PPG Industries Reaffirms Full-Year Guidance as Organic Sales Accelerate
The coatings manufacturer reported net sales of $4.5 billion for the second quarter, a 7% increase from the prior year.
PPG Industries (PPG) reported second-quarter net sales of $4.5 billion. The coatings manufacturer saw a 7% increase in sales compared to the $4.2 billion reported in the second quarter of 2024, supported by 2% growth in both volume and pricing.
Organic sales growth accelerated to 4% year-over-year. This represents an increase from the 1% organic growth recorded in the first quarter of 2025.
Performance across business segments was mixed. The Global Architectural Coatings segment expanded its EBITDA margin by 100 basis points to 19.4%. Conversely, the Performance Coatings segment saw its EBITDA margin compress 300 basis points to 22.7%, attributed to lower sales volumes in automotive refinish coatings.
In the Industrial Coatings segment, organic sales grew 5%. Packaging coatings achieved double-digit percentage growth, with volumes increasing over 20% on a two-year stacked basis. However, the segment's EBITDA margin declined 70 basis points to 15.9% due to inflation in the cost of goods sold.
PPG covered approximately 90% of cost of goods sold inflation during the quarter. The company now expects to cover 100% of that inflation by the fourth quarter of 2025, moving the timeline up by one quarter from its original commitment.
Full-year 2025 adjusted earnings per share guidance remains at a range of $7.70 to $8.10.
Cash from operating activities for the first six months of 2025 reached $592 million, an increase of $223 million over the same period in 2024. Net debt decreased by $415 million from the prior year to $5.3 billion at the end of the quarter. The company also recorded a new legal settlement charge of $8 million reported, or $11 million pre-tax, which was not present in the second quarter of 2024.