PPG Industries Inc (NYSE:PPG) Reports Mixed Q3 2025 Results with Earnings Beat and Sales Miss

PPG Industries Inc (NYSE:PPG) reported third-quarter financial results that presented a mixed performance relative to analyst expectations, with earnings surpassing estimates while sales narrowly missed forecasts. The company's stock experienced modest downward pressure in after-hours trading following the announcement.

Earnings and Revenue Performance Versus Estimates

The coatings manufacturer reported adjusted earnings per share of $2.13 for the third quarter of 2025, exceeding analyst expectations of $2.11. This represents a 5% increase compared to the $2.03 reported in the same quarter last year and establishes a new third-quarter record for the company.

Net sales reached $4.082 billion, slightly below the $4.087 billion analysts had projected. This represents a 1% year-over-year increase from the $4.032 billion reported in the third quarter of 2024. The sales performance was driven by several factors:

• Organic sales growth of 2% year-over-year
• Positive foreign currency translation impact of 2%
• Higher selling prices contributing 1% to growth
• Business divestitures reducing sales by 3%

Market Reaction and Price Action

Following the earnings release, PPG shares declined approximately 0.8% in after-market trading. This reaction suggests investor concern about the sales miss and the company's revised full-year guidance, despite the earnings beat. The stock had shown modest gains in the weeks leading up to the earnings announcement, with increases of 3.2% over the past week and 6.7% over the past two weeks.

Segment Performance Breakdown

The company's three main segments showed varied results during the quarter:

• Performance Coatings saw net sales increase 3% to $1.414 billion, driven by strong performance in aerospace and protective marine coatings, though segment income declined 11% due to lower automotive refinish volumes.
• Industrial Coatings reported flat sales of $1.656 billion, but segment income surged 17% to $233 million on improved productivity and higher volumes.
• Global Architectural Coatings posted a 1% sales increase to $1.012 billion, with segment income rising 1% to $184 million.

Updated Full-Year Outlook and Analyst Comparisons

PPG provided revised full-year adjusted earnings per share guidance of $7.60 to $7.70, citing softened global demand and expected customer inventory management in automotive refinish coatings. This guidance falls below the analyst consensus estimate of $7.90 for full-year 2025.

The company's fourth-quarter outlook anticipates organic growth despite the challenging macroeconomic environment, with particular strength expected in aerospace, protective and marine coatings, and automotive OEM coatings.

Management Commentary and Strategic Initiatives

Tim Knavish, PPG chairman and chief executive officer, highlighted the company's third consecutive quarter of sales volume growth in what he described as a "challenging macro environment." He attributed the results to PPG's global breadth, strong commercial execution, and aggressive cost management.

Knavish expressed confidence in delivering above-market growth, citing PPG's "technology-advantaged business portfolio" and commercial discipline. The company continues to execute its operational excellence strategy, expecting to deliver approximately $75 million in restructuring savings for the year.

Capital Allocation and Balance Sheet

PPG maintained its commitment to shareholder returns, deploying $1.2 billion toward share repurchases and dividends year-to-date. In the third quarter alone, the company repurchased approximately $150 million in shares and paid $160 million in dividends.

The company ended the quarter with cash and short-term investments totaling $1.9 billion, while net debt stood at $5.4 billion, an increase of $228 million from the third quarter of 2024.

For more detailed earnings information and future estimates, visit PPG's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.