PPG Q2 Net Sales Reach $4.2 Billion Net Profit Down 9 Percent as Organic Growth Offsets Sector Headwinds

PPG announced Q2 2025 results showing net sales of $4.2 billion, a 1% decrease year-on-year due to business divestitures, while net profit dropped 9% to $450 million. Adjusted net income was $504 million, with earnings per share at $1.98 (adjusted: $2.22). Despite the decline, organic sales grew 2%, powered by gains in both volume and pricing. Segment profit margin reached 17.7%, and EBITDA margin stood at 20.3%. The company repurchased $150 million in shares this quarter, totaling $540 million year-to-date.

Chairman and CEO Tim Knavish highlighted strong momentum, with high-performance coatings posting record sales and profits, driven by a 6% surge in organic sales. The industrial coatings unit stabilized volumes and began to see early benefits from increased market share. While European architectural coatings demand remained soft, especially in the East, growth in Northern Europe and the UK helped offset this. The Americas and Canada delivered mid-single-digit organic sales growth for a second straight quarter, with Latin America also contributing solidly.

Looking ahead, PPG expects accelerating volume growth to drive stronger year-on-year earnings in the second half. Industrial coatings are projected to see low-single-digit volume gains, with automotive OEM and packaging coatings set to outpace the market. High-performance coatings should remain robust, though automotive refinish sales may soften due to shifting customer orders and lower industry repair claims.

In Q2, the Global Architectural Coatings division saw net sales drop 5% to $1.018 billion, and profit slide 24% to $160 million, mainly due to divestitures and softer demand. High-Performance Coatings achieved a 7% sales rise to $1.512 billion and a 9% profit increase to $356 million, with strong aerospace and marine demand. Industrial Coatings sales declined 5% to $1.665 billion, and profit fell 12% to $227 million, as divestitures and price adjustments weighed on performance.

For H1, PPG reported net sales of $7.89 billion and net profit of $823 million, both declining year-on-year. The company reiterated its full-year adjusted EPS guidance of $7.75–8.05, reflecting confidence in organic growth, cost initiatives, and a resilient business mix.