Back to top

Image: Bigstock

PPG Industries' Q2 Earnings Meet, Revenues Surpass Estimates

Read MoreHide Full Article

Key Takeaways

  • PPG posted Q2 adjusted EPS of $2.22, matching estimates but down from $2.35 a year earlier.
  • Performance Coatings revenue rose 7% to $1.51B on stronger pricing and volume gains.
  • PPG reaffirmed 2025 EPS guidance of $7.75 to $8.05, supported by share gains and internal initiatives.

PPG Industries, Inc. (PPG - Free Report) reported a second-quarter 2025 profit of $450 million or $1.98 per share, down from $493 million or $2.09 per share in the year-ago quarter.

In the second quarter, excluding one-time items, adjusted earnings per share decreased to $2.22 from $2.35 in the year-ago quarter, meeting the Zacks Consensus Estimate.

The company’s revenues were $4,195 million in the quarter, down 1% year over year. The top line beat the Zacks Consensus Estimate of $4,131.6 million.

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. Quote

PPG’s Segment Review

In the second quarter, the Global Architectural Coatings segment saw a 5% year-over-year decline in sales to $1,018 million. It topped our estimate of $1,002.6 million. The downside is caused by the divestiture of the company’s architectural coatings business in Russia and lower sales volumes. This was partly offset by higher selling prices.

The Performance Coatings segment saw a 7% year-over-year rise in sales to $1,512 million. It beat our estimate of $1,439.3 million. The segment achieved record quarterly revenues and earnings, owing to a 6% increase in organic sales, as well as increases in selling prices and volume.

For the Industrial Coatings segment, sales declined 5% year over year to $1,665 million. It topped our estimate of $1,632.2 million. The segment's net sales fell owing primarily to the divestiture of the silicas products business in late 2024.

PPG’s Financials

The company had $1,561 million in cash and cash equivalents as of the end of the quarter. Net debt was $5.7 billion, up $479 million from the prior-year quarter.

PPG’s Outlook

The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05. This outlook is backed by continued share gains and internal improvement initiatives, while factoring in current global economic conditions, currency exchange rates and varied demand trends across its regions and business segments.

PPG’s Price Performance

Shares of PPG have lost 11.6% over the past year compared with a 3.3% decline of its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

PPG’s Zacks Rank & Key Picks

PPG currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. (RGLD - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Mining Corporation (B - Free Report) .

Royal Gold is slated to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avino Silver is scheduled to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.

Barrick Mining is slated to report second-quarter results on Aug. 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.

 

Published in