PPG Industries' Earnings and Revenues Beat Estimates in Q1

PPG Industries, Inc. PPG reported first-quarter 2025 profit of $396 million or $1.64 per share, down from $443 million or $1.71 per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share (EPS) fell to $1.72 from $1.87 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.62.

The company’s revenues were $3,684 million in the reported quarter, down around 4% year over year. The downside can be attributed to unfavorable currency translations and business divestments. The top line beat the Zacks Consensus Estimate of $3,655.9 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

PPG’s Segment Review

In the first quarter, the Global Architectural Coatings segment saw an 11% year-over-year decline in sales to $857 million. It missed our estimate of $967.9 million. Net sales were lower than in the first quarter of 2024 due to adverse foreign currency translation and lower sales volumes. These decreases were partially mitigated by increased selling prices.

In the first quarter, the Performance Coatings segment saw a 7% year-over-year rise in sales to $1,265 million. It beat our estimate of $1,199.3 million. Sales volumes were up 6% year over year, with aerospace coatings, protection and marine coatings, and traffic solutions driving the expansion.

For the Industrial Coatings segment, sales declined 8% year over year to $1,562 million. It topped our estimate of $1,556.8 million. Industrial Coatings segment net sales fell from the first quarter of 2024, owing to the impact of foreign currency translation and the divestment of the silicas products business in 2024.

PPG’s Financials

At the end of the first quarter, the company had cash and cash equivalents of $1,830 million, up around 56.7% year over year. Long-term debt was $5,574 million, down around 6.2% from the prior-year quarter’s figure.

The company repurchased shares worth roughly $400 million in the reported quarter.

PPG’s Outlook

The company reaffirmed its full-year 2025 adjusted earnings per share guidance of $7.75 to $8.05. This range is backed by the momentum of share gains and self-help efforts, as well as factors in current global economic activity, foreign exchange rates and mixed demand across PPG's many regions and businesses.

PPG’s Price Performance

PPG’s shares have lost 19.5% in a year compared with a 3.3% decline of the 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 Hawkins, Inc. HWKN, SSR Mining Inc. SSRM and Intrepid Potash, Inc. IPI. While HWKN carries a Zacks Rank #1 (Strong Buy), SSRM and IPI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is expected to report fiscal fourth-quarter results on May 21. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average.  

Intrepid Potash is slated to release first-quarter results on May 5. The consensus estimate for IPI’s first-quarter loss is 12 cents, stable over the past 60 days.

 

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

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