Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2025 Earnings Presentation
17 slides from Ppg Industries's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results April 29, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Fo
Slide 3: First Quarter 2025 Highlights
First Quarter 2025 Highlights Share Repurchases Positive sales volume and momentum for sustainable growth ~$400MM Strong organic sales growth in aerospace, refinish, protective and marine, and traffic solutions Adjusted EPS Industrial coatings volume growth in $1.72 all regions Net Sluggish demand i
Slide 4: PPG's Enterprise Growth Strategy
PPG’s Enterprise Growth Strategy Driving superior performance through high-margin business growth and strong cash flow Actions Taken to Deliver Customer Success and Shareholder Value Aggressive 2025 Execution ✓ Portfolio pruning – completed 2024 ✓ Re-segment portfolio to provide increased 0 accounta
Slide 5: First Quarter Net Sales
First Quarter Net Sales Organic sales up 1% driven by strength in Performance Coatings segment Net Sales ($ in millions) 0% 1% $3,849 Selling prices: Slightly positive with targeted -3% $3,684 increases offset by carry over of index-based -2% pricing in certain customer contracts Volumes: Growth in
Slide 6: Global Architectural Coatings
Global Architectural Coatings Results impacted by soft but moderating European demand and paused Mexico investment Net Sales 1Q’25 16.8% ($ in millions) Segment $966 1% EBITDA -310 bps Margin -3% $857 1Q’25 -7% -2% Organic Sales Results 1Q'24 Price Volume Currency Divestitures 1Q'25 Architectural Fl
Slide 7: Performance Coatings
Performance Coatings First quarter sales and earnings record with strong growth in all four businesses Net Sales 1Q’25 24.3% ($ in millions) Segment 6% EBITDA $1,265 Margin +20 bps 3% $1,184 -1% -1% 1Q’25 Organic Sales Results 1Q'24 Price Volume Currency Divestitures 1Q'25 Aerospace DD and Other Ref
Slide 8: Industrial Coatings
Industrial Coatings Industrial and packaging growth offset by soft automotive markets Net Sales 1Q’25 16.8% ($ in millions) $1,699 Segment EBITDA -1% -90 bps -1% Margin -2% $1,562 -4% 1Q’25 Organic Sales Results 1Q'24 Price Volume Currency Divestitures 1Q'25 Auto OEM MSD Industrial Flat Highlights •
Slide 9: Strong Balance Sheet and Cash
Strong Balance Sheet and Cash Increased cash return to shareholders 1Q’25 Activity Cash Deployed to Shareholders ($ in millions) $600 $1.9B $550MM $500 Cash Balance Dividends and Share $400 March 31, 2025 Repurchases $300 $200 $5.4B 1.9x $100 Net Debt Net Debt / Adjusted $0 March 31, 2025 EBITDA LTM
Slide 10: Tariff Impact and Mitigation
Tariff Impact and Mitigation PPG well positioned to mitigate impact of tariffs Impacts Offsets PPG Differentiators Mexico project delays Excess chemical supply PPG impact <1% of company net sales Diverse portfolio Lower oil price Regionally balanced Leading positions in all verticals 2% Lower auto i
Slide 11: Second Quarter Financial Projections
Second Quarter Financial Projections Segment organic sales (YOY %): Flat to +LSD Global Architectural Coatings Flat to +LSD Performance Coatings +LSD to +MSD Industrial Coatings -MSD to -LSD Segment margin (YOY) -80 to -100 bps Raw material and enacted tariff costs (YOY) LSD inflation Corporate expe
Slide 12: PPG: A Compelling Long-Term Investment
PPG: A Compelling Long-Term Investment Diversified Global Portfolio Leading positions in all coatings verticals Strong Brands, Technologies and Services Organic and inorganic growth opportunities Asset-Light, Highly Flexible Cost Structure Accelerating margin expansion Strong Balance Sheet & Cash de
Slide 13: Appendix
Appendix
Slide 14: Segment Margin Reconciliation
Segment Margin Reconciliation $ in millions, except margin % 2023 2024 2025 Global Architectural Coatings Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Segment Margin, As Reported 16.4% 17.4% 18.9% 13.9% 16.7% 17.2% 19.7% 18.2% 13.4% 17.3% 13.8% Net Sales $975 $1,066 $1,037 $943 $4,021 $966 $1,070 $1,004 $881 $3
Slide 15: Adjusted EBITDA Reconciliations
Adjusted EBITDA Reconciliations $ in millions, except margin % 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Reported net income from continuing operations $ 405 $ 493 $444 $2 $1,344 $ 375 Interest expense, net of interest income 13 17 19 15 64 13 Income tax expense 128 149 128 70 475 122 Depreciation 95 89 89 87 360
Slide 16: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG First Quarter 2025 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 375 $ 1.64 Acquisition-related amortization expense 24 0.10 Business restructuring-related costs, net(b) 7 0.03 Portfolio optimization costs(c) (6
Slide 17: Thank You For Your Interest In PPG
Thank You For Your Contact Information: Interest In PPG INVESTORS: Alex Lopez phone: +1.412.434.3466 email: alejandrolopez@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 17