# PPG INDUSTRIES INC (PPG)

Informational only - not investment advice.

CIK: 0000079879
SIC: 2851 Paints, Varnishes, Lacquers, Enamels & Allied Prods
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2851 Paints, Varnishes, Lacquers, Enamels & Allied Prods](/industry/2851/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=79879
Filing source: https://www.sec.gov/Archives/edgar/data/79879/000007987926000046/ppg-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0000079879-26-000046 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000079879.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 15,875,000,000 USD | 2025 | verified |
| Net income | 1,576,000,000 USD | 2025 | verified |
| Assets | 22,098,000,000 USD | 2025 | verified |
| Free cash flow | 1,163,000,000 USD | 2025 | computed |
| Net margin | 9.93% | 2025 | computed |
| Revenue YoY | +0.19% | 2025 | computed |
| ROE | 19.85% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | PPG | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 9.9% | 1.2% | 69 | 219 |
| Revenue growth | 0.2% | 8.0% | 35 | 251 |
| FCF margin | 7.3% | -1.7% | 64 | 251 |
| ROE | 19.8% | -23.2% | 86 | 314 |
| ROA | 7.1% | -12.1% | 82 | 340 |
| Liabilities / equity | 1.76 | 0.61 | 78 | 319 |
| Current ratio | 1.62 | 3.93 | 16 | 341 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 28 Chemicals And Allied Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 15875000000 | USD | 2025 | 2026-02-19 |
| Net income | 1576000000 | USD | 2025 | 2026-02-19 |
| Assets | 22098000000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000079879.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 14,270,000,000 | 14,748,000,000 | 15,374,000,000 | 15,146,000,000 | 13,834,000,000 | 16,802,000,000 | 15,614,000,000 | 16,242,000,000 | 15,845,000,000 | 15,875,000,000 |
| Net income | 873,000,000 | 1,594,000,000 | 1,341,000,000 | 1,243,000,000 | 1,059,000,000 | 1,439,000,000 | 1,026,000,000 | 1,270,000,000 | 1,116,000,000 | 1,576,000,000 |
| Diluted EPS | 3.27 | 6.18 | 5.47 | 5.22 | 4.45 | 6.01 | 4.32 | 5.35 | 4.75 | 6.94 |
| Operating cash flow | 1,351,000,000 | 1,568,000,000 | 1,467,000,000 | 2,080,000,000 | 2,130,000,000 | 1,562,000,000 | 963,000,000 | 2,411,000,000 | 1,420,000,000 | 1,941,000,000 |
| Capital expenditures | 380,000,000 | 360,000,000 | 411,000,000 | 413,000,000 | 304,000,000 | 371,000,000 | 486,000,000 | 516,000,000 | 721,000,000 | 778,000,000 |
| Dividends paid | 414,000,000 | 434,000,000 | 453,000,000 | 468,000,000 | 496,000,000 | 536,000,000 | 570,000,000 | 598,000,000 | 622,000,000 | 628,000,000 |
| Share buybacks | 1,050,000,000 | 813,000,000 | 1,721,000,000 | 325,000,000 | 0.00 | 210,000,000 | 190,000,000 | 86,000,000 | 752,000,000 | 790,000,000 |
| Assets | 15,771,000,000 | 16,538,000,000 | 16,015,000,000 | 17,708,000,000 | 19,556,000,000 | 21,351,000,000 | 20,744,000,000 | 21,647,000,000 | 19,433,000,000 | 22,098,000,000 |
| Liabilities | 10,856,000,000 | 10,866,000,000 | 11,283,000,000 | 12,305,000,000 | 13,741,000,000 | 14,940,000,000 | 14,035,000,000 | 13,624,000,000 | 12,471,000,000 | 14,001,000,000 |
| Stockholders' equity | 4,828,000,000 | 5,557,000,000 | 4,630,000,000 | 5,284,000,000 | 5,689,000,000 | 6,286,000,000 | 6,592,000,000 | 7,832,000,000 | 6,785,000,000 | 7,941,000,000 |
| Cash and cash equivalents | 1,820,000,000 | 1,436,000,000 | 902,000,000 | 1,216,000,000 | 1,826,000,000 | 1,005,000,000 | 1,099,000,000 | 1,493,000,000 | 1,270,000,000 | 2,163,000,000 |
| Free cash flow | 971,000,000 | 1,208,000,000 | 1,056,000,000 | 1,667,000,000 | 1,826,000,000 | 1,191,000,000 | 477,000,000 | 1,895,000,000 | 699,000,000 | 1,163,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.12% | 10.81% | 8.72% | 8.21% | 7.66% | 8.56% | 6.57% | 7.82% | 7.04% | 9.93% |
| Return on equity | 18.08% | 28.68% | 28.96% | 23.52% | 18.61% | 22.89% | 15.56% | 16.22% | 16.45% | 19.85% |
| Return on assets | 5.54% | 9.64% | 8.37% | 7.02% | 5.42% | 6.74% | 4.95% | 5.87% | 5.74% | 7.13% |
| Liabilities / equity | 2.25 | 1.96 | 2.44 | 2.33 | 2.42 | 2.38 | 2.13 | 1.74 | 1.84 | 1.76 |
| Current ratio | 1.55 | 1.66 | 1.36 | 1.41 | 1.41 | 1.42 | 1.52 | 1.47 | 1.31 | 1.62 |

## As-reported value updates

7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/PPG/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000079879.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-03-31 |  |  | 0.08 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 1.85 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 1.39 | reported discrete quarter |
| 2023-Q1 | 2023-06-30 | 4,872,000,000 | 490,000,000 | 2.06 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 4,644,000,000 | 426,000,000 | 1.79 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 4,350,000,000 | 90,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 4,311,000,000 | 400,000,000 | 1.69 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 4,794,000,000 | 528,000,000 | 2.24 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 4,575,000,000 | 468,000,000 | 2.00 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 2,165,000,000 | -280,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 3,684,000,000 | 373,000,000 | 1.63 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 4,195,000,000 | 450,000,000 | 1.98 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 4,082,000,000 | 453,000,000 | 2.00 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 3,914,000,000 | 300,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 3,930,000,000 | 382,000,000 | 1.70 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from PPG's latest 10-K: [/company/PPG/business/](/company/PPG/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from PPG's latest 10-K: [/company/PPG/risk-factors/](/company/PPG/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/79879/000007987926000252/ppg-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the notes thereto included in the condensed consolidated financial statements in Part I, Item 1, “Financial Statements,” of this report and in conjunction with the 2025 Form 10-K.

Highlights

Net sales were approximately $4.5 billion for the three months ended June 30, 2026, an increase of 7% compared to the prior year primarily due to higher selling prices, higher sales volumes and the favorable impact of foreign currency translation.

Income before income taxes was $569 million for the three months ended June 30, 2026, a decrease of $29 million compared to the prior year. Earnings growth in the aerospace and architectural coatings Latin America businesses was offset by lower sales volumes in automotive refinish coatings.

26

Table of Contents

Results of Operations

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30","","Percent Change","","Six Months Ended June 30","","Percent Change"],["($ in millions, except percentages)","2026","","2025","","2026 vs. 2025","","2026","","2025","","2026 vs. 2025"],["Net sales","$4,495","","","$4,195","","","7.2","%","","$8,425","","","$7,879","","","6.9","%"],["Cost of sales, exclusive of depreciation and amortization","$2,687","","","$2,432","","","10.5","%","","$4,962","","","$4,574","","","8.5","%"],["Selling, general and administrative","$931","","","$872","","","6.8","%","","$1,816","","","$1,710","","","6.2","%"],["Depreciation","$108","","","$102","","","5.9","%","","$213","","","$191","","","11.5","%"],["Amortization","$26","","","$33","","","(21.2)","%","","$53","","","$65","","","(18.5)","%"],["Research and development, net","$107","","","$106","","","0.9","%","","$220","","","$208","","","5.8","%"],["Interest expense","$71","","","$62","","","14.5","%","","$132","","","$118","","","11.9","%"],["Interest income","($42)","","","($44)","","","(4.5)","%","","($79)","","","($87)","","","(9.2)","%"],["Other charges, net","$38","","","$34","","","11.8","%","","$22","","","$\u2014","","","N/A"]]
[[/GREPCENT_TABLE]]

Net Sales by Region

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30","","Percent Change","","Six Months Ended June 30","","Percent Change"],["($ in millions, except percentages)","2026","","2025","","2026 vs. 2025","","2026","","2025","","2026 vs. 2025"],["United States and Canada","$1,519","","","$1,495","","","1.6","%","","$2,781","","","$2,779","","","0.1","%"],["EMEA","1,547","","","1,434","","","7.9","%","","2,970","","","2,706","","","9.8","%"],["Asia Pacific","820","","","727","","","12.8","%","","1,518","","","1,374","","","10.5","%"],["Latin America","609","","","539","","","13.0","%","","1,156","","","1,020","","","13.3","%"],["Total","$4,495","","","$4,195","","","7.2","%","","$8,425","","","$7,879","","","6.9","%"]]
[[/GREPCENT_TABLE]]

Three Months Ended June 30, 2026

Net sales increased $300 million due to the following:

● Higher sales volumes (+2%)

● Higher selling prices (+2%)

● Favorable foreign currency translation (+2%)

● Acquisitions (+1%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

Cost of sales, exclusive of depreciation and amortization, increased $255 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Selling, general and administrative expense increased $59 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Six Months Ended June 30, 2026

Net sales increased $546 million due to the following:

● Favorable foreign currency translation (+4%)

● Higher selling prices (+2%)

● Higher sales volumes (+1%)

For specific business results, see the Performance of Reportable Business Segments section within Item 2 of this Form 10-Q.

27

Table of Contents

Cost of sales, exclusive of depreciation and amortization, increased $388 million primarily due to higher sales volumes, raw material cost inflation and the unfavorable impact of foreign currency translation.

Selling, general and administrative expense increased $106 million primarily due to overhead cost inflation and the unfavorable impact of foreign currency translation, partially offset by cost-control measures.

Depreciation expense increased $22 million primarily due to higher capital spending in 2025.

Other charges, net increased by $22 million primarily due to higher environmental remediation charges and the settlement of a legal matter.

Effective Tax Rate and Earnings Per Diluted Share

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30","","Percent Change","","Six Months Ended June 30","","Percent Change"],["($ in millions, except percentages and amounts per share)","2026","","2025","","2026 vs. 2025","","2026","","2025","","2026 vs. 2025"],["Income tax expense","$127","","","$140","","","(9.3)","%","","$259","","","$","262","","","(1.1)","%"],["Effective tax rate","22.3","%","","23.4","%","","(1.1)","%","","23.8","%","","23.8","%","","\u2014","%"],["Adjusted effective tax rate, continuing operations*","22.5","%","","23.5","%","","(1.0)","%","","23.9","%","","23.9","%","","\u2014","%"],["Earnings per diluted share, continuing operations","$1.96","","","$","1.98","","","(1.0)","%","","$","3.66","","","$","3.61","","","1.4","%"],["Adjusted earnings per diluted share*","$2.23","","","$2.22","","","0.5","%","","$4.06","","","$3.93","","","3.3","%"],["*See Regulation G Reconciliation below"]]
[[/GREPCENT_TABLE]]

For the three months ended June 30, 2026, earnings per diluted share, continuing operations declined slightly while adjusted earnings per diluted share increased slightly, as the impact of lower earnings was offset by lower adjusted weighted average common shares outstanding due to share repurchases.

Earnings per diluted share, continuing operations and Adjusted earnings per diluted share for the six months ended June 30, 2026 increased year over year due to higher organic sales, the favorable impact of foreign currency translation, cost-control actions and lower adjusted weighted average common shares outstanding due to share repurchases, partially offset by the impact of cost inflation.

Regulation G Reconciliations - Results from Operations

PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items along with segment income before interest, taxes, depreciation and amortization ("Segment EBITDA"). PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items along with segment EBITDA are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share, the adjusted effective tax rate and segment EBITDA may not be comparable to similarly titled measures as reported by other companies.

Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below.

28

Table of Contents

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30, 2026"],["($ in millions, except percentages and per share amounts)","Income Before Income Taxes","","Income Tax Expense","","Effective Tax Rate","","Net Income (attributable to PPG)","","Earnings Per Diluted Share(a)"],["As reported, continuing operations","$569","","","$127","","","22.3","%","","$439","","","$1.96"],["Adjusted for:"],["Acquisition-related amortization expense","26","","","6","","","24.5","%","","20","","","0.09"],["Business restructuring-related costs, net(b)","13","","","3","","","22.0","%","","10","","","0.04"],["Portfolio optimization(c)","5","","","1","","","24.2","%","","4","","","0.02"],["Legacy environmental remediation charges(d)","25","","","6","","","24.3","%","","19","","","0.08"],["Legal settlement(e)","11","","","3","","","24.3","%","","8","","","0.04"],["Adjusted, continuing operations, excluding certain items","$649","","","$146","","","22.5","%","","$500","","","$2.23"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30, 2025"],["($ in millions, except percentages and per share amounts)","Income Before Income Taxes","","Income Tax Expense","","Effective Tax Rate","","Net Income (attributable to PPG)","","Earnings Per Diluted Share(a)"],["As reported, continuing operations","$598","","","$140","","","23.4","%","","$450","","","$1.98"],["Adjusted for:"],["Acquisition-related amortization expense","33","","","8","","","24.4","%","","25","","","0.11"],["Business restructuring-related costs, net(b)","20","","","5","","","23.3","%","","15","","","0.07"],["Portfolio optimization(c)","2","","","\u2014","","","24.3","%","","2","","","0.01"],["Legacy environmental remediation charges(d)","16","","","4","","","24.3","%","","12","","","0.05"],["Adjusted, continuing operations, excluding certain items","$669","","","$157","","","23.5","%","","$504","","","$2.22"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","Six Months Ended June 30, 2026"],["($ in millions, except percentages and per share amounts)","Income Before Income Taxes","","Income Tax Expense","","Effective Tax Rate","","Net Income (attributable to PPG)","","Earnings Per Diluted Share(a)"],["As reported, continuing operations","$1,086","","","$259","","","23.8","%","","$821","","","$3.66"],["Adjusted for:"],["Acquisition-related amortization expense","53","","","13","","","24.4","%","","40","","","0.18"],["Business restructuring-related costs, net(b)","18","","","4","","","22.6","%","","14","","","0.06"],["Portfolio optimization(c)","12","","","3","","","24.9","%","","9","","","0.04"],["Legacy environmental remediation charges(d)","25","","","6","","","24.3","%","","19","","","0.08"],["Legal settlement(e)","11","","","3","","","24.3","%","","8","","","0.04"],["Adjusted, continuing operations, excluding certain items","$1,205","","","$288","","","23.9","%","","$911","","","$4.06"]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/79879/000007987926000046/ppg-20251231.htm
Complete FY 2025 MD&A: /company/PPG/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion includes a comparison of our results of operations and liquidity and capital resources for the years ended December 31, 2025 and 2024. A discussion of changes in our results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023 has been omitted from this Form 10-K, but may be found in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K, filed with the Securities and Exchange Commission on February 20, 2025.

Highlights

Net sales of approximately $15.9 billion in 2025 were flat compared to 2024, with higher selling prices, sales volume growth and favorable foreign currency translation offset by the impact of divestitures.

Income before income taxes was $2,045 million in 2025, an increase of $193 million compared to the prior year. This increase was primarily due to lower business restructuring charges and impairment and other related charges, higher selling prices, improved manufacturing productivity and restructuring savings, partially offset by the impact of unfavorable sales mix and overhead and other cost inflation.

Performance Overview

Net Sales by Region

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["United States and Canada","$5,372","","$5,352","","0.4%"],["Europe, Middle East and Africa (EMEA)","5,368","","5,386","","(0.3)%"],["Asia Pacific","2,937","","2,912","","0.9%"],["Latin America","2,198","","2,195","","0.1%"],["Total","$15,875","","$15,845","","0.2%"]]
[[/GREPCENT_TABLE]]

Net sales increased $30 million due to the following:

● Higher selling prices (+1%)

● Higher sales volumes (+1%)

● Favorable foreign currency translation (+1%)

2025 PPG ANNUAL REPORT AND FORM 10-K 19

Partially offset by:

● Divestitures (-3%)

For specific business results, see the Performance of Reportable Business Segments section within Item 7 of this Form 10-K.

Cost of sales, exclusive of depreciation and amortization

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["Cost of sales, exclusive of depreciation and amortization","$9,316","","$9,252","","0.7%"],["Cost of sales as a % of net sales","58.7","%","58.4","%","0.3%"]]
[[/GREPCENT_TABLE]]

Cost of sales, exclusive of depreciation and amortization, increased $64 million due to the following:

● Wage and other cost inflation

● Higher sales volumes

● Unfavorable foreign currency translation

Partially offset by:

● Increased manufacturing productivity

● Divestitures

Selling, general and administrative expenses

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["Selling, general and administrative expenses","$3,439","","$3,391","","1.4%"],["Selling, general and administrative expenses as a % of net sales","21.7","%","21.4","%","0.3%"]]
[[/GREPCENT_TABLE]]

Selling, general and administrative expenses increased $48 million primarily due to:

● Wage and other cost inflation

● Unfavorable foreign currency translation

Partially offset by:

● Restructuring savings

● Divestitures

Depreciation

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["Depreciation","$403","","$360","","11.9%"],["Depreciation as a % of net sales","2.5","%","2.3","%","0.2%"]]
[[/GREPCENT_TABLE]]

Depreciation increased $43 million primarily due to:

● Accelerated depreciation expense

● Unfavorable foreign currency translation

Partially offset by:

● Divestitures

Other charges and other income

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["Interest expense","$241","","$241","","\u2014%"],["Interest income","($153)","","($177)","","(13.6)%"],["Business restructuring, net","$6","","$233","","(97.4)%"],["Impairment and other related charges, net","$24","","$146","","(83.6)%"],["Other charges/(income), net","$6","","($8)","","N/A"]]
[[/GREPCENT_TABLE]]

2025 PPG ANNUAL REPORT AND FORM 10-K 20

Business restructuring, net

In October 2024, the Company approved a comprehensive cost reduction program focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the divestitures of PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. In connection with approval of this restructuring program, the Company recorded a pretax restructuring charge of $239 million, representing employee severance and other cash costs. Refer to Note 8, “Business Restructuring” in Item 8 of this Form 10-K for additional information.

Impairment and other related charges, net

In 2025, the Company recognized pretax net impairment and other related charges of $24 million related to a consolidated joint venture in the Performance Coatings segment. The charges primarily represented the impairment of definite-lived identified intangible assets.

In 2024, the Company received written approval from Russian regulatory authorities of a definitive agreement to sell the Company’s remaining Russian business. As a result, the Company classified the business as held for sale as of December 31, 2024 and recognized an impairment charge of $146 million, primarily related to accumulated foreign currency translation losses.

Refer to Note 7 ”Impairment and Other Related Charges, Net” in Item 8 of this Form 10-K for additional information.

Other charges/(income), net

Other charges/(income), net was higher in 2025 compared to 2024 primarily due to a net charge related to the anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes and the absence of a gain recognized in 2024 on the divestiture of the silicas products business. Refer to Note 18, “Other Charges/(Income), Net” in Item 8 of this Form 10-K for additional information.

Effective tax rate and earnings per diluted share, continuing operations

[[GREPCENT_TABLE]]
[["","","% Change"],["($ in millions, except percentages)","2025","2024","2025 vs. 2024"],["Income tax expense","$458","","$475","","(3.6)%"],["Effective tax rate","22.4","%","25.6","%","(3.2)%"],["Adjusted effective tax rate, continuing operations*","23.5","%","22.9","%","0.6%"],["Earnings per diluted share, continuing operations","$6.92","","$5.72","","21.0%"],["Adjusted earnings per diluted share, continuing operations*","$7.58","","$7.87","","(3.7)%"],["*See the Regulation G reconciliations - results of operations"]]
[[/GREPCENT_TABLE]]

The effective tax rate on continuing operations for the year ended December 31, 2025 was 22.4%, a decrease of 3.2% compared to the prior year, primarily due to the absence of the 2024 impairment charge, which had no associated income tax benefit, and a reduction in the provision for uncertain tax positions. The adjusted effective tax rate was 23.5%, which was slightly higher than the prior year adjusted effective tax rate.

Earnings per diluted share from continuing operations for the year ended December 31, 2025 increased year over year primarily due to lower business restructuring and impairment and other related charges, higher selling prices, improved manufacturing productivity, restructuring savings and the lower effective tax rate, partially offset by the unfavorable impact of sales mix and overhead and other cost inflation.

Adjusted earnings per diluted share from continuing operations for the year ended December 31, 2025 decreased year over year due to the unfavorable impact of sales mix and overhead and other cost inflation, partially offset by higher selling prices, increased manufacturing productivity and restructuring savings.

Refer to the Regulation G Reconciliations - Results from Operations for additional information.

Review and Outlook

During 2025, PPG demonstrated resilience in a challenging macroeconomic environment by growing both selling prices and sales volumes and generating $1.9 billion in operating cash flow. Net sales were $15.9 billion, similar to the prior year. Results were supported by the breadth and diversity of the business portfolio, as the Company benefited from higher prices and sales volumes in several businesses and favorable foreign currency translation, which was offset by the impact of divestitures completed in 2024. Net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased 2% during the year with continued strong growth in our aerospace coatings business and share gains in both the packaging coatings business and the protective and marine business, which were partially offset by declines in the automotive refinish coatings, industrial coatings and architectural coatings EMEA businesses. Earnings per diluted

2025 PPG ANNUAL REPORT AND FORM 10-K 21

share from continuing operations was $6.92, compared to $5.72 in the prior year. Adjusted earnings per diluted share was $7.58, a decrease of 4% compared to $7.87 in 2024. Total segment income decreased by 3%. Aggregate segment margins were 60 basis points lower than the prior year, driven by a decline in industry project-related spending on architectural coatings in Mexico in the first half of 2025 and a decline in automotive refinish coatings sales volumes in the second half of the year.

Demand for PPG products was mixed by end-use market and geographic region during 2025. Demand for aerospace coatings and protective and marine coatings was strong with double-digit percentage organic sales growth year over year. Automotive refinish coatings demand was impacted by lower collision claims in the U.S. which drove volume declines in the second half of 2025. Global automotive OEM manufacturers’ production increased by about 4% versus 2024 with higher demand in the Asia-Pacific and Latin America regions more than offsetting lower demand in the United States and Europe. PPG outperformed the market in the third and fourth quarters of 2025 driven by share gains.

On a regional basis, sales volume increases in the United States and Canada, Asia-Pacific and Latin America regions were partially offset by decreases in Europe. In the U.S. and Canada, demand was strong for aerospace coatings, protective and marine coatings, packaging coatings and traffic solutions but declined for most other businesses. In Asia, demand was strong with sales volume growth in protective and marine coatings, automotive OEM coatings, and packaging coatings. In Latin America, demand was negatively impacted in the first half of the year as project-related spending was paused due to tariff uncertainties. However, demand for architectural retail sales was strong within the region, and the Company delivered growth in automotive OEM products and packaging coatings. Demand was soft in Europe with the largest impact on the automotive OEM coatings business and the architectural coatings business.

In 2026, we anticipate demand in Europe and in global industrial end-use markets to remain challenged. Despite the macroeconomic environment, we expect growth will be driven by aerospace coatings and architectural coatings in Mexico as well as share gains in our Industrial Coatings segment, resulting in organic sales growth in the range of flat to a positive low single-digit percentage. This reflects the strength of our focused organization and our sharpened portfolio of technology-advantaged products and services.

Significant other factors

During the year, PPG made significant progress to reduce costs and improve the profitability of the overall business portfolio through the global restructuring programs. In October 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million onc

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/PPG/mda/fy2025/
All MD&A years: /company/PPG/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/PPG/mda/fy2024/): filed 2025-02-20; accession 0000079879-25-000034 (https://www.sec.gov/Archives/edgar/data/79879/000007987925000034/ppg-20241231.htm)
- [FY 2023 MD&A](/company/PPG/mda/fy2023/): filed 2024-02-15; accession 0000079879-24-000040 (https://www.sec.gov/Archives/edgar/data/79879/000007987924000040/ppg-20231231.htm)
- [FY 2022 MD&A](/company/PPG/mda/fy2022/): filed 2023-02-16; accession 0000079879-23-000007 (https://www.sec.gov/Archives/edgar/data/79879/000007987923000007/ppg-20221231.htm)
- [FY 2021 MD&A](/company/PPG/mda/fy2021/): filed 2022-02-17; accession 0000079879-22-000009 (https://www.sec.gov/Archives/edgar/data/79879/000007987922000009/ppg-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2851 Paints, Varnishes, Lacquers, Enamels & Allied Prods) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/PPG.md · JSON record: /company/PPG.json · verified financials: /company/PPG/financials.json / /company/PPG/financials.csv · machine TOC for the whole site: /llms.txt