PPG’s annual revenue remained flat at $15.9 billion last year, while net profit surged 17% to $1.6 billion.

On January 27, PPG released its financial results for the fourth quarter and full year 2025. For the full year 2025, the company achieved net sales of $15.875 billion—essentially flat year-on-year. Sales volume and selling prices both rose, and favorable foreign exchange translation effects also contributed; however, the impact of business divestitures could not be overlooked. Selling prices increased by 1%, with gains from targeted price hikes partially offset by reductions under index-based pricing. Sales volume grew 1% year-on-year, driven notably by strong growth in the Performance Coatings segment—including aerospace coatings, protective coatings, marine coatings, and transportation solutions—as well as increased market share in the Industrial Coatings segment across automotive OEM coatings, industrial coatings, and packaging coatings. These gains were partially offset by declines in the automotive refinish coatings business and the global architectural coatings segment. PPG Industries’ Full-Year 2025 Operating Performance Across Three Business Segments For the full year 2025, the company reported EBITDA of $2.631 billion, up 9.26% year-on-year; operating profit of $1.587 billion, up 15.25%; and net income of $1.571 billion, up 17%. Net profit margin improved from 8.5% in the prior year to 9.9%. Adjusted net income totaled $1.722 billion, down 7.0% year-on-year. Amid a challenging macroeconomic environment, the company delivered full-year earnings per share (EPS) of $6.92, and adjusted EPS of $7.58—a 4% decline year-on-year. EBITDA margins across all three business segments stood at 19%. These results reflect strong sales performance driven by our technologically advanced products and powerful brands, and we achieved record results across multiple business areas—including aerospace coatings, protective and marine coatings, and packaging coatings. In 2025, we demonstrated remarkable adaptability amid a challenging macroeconomic backdrop: sales volume and selling prices rose across all four quarters, delivering 2% organic sales growth. We generated $1.9 billion in operating cash flow, with a free cash flow yield of 5%. During the year, we repurchased approximately $790 million worth of shares—about 3% of our outstanding shares. Combined with dividends, we returned $1.4 billion to shareholders in 2025. PPG Industries’ Key Factors Affecting Q4 2025 Operating Performance PPG’s net sales for Q4 2025 amounted to $3.914 billion, up 5.0% year-on-year. Organic sales rose 3%—the highest quarterly growth this year—driven by broad-based growth across all three business segments. Overall selling prices rose 1% year-on-year, with gains from structural price increases partially offset by declines under certain index-based customer contracts. Overall sales volume increased 2% versus Q4 2024. Net sales also included a 4% benefit from foreign exchange translation and a 2% reduction due to business divestitures. Sales growth was primarily driven by aerospace coatings, protective and marine coatings, and architectural coatings in Mexico, alongside increased market share in the Industrial Coatings segment—offsetting declines in automotive refinish coatings and architectural coatings in Europe and the Middle East.

Heavy losses, layoffs, asset sales! How dire was the situation for global chemical giants in 2025?

Note: ① LG Chem’s figure represents operating profit; all other companies report net profit; ② PPG’s figure is adjusted earnings per share (EPS); ③ Companies headquartered in the eurozone report in euros; all others use U.S. dollars. The Epicenter of Losses: Who Fell the Hardest? Dow Inc. reported full-year 2025 net sales of $40 billion, down 7% year-on-year; GAAP net loss of $2.4 billion; and operating EBIT plummeting from $2.6 billion in 2024 to just $400 million—a drop exceeding 80%. Operating cash flow fell from $2.9 billion to $1.1 billion—nearly halved. SABIC (Saudi Basic Industries Corporation) posted 2025 revenue of SAR 116.5 billion (approx. $31.1 billion), down 1% year-on-year—but recorded a net loss of SAR 24.7 billion (approx. $6.6 billion). This massive loss stemmed not primarily from deteriorating operations, but rather from large-scale asset impairments. SABIC disclosed in its financial statements that it had taken significant write-downs on certain assets, while average selling prices for key products also declined—severely compressing profitability. Nonetheless, the company generated free cash flow of SAR 7.2 billion, up 17% year-on-year—providing ample financial flexibility for future transformation. Covestro reported 2025 sales of €12.942 billion, down 8.7% year-on-year; EBITDA of €740 million, down 30.9%; and a net loss of €644 million—worsening from a €266 million loss in 2024. As the world’s leading polyurethane producer, Covestro is navigating a difficult transition. CEO Markus Steilemann stated the company is advancing its ‘Winning with Purpose’ strategy—implementing cost reductions and business restructuring to weather the industry downturn. Additionally, LyondellBasell reported 2025 sales of $30.153 billion, down 10% year-on-year; and a net loss of $738 million. In its financial report, the company acknowledged that 2025 marked one of the longest downturns ever recorded in the chemical industry—with weak global demand for polyethylene and polypropylene, especially amid persistently high inventory levels in China—leading to sharp declines in product prices and margins. Notably, LyondellBasell’s 2025 cash improvement program exceeded its target, delivering $800 million in cash improvements (vs. an original target of $600 million), and raised its cumulative 2026 target to $1.3 billion. Even under extreme adversity, the company achieved positive operating cash flow of $2.3 billion, with a cash conversion rate as high as 95%. Defying the Odds: Who Grew Amid the Winter? Against the backdrop of widespread losses among global chemical giants, BASF delivered a comparatively strong performance. Its 2025 sales totaled €59.657 billion, down 3% year-on-year—but net income attributable to shareholders reached €1.313 billion, up 118% year-on-year—more than doubling from €602 million in 2024. BASF’s resilience stems from two pillars: first, its global leadership position in MDI confers strong pricing power; second, sustained investment in emerging markets such as China. In its financial report, the company emphasized ongoing structural adjustments and cost-cutting initiatives at its Ludwigshafen site, targeting cumulative cost savings of €2.1 billion by end-2026. PPG’s 2025 net sales stood at $15.9 billion—essentially flat year-on-year—making it a rare bright spot amid the industry-wide winter.

RBC Trims Price Target on PPG Industries to $122 From $129, Keeps Sector Perform Rating

Jul 30, 2026

RBC Capital Markets lowered its price target for PPG Industries to $122 from $129, maintaining a Sector Perform rating. This adjustment reflects updated financial outlooks for the leading coatings and specialty materials manufacturer.

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2026-06-07

RBC Capital Maintains Hold Rating on PPG Industries (PPG)

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RBC Capital Raises PPG Industries Price Target to $129 From $119, Maintains Sector Perform Rating

2026-07-30

RBC Trims Price Target on PPG Industries to $122 From $129, Keeps Sector Perform Rating

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