PPG Industries Inc. (NYSE: PPG) said performance coatings net sales grew 9% in Q1 2025 -- but more from other industries than automotive. Still, that sub-category was considered solid given the slower collision industry market of late.
Chairman and CEO Tim Knavish said in an earnings release, “Several businesses [grew] above market rates, including automotive refinish coatings.”
Automotive refinish products were up “by a low single-digit percentage with share gains more than offsetting lower industry collision claims,” the release said in its recap account of the segment’s results.
Quarterly results through 2024, culminating in its annual results in January, show automotive refinish products organic sales ranging from a single-digit percentage decline, to flat, to single-digit increases.
Pittsburgh-based PPG makes industrial and performance coatings, including automotive refinish products, software and a smartphone app for body shops and collision centers. The performance coatings segment includes those results, along with coatings for traffic, aerospace and marine products.
Tim Knavish.
The performance coatings segment accounts for some 22% of PPG’s overall income, and had reported flat results the last six quarters.
“Double-digit percentage growth” in aerospace and marine drove the 9% quarterly organic sales increase, Knavish said.
PPG called-out aerospace work especially for its high-tech products “and an order backlog of $300 million.”
The paint maker doesn’t break specific sub-category sales and income results out from the segment report.
Companywide Results and Guidance Amid Uncertainty
To recent, wider financial dynamics, Knavish said PPG will cut costs -- $75 million in 2025 savings expected -- manage product flow and build on organic growth efforts.
PPG companywide had $3.7 billion in Q1 net sales. It saw organic sales rise 1% but net sales fall 4%, which it attributed to divestitures and currency differences.
Diluted earnings per share were $1.64 and adjusted diluted EPS, $1.72. Knavish said, “We are maintaining our full-year earnings per share guidance of $7.75 to $8.05.”
PPG’s net debt rose $340 million in Q1, or about 6%. At quarter’s end it had cash and reserves of $1.9 billion.
“Our balance sheet remains strong,” the earnings release said.
