PPG Industries Reports $4.195 Billion in Q2 2025 Net Sales, Down 0.9% Year-Over-Year

PPG Industries, Inc. reported a net sales figure of $4.195 billion for the second quarter of 2025, reflecting a slight decrease of 0.9% compared to $4.235 billion in the same period of 2024. For the first half of 2025, net sales totaled $7.879 billion, down 2.5% from $8.084 billion in the prior year. The decline in revenue was primarily attributed to the divestiture of the architectural coatings business in the U.S. and Canada, as well as the global silicas business, which offset increases in both sales volumes and selling prices. Income before income taxes for the quarter was $598 million, a decrease of $53 million from the previous year, largely due to inflationary pressures on raw materials and wages, alongside the impacts of divestitures.

In terms of profitability, net income attributable to PPG for the second quarter was $450 million, down from $528 million in the same quarter of 2024. Earnings per diluted share from continuing operations were reported at $1.98, compared to $2.09 in the prior year. The effective tax rate for the quarter was 23.4%, slightly higher than the 22.9% reported in the same period last year. The company noted that adjusted earnings per diluted share decreased by 5.5% year-over-year, reflecting the adverse effects of inflation and divestitures, although these were partially mitigated by improved manufacturing productivity and cost control measures.

Operationally, PPG's total assets increased to $22.099 billion as of June 30, 2025, up from $19.433 billion at the end of 2024. The company reported a significant rise in cash and cash equivalents, which reached $1.561 billion, compared to $1.270 billion at the end of the previous year. The increase in cash was attributed to favorable changes in working capital and proceeds from long-term debt issuance. PPG's employee headcount remained stable, with no significant changes reported in staffing levels.

Strategically, PPG has undergone significant organizational changes, including the completion of the sale of its architectural coatings business in the U.S. and Canada in December 2024, which has been classified as discontinued operations. The company also finalized the sale of its remaining Russian business in early 2025. These divestitures are part of PPG's broader strategy to streamline operations and focus on core business segments. The company anticipates continued recovery in project-related spending in Mexico, although consumer sentiment in Europe is expected to remain soft.

Looking ahead, PPG expects organic sales for the Global Architectural Coatings segment to remain flat or decrease slightly in the third quarter of 2025 compared to the same period in 2024. The Performance Coatings segment is projected to see continued strength, particularly in aerospace and protective coatings, while the Industrial Coatings segment is expected to experience stable demand. Overall, PPG remains focused on managing costs and enhancing productivity to navigate the challenges posed by inflation and market conditions.