PPG (PPG) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 11:05 AM CST 50 min read

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Wednesday, October 29, 2025 astatine 8:00 a.m. ET

• Chief Executive Officer — Timothy M. Knavish

• Chief Financial Officer — Vincent J. Morales

• Vice President, Investor Relations — Alejandro Lopez

Timothy Knavish: Thank you, Alex, and bully morning, everybody. I'll commencement by providing a fewer highlights connected Q3 2025 and past determination to our outlook. I'm precise arrogant of the PPG team's show for the quarter. In Q3 successful a precise challenging world, the squad delivered integrated growth, which included some measurement maturation and terms maturation and delivered a grounds precocious Q3 EPS. Our results for the 4th bespeak the accelerating momentum successful PPG's integrated income maturation with an summation of 2%, including our 3rd consecutive 4th of income measurement maturation contempt a challenging macro environment. These results bespeak the benefits of PPG's planetary breadth and our beardown commercialized execution, which is driving stock gains successful galore of our businesses.

In addition, income volumes successful our Industrial Coatings segments erstwhile again outpaced manufacture demand, reflecting benefits from stock gains successful some packaging coatings and automotive OEM coatings. Several of our businesses successful the Performance Coatings conception delivered outstanding results, including double-digit integrated income maturation successful some aerospace and protective and marine coatings. Although this was offset by little income volumes successful automotive refinish arsenic our volumes were heavy weighted to the archetypal fractional of 2025 owed to distributor bid patterns. From a determination perspective, the macro situation was choppy. Despite this, PPG integrated income grew a debased single-digit percent successful the U.S. and Canada, representing the 3rd consecutive 4th of year-over-year increases successful this region.

Organic income besides accrued successful Latin America and Asia Pacific and were level successful Europe. Solid income improvement, combined with our assertive outgo absorption and accordant currency deployment drove an adjusted net per stock summation of 5% year-over-year, establishing a 3rd 4th grounds of $2.13. Looking astatine each of our segments. In the Global Architectural Coatings segment, affirmative selling prices successful some regions and measurement maturation successful Latin America were offset by little volumes successful Europe and the interaction of divestitures. In Architectural Coatings EMEA, integrated income maturation successful Eastern Europe was much than offset by little request successful Western Europe.

While volumes remained little successful the quarter, this concern has present delivered terms maturation consistently each 4th implicit the past 9 years, demonstrating the worth the customers spot connected our starring brands and products that we provide. In Architectural Coatings Latin America and Asia Pacific, we delivered mid-single-digit integrated income maturation successful Mexico, aided by coagulated retail sales. Project-related spending remained little year-over-year, but improved sequentially versus the 2nd quarter. We expect income maturation to fortify successful Mexico successful the 4th quarter, including stronger year-over-year user income and humble betterment successful project-related work. Segment EBITDA borderline accrued arsenic beardown pricing and operational excellence, including our outgo power actions outpaced the interaction of little income volumes and concern divestitures.