PPG (PPG) Q2 2025 Earnings Call Transcript

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Mon, January 26, 2026 astatine 11:00 AM CST 42 min read

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

• Chairman, President, and Chief Executive Officer — Timothy M. Knavish

• Senior Vice President and Chief Financial Officer — Vincent J. Morales

• Director, Investor Relations — Alex Lopez

Timothy M. Knavish: Thank you, Alex, and welcome, everyone. I'll commencement by providing a fewer highlights of our 2nd 4th 2025 fiscal performance, and past I'll determination to our outlook. Our results show the spot of PPG's planetary concern portfolio successful an progressively dynamic macro environment. We delivered nett income of $4.2 cardinal with an summation successful integrated income of 2%. Our momentum successful integrated income maturation was led by our Aerospace Coatings, Protective & Marine Coatings and Packaging Coatings businesses. In addition, income volumes successful our Industrial Coatings conception outpaced the industry, reflecting the archetypal benefits from stock gains successful our packaging, concern and automotive OEM businesses.

We expect the benefits from these stock gains to accelerate successful the 2nd fractional of 2025. Regionally, we delivered integrated maturation successful some the United States and Latin America with tepid request successful Europe and immoderate softening successful Asia. We delivered a quarterly conception EBITDA borderline of 20.3% and our adjusted net per diluted stock was $2.22. Our equilibrium expanse remains strong, and we are committed to utilizing this equilibrium expanse for shareholder worth creation. During the quarter, the institution repurchased astir $150 cardinal of stock, bringing our year-to-date full to $540 million.

Additionally, successful July, we raised our quarterly dividend per stock by 4%, demonstrating our assurance successful the resiliency of our concern and the spot and aboriginal maturation of our company. Looking astatine each of our segments successful the Global Architectural Coatings segment, affirmative selling prices successful some regions were offset by little volumes and the interaction of a divestiture. In Architectural Coatings EMEA, integrated income maturation successful the Nordic portion and successful the United Kingdom were offset by little request successful Eastern Europe. While volumes remained little successful the quarter, we saw grounds of betterment successful definite countries, albeit inconsistent.

In Architectural Coatings, Latin America and Asia Pacific, we delivered integrated income maturation successful Mexico, aided by coagulated retail sales, portion results were impacted by the intermission successful project-related spending that we discussed successful April. It is important to enactment that portion project-related spending was down year-over-year, we did admit betterment versus the archetypal 4th of 2025, and we expect continued betterment of project-related spending to advancement during the 2nd fractional of 2025. Segment EBITDA borderline decreased driven by the concern divestiture, little income volumes and unfavorable currency translation, partially offset by beardown outgo power actions.