PPG Reports Strong Fourth Quarter and Full-Year 2024 Results

PPG Industries (NYSE: PPG) has reported its fourth quarter and full-year 2024 financial results, showcasing strong performance across various segments. The company's earnings growth trends in the fourth quarter and full-year 2024 were driven by several key factors, including acquisitions, pricing actions, restructuring cost savings, and a robust enterprise growth strategy.

In the fourth quarter, PPG reported record earnings per diluted share (EPS) of $2.00 and adjusted EPS of $2.13, marking a 12% and 3% increase year over year, respectively. The company's net sales for the quarter were $4.6 billion, with organic sales flat compared to the prior year. Segment margins improved by 60 basis points year over year, marking eight consecutive quarters of margin expansion.



The Performance Coatings segment delivered strong results, with net sales increasing by 1% year over year, driven by higher sales volumes and selling prices. The segment's income increased by 13% year over year, with a segment margin of 17.6% compared to 15.7% in the prior year. Sales volumes grew by 2% year over year, with growth in five of the six businesses in this segment, led by aerospace coatings, protective and marine coatings, and architectural coatings Americas and Asia Pacific.

The Industrial Coatings segment faced challenges due to weak global industrial production, which affected demand in the Industrial Coatings unit. Net sales decreased by 7.9% year over year, primarily due to lower sales volumes and unfavorable foreign currency translation, partially offset by higher selling prices. Segment income decreased by 14.3% year over year, with a segment margin of 12.4% compared to 13.5% in the prior year. Sales volumes declined by 6.2% year over year, driven by lower automotive OEM build rates and soft general industrial production in Europe and the U.S.



For the full-year 2024, PPG's earnings per share are expected to be in the range of $8.15 to $8.30. The company's earnings growth is expected to be driven by its enterprise growth strategy, which focuses on businesses with the greatest growth and margin opportunities. The pending closure of the silicas products business divestiture and the architectural coatings U.S. and Canada strategic review are expected to contribute to PPG's earnings growth. Strong cost management and improved productivity are also expected to contribute to higher margins and earnings growth.

PPG's share repurchases and dividend payments in the fourth quarter and full-year 2024 contributed significantly to shareholder value creation. The company repurchased approximately $200 million of stock in the quarter and $500 million year to date. PPG also paid about $160 million in dividends in the fourth quarter, with approximately $465 million paid year to date. In July 2024, the company increased its quarterly dividend by 5%, demonstrating its commitment to growing shareholder distributions.



For future capital distributions, PPG maintains its commitment to rewarding shareholders. The company plans to continue its share repurchase program, with approximately $500 million allocated for 2025. PPG also expects to maintain its dividend growth, with a target of increasing the annual dividend by 5% to 10% over the long term.

In conclusion, PPG's strong fourth quarter and full-year 2024 results were driven by acquisitions, pricing actions, restructuring cost savings, and a robust enterprise growth strategy. The company's Performance Coatings segment delivered impressive growth, while the Industrial Coatings segment faced challenges due to weak global industrial production. PPG's share repurchases and dividend payments contributed significantly to shareholder value creation, and the company remains committed to rewarding shareholders in the future.