PPG (PPG) Q1 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 11:34 AM CST 48 min read

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Wednesday, Apr. 30, 2025 astatine 8 a.m. ET

• Chairman and Chief Executive Officer — Tim Knavish

• Senior Vice President and Chief Financial Officer — Vincent Morales

• Vice President, Investor Relations — Alex Lopez

• Operator

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Tim Knavish: Thank you, Alex, and invited everyone. I'd similar to commencement by providing a fewer highlights connected our archetypal 4th 2025 fiscal performance, and past I'll determination to our outlook. The PPG squad delivered income of $3.7 billion. This is simply a alteration of 4% compared with the archetypal 4th of 2024, chiefly owed to unfavorable overseas currency translation and the interaction from concern divestitures, including the Silicas business. We are opening to recognize the benefits of our endeavor maturation strategy arsenic integrated income grew year-over-year with increases successful some income volumes and selling prices. Regionally, we delivered year-over-year integrated income maturation successful Asia, driven by beardown show successful China, India, and Vietnam.

In the U.S., aft 6 quarters of declines oregon level performance, we achieved 4% integrated income growth, led by stock gains successful respective of our businesses and betterment successful concern production. Organic income successful Latin America were up somewhat with maturation tempered by the caller geopolitical environment. European integrated income were down 1%, which was important betterment versus anterior quarters arsenic request for our products were stabilizing successful the region. Our apical enactment results reenforce our affirmative integrated maturation momentum and contributed to improved manufacturing productivity. As we noted successful our net materials released past night, our archetypal 4th conception EBITDA borderline was 19.4%, and adjusted net per diluted stock was $1.72.

Also, we repurchased astir $400 cardinal of our banal and ended the 4th with a beardown equilibrium sheet. Before we spell done the quarterly details, fto maine archetypal speech astir however our results and momentum bespeak the consistent, disciplined execution of the endeavor maturation strategy that we launched successful 2023. We are opening to payment from the actions we person taken to optimize and absorption our portfolio. The improvement of PPG's integrated maturation musculus and strategical investments successful innovation are driving affirmative momentum.

The institution has aggressively -- managing the bottommost line, including decisive self-help, combined with our disciplined superior allocation, and beardown equilibrium sheet, captious successful today's environment, PPG is successful a large and differentiated presumption to prevail successful the existent economical conditions. Looking astatine our conception performance. In the planetary architectural coating segment, archetypal 4th nett income were importantly impacted by unfavorable overseas currency translation, which decreased income by 7% arsenic some the Mexican peso and Europe weakened year-over-year compared to the U.S. dollar. In architectural coatings EMEA, integrated income were level versus anterior twelvemonth with improved selling prices offset by somewhat little income volumes. Sales accrued successful Central Europe and successful the Nordic region, portion they declined successful Western Europe.