PPG Industries' Q2 2025: Unpacking Contradictions in Mexico Recovery, Coatings Growth, and Inflation Strategies

Mexico market recovery, performance coatings volume growth, raw material inflation impact, share gains and volume growth, raw material inflation and pricing strategy are the key contradictions discussed in PPG Industries' latest 2025Q2 earnings call.



Revenue Performance:
- PPG Industries reported net sales of $4.2 billion for Q2 2025, with an increase in organic sales by 2%.
- The growth was led by strong performances in the Aerospace Coatings, Protective & Marine Coatings, and Packaging Coatings segments.

Segment Performance and Share Gains:
- The Performance Coatings segment delivered record net sales and earnings with a 6% increase in organic sales, driven by Aerospace and Protective & Marine Coatings.
- This growth was supported by share gains and customer order backlogs, with improvements in manufacturing output and technology investments.

Architectural Coatings Challenges:
- The Global Architectural Coatings segment faced lower volumes and a segment EBITDA margin decrease, driven by a business divestiture and unfavorable currency translation.
- The challenges were primarily in Europe, with lower demand impacting Eastern Europe, despite positive momentum in the Nordics and the UK.

Earnings and Financial Outlook:
- PPG's adjusted earnings per diluted share were $2.22, with the company expecting high single-digit percentage year-over-year earnings growth in the second half of the year.
- The company plans to drive growth through shareholder value creation with share repurchases and dividends, while maintaining a strong balance sheet.