First Quarter Financial Performance: PPG reported sales of $3.7 billion for Q1 2025, a decrease of 4% from the same quarter last year due to unfavorable foreign currency translation and business divestitures. However, organic sales showed growth with a 4% increase in the U.S. market and strong performance in Asia, particularly in China, India, and Vietnam.
Segment-specific Performance:
- Architectural Coatings saw a decline in sales mainly driven by currency issues and lower volumes in markets like Mexico. Margins remain under pressure, but Europe is showing signs of stabilization, with expectations of volume recovery in future quarters.
- Performance Coatings segment delivered organic sales growth of 9%, driven by strong demand in aerospace and protective and marine coatings, indicating resilience in high-margin segments.
Outlook and Guidance: PPG reaffirmed its full-year adjusted earnings per diluted share guidance of $7.75 to $8.05. The company sees strong potential in the performance coatings segment and anticipates an improvement in sales volumes in Europe, despite ongoing headwinds in Mexico.