Why Is PPG Industries (PPG) Up 5.5% Since Last Earnings Report?

It has been about a month since the last earnings report for PPG Industries (PPG). Shares have added about 5.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PPG Industries due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for PPG Industries, Inc. before we dive into how investors and analysts have reacted as of late.

PPG Industries' Q2 Earnings Meet, Revenues Surpass Estimates

PPG Industries reported a second-quarter 2025 profit of $450 million or $1.98 per share, down from $493 million or $2.09 per share in the year-ago quarter.

In the second quarter, excluding one-time items, adjusted earnings per share decreased to $2.22 from $2.35 in the year-ago quarter, meeting the Zacks Consensus Estimate.

The company’s revenues were roughly $4.19 billion in the quarter, down 1% year over year. The top line beat the Zacks Consensus Estimate of $4.13 billion.

Segment Review

In the second quarter, the Global Architectural Coatings segment saw a 5% year-over-year decline in sales to $1.02 billion. It topped our estimate of $1 billion. The downside is caused by the divestiture of the company’s architectural coatings business in Russia and lower sales volumes. This was partly offset by higher selling prices.

The Performance Coatings segment saw a 7% year-over-year rise in sales to $1.51 billion. It beat our estimate of $1.44 billion. The segment achieved record quarterly revenues and earnings, owing to a 6% increase in organic sales, as well as increases in selling prices and volume.

For the Industrial Coatings segment, sales declined 5% year over year to $1.67 billion. It topped our estimate of $1.63 billion. The segment's net sales fell owing primarily to the divestiture of the silicas products business in late 2024.

Financials

The company had $1.56 billion in cash and cash equivalents as of the end of the quarter. Net debt was $5.7 billion, up $479 million from the prior-year quarter.

Outlook

The company maintained its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05. This outlook is backed by continued share gains and internal improvement initiatives, while factoring in current global economic conditions, currency exchange rates and varied demand trends across its regions and business segments.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, PPG Industries has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, PPG Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

PPG Industries belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, RPM International (RPM), has gained 6% over the past month. More than a month has passed since the company reported results for the quarter ended May 2025.

RPM International reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.72 for the same period compares with $1.56 a year ago.

For the current quarter, RPM International is expected to post earnings of $1.88 per share, indicating a change of +2.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for RPM International. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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