-slide content, on the PPG Investor Center at www.ppg.com at about 4:30 p.m. ET today, January 27. The company will hold a conference call to review its fourth quarter and full year 2025 financial performance on January 28, at 8:00 a.m. ET. Participants can pre-register for the conference by navigating to https://events.q4inc.com/attendee/249773096. The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A web replay will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Wednesday, January 27, 2027.

Forward-Looking Statements

Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, involve risks and uncertainties that may affect PPG’s operations, as discussed in the company’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Exchange Act, and the rules and regulations promulgated thereunder. Accordingly, many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include statements related to earnings guidance, global economic conditions, geopolitical issues, the amount of future share repurchases, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, margins, share gains, customer inventory levels, PPG inventory levels, the ability to maintain favorable supplier relationships and arrangements, the timing of realization of anticipated cost savings from restructuring and other initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of potential future and completed acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the imposition and magnitude of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in our 2024 Annual Report on Form 10-K are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, results of operations or liquidity.

All information in this release speaks only as of January 27, 2026, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.

Regulation G Reconciliation

PPG believes investors’ understanding of the company’s performance is enhanced by the disclosure of net income, earnings per diluted share from continuing operations, PPG’s effective tax rate adjusted for certain items, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA. PPG’s management considers this information useful in providing insight into the company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income, earnings per diluted share from continuing operations and the effective tax rate adjusted for these items, EBITDA, adjusted EBITDA, adjusted EBITDA margin, and segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate, EBITDA, adjusted EBITDA, adjusted EBITDA margin and segment EBITDA may not be comparable to similarly titled measures as reported by other companies. PPG is not able to provide a reconciliation of full-year 2026 expected adjusted earnings per diluted share to the most directly comparable GAAP financial measure without unreasonable effort because certain items that impact such measure are uncertain or cannot be reasonably predicted at this time.

Regulation G Reconciliation - Net Income, Earnings per Diluted Share, Effective Tax Rate and Segment Income

($ in millions, except per-share amounts)

Fourth Quarter

2025

Fourth Quarter

2024

$

EPS(a)

$

EPS(a)

Reported net income from continuing operations

$302

$1.34

$2

$0.01

Acquisition-related amortization expense

21

0.09

24

0.10

Business restructuring-related costs, net(b)

11

0.05

314

1.35

Portfolio optimization(c)

2

0.01

35

0.15

Income from legal settlement(d)

(9

)

(0.04

)

—

—

Resolution of tax matter(e)

14

0.06

—

—

Legacy environmental remediation charges(f)

—

—

3

0.01

Insurance recoveries(g)

—

—

(3

)

(0.01

)

Adjusted net income from continuing operations, excluding certain items

$341

$1.51

$375

$1.61

Full Year

2025

Full Year

2024

$

EPS(a)

$

EPS(a)

Reported net income from continuing operations

$1,571

$6.92

$1,344

$5.72

Acquisition-related amortization expense

94

0.41

100

0.42

Business restructuring-related costs, net(b)

40

0.18

324

1.39

Portfolio optimization(c)

(2

)

(0.01

)

65

0.28

Income from legal settlement(d)

(9

)

(0.04

)

—

—

Resolution of tax matter(e)

14

0.06

—

—

Legacy environmental remediation charges(f)

12

0.05

18

0.07

Insurance recoveries(g)

(4

)

(0.02

)

(3

)

(0.01

)

Impairment and other related charges(h)

6

0.03

—

—

Adjusted net income from continuing operations, excluding certain items

$1,722

$7.58

$1,848

$7.87

Fourth Quarter

2025

Fourth Quarter

2024

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Effective tax rate, continuing operations

$389

$78

20.1

%

$81

$70

86.4

%

Acquisition-related amortization expense

28

7

24.4

%

32

8

24.4

%

Business restructuring-related costs, net(b)

14

3

18.6

%

362

48

13.2

%

Portfolio optimization(c)

3

1

24.6

%

17

(18

)

(104.1

)%

Income from legal settlement(d)

(12

)

(3

)

24.3

%

—

—

—

%

Resolution of tax matter(e)

41

27

67.4

%

—

—

—

%

Legacy environmental remediation charges(f)

—

—

—

%

4

1

24.3

%

Insurance recoveries(g)

—

—

—

%

(4

)

(1

)

24.3

%

Adjusted effective tax rate, continuing operations, excluding certain items

$463

$113

24.4

%

$492

$108

22.0

%

Full Year

2025

Full Year

2024

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Income Before Income Taxes

Tax Expense

Effective Tax Rate

Effective tax rate, continuing operations

$2,045

$458

22.4

%

$1,852

$475

25.6

%

Acquisition-related amortization expense

125

31

24.4

%

132

32

24.2

%

Business restructuring-related costs, net(b)

54

14

25.9

%

377

53

14.1

%

Portfolio optimization(c)

1

3

N/A

59

(6

)

(10.2

)%

Income from legal settlement(d)

(12

)

(3

)

24.3

%

—

—

—

%

Resolution of tax matter(e)

41

27

67.4

%

—

—

—

%

Legacy environmental remediation charges(f)

16

4

24.3

%

24

6

25.0

%

Insurance recoveries(g)

(6

)

(2

)

24.3

%

(4

)

(1

)

25.0

%

Impairment and other related charges(h)

24

6

24.3

%

—

—

—

%

Adjusted effective tax rate, continuing operations, excluding certain items

$2,288

$538

23.5

%

$2,440

$559

22.9

%

Fourth Quarter

Full Year

2025

2024

2025

2024

Reported net income from continuing operations

$

302

$

2

$

1,571

$

1,344

Interest expense, net of interest income

34

15

88

64

Income tax expense

78

70

458

475

Depreciation

99

87

373

360

Amortization

28

32

125

132

Net income attributable to noncontrolling interests

9

9

16

33

EBITDA

$

550

$

215

$

2,631

$

2,408

Business restructuring-related costs, net (b)

14

362

54

377

Portfolio optimization(c)

3

17

1

59

Income from legal settlement(d)

(12

)

—

(12

)

—

Resolution of tax matter(e)

41

—

41

—

Legacy environmental remediation charges(f)

—

4

16

24

Insurance recoveries(g)

—

(4

)

(6

)

(4

)

Impairment and other related charges(h)

—

—

24

—

Adjusted EBITDA

$

596

$

594

$

2,749

$

2,864

Net sales

$

3,914

$

3,729

$

15,875

$

15,845

Net income margin

7.7%

0.1%

9.9%

8.5%

Adjusted EBITDA margin

15.2%

15.9%

17.3%

18.1%

(a)

Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(b)

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges/(income), net on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.

(c)

Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other charges/(income), net on the consolidated statement of income, including the gain of $129 million on the sale of the company's silicas products business in the fourth quarter 2024, and the losses on the sales of the company's traffic solutions business in Argentina in the second quarter 2024. Portfolio optimization 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 consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.

(d)

In the fourth quarter 2025, the Company settled a legal matter related to a legacy business that it no longer operates. The related gain is included in Other charges/(income), net on the consolidated statement of income.

(e)

In the fourth quarter 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. The portion of the charge related to non-income taxes is included in Other charges/(income), net on the consolidated statement of income. In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income.

(f)

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

(g)

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. In the fourth quarter 2024, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.

(h)

In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Impairment and other related charges, net on the consolidated statement of income.

Fourth Quarter

Full Year

2025

2024

2025

2024

Global Architectural Coatings

Net sales

$951

$881

$3,838

$3,921

Segment income

$137

$118

$599

$678

Segment depreciation and amortization

27

26

109

104

Segment EBITDA

$164

$144

$708

$782

Segment EBITDA %

17.2 %

16.3 %

18.4 %

19.9 %

Performance Coatings

Net sales

$1,322

$1,262

$5,513

$5,237

Segment income

$246

$259

$1,148

$1,142

Segment depreciation and amortization

33

33

134

132

Segment EBITDA

$279

$292

$1,282

$1,274

Segment EBITDA %

21.1 %

23.1 %

23.3 %

24.3 %

Industrial Coatings

Net sales

$1,641

$1,586

$6,524

$6,687

Segment income

$200

$185

$875

$893

Segment depreciation and amortization

47

49

192

206

Segment EBITDA

$247

$234

$1,067

$1,099

Segment EBITDA %

15.1 %

14.8 %

16.4 %

16.4 %

Total Segment EBITDA

Net sales

$3,914

$3,729

$15,875

$15,845

Segment income

$583

$562

$2,622

$2,713

Segment depreciation and amortization

107

108

435

442

Segment EBITDA

$690

$670

$3,057

$3,155

Segment EBITDA %

17.6 %

18.0 %

19.3 %

19.9 %

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME (unaudited)

(All amounts in millions except per-share data)

Three Months Ended December 31

Twelve Months Ended December 31

2025

2024

2025

2024

Net sales

$3,914

$3,729

$15,875

$15,845

Cost of sales, exclusive of depreciation and amortization

2,316

2,217

9,316

9,252

Selling, general and administrative

905

834

3,439

3,391

Depreciation

106

87

403

360

Amortization

28

32

125

132

Research and development, net

109

106

423

423

Interest expense

58

58

241

241

Interest income

(24)

(43)

(153)

(177)

Business restructuring, net

1

234

6

233

Impairment and other related charges, net

—

146

24

146

Other charges/(income), net(a)

26

(23)

6

(8)

Income before income taxes

$389

$81

$2,045

$1,852

Income tax expense(a)

78

70

458

475

Income from continuing operations

$311

$11

$1,587

$1,377

(Loss)/income from discontinued operations, net of tax

(2)

(282)

5

(228)

Net income/(loss) attributable to controlling and noncontrolling interests

$309

$(271)

$1,592

$1,149

Net income attributable to noncontrolling interests

(9)

(9)

(16)

(33)

Net income/(loss) (attributable to PPG)

$300

$(280)

$1,576

$1,116

Amounts attributable to PPG:

Income from continuing operations, net of tax

$302

$2

$1,571

$1,344

(Loss)/income from discontinued operations, net of tax

(2)

(282)

5

(228)

Net income/(loss) (attributable to PPG)

$300

$(280)

$1,576

$1,116

Earnings per common share (attributable to PPG)

Income from continuing operations, net of tax

$1.35

$0.01

$6.94

$5.75

(Loss)/income from discontinued operations, net of tax

(0.01)

(1.21)

0.02

(0.98)

Net income/(loss) (attributable to PPG)

$1.34

$(1.20)

$6.96

$4.77

Earnings per common share (attributable to PPG) - assuming dilution

Income from continuing operations, net of tax

$1.34

$0.01

$6.92

$5.72

(Loss)/income from discontinued operations, net of tax

(0.01)

(1.21)

0.02

(0.97)

Net income/(loss) (attributable to PPG)

$1.33

$(1.20)

$6.94

$4.75

Average shares outstanding

224.4

231.8

226.3

233.8

Average shares outstanding - assuming dilution

225.2

232.8

227.1

234.9

(a) Other charges/(income) includes a charge of $41 million and income tax expense includes a $27 million benefit related to anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS HIGHLIGHTS (unaudited)

($ in millions)

Twelve Months Ended December 31

2025

2024

Cash from operating activities:

Cash from operating activities - continuing operations

$1,936

$1,391

Cash from operating activities - discontinued operations

$5

$29

Cash from operating activities

$1,941

$1,420

Cash (used for)/from investing activities - continuing operations:

Capital expenditures

$(778)

$(721)

Business acquisitions, net of cash balances acquired

$(1)

$(31)

Proceeds from divestiture of businesses

$43

$325

Cash used for financing activities - continuing operations:

Dividends paid on PPG common stock

$628

$622

Purchase of treasury stock

$790

$752

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET HIGHLIGHTS (unaudited)

($ in millions)

December 31

December 31

2025

2024

Current assets:

Cash and cash equivalents

$2,163

$1,270

Short-term investments

56

88

Receivables, net

3,336

2,985

Inventories

1,996

1,846

Other current assets

408

368

Total current assets

$7,959

$6,557

Current liabilities:

Short-term debt and current portion of long-term debt

$706

$939

Accounts payable and accrued liabilities

3,957

3,731

Restructuring reserves

99

128

Current portion of operating lease liabilities

138

126

Other current liabilities

—

90

Total current liabilities

$4,900

$5,014

Long-term debt

$6,602

$4,876

PPG OPERATING METRICS (unaudited)

($ in millions)

December 31

December 31

2025

2024

Operating Working Capital (a)

$2,748

$2,331

As a percent of quarter sales, annualized

17.6 %

15.6 %

(a) Operating working capital includes: (1) receivables from customers, net of allowance for doubtful accounts, (2) FIFO inventories and (3) trade liabilities.

PPG INDUSTRIES, INC. AND SUBSIDIARIES

CONSOLIDATED BUSINESS SEGMENT INFORMATION (unaudited)

($ in millions)

Three Months Ended December 31

Twelve Months Ended December 31

2025

2024

2025

2024

Net sales

Global Architectural Coatings

$951

$881

$3,838

$3,921

Performance Coatings

1,322

1,262

5,513

5,237

Industrial Coatings

1,641

1,586

6,524

6,687

Total

$3,914

$3,729

$15,875

$15,845

Segment income

Global Architectural Coatings

$137

$118

$599

$678

Performance Coatings

246

259

1,148

1,142

Industrial Coatings

200

185

875

893

Total

$583

$562

$2,622

$2,713

Items not allocated to segments

Corporate

$(114)

$(87)

$(371)

$(341)

Interest expense, net of interest income

(34)

(15)

(88)

(64)

Business restructuring-related costs, net (a)

(14)

(362)

(54)

(377)

Portfolio optimization (b)

(3)

(17)

(1)

(59)

Income from legal settlement(c)

12

—

12

—

Resolution of tax matter (d)

(41)

—

(41)

—

Legacy environmental remediation charges (e)

—

(4)

(16)

(24)

Insurance recoveries (f)

—

4

6

4

Impairment and other related charges, net (g)

—

—

(24)

—

Income before income taxes

$389

$81

$2,045

$1,852

(a)

Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges/(income), net on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the company's exit of its Argentina operations in connection with a restructuring program, which are included in Other charges/(income), net in the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.

(b)

Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other charges/(income), net on the consolidated statement of income, including the gain of $129 million on the sale of the company's silicas products business in the fourth quarter 2024, and the losses on the sales of the company's traffic solutions business in Argentina in the second quarter 2024. Portfolio optimization 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 consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.

(c)

In the fourth quarter 2025, the Company settled a legal matter related to a legacy business that it no longer operates. The related gain is included in Other charges/(income), net on the consolidated statement of income.

(d)

In the fourth quarter 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. The portion of the charge related to non-income taxes is included in Other charges/(income), net on the consolidated statement of income. In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income.

(e)

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

(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. In the fourth quarter 2024, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.

(g)

In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Impairment and other related charges, net on the consolidated statement of income.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260127923329/en/
PPG Media Contact:

Greta Edgar Borza

Corporate Communications

+1-724-316-7552

edgar@ppg.com

PPG Investor Contact:

Alex Lopez

Investor Relations

+1-412-434-3466

alejandrolopez@ppg.com

investor.ppg.com

Original: PPG reports fourth quarter and full-year 2025 financial results