A month has gone by since the last earnings report for PPG Industries (PPG). Shares have added about 0.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 most recent 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 Beats Earnings and Revenue Estimates in Q3
PPG Industries reported a third-quarter 2025 profit of $444 million or $1.96 per share compared with $444 million or $1.90 per share a year ago.
In the third quarter, excluding one-time items, adjusted earnings per share were $2.13, up from $2.03 in the year-ago quarter, surpassing the Zacks Consensus Estimate of $2.09.
The company’s revenues were around $4.08 billion in the quarter, up 1.2% year over year. The top line beat the Zacks Consensus Estimate of $4.04 billion.
Segment Review
In the third quarter, the Global Architectural Coatings segment saw a 1% year-over-year rise in sales to $1.01 billion. It topped our estimate of $906.4 million. The upside is driven by higher selling prices and a benefit from foreign currency translation. This was partly offset by the divestiture of the architectural coatings business in Russia and reduced sales volumes.
The Performance Coatings segment saw a 3% year-over-year rise in sales to $1.41 billion. It missed our estimate of $1.43 billion. Net sales in the Performance Coatings segment rose primarily due to higher selling prices and favorable foreign currency translation, partly offset by lower sales volumes. Organic sales grew 2% year over year, driven by strength in aerospace coatings, protective and marine coatings and traffic solutions.
For the Industrial Coatings segment, sales remained flat at around $1.65 billion from the year-ago quarter. It missed our estimate of $1.66 billion. The segment's net sales were adversely impacted by the divestiture of the silicas products business in late 2024. Higher volumes were offset by lower pricing.
Financials
The company had roughly $1.83 billion in cash and cash equivalents as of the end of the quarter. Net debt was $5.4 billion, up $228 million from the prior-year quarter.
Outlook
PPG expects adjusted earnings per share of $7.60 to $7.70 for full-year 2025, highlighting ongoing share gains, benefits from cost and productivity initiatives, and an updated outlook on global economic conditions and foreign exchange rates. The guidance also factors in shifts in regional and business mix, with stronger performance anticipated in aerospace and protective coatings, partially offset by softer demand in refinish and industrial coatings.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.01% due to these changes.
VGM Scores
At this time, PPG Industries has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 indicates a downward shift. It's no surprise PPG Industries has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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PPG Industries, Inc. (PPG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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