PPG

Materials

PPG Industries

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$12.2B	$15.8B	$12.2B	$13.4B	$14.9B	$15.2B	$15.1B	$15.4B	$15.3B	$14.3B	$14.7B	$15.4B	$15.1B	$13.8B	$16.8B	$17.7B	$18.2B	$15.8B	$15.9B	+0.2%
Gross Profit	—	—	—	—	—	—	—	—	—	—	$6.5B	$6.4B	$6.5B	$6.1B	$6.5B	$6.6B	$7.5B	$6.6B	$6.6B	-0.5%
Gross Margin	—	—	—	—	—	—	—	—	—	—	44.3%	41.5%	42.9%	43.8%	38.8%	37.1%	41.1%	41.6%	41.3%	-0.3pp
Operating Income	—	—	$1.2B	$1.7B	$2.0B	$2.3B	$2.2B	$2.2B	$2.4B	$2.4B	$2.3B	$2.1B	$2.3B	$2.1B	$2.2B	$2.0B	$2.7B	—	—	—
Operating Margin	—	—	9.7%	12.8%	13.6%	14.9%	14.5%	14.6%	15.8%	16.9%	15.6%	13.8%	15.0%	15.2%	12.9%	11.6%	14.7%	—	—	—
Net Income	$834.0M	$538.0M	$336.0M	$769.0M	$1.1B	$941.0M	$3.2B	$2.1B	$1.4B	$877.0M	$1.6B	$1.3B	$1.2B	$1.1B	$1.4B	$1.0B	$1.3B	$1.1B	$1.6B	+41.2%
Net Margin	6.8%	3.4%	2.7%	5.7%	7.4%	6.2%	21.4%	13.7%	9.2%	6.1%	10.8%	8.7%	8.2%	7.7%	8.6%	5.8%	7.0%	7.0%	9.9%	+2.9pp
Free Cash Flow	$699.0M	$1.1B	$1.1B	$1.0B	$1.0B	$1.4B	$1.3B	$941.0M	$1.4B	$923.0M	$1.2B	$1.1B	$1.7B	$1.8B	$1.2B	$445.0M	$1.9B	$699.0M	$1.2B	+66.4%
FCF Margin	5.7%	6.7%	9.0%	7.5%	7.0%	9.1%	8.4%	6.1%	8.9%	6.5%	8.2%	6.9%	11.0%	13.2%	7.1%	2.5%	10.2%	4.4%	7.3%	+2.9pp
EPS (Diluted)	$5.03	$3.25	$2.03	$4.63	$6.87	$6.06	$22.27	$15.03	$5.14	$3.28	$6.17	$5.47	$5.22	$4.45	$6.01	$4.32	$5.35	$4.75	$6.94	+46.1%

Total Debt$7.3B

Cash & Equiv.$2.2B

Net Debt$5.1B

3 min read

1. THE BIG PICTURE

PPG is currently a story of margin expansion over raw volume. While total revenue growth is essentially flat (+0.2% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter), PPG Industries has undergone a profound shift in profitability, evidenced by net income jumping from $2 million to $302 million in the most recent quarter (8-K). By focusing on "sustainably-advantaged" products and aggressive structural cost-cutting, PPG has transformed into the most efficient bottom-line operator among its peers, even as it navigates "challenged" industrial markets in Europe.

2. WHERE THE RISKS HIT HARDEST

PPG’s primary competitive strength—its "on-site coatings services" that integrate directly into customer factories—is threatened by raw material volatility. Because these services tie PPG’s operations closely to customer production lines, sudden spikes in petroleum or titanium dioxide costs can compress margins before pricing adjustments can be implemented (10-K Item 1A). Furthermore, PPG Industries’s "global footprint" is intended to lessen the impact of regional downturns, but this diversification is currently being tested by simultaneous "geopolitical instability" in Europe and "U.S.-China tensions," which management notes could lead to lower overall sales volumes (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company that is significantly more lean than its rivals. PPG maintains the highest net margin in its peer group at 10.5%, outperforming larger-revenue peers like Dow and LyondellBasell. This efficiency is a result of "decisive actions" that removed $75 million in global structural costs in 2025 (8-K). While TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth was nearly stagnant, the 5% sales increase in the most recent quarter suggests a pivot point, driven specifically by double-digit organic growth in aerospace and packaging coatings. This momentum appears structural rather than a temporary rebound, as it is supported by a significant production backlog in the aerospace segment (10-K Item 1A). However, a short interest of 3.7% of the float indicates that some investors remain skeptical of PPG's ability to maintain this pace if global industrial demand remains weak.

4. IS IT WORTH IT AT THIS PRICE?

At a Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 12.3x, PPG is attractively valued, trading at a 32% discount to the peer median of 18.2x. The market is currently pricing in a long-term growth rate of approximately 2.5% (CAPM analysis). This appears overly cautious given that PPG’s implied EPSEPSEarnings Per Share — the company's net profit divided by its share count; the most common per-share profitability metric growth is 6.2% when accounting for its 3.7% buyback yield—the highest in its peer group. PPG’s 10.5% net margin is superior to all tracked peers, including Sherwin-Williams, yet it trades at a much lower multiple. This discount is likely a reflection of PPG's $5.5B net debt, which represents roughly 4.6x its annual free cash flow, a higher leverage profile than some investors may prefer in a high-interest-rate environment.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if raw material costs for titanium dioxide or petroleum-derived inputs rise sharply without a corresponding increase in PPG's product pricing, threatening the recent margin recovery.
Constructive if organic sales growth in the Global Architectural segment moves from "low single-digit" to "mid-to-high single-digit," signaling a recovery in the "challenged" EMEA markets (8-K).
Cautious if PPG fails to meet its aerospace production targets, turning its current backlog from a growth driver into a liability (10-K Item 1A).

6. BOTTOM LINE

Structural Advantage: A global distribution network integrated with on-site technical services that creates high customer switching costs and a "first-choice" partnership model. Bottom Line: PPG is a high-efficiency specialist trading at a significant discount to its peers, offering a clear path to earnings growth through cost discipline and aggressive share retirements.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Raw Material Volatility: PPG Industries relies on petroleum-derived and inorganic materials, such as titanium dioxide, as its largest production cost component. Supply chain disruptions or price increases in these inputs directly threaten Income from continuing operations and Cash from operating activities.
Economic and Geopolitical Instability: Demand for products depends on global economic conditions. Factors including the war in Ukraine, U.S.-China tensions, and fluctuating interest rates create uncertainty that may lead to lower sales volumes.
Foreign Currency Exposure: Because consolidated financial statements are reported in U.S. dollars, fluctuations in exchange rates against the dollar impact Net sales, Net income, and the value of balance sheet items.
Competitive Market Pressures: The industries in which PPG Industries operates are highly competitive. Increased competition may force price reductions to maintain market share, which directly compresses product margins.
Public Health Crises: Pandemics and associated government containment measures have historically interfered with the ability to conduct business, negatively affecting supply chains, workforce availability, and consumer demand.

2. Company-Specific Risks

Aerospace Production Backlogs: PPG Industries is under contract to supply aerospace manufacturers and is currently experiencing a backlog. Failure to meet production targets or ramp up capacity to meet future demand could result in customer claims and lost growth opportunities.
Acquisition Integration: Growth through acquisitions is a core strategy, with over 50 completed in the last decade. Risks include the inability to assimilate new businesses, unforeseen environmental or product liabilities, and the failure to realize anticipated benefits.
Sustainably-Advantaged Product Transition: While the focus on sustainable products is expected to drive growth, it may also reduce sales volumes as customers require lower quantities of products due to increased durability and reduced waste.
Automotive Industry Shifts: The transition to electric vehicles and the rise of ridesharing models may reduce the number of new-build vehicles, potentially lowering demand for automotive OEM and refinish coatings.

3. Regulatory/Legal Risks

Environmental Liability: PPG Industries is subject to laws governing the discharge of pollutants and the cleanup of hazardous substances. Violations can result in fines, and future regulations may require substantial capital expenditures.
Tax Regime Changes: The implementation of the Organisation for Economic Co-operation and Development’s global minimum tax standards (Pillar 2) has already increased the effective tax rate. Future audits or changes in tax law could lead to incremental tax liabilities.
Litigation Exposure: PPG Industries is involved in various lawsuits, including those related to asbestos exposure, antitrust, and product liability. While management believes current outcomes will not have a material effect on consolidated financial position, individual periods may be materially impacted by recognized costs.

4. Financial Impact Map

Raw Material Cost Increases → Income from continuing operations and Cash from operating activities → Represents the single largest production cost component. Global Economic Uncertainty → Net sales → Lower demand levels result in lower sales volumes. Foreign Currency Fluctuations → Net sales, Net income, and balance sheet items → Translation of non-U.S. dollar denominated assets, liabilities, and results into U.S. dollars. Competitive Pricing Pressure → Product margins → Compels price reductions to remain competitive. Global Minimum Tax (Pillar 2) → Effective tax rate → Legislation in various countries has caused an increase to the effective tax rate.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
14A	Mar 2026	—
10-K	Feb 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025