PPG highlights 2024 performance during annual meeting of shareholders

Rhea-AI Summary

PPG (NYSE:PPG) reported its 2024 performance during the annual shareholders meeting, achieving net sales of $15.8 billion and a 6% increase in adjusted EPS. The company delivered record results in aerospace coatings, automotive refinish coatings, and architectural coatings Latin America.

In 2024, PPG returned $1.4 billion to shareholders, including $620 million in dividends and $750 million in stock repurchases (approximately 3% of outstanding shares). The company maintained its 53-year streak of consecutive dividend increases and 125-year history of uninterrupted annual dividends.

Key achievements include divesting silicas products and architectural coatings U.S. and Canada businesses, accelerating digital transformation, and achieving 41% of total sales from sustainably advantaged solutions. The company expects organic sales growth in the second half of 2025, supported by recently won share gains.

Positive

• Achieved 6% increase in adjusted EPS for 2024
• Record performance in aerospace, automotive refinish, and Latin America architectural coatings
• Returned $1.4 billion to shareholders through dividends and buybacks
• 41% of total sales came from sustainably advantaged solutions
• Strong balance sheet maintaining financial flexibility

Negative

• Divested architectural coatings U.S. and Canada businesses, reducing market presence
• Organic sales growth delayed until second half of 2025

Insights

Financial Analyst

PPG delivered solid 2024 results with 6% EPS growth and $1.4B shareholder returns while strategically divesting non-core businesses to become more growth-oriented.

PPG Industries' 2024 performance demonstrates a company in strategic transition, delivering $15.8 billion in net sales alongside a 6% increase in adjusted EPS. The financial results reveal a mixed but generally positive picture across their portfolio, with record performance in three key segments: aerospace coatings, automotive refinish coatings, and architectural coatings Latin America.

The company's capital allocation strategy remains shareholder-friendly, with $1.4 billion returned to investors through dividends ($620 million) and share repurchases ($750 million). The share repurchases reduced outstanding shares by approximately 3%, providing a meaningful boost to per-share metrics. PPG's 53-year streak of consecutive dividend increases places it among the elite dividend aristocrats, signaling financial stability and consistent cash generation.

Strategically, 2024 was transformative as PPG divested both its silicas products and architectural coatings businesses in the U.S. and Canada. These moves represent a deliberate portfolio reshaping to focus on higher-growth, potentially higher-margin segments. While specific financial impacts of these divestitures weren't quantified, management describes the resulting company as "sharper, more growth-oriented."

Looking forward, management expects organic sales growth for the full year, with stronger performance anticipated in the second half of 2025. This cautiously positive outlook, combined with mentions of "recently won share gains," suggests incremental business momentum, though the lack of specific growth targets warrants measured expectations. The company's strong balance sheet provides financial flexibility for opportunistic investments or additional shareholder returns.

Materials Industry Specialist

PPG's strategic divestitures and 41% sustainability-advantaged product sales position it well in specialty coatings markets despite moderate overall growth.

PPG's 2024 results reveal a company strategically repositioning itself within the specialty materials sector through targeted divestitures and focused growth in high-value segments. The company's divestment of both silicas products and North American architectural coatings businesses represents a significant strategic pivot toward more specialized, technically differentiated market segments where PPG likely commands stronger competitive positioning and pricing power.

The record performance in aerospace coatings is particularly noteworthy given the strong recovery in commercial aviation and increased defense spending globally. Similarly, strength in automotive refinish suggests PPG is capitalizing on the aging global vehicle fleet and increased collision repair activity. These segments typically feature higher barriers to entry, more stable demand patterns, and less commoditization than architectural coatings.

From a product innovation perspective, PPG's reported 41% of sales from sustainably advantaged solutions signals substantial progress in addressing growing customer demands for environmentally preferable formulations. This metric is increasingly important for maintaining and growing market share as industrial customers face their own sustainability pressures and regulatory requirements.

The company's digital transformation initiatives, while not quantified, align with industry trends toward providing value-added services beyond coating products themselves. These digital offerings can strengthen customer relationships, improve retention, and potentially create new revenue streams through service models.

Looking ahead, PPG's expectations for organic growth in 2025 suggest moderate industry demand across its served markets. The company's mention of "recently won share gains" indicates successful competitive positioning, though the emphasis on second-half improvement suggests some lingering market softness in the near term. Overall, PPG's strategic focus appears well-aligned with value creation in specialty coatings markets.

PITTSBURGH--(BUSINESS WIRE)-- PPG (NYSE:PPG) today held its annual meeting of shareholders where Tim Knavish, PPG chairman and chief executive officer, highlighted the company’s 2024 performance.

PPG achieved full-year 2024 net sales from continuing operations of $15.8 billion, and adjusted EPS increased 6%, supported by PPG’s strong portfolio and driven by sales of PPG’s technology-advantaged products and strong brands. The company delivered record results in several businesses in 2024, including aerospace coatings, automotive refinish coatings, and architectural coatings Latin America.

“I want to thank PPG’s approximately 45,000 employees throughout the world who are dedicated to being a trusted partner for customers, delivering value for shareholders, supporting the communities where we operate and delivering on our purpose — to protect and beautify the world,” said Knavish. “In 2024, we further strengthened our focus by divesting both our silicas products and our architectural coatings U.S. and Canada businesses. As a result, PPG is a sharper, more growth-oriented company. The success of the team’s work throughout the year enabled PPG to continue to reward our shareholders by returning a total of $1.4 billion to them.”

In 2024, PPG paid approximately $620 million in dividends and repurchased $750 million of stock, which represented approximately 3% of outstanding shares. PPG has raised its annual dividend payout for 53 consecutive years and has paid uninterrupted annual dividends for 125 years.

The meeting highlighted additional 2024 achievements, including:

• accelerated PPG’s digital transformation by offering customers new innovations to help improve their productivity.
• delivered sustainably advantaged solutions meeting the demand from customers to improve their productivity and reduce overall value chain impacts. These products comprised 41% of PPG’s total sales in 2024.
• invested $18.4 million worldwide in 2024, supporting more than 400 community partners and programs that are focused on advancing education and delivering community support, while encouraging PPG employee volunteerism.

Looking ahead, Knavish said: “We expect to deliver organic sales growth for the full year based on stronger results in the second half of 2025 and the launch of recently won share gains. Our balance sheet remains strong, which continues to provide us with financial flexibility, and we remain committed to driving shareholder value creation.”

Pursuant to PPG’s amended articles of incorporation, all directors will now be elected annually beginning at PPG's 2025 Annual Meeting. Shareholders re-elected directors:

• Kathy L. Fortmann, Chief Executive Officer, Amyris, Inc.
• Melanie L. Healey, Former Group President, North America, The Procter & Gamble Company
• Gary R. Heminger, Retired Chairman of the Board and Chief Executive Officer, Marathon Petroleum Corporation
• Tim M. Knavish, Chairman and Chief Executive Officer, PPG
• Michael W. Lamach, retired Executive Chair and Chief Executive Officer, Trane Technologies plc;
• Kathleen A. Ligocki, Former Chief Executive Officer, Agility Fuel Solutions, LLC
• Michael T. Nally, CEO, Generate Biomedicines, Inc. and CEO-Partner, Flagship Pioneering
• Guillermo Novo, Chairman and Chief Executive Officer, Ashland Inc.
• Christopher N. Roberts III, Senior Vice President, Global SH&E, Ecolab Inc.
• Catherine R. Smith, Executive Vice President and Chief Financial Officer, Starbucks Corporation

Director Martin Richenhagen retired from the Board of Directors at the 2025 Annual Meeting. The company thanks Mr. Richenhagen for his 17 years of dedicated service to PPG.

Shareholders also approved the compensation of the named executive officers and ratified PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for 2025. Shareholders voted against a shareholder proposal requesting that the Board seek shareholder approval of any named executive officer’s new or renewed pay package that provides for severance or termination payments with an estimated value exceeding 2.99 times the sum of the executive’s base salary plus target short-term bonus.

To learn more about PPG’s progress in 2024, visit annualreport.ppg.com/

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.8 billion in 2024. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

CATEGORY Corporate

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416678023/en/

PPG Media Contact:

Mark Silvey

Corporate Communications

silvey@ppg.com

PPG Investor Contact:

Alex Lopez

Investor Relations

+1 412 434 3466

alejandrolopez@ppg.com

investor.ppg.com

Source: PPG

FAQ

What was PPG's total revenue in 2024?

PPG reported net sales of $15.8 billion from continuing operations in 2024.

How much did PPG return to shareholders in 2024?

PPG returned $1.4 billion to shareholders, comprising $620 million in dividends and $750 million in stock repurchases.

Which PPG business segments achieved record results in 2024?

PPG achieved record results in aerospace coatings, automotive refinish coatings, and architectural coatings Latin America.

What percentage of PPG's 2024 sales came from sustainable products?

Sustainably advantaged solutions comprised 41% of PPG's total sales in 2024.

How many consecutive years has PPG increased its dividend?

PPG has raised its annual dividend payout for 53 consecutive years and maintained uninterrupted dividends for 125 years.