PPG Industries' Earnings Lag Estimates in Q4, Revenues Up Y/Y

PPG Industries, Inc. PPG reported a fourth-quarter 2025 profit (from continuing operations) of $302 million or $1.34 per share compared with $2 million or a penny per share a year ago.

In the fourth quarter, excluding one-time items, adjusted earnings per share were $1.51, down from $1.61 in the year-ago quarter, missing the Zacks Consensus Estimate of $1.57.

The company’s revenues were $3,914 million in the quarter, up 5% year over year. The top line beat the Zacks Consensus Estimate of $3,744.6 million.

PPG Industries, Inc. Price, Consensus and EPS Surprise

PPG Industries, Inc. price-consensus-eps-surprise-chart | PPG Industries, Inc. Quote

PPG’s Segment Review

In the fourth quarter, the Global Architectural Coatings segment saw an 8% year-over-year rise in sales to $951 million. It topped our estimate of $882.8 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.

The Performance Coatings segment saw a 5% year-over-year increase in sales to $1,322 million. It surpassed our estimate of $1,221 million. Net sales in the Performance Coatings segment rose primarily due to higher selling prices and favorable currency impact, partly offset by reduced sales volumes. Organic sales grew 3% year over year, driven by growth in aerospace coatings, protective and marine coatings.

For the Industrial Coatings segment, sales grew at 3% million from the year-ago quarter to $1,641 million. It beat our estimate of $1,609.8 million. The segment's net sales were favored by foreign currency translation gains and improved volumes.

PPG’s Financials

The company had $2,163 million in cash and cash equivalents as of the end of the quarter, up 70% year over year. Long-term debt was $6.6 billion, up 35% from the prior-year quarter.

PPG’s Outlook

PPG expects adjusted earnings per share of $7.70 to $8.10 for full-year 2026, highlighting ongoing soft global industrial production, mixed demand across the various regions of operation, and prevailing global economic conditions and foreign exchange rates. Organic sales are forecast to be in the range of flat to low single-digit percentage growth for the full year and EPS to be weighted toward the second half of 2026.

PPG’s Price Performance

Shares of PPG have lost 11.7% over the past year against the 0.4% rise in its industry.

PPG’s Zacks Rank & Key Picks

PPG currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Albemarle Corporation ALB, Coeur Mining, Inc. CDE and Avino Silver & Gold Mines Ltd. ASM.

Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for earnings is pegged at a loss of 53 cents. ALB beat the Zacks Consensus Estimate in three of the last four quarters while missing it in one, with the average earnings surprise being 35.28%. ALB carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Coeur is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for CDE’s fourth-quarter earnings is pegged at 33 cents. CDE beat the Zacks Consensus Estimate in three of the last two quarters and missed once, with the average earnings surprise being 106.61%. CDE currently carries a Zacks Rank #1. 

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 150%. 

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

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