Transformation and Margin Expansion in Industrial Segment
The Industrial segment achieved a record adjusted operating margin of 25.1%, up 90 basis points from the previous year, driven by The Win Strategy.
The company expects a 700 basis point margin expansion from FY '19 through FY '26, demonstrating significant margin resilience even during negative organic growth periods.
The portfolio's shift towards longer cycle, secular trend, and aftermarket revenues is a key factor, with 67% now in these categories.
International and diversified industrial businesses are using cost reduction and efficiency tools to sustain margin growth amid market challenges.
The transformation includes acquisitions and international distribution growth, with an aim for 85% of the portfolio to be longer cycle, secular, and aftermarket by FY '29.
Balance sheet remains strong with EUR 300 million debt retired in the quarter and EUR 600 million maturing in Q4.
EUR 300 million of debt was retired during the quarter, with EUR 600 million maturing in Q4.
Industrial Coatings segment sales volumes were flat, showing improvement and initial benefits from share gains.
Industrial Coatings segment sales volumes were flat, showing initial benefits from share gains.
Packaging Coatings organic sales increased by a high single-digit percentage year-over-year.
Performance Coatings segment achieved record net sales and earnings with 6% organic sales growth.
Performance Coatings segment delivered record net sales and earnings with 6% organic sales growth.
PPG delivered net sales of $4.2 billion with 2% organic sales growth in Q2 2025.
Protective & Marine Coatings achieved double-digit organic sales growth for the ninth consecutive quarter.
Protective & Marine Coatings had double-digit organic sales growth for the ninth consecutive quarter.
Quarterly dividend per share was raised by 4%.
Segment EBITDA margin declined in Global Architectural Coatings due to divestiture, lower volumes, and unfavorable currency translation, partially offset by cost controls.
Segment EBITDA margin declined in Packaging Coatings due to divestiture and lower selling prices, partially offset by cost control.
Segment EBITDA margin was 20.3% and adjusted EPS was $2.22.
Segment EBITDA margin was 20.3% for the quarter.
The company repurchased $150 million of stock in Q2, totaling $540 million year-to-date, and raised its quarterly dividend by 4%.
The company repurchased approximately $150 million of stock in Q2, totaling $540 million year-to-date.
Adjusted EBITDA grew 4% year-over-year to $313 million, with margin expanding 160 basis points to 38.5%.
Diluted earnings per share increased 8% to a quarterly record $2.29, supported by higher net income and lower diluted shares outstanding.
Gross profit increased $8 million to $402 million, driven by price increases partially offset by lower volumes and unfavorable material costs.
Net cash provided by operating activities was $184 million, up from $171 million, driven by lower working capital needs and higher gross profit, partially offset by acquisition expenses.
Net income rose $8 million to $195 million, helped by higher gross profit and unrealized mark-to-market gains, offset by $15 million acquisition-related expenses.
Net leverage ratio stood at 1.38x with $778 million cash and $745 million available credit, maintaining a flexible, covenant-light debt structure.
Second quarter 2025 net sales were $814 million, flat year-over-year, with a 47% increase in defense end market sales and record $142 million sales outside North America On-Highway, up 11%.
Dafinchi
