A month has gone by since the last earnings report for PPG Industries (PPG). Shares have added about 8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is PPG Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
PPG Industries' Earnings Lag Estimates in Q4, Revenues Up Y/Y
PPG reported a fourth-quarter 2025 profit (from continuing operations) of $302 million or $1.34 per share compared with $2 million or a penny per share a year ago.
In the fourth quarter, excluding one-time items, adjusted earnings per share were $1.51, down from $1.61 in the year-ago quarter, missing the Zacks Consensus Estimate of $1.57.
The company’s revenues were roughly $3.91 billion in the quarter, up 5% year over year. The top line beat the Zacks Consensus Estimate of $3.74 billion.
Segment Review
In the fourth quarter, the Global Architectural Coatings segment saw an 8% year-over-year rise in sales to $951 million. It topped our estimate of $882.8 million. The upside is driven by higher selling prices and a benefit from foreign currency translation. This was partly offset by the divestiture of the architectural coatings business in Russia.
The Performance Coatings segment saw a 5% year-over-year increase in sales to $1.32 billion. It surpassed our estimate of $1.22 billion. Net sales in the Performance Coatings segment rose primarily due to higher selling prices and favorable currency impact, partly offset by reduced sales volumes. Organic sales grew 3% year over year, driven by growth in aerospace coatings, protective and marine coatings.
For the Industrial Coatings segment, sales grew at 3% million from the year-ago quarter to $1.64 billion. It beat our estimate of $1.61 billion. The segment's net sales were favored by foreign currency translation gains and improved volumes.
Financials
The company had roughly $2.16 billion in cash and cash equivalents as of the end of the quarter, up 70% year over year. Long-term debt was $6.6 billion, up 35% from the prior-year quarter.
Outlook
PPG expects adjusted earnings per share of $7.70 to $8.10 for full-year 2026, highlighting ongoing soft global industrial production, mixed demand across the various regions of operation, and prevailing global economic conditions and foreign exchange rates. Organic sales are forecast to be in the range of flat to low single-digit percentage growth for the full year and EPS to be weighted toward the second half of 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, PPG Industries has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PPG Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
