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What changed in PPG Industries's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PPG Industries's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+193 added−214 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in PPG Industries's 2025 10-K

193 paragraphs added · 214 removed · 153 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

29 edited+6 added−8 removed32 unchanged
Biggest changeGlobal Competitors Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Kansai Paints, Nippon Paint and The Sherwin-Williams Company Principal Manufacturing and Distribution Facilities Barberton, Ohio; Cheonan, South Korea; Cieszyn, Poland; Circleville, Ohio; Cleveland, Ohio; Monroeville, Pennsylvania; Oak Creek, Wisconsin; Quattordio, Italy; San Juan del Rio, Mexico; Springdale, Pennsylvania; Sumaré, Brazil; Weingarten, Germany; and Tianjin and Zhangjiagang, China. 2024 PPG ANNUAL REPORT AND FORM 10-K 6 Research and Development ($ in millions, except percentages) 2024 2023 2022 Research and development costs, including depreciation of research facilities $447 $446 $457 % of annual net sales 2.8 % 2.7 % 2.9 % Technology innovation has been a hallmark of PPG’s success throughout its history.
Biggest changeGlobal Competitors Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Kansai Paints, Nippon Paint and The Sherwin-Williams Company Principal Manufacturing and Distribution Facilities Barberton, Ohio; Busan, South Korea; Cheonan, South Korea; Cieszyn, Poland; Circleville, Ohio; Cleveland, Ohio; Monroeville, Pennsylvania; Oak Creek, Wisconsin; Quattordio, Italy; San Juan del Rio, Mexico; Springdale, Pennsylvania; Sumaré, Brazil; Weingarten, Germany; and Tianjin and Zhangjiagang, China.
Raw Materials, Energy and Logistics PPG uses a wide variety of complex raw materials that serve as the building blocks of our manufactured products. The Company’s most significant raw materials include resins, solvents, reactants, titanium dioxide, additives and epoxy. Raw materials include both organic, primarily petroleum-derived, materials and inorganic materials, including titanium dioxide.
Raw Materials, Energy and Logistics PPG uses a wide variety of complex raw materials that serve as the building blocks of our manufactured products. The Company’s most significant raw materials include resins, solvents, reactants, titanium dioxide, additives, epoxy and pigments. Raw materials include both organic, primarily petroleum-derived, materials and inorganic materials, including titanium dioxide.
Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity, distribution and brand recognition Global Competitors Akzo Nobel N.V., BASF Corporation, Hempel A/S, Nippon Paint, the Jotun Group, The Sherwin-Williams Company Principal Manufacturing and Distribution Facilities Amsterdam, Netherlands; Birstall, United Kingdom; Debica, Poland; Mexico City, Mexico; Moreuil, France; Nykvarn, Sweden; Ruitz, France; San Juan del Rio, Mexico; Tepexpan, Mexico; Vantaa, Finland; and Wroclaw, Poland. 2024 PPG ANNUAL REPORT AND FORM 10-K 4 PERFORMANCE COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Aerospace Coatings Coatings, sealants, transparencies, adhesives, engineered materials, packaging and chemical management services for the aerospace industry Commercial, military, regional jet and general aviation aircraft Direct to customers and company-owned distribution network PPG® Automotive Refinish Coatings Coatings, solvents, adhesives, sealants, purchased sundries, digital solutions and paint films Automotive and commercial transport/fleet repair and refurbishing, light industrial coatings and specialty coatings for signs Independent distributors and direct to customers PPG®, SEM®, SPRINT® Protective and Marine Coatings Coatings and finishes for the protection of metals and structures Metal fabricators, heavy duty maintenance contractors and manufacturers of ships, bridges and rail cars Direct to customers, company-owned architectural coatings stores, independent distributors and concessionaires PPG®, SIGMA® Traffic Solutions Paints, thermoplastics, raised pavement markers and other advanced technologies for pavement marking Government, commercial infrastructure, painting and maintenance contractors Direct to customers, government agencies and independent distributors Ennis-Flint® Segment Overview This reportable business segment primarily supplies a variety of protective coatings, adhesives, sealants and finishes along with pavement marking products and related chemicals, transparencies and paint films.
Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity, distribution and brand recognition Global Competitors Akzo Nobel N.V., Hempel A/S, Nippon Paint, the Jotun Group, The Sherwin-Williams Company Principal Manufacturing and Distribution Facilities Amsterdam, Netherlands; Birstall, United Kingdom; Debica, Poland; Mexico City, Mexico; Moreuil, France; Nykvarn, Sweden; Ruitz, France; San Juan del Rio, Mexico; Tepexpan, Mexico; Tepotzotlan, Mexico; Vantaa, Finland; and Wroclaw, Poland. 2025 PPG ANNUAL REPORT AND FORM 10-K 4 PERFORMANCE COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Aerospace Coatings Coatings, sealants, transparencies, adhesives, engineered materials, packaging and chemical management services for the aerospace industry Commercial, military, regional jet and general aviation aircraft Direct to customers and company-owned distribution network PPG® Automotive Refinish Coatings Coatings, solvents, adhesives, sealants, purchased sundries, digital solutions and paint films Automotive and commercial transport/fleet repair and refurbishing, light industrial coatings and specialty coatings for signs Independent distributors and direct to customers PPG®, COLAD®, FINIXA® SEM®, SPRINT® Protective and Marine Coatings Coatings and finishes for the protection of metals and structures Metal fabricators, heavy duty maintenance contractors and manufacturers of ships, bridges and rail cars Direct to customers, company-owned architectural coatings stores, independent distributors and concessionaires PPG®, SIGMA® Traffic Solutions Paints, thermoplastics, raised pavement markers and other advanced technologies for pavement marking Government, commercial infrastructure, painting and maintenance contractors Direct to customers, government agencies and independent distributors Ennis-Flint® Segment Overview This reportable business segment primarily supplies a variety of protective coatings, adhesives, sealants and finishes along with pavement marking products and related chemicals, transparencies and paint films.
In addition to the $222 million currently reserved for environmental remediation efforts, we may be subject to loss contingencies related to environmental matters estimated to be approximately $100 million to $200 million. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant.
In addition to the $206 million currently reserved for environmental remediation efforts, we may be subject to loss contingencies related to environmental matters estimated to be approximately $100 million to $200 million. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant.
Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity, distribution and brand recognition Global Competitors Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Hempel A/S, Kansai Paints, the Jotun Group, Nippon Paint, RPM International Inc., The Sherwin-Williams Company and 3M Company Principal Manufacturing and Distribution Facilities Amsterdam, Netherlands; Birstall, United Kingdom; Busan, South Korea; Clayton, Australia; Delaware, Ohio; Deurne, Belgium; Ennis, Texas; Gonfreville, France; Greensboro, North Carolina; Huntsville, Alabama; Kunshan, China; Little Rock, Arkansas; Milan, Italy; Mojave, California; Nykvarn, Sweden; Ontario, Canada; Ostrow Wielkopolski, Poland; Ruitz, France; Shildon, United Kingdom; Sylmar, California; Stowmarket, United Kingdom; Tepexpan, Mexico; Vantaa, Finland; and Wroclaw, Poland. 2024 PPG ANNUAL REPORT AND FORM 10-K 5 INDUSTRIAL COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Automotive OEM (a) Coatings Specifically formulated coatings, adhesives and sealants, metal pretreatments and paint films; technical services and coatings applications Automotive original equipment manufacturers and tier supplier network, including combustion engine, commercial, and electric vehicles, and automotive parts and accessories, including battery-related components; On-site coatings services within several customer manufacturing locations as well as at regional service centers.
Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity, distribution and brand recognition Global Competitors Akzo Nobel N.V., Axalta Coating Systems Ltd., BASF Corporation, Hempel A/S, Kansai Paints, the Jotun Group, Nippon Paint, RPM International Inc., The Sherwin-Williams Company and 3M Company Principal Manufacturing and Distribution Facilities Clayton, Australia; Delaware, Ohio; Deurne, Belgium; Ennis, Texas; Gonfreville, France; Greensboro, North Carolina; Huntsville, Alabama; Kunshan, China; Little Rock, Arkansas; Milan, Italy; Mojave, California; Nykvarn, Sweden; Ontario, Canada; Ostrow Wielkopolski, Poland; Ruitz, France; Shildon, United Kingdom; Sylmar, California; Stowmarket, United Kingdom; Tepexpan, Mexico; Ulsan, South Korea; and Wroclaw, Poland. 2025 PPG ANNUAL REPORT AND FORM 10-K 5 INDUSTRIAL COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Automotive OEM (a) Coatings Specifically formulated coatings, adhesives and sealants, metal pretreatments and paint films; technical services and coatings applications Automotive original equipment manufacturers and tier supplier network, including combustion engine, commercial, and electric vehicles, and automotive parts and accessories, including battery-related components; On-site coatings services within several customer manufacturing locations as well as at regional service centers.
The Company has numerous collective bargaining agreements throughout the world. We observe local customs, laws and practices in labor relations when negotiating collective bargaining agreements. There were no significant work stoppages in 2024.
The Company has numerous collective bargaining agreements throughout the world. We observe local customs, laws and practices in labor relations when negotiating collective bargaining agreements. There were no significant work stoppages in 2025.
PPG’s business is comprised of three reportable business segments: Global Architectural Coatings, Performance Coatings and Industrial Coatings as described below: 2024 PPG ANNUAL REPORT AND FORM 10-K 3 GLOBAL ARCHITECTURAL COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Architectural Coatings Latin America and Asia Pacific Paints, wood stains, adhesives, sealants and purchased sundries Painting and maintenance contractors and consumers for decoration and maintenance of residential and commercial building structures Company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires, independent distributors and direct to consumers COMEX®, PPG®, GLIDDEN®, MERIDIAN®, POLYFORM®, RENNER®, TAUBMANS® and WHITE KNIGHT® Architectural Coatings Europe, Middle East and Africa (EMEA) SIGMA®, HISTOR®, SEIGNEURIE®, GUITTET®, PEINTURES GAUTHIER®, RIPOLIN®, JOHNSTONE’S®, LEYLAND®, PRIMALEX®, DEKORAL®, TRILAK®, GORI®, BONDEX®, DANKE!® and TIKKURILA® Segment Overview This reportable business segment primarily supplies a variety of decorative coatings, adhesives, sealants and finishes along with paint strippers, stains and related chemicals.
Further information related to the three reportable business segments is summarized below. 2025 PPG ANNUAL REPORT AND FORM 10-K 3 GLOBAL ARCHITECTURAL COATINGS Strategic Business Unit Products Primary Customers / End-uses Main Distribution Methods Primary Brands Architectural Coatings Latin America and Asia Pacific Paints, wood stains, adhesives, sealants and purchased sundries Painting and maintenance contractors and consumers for decoration and maintenance of residential and commercial building structures Company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires, independent distributors and direct to consumers COMEX®, PPG®, GLIDDEN®, MERIDIAN®, POLYFORM®, RENNER®, TAUBMANS®, TIKKURILA® and WHITE KNIGHT® Architectural Coatings Europe, Middle East and Africa (EMEA) SIGMA®, HISTOR®, SEIGNEURIE®, GUITTET®, PEINTURES GAUTHIER®, RIPOLIN®, JOHNSTONE’S®, LEYLAND®, PRIMALEX®, DEKORAL®, TRILAK®, GORI®, BONDEX®, DANKE!® and TIKKURILA® Segment Overview This reportable business segment primarily supplies a variety of decorative coatings, adhesives, sealants and finishes along with paint strippers, stains and related chemicals.
For the year ended December 31, 2024, 41% of sales were from sustainably-advantaged products and processes that we have defined as addressing multiple sustainability benefits, including lower emissions, lower toxicity, energy efficiency, use of renewable raw materials or extending durability.
For the year ended December 31, 2025, 43% of sales were from sustainably-advantaged products and processes that we have defined as addressing multiple sustainability benefits, including lower emissions, lower toxicity, energy efficiency, use of renewable raw materials or extending durability.
PPG is committed to using resources efficiently and driving sustainability throughout our entire value chain, including continued focus on reducing greenhouse gas emissions, water withdrawal and total energy use. In 2023, PPG announced its near-term 2030 sustainability goals, including greenhouse gas (“GHG”) emissions targets that have been validated by the Science Based Targets initiative.
PPG is committed to using resources efficiently and integrating sustainability throughout our entire value chain to drive productivity improvements, including continued focus on reducing greenhouse gas emissions, water withdrawal and total energy use. In 2023, PPG announced its near-term 2030 sustainability goals, including greenhouse gas (“GHG”) emissions targets that have been validated by the Science Based Targets initiative.
Alliances PPG has established alliances with Kansai Paints to serve Japanese-based automotive OEM customers in North America and Europe and Asian Paints Ltd. to serve certain aftermarket customers and automotive OEM customers in India. Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity and distribution.
Alliances PPG has established alliances with: • Kansai Paints to serve Japanese-based automotive OEM customers in North America and Europe • Asian Paints to serve certain automotive OEM and industrial coatings customers in India Major Competitive Factors Product performance, technology, quality, technical and customer service, price, customer productivity and distribution.
Reference to the Company’s, the SEC’s or other websites herein does not incorporate by reference any information contained on those websites, and such information should not be considered part of this Form 10-K.
Reference to the Company’s, the SEC’s or other websites herein does not incorporate by reference any information contained on those websites, and such information should not be considered part of this Form 10-K. 2025 PPG ANNUAL REPORT AND FORM 10-K 9
In support of our decarbonization efforts, we continue to increase the amount of renewable energy secured for our operating facilities, and we are increasingly evaluating alternative raw materials that offer sustainable benefits and support the circular economy, including recycled and renewable feedstocks.
In connection with our decarbonization efforts undertaken to meet customer requirements, we continue to increase the amount of renewable energy secured for our operating facilities, and we are increasingly evaluating alternative raw materials that offer sustainable benefits and support the circular economy, including recycled and renewable feedstocks.
In 2024, PPG continued to innovate and deliver sustainably-advantaged solutions based on our customers’ desire to improve their productivity and to reduce overall value chain environmental impacts. Our products contribute to lighter, more fuel-efficient vehicles, airplanes and ships, and they help our customers reduce their energy consumption, conserve water and reduce waste.
In 2025, PPG continued to innovate and deliver sustainably-advantaged solutions based on our customers’ desire to improve their productivity and to reduce overall value chain 2025 PPG ANNUAL REPORT AND FORM 10-K 8 environmental impacts. Our products contribute to lighter, more fuel-efficient vehicles, airplanes and ships, and they help our customers reduce their energy consumption, conserve water and reduce waste.
PPG has a proud heritage with a demonstrated commitment to innovation, sustainability, community engagement and development of leading-edge paint, coatings and specialty products. Through dedication and industry-leading expertise, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. PPG is a global leader with manufacturing facilities and equity affiliates in more than 70 countries.
PPG has a proud heritage with a demonstrated commitment to innovation, sustainability, community engagement and development of leading-edge paint, coatings and specialty products. Through dedication and industry-leading expertise, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. PPG is a global leader that markets and sells in more than 50 countries.
Additionally, we operate laboratories in close geographic proximity to our customers, and we customize our products for our customers' end-use applications. Our history of successful technology introductions is based on a commitment to an efficient and effective innovation process and disciplined portfolio management.
Additionally, we operate laboratories in close geographic proximity to our customers, and we customize our products for our customers' end-use 2025 PPG ANNUAL REPORT AND FORM 10-K 6 applications. Our history of successful technology introductions is based on a commitment to an efficient and effective innovation process and disciplined portfolio management.
These cyclical activity levels result in the collection of outstanding receivables and lower inventory on hand in the fourth quarter generating higher Cash from operating activities. Human Capital As of December 31, 2024, PPG employed approximately 46,000 people, of which approximately 11,700 were in the United States and approximately 34,300 were elsewhere in the world.
These cyclical activity levels result in the collection of outstanding receivables and lower inventory on hand in the fourth quarter generating higher Cash from operating activities. Human Capital As of December 31, 2025, PPG employed approximately 43,500 people, of which approximately 11,000 were in the United States and approximately 32,500 were elsewhere in the world.
PPG competes in its primary markets with the world’s largest coatings companies, most of which have global operations, and with many regional coatings companies. In December 2024, PPG completed the sale of 100% of its architectural coatings business in the U.S. and Canada.
PPG competes in its primary markets with the world’s largest coatings companies, most of which have global operations, and with many regional coatings companies.
We measure progress against our health and safety goals using the injury and illness rate, which is calculated as the number of illness and injury incidents per 200,000 work hours. For 2024, our injury and illness rate was 0.31.
Our environmental, health and safety policy and standards define our expectations, and we implement programs and initiatives to reduce health and safety risk in our operations. We measure progress against our health and safety goals using the injury and illness rate, which is calculated as the number of illness and injury incidents per 200,000 work hours.
These policies reinforce 2024 PPG ANNUAL REPORT AND FORM 10-K 7 our expectations that our suppliers, as well as their subcontractors, will comply fully with applicable laws and adhere to internationally recognized environmental, social and corporate-governance standards. Global Operations PPG has significant non-U.S. operations.
These policies reinforce our expectations that our suppliers, as well as their subcontractors, will comply fully with applicable laws and adhere to internationally recognized environmental, social and corporate-governance standards. Global Operations PPG has significant non-U.S. operations. This broad geographic footprint serves to lessen the significance to us of economic impacts occurring in any one region of the world.
We believe that having quality dialogue with our people, recognizing the value they bring and championing an authentic culture generates engaged employees and a company that is more innovative, productive and competitive. Our focus on and investment in learning and development are crucial to ensuring we keep our people engaged, productive and successful at every stage of their careers.
We are committed to ensuring our employees are safe, healthy, enabled, engaged and valued for the unique talents they bring to PPG. We believe that having quality dialogue with our people, recognizing the value they bring and championing an authentic culture generates engaged employees and a company that is more innovative, productive and competitive.
These strategies in the areas of culture and purpose, employee engagement, development and pay equity are overseen by the Human Capital Management and Compensation Committee of our Board of Directors. We are committed to ensuring our employees are safe, healthy, enabled, engaged and valued for the unique talents they bring to PPG.
Our human capital management strategies provide the foundation for our teams to thrive and deliver exceptional performance. These strategies in the areas of culture and purpose, employee engagement, development and pay equity are overseen by the Board of Directors, including its Human Capital Management and Compensation Committee.
More information about PPG’s human capital management strategies and our workforce can be found in the Proxy Statement for our 2025 Annual Meeting of Shareholders and in our Sustainability Report located at http://sustainability.ppg.com. 2024 PPG ANNUAL REPORT AND FORM 10-K 8 Environmental Matters PPG is committed to operating in a sustainable and productive manner and to helping our customers meet their sustainability goals.
For 2025, our injury and illness rate was 0.22. More information about PPG’s human capital management strategies and our workforce can be found in the Proxy Statement for our 2026 Annual Meeting of Shareholders and in our Sustainability Report located at http://sustainability.ppg.com.
We are committed to promoting from within wherever possible while also bringing in new ideas, thoughts and insights. One of PPG’s greatest strengths is our people. Their talents and unique perspectives enable us to meet challenges quickly, creatively and effectively, providing a significant competitive advantage in today’s global economy.
Their talents and unique perspectives enable us to meet challenges quickly, creatively and effectively, providing a significant competitive advantage in today’s global economy. To ensure our people feel valued and respected, we are committed to providing a workplace that embraces a culture of collaboration and is free from harassment and bullying.
Refer to Note 15, “Commitments and Contingent Liabilities” in Item 8 of this Form 10-K for additional information related to environmental matters and our accrued liability for estimated environmental remediation costs. 2024 PPG ANNUAL REPORT AND FORM 10-K 9 ($ in millions) 2024 2023 2022 Capital expenditures for environmental control projects $24 $26 $21 We believe that the amount spent on capital expenditures for environmental control projects in 2025 will be similar to 2024.
Refer to Note 15, “Commitments and Contingent Liabilities” in Item 8 of this Form 10-K for additional information related to environmental matters and our accrued liability for estimated environmental remediation costs.
This broad geographic footprint serves to lessen the significance to us of economic impacts occurring in any one region of the world. As a result of our global footprint, we are subject to certain inherent risks, including economic and political conditions in international markets, trade protection measures and fluctuations in foreign currency exchange rates.
As a result of our global footprint, we are subject to certain inherent risks, including economic and political conditions in international markets, trade protection measures and fluctuations in foreign currency exchange rates. During 2025, foreign currency translation increased Net sales by $137 million and decreased Income before income taxes by $8 million.
Seasonality PPG’s Income before income taxes has typically been greater in the second and third quarters and Cash from operating activities has been greatest in the fourth quarter due to end-use market seasonality, primarily in our architectural coatings and traffic solutions businesses.
Refer to Note 20, “Revenue Recognition” in Item 8 of this Form 10-K for additional geographic information pertaining to sales and Note 21, “Reportable Business Segment Information” in Item 8 of this Form 10-K for geographic information related to PPG’s property, plant and equipment. 2025 PPG ANNUAL REPORT AND FORM 10-K 7 Seasonality PPG’s Income before income taxes has typically been greater in the second and third quarters and Cash from operating activities has been greatest in the fourth quarter due to end-use market seasonality, primarily in our architectural coatings and traffic solutions businesses.
While PPG faced certain raw material shortages and logistical challenges during 2021 and 2022, raw material and logistics availability improved in 2023 and 2024 and is now comparable to pre-pandemic conditions. We continue to focus on improving our competitive cost position and expanding our supply of high-quality raw materials, including strategic initiatives to qualify multiple sources of supply.
We continue to focus on improving our competitive cost position and expanding our supply of high-quality raw materials, including strategic initiatives to qualify multiple sources of supply.
We anticipate that the number of chemical registration regulations will continue to increase globally, and we have implemented programs to track and comply with these regulations. Our commitment to sustainability extends to our suppliers as an extension of our internal focus on sustainability.
We anticipate that the number of chemical registration regulations will continue to increase globally, and we have implemented programs to track and comply with these regulations. Our Supplier Sustainability Policy and our Human Rights Policy build upon our Global Supplier Code of Conduct by establishing expectations for sustainability within our operations and our supply chain.
Our sustainability efforts are overseen by the Sustainability and Innovation Committee of our Board of Directors.
Environmental Matters PPG is committed to operating in a sustainable and productive manner and to helping our customers meet their sustainability goals. Our sustainability efforts are overseen by the Sustainability and Innovation Committee of our Board of Directors.
Removed
Accordingly, the Company’s consolidated results of operations and cash flows have been recast to present the results of the architectural coatings business in the U.S. and Canada as discontinued operations for all periods presented, and the Company’s December 31, 2023 balance sheet has been recast to present the assets and liabilities of the U.S. and Canada architectural coatings business as held for sale.
Added
PPG’s business is comprised of three reportable business segments: • Global Architectural Coatings : Leverages leading trusted brands and its world-class distribution networks to provide sustainable do-it-yourself (DIY), trade and retail high-performance solutions to customers across key geographies • Performance Coatings: Delivers highly-specified, differentiated products and services that enhance customer productivity, focused on aftermarket and select original equipment manufacturers to maximize profitable growth • Industrial Coatings: Provides direct-to-factory technology-advantaged solutions integrated into original equipment manufacturer customers’ operations that support their global expansion, sustainability and productivity goals.
Removed
Refer to Note 2, “Divestitures” under Item 8 of this Form 10-K for further information relating to this transaction.
Added
Research and Development ($ in millions, except percentages) 2025 2024 2023 Research and development costs, including depreciation of research facilities $446 $447 $446 % of annual net sales 2.8 % 2.8 % 2.7 % Technology innovation has been a hallmark of PPG’s success throughout its history.
Removed
In 2024, raw material costs remained high compared to historic levels, but moderated compared to 2022 levels, resulting in a low single-digit percentage decrease to cost of goods sold compared to 2023. The Company expects raw material costs to increase by a low single-digit percentage during 2025, primarily due to already enacted tariffs.
Added
Despite the impact of previously enacted tariffs, anti-dumping duties and significant uncertainty related to global tariff rates and policies throughout 2025, raw material costs were generally stable during the year and did not change significantly compared to 2024. In 2026, raw material costs are expected to continue to remain relatively flat compared to 2025.
Removed
The PPG Global Supplier Code of Conduct clarifies our global expectations in the areas of business integrity, labor practices, associate health and safety, and environmental management. Our Supplier Sustainability Policy builds upon our Global Supplier Code of Conduct by establishing expectations for sustainability within our supply chain.
Added
Employee engagement is a measure of the extent to which our employees are involved in, enthusiastic about, and committed to our work and workplace. In 2025, employee engagement remained strong, with our October 2025 engagement survey showing consistently high levels of engagement across the workforce, supporting the organizational health required to deliver the Company’s long term growth strategy.
Removed
During 2024, unfavorable foreign currency translation decreased Net sales by approximately $70 million and Income before income taxes by approximately $20 million.
Added
Our focus on and investment in learning and development are crucial to ensuring we keep our people engaged, productive and successful at every stage of their careers. We are committed to promoting from within wherever possible while also bringing in new ideas, thoughts and insights. One of PPG’s greatest strengths is our people.
Removed
Refer to Note 20, “Revenue Recognition” in Item 8 of this Form 10-K for additional geographic information pertaining to sales and Note 21, “Reportable Business Segment Information” in Item 8 of this Form 10-K for geographic information related to PPG’s property, plant and equipment.
Added
($ in millions) 2025 2024 2023 Capital expenditures for environmental control projects $19 $24 $26 We believe that the amount spent on capital expenditures for environmental control projects in 2026 will be similar to 2025.
Removed
Employee engagement is a measure of the extent to which our employees are involved in, enthusiastic about, and committed to our work and workplace. We conduct employee surveys to increase dialogue among teams and implement meaningful action to improve results. Our human capital management strategies provide the foundation for our teams to thrive and deliver exceptional performance.
Removed
To ensure our people feel valued and respected, we are committed to providing a workplace that embraces a culture of collaboration and is free from harassment and bullying. Our environmental, health and safety policy and standards define our expectations, and we implement programs and initiatives to reduce health and safety risk in our operations.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

19 edited+7 added−1 removed57 unchanged
Biggest changeNonetheless, the results of any future litigation or claims are 2024 PPG ANNUAL REPORT AND FORM 10-K 11 inherently unpredictable, and such outcomes could have a material adverse effect on our results of operations, Cash from operating activities or financial condition.
Biggest changeNonetheless, the results of any future litigation or claims are inherently unpredictable, and such outcomes could have a material adverse effect on our results of operations, Cash from operating activities or financial condition. We are subject to a variety of laws and regulations, which could increase our compliance costs and could adversely affect our results of operations.
PPG is committed to developing and selling sustainably-advantaged products, which are designed to help our customers achieve their sustainability goals, including by reducing the amount of materials used in their processes.
PPG is committed to developing and selling sustainably-advantaged products, which are designed to help our customers achieve their business and sustainability goals, including by reducing the amount of materials used in their processes.
If raw material costs increase and we are unable to offset these higher costs in a timely manner, this would adversely impact Income from continuing operations and Cash from operating activities. The pace of economic growth and level of economic and geopolitical uncertainty could have a negative impact on our results of operations and cash flows.
If raw material costs increase and we are unable to offset these higher costs in a timely manner, our Income from continuing operations and Cash from operating activities would be adversely impacted. The pace of economic growth and level of economic and geopolitical uncertainty could have a negative impact on our results of operations and cash flows.
If we fail to meet production targets and commitments, or encounter difficulty or unexpected costs in meeting such levels, it could have a material effect on our reputation, business, operating results, or financial condition.
If we fail to meet production targets and commitments, or encounter difficulty or unexpected costs in meeting such levels, it could have an adverse effect on our reputation, business, operating results, or financial condition.
Developments concerning these regulations could potentially impact the availability or viability of some of the raw materials we use in our product formulations and/or our ability to supply certain products to some customers or markets. Import/export sanctions and regulations also continue to evolve and could result in increased compliance costs, slower product movements or additional complexity in our supply chains.
Developments concerning these regulations could potentially impact the availability or viability of some of the raw materials we use in our product formulations and/or our ability to supply certain products to some customers or markets. 2025 PPG ANNUAL REPORT AND FORM 10-K 11 Import/export sanctions and regulations also continue to evolve and could result in increased compliance costs, slower product movements or additional complexity in our supply chains.
Additionally, the cost of raw materials fluctuates due to a number of factors, including changes in supplier feedstock costs and inventories, global industry activity levels, foreign currency exchange rates, government regulation, tariffs, and global supply and demand factors, any of which could drive an increase in raw material costs.
Additionally, the cost of raw materials fluctuates due to a number of factors, including changes in supplier feedstock costs and inventories, changes in the production capacity of suppliers, global industry activity levels, foreign currency exchange rates, government regulation, tariffs, export constraints and global supply and demand factors, any of which could increase raw material costs.
However, fluctuations in foreign currency exchange rates, particularly the strengthening or weakening of the U.S. dollar against major currencies, could adversely or positively affect our financial condition and results of operations which are expressed in U.S. dollars. The industries in which we operate are highly competitive.
However, fluctuations in foreign currency exchange rates, particularly the strengthening or weakening of the U.S. dollar 2025 PPG ANNUAL REPORT AND FORM 10-K 10 against major currencies, could adversely or positively affect our financial condition and results of operations which are expressed in U.S. dollars. The industries in which we operate are highly competitive.
There is a high level of uncertainty surrounding future global economic conditions due to a number of factors, including the impact of higher interest rates, geopolitical uncertainty, including the international impacts of the ongoing wars in Ukraine and Israel and increasing tensions between China and the United States, commodity market volatility, potential changes to international trade agreements, the imposition of tariffs and the threat of additional tariffs, 2024 PPG ANNUAL REPORT AND FORM 10-K 10 and labor shortages in certain regions of the world.
There is a high level of uncertainty surrounding future global economic conditions due to a number of factors, including the impact of fluctuating interest rates, geopolitical uncertainty, including the international impacts of the ongoing wars in Ukraine and increasing tensions between China and the United States, commodity market volatility, potential changes to international trade agreements, the imposition of tariffs and the threat of additional tariffs, and labor shortages in certain regions of the world.
Vehicle manufacturers continue to develop new safety features such as collision avoidance technology and self-driving vehicles that may reduce vehicle collisions in the future, potentially lowering demand for our automotive refinish coatings.
Vehicle manufacturers continue to develop new safety features such as collision avoidance technology and self-driving vehicles that may reduce vehicle collisions in the future, potentially 2025 PPG ANNUAL REPORT AND FORM 10-K 13 lowering demand for our automotive refinish coatings.
In addition, through the introduction of new technologies, new 2024 PPG ANNUAL REPORT AND FORM 10-K 13 business models or new methods of travel, such as ridesharing, the number of automotive OEM new-builds may decline, potentially reducing demand for our automotive OEM coatings and related automotive parts.
In addition, through the introduction of new technologies, new business models or new methods of travel, such as ridesharing, the number of automotive OEM new-builds may decline, potentially reducing demand for our automotive OEM coatings and related automotive parts.
It is not possible for us to predict the occurrence or consequence of any such events. However, such events could reduce our 2024 PPG ANNUAL REPORT AND FORM 10-K 12 ability to supply products, reduce demand for our products or make it difficult or impossible for us to receive raw materials from suppliers or to deliver products to customers.
It is not possible for us to predict the occurrence or consequence of any such events. However, such events could reduce our ability to supply products, reduce demand for our products or make it difficult or impossible for us to receive raw materials from suppliers or to deliver products to customers.
Our information technology systems, networks and services have been, and will likely continue to be, subject to cybersecurity attacks. We have implemented and operate a cybersecurity program designed to protect and preserve the confidentiality, integrity and availability of our networks and systems as well as information that we own or is in our care.
We have implemented and operate a cybersecurity program designed to protect and preserve the confidentiality, integrity and availability of our networks and systems as well as information that we own or is in our care.
Growth through acquisitions is an important component of the Company’s strategy. Over the last decade, we have successfully completed more than 50 acquisitions, and we will likely acquire additional businesses and enter into additional joint ventures in the future.
Over the last decade, we have successfully completed more than 50 acquisitions, and we will likely acquire additional businesses and enter into additional joint ventures in the future.
Due to economic and political conditions, tax rates in these various jurisdictions may be subject to significant changes. For example, the Organisation for Economic Co-operation and Development has proposed modernizing international tax rules, including global minimum tax standards (referred to as Pillar 2), which has caused an increase to our effective tax rate.
Due to economic and political conditions, tax rates in these various jurisdictions may be subject to significant changes. For example, a number of countries have enacted legislation to implement the Organisation for Economic Co-operation and Development’s global minimum tax standards (referred to as Pillar 2), which has caused an increase to our effective tax rate.
A material cybersecurity event could result in negative publicity, theft or other financial loss, modification or destruction of proprietary information or key information, manufacture of defective products, theft of personally identifiable information, and/or production downtimes and operational disruptions, which could adversely affect our results of operations. We may not effectively integrate acquired businesses into our existing operations.
A material cybersecurity event could result in negative publicity, theft or other financial loss, modification or destruction of proprietary information or key information, manufacture of defective products, theft of personally identifiable information, and/or production downtimes and operational disruptions, which could adversely affect our results of operations. We are incorporating artificial intelligence technologies into our research, products, services and processes.
This is dependent on a number of factors, including our ability to produce products that meet the quality, performance and price expectations of our customers and our ability to develop effective sales, advertising and marketing programs. We believe the automotive industry will experience significant and continued change in the coming years, including an increase in the production of electric vehicles.
This is dependent on a number of factors, including our ability to produce and deliver products that meet the quality, performance and price expectations of our customers and our ability to develop effective sales, advertising and marketing programs.
In 2024, PPG completed the divestiture of its U.S. and Canada Architectural Coatings business, which further increases the percentage of sales recognized outside the U.S. During 2024, approximately 68% of the Company’s total net sales were recognized outside of the United States. Business disruptions could have a negative impact on our results of operations and financial condition.
During 2025, approximately 70% of the Company’s total net sales were recognized outside of the United States. Business disruptions could have a negative impact on our results of operations and financial condition.
Recently, there has been an increase in global geopolitical uncertainty due to a number of factors, including the international impacts of the ongoing wars in Ukraine and Israel and increasing tensions between China and the United States.
Recently, there has been an increase in global geopolitical uncertainty due to a number of factors, including the international impacts of the ongoing war in Ukraine and increasing tensions between China and the United States. In 2024, PPG completed the divestiture of its U.S. and Canada Architectural Coatings business, which further increases the percentage of sales recognized outside the U.S.
The techniques, tools and tactics used in cyber-attacks evolve rapidly, including from emerging technologies such as advanced automation or artificial intelligence and may be difficult to detect for periods of time. As a result we may face difficulties in anticipating and implementing adequate preventative measures or fully mitigating harms after such an attack.
The techniques, tools and tactics used in cyber-attacks evolve rapidly, including 2025 PPG ANNUAL REPORT AND FORM 10-K 12 from emerging technologies such as advanced automation or artificial intelligence and may be difficult to detect for periods of time.
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We are subject to a variety of laws and regulations, which could increase our compliance costs and could adversely affect our results of operations.
Added
As a result we may face difficulties in anticipating and implementing adequate preventative measures or fully mitigating harms after such an attack. Our information technology systems, networks and services have been, and will likely continue to be, subject to cybersecurity attacks.
Added
These technologies may present business, operational, compliance and reputational risks. Artificial intelligence (“AI”) and machine-learning technology continue to advance rapidly, presenting both opportunities and risks. If we cannot incorporate these rapidly advancing technologies as quickly or effectively as other companies, our competitive position and business results may suffer.
Added
Incorporation of these new technologies into our processes may result in new or expanded risks, including risks related to regulatory compliance, litigation, ethical concerns, confidentiality or cybersecurity, among other factors that could potentially adversely impact our business, reputation and financial results.
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The use of AI in the development of our products and services could increase the risk of loss or theft of our intellectual property and could subject us to incremental risks related to data privacy and cybersecurity.
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The use of AI can lead to unintended consequences, including generating content that appears correct but is factually inaccurate, misleading or otherwise flawed, or that results in unintended biases and discriminatory outcomes, which could harm our stakeholders, our reputation and our business.
Added
Additionally, we face risks of competitive disadvantage if our competitors are able to more effectively use AI to create products or services at a lower cost or higher quality compared to PPG’s competing products or services. We may not effectively integrate acquired businesses into our existing operations. Growth through acquisitions is an important component of the Company’s strategy.
Added
We believe the automotive industry will experience significant and continued change in the coming years, including an increase in the production of electric vehicles.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThis communication hierarchy includes protocols for informing the Audit Committee and the full Board of certain cybersecurity events and/or incidents and for determining the materiality thereof.
Biggest changeThis communication hierarchy includes protocols for informing the Audit Committee and the full Board of certain cybersecurity events or incidents and for determining the materiality thereof.
Our cybersecurity program includes: • ongoing employee cybersecurity awareness and training activities, which include frequent phishing testing; • access management and access controls intended to implement Principle of Least Privilege (PoLP) access; • protection of certain data through encryption at rest and in transit; • monitoring and protection software; • a vulnerability management program that includes managing the risk of third-party software; • a cyber incident response plan that provides controls and procedures to support appropriate containment, response, investigation, reporting and recovery of cybersecurity incidents; 2024 PPG ANNUAL REPORT AND FORM 10-K 14 • periodic testing of our cybersecurity posture, including by independent third-party consultants; and • integrating cybersecurity requirements and other provisions into various contracts.
Our cybersecurity program includes: • ongoing employee cybersecurity awareness and training activities, which include frequent phishing testing; • access management and access controls intended to implement Principle of Least Privilege (PoLP) access; • protection of certain data through encryption at rest and in transit; • monitoring and protection software; • a vulnerability management program that includes managing the risk of third-party software; • a cyber incident response plan that provides controls and procedures to support appropriate containment, response, investigation, reporting and recovery of cybersecurity incidents; 2025 PPG ANNUAL REPORT AND FORM 10-K 14 • periodic testing of our cybersecurity posture, including by independent third-party consultants; and • integrating cybersecurity requirements and other provisions into various contracts.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Company’s principal research and development centers are located in Allison Park, Pa.; Tianjin, China; Cleveland, Oh.; Springdale, Pa.; Milan, Italy; Monroeville, Pa.; Ingersheim, Germany; Marly, France; Oak Creek, Wi.; Sumare, Brazil; Amsterdam, Netherlands; Vantaa, Finland; Tepexpan, Mexico; Burbank, Ca.; Zhangjiagang, China; Cheonan, Republic of Korea; Wroclaw, Poland; Bangplee, Thailand; and Sylmar, Ca.
Biggest changeThe Company’s principal research and development centers are located in Allison Park, Pa.; Burbank, Ca.; Cleveland, Oh.; Monroeville, Pa.; Oak Creek, Wi.; Springdale, Pa.; Sylmar, Ca.; Amsterdam, Netherlands; Bangplee, Thailand; Cheonan, Republic of Korea; Clayton, Australia; Ingersheim, Germany; Marly, France; Milan, Italy; Sumare, Brazil; Tepexpan, Mexico; Tianjin, China; Vantaa, Finland; Wroclaw, Poland; and Zhangjiagang, China.
Our facilities are considered to be suitable and adequate for the purposes for which they are intended and overall have sufficient capacity to conduct business in the upcoming year. 2024 PPG ANNUAL REPORT AND FORM 10-K 15
Our facilities are considered to be suitable and adequate for the purposes for which they are intended and overall have sufficient capacity to conduct business in the upcoming year. 2025 PPG ANNUAL REPORT AND FORM 10-K 15

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Delaware Court of Chancery has set a trial date of May 6, 2025 for the PPG Lawsuit. PPG believes the risk of loss associated with this matter is remote. For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos.
Biggest changeA bench trial for the PPG Lawsuit was held in the Delaware Court of Chancery in May 2025. The court ordered post-trial briefing, and a final oral argument was held in July 2025. PPG expects the trial court to issue its final decision in 2026. PPG believes the risk of loss associated with this matter is remote.
Westlake informed PPG that although it will continue to defend the case and pursue an appeal of the award, it will not post any bond, pay any judgment, or take any steps to prevent the plaintiff from attempting to execute on the judgment against PPG. 2024 PPG ANNUAL REPORT AND FORM 10-K 16 On May 17, 2024, Eagle Spinco filed a lawsuit against PPG in Delaware Superior Court alleging breach of the Separation Agreement and requesting declaratory relief (the “Eagle Spinco Lawsuit”).
Westlake informed PPG that although it will continue to defend the case and pursue an appeal of the award, it will not post any bond, pay any judgment, or take any steps to prevent the plaintiff from attempting to execute on the judgment against PPG. 2025 PPG ANNUAL REPORT AND FORM 10-K 16 On May 17, 2024, Eagle Spinco filed a lawsuit against PPG in Delaware Superior Court alleging breach of the Separation Agreement and requesting declaratory relief (the “Eagle Spinco Lawsuit”).
Braun served as Senior Vice President, Industrial Coatings Segment from May 2023 through September 2024, Vice President, Global Industrial Coatings from January 2020 through April 2023 and as Vice President, Industrial Coatings, Americas from September 2013 through December 2019. (f) Ms. Ericson served as Senior Vice President, Packaging Coatings from July 2018 through December 2022.
Braun served as Senior Vice President, Industrial Coatings Segment from May 2023 through September 2024, Vice President, Global Industrial Coatings from January 2020 through April 2023 and as Vice President, Industrial Coatings, Americas from September 2013 through December 2019. (g) Ms. Ericson served as Senior Vice President, Packaging Coatings from July 2018 through December 2022.
She served as President of SUEZ Chemical Monitoring and Solutions from 2017 until 2018, President of General Electric Water Services Company from 2015 to 2017 and President and Chief Executive Officer of Alstom SA’s U.S. business from 2013 to 2015. (g) Mr.
She served as President of SUEZ Chemical Monitoring and Solutions from 2017 until 2018, President of General Electric Water Services Company from 2015 to 2017 and President and Chief Executive Officer of Alstom SA’s U.S. business from 2013 to 2015. (h) Ms.
(b) Ms. Foulkes served as Senior Vice President, General Counsel and Secretary from April 2022 to June 2022 and from August 2018 to September 2018, Vice President and Associate General Counsel and Secretary from March 2016 through July 2018 and Assistant General Counsel and Secretary from April 2011 through February 2016. (c) Mr.
Foulkes served as Senior Vice President and General Counsel from September 2018 to December 2025, Vice President and Associate General Counsel and Secretary from March 2016 through July 2018 and Assistant General Counsel and Secretary from April 2011 through February 2016. (i) Mr.
Morales served as Vice President, Finance from June 2016 through February 2017. From June 2015 through June 2016, he served as Vice President, Investor Relations and Treasurer and from October 2007 through May 2015 he served as Vice President, Investor Relations. (d) Mr.
From June 2015 through June 2016, he served as Vice President, Investor Relations and Treasurer and from October 2007 through May 2015 he served as Vice President, Investor Relations. (d) Ms. Bellezza served as Vice President, Global Automotive Coatings from July 2023 to through February 2024.
Hagerty (g) 51 Senior Vice President, Automotive Refinish Coatings since May 2023 (a) Mr. Knavish served as President and Chief Executive Officer from January 2023 until September 2023. Mr.
Massy (k) 48 Senior Vice President and Chief Human Resources Officer since March 2024 (a) Mr. Knavish served as President and Chief Executive Officer from January 2023 until September 2023. Mr.
Bergström served as Vice President, Architectural Coatings, Latin America, EMEA and Asia Pacific from February 2022 through April 2023 and as Vice President Architectural Coatings, Latin America from April 2017 through January 2022. (e) Effective October 1, 2024, Mr. Braun was named Senior Vice President, Operations. Mr.
Bergström served as Vice President, Architectural Coatings, Latin America, EMEA and Asia Pacific from February 2022 through April 2023 and as Vice President Architectural Coatings, Latin America from April 2017 through January 2022. 2025 PPG ANNUAL REPORT AND FORM 10-K 17 (f) Mr.
For a description of asbestos litigation affecting the Company, see Note 15, “Commitments and Contingent Liabilities” to the accompanying consolidated financial statements in Part I, Item 8 of this Form 10-K. 2024 PPG ANNUAL REPORT AND FORM 10-K 17 Information About Our Executive Officers Set forth below is information related to the Company’s executive officers as of February 20, 2025.
For many years, PPG has been a defendant in lawsuits involving claims alleging personal injury from exposure to asbestos. For a description of asbestos litigation affecting the Company, see Note 15, “Commitments and Contingent Liabilities” to the accompanying consolidated financial statements in Part I, Item 8 of this Form 10-K.
Hagerty served as Vice President, Global Automotive Refinish Coatings from January 2020 through April 2023 and as Vice President, Global Industrial Coatings from January 2019 through December 2019. Item 4. Mine Safety Disclosures Not Applicable. 2024 PPG ANNUAL REPORT AND FORM 10-K 18 Part II
Hagerty served as Vice President, Global Automotive Refinish Coatings from January 2020 through April 2023 and as Vice President, Global Industrial Coatings from January 2019 through December 2019. (j) Ms. Hefel served as Vice President, Specialty Coatings and Materials from November 2023 through December 2025. Ms.
Henrik Bergström (d) 52 Senior Vice President, Architectural Coatings, Latin America, EMEA and Asia Pacific since May 2023 Kevin D. Braun (e) 56 Senior Vice President, Operations since October 2024 Amy R. Ericson (f) 59 Senior Vice President, Protective and Marine Coatings since January 2023 Chancey E.
Morales (c) 60 Senior Vice President and Chief Financial Officer since March 2017 Alisha E. Bellezza (d) 50 Senior Vice President, Automotive Coatings since March 2024 K. Henrik Bergström (e) 53 Senior Vice President, Global Architectural Coatings since May 2023 Kevin D. Braun (f) 57 Senior Vice President, Operations since October 2024 Amy R.
Name Age Title Timothy M. Knavish (a) 59 Chairman and Chief Executive Officer since October 2023 Anne M. Foulkes (b) 62 Senior Vice President and General Counsel since September 2018 Vincent J. Morales (c) 59 Senior Vice President and Chief Financial Officer since March 2017 K.
Information About Our Executive Officers Set forth below is information related to the Company’s executive officers as of February 19, 2026. Name Age Title Timothy M. Knavish (a) 60 Chairman and Chief Executive Officer since October 2023 Joseph R. Gette (b) 53 Senior Vice President, General Counsel and Secretary since January 2026 Vincent J.
Added
Ericson (g) 60 Senior Vice President, Protective and Marine Coatings since January 2023 Anne M. Foulkes (h) 63 Senior Vice President, Law and Special Projects since January 2026 Chancey E. Hagerty (i) 52 Senior Vice President, Automotive Refinish Coatings since May 2023 Juliane M. Hefel (j) 50 Senior Vice President, Industrial Coatings and Specialty Products since January 2025 Robert L.
Added
(b) Mr. Gette served as Vice President, Deputy General Counsel and Secretary from June 2022 through December 2025. Previously, Mr. Gette served as Assistant General Counsel, Mergers and Acquisitions and Securities from 2018 to 2022. (c) Mr. Morales served as Vice President, Finance from June 2016 through February 2017.
Added
She joined PPG in 2023 from Chemours where she served as President, Thermal and Specialized Solutions and prior to that as Vice President, Global Sales, Commercial Operations and Supply Chain from 2018 to 2020 and as Vice President, Treasurer and Head of Investor Relations from 2016 to 2018. (e) Mr.
Added
Hefel joined PPG in September 2022 from Henkel where she served as Corporate Vice President, Automotive OEM Business Americas and prior to that as Vice President, Acoustics and Structurals Business, North America and Mexico. (k) Mr.
Added
Massy joined PPG in March 2024 from Westinghouse Electric Company where he served as Executive Vice President, Chief Administrative Officer and Chief Human Resources Officer. Prior to Westinghouse, Mr. Massy served as Global Head of Talent and Development at Weatherford International. Item 4. Mine Safety Disclosures Not Applicable. 2025 PPG ANNUAL REPORT AND FORM 10-K 18 Part II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn April 2024, PPG’s Board of Directors authorized the repurchase of an additional $2.5 billion of outstanding common stock. The remaining shares yet to be purchased under the program has been calculated using PPG’s closing stock price on the last business day of the respective month. The repurchase programs do not have an expiration date. Item 6. [Reserved]
Biggest changeThe remaining shares yet to be purchased under the program have been calculated using PPG’s closing stock price on the last business day of the respective month. The repurchase program does not have an expiration date. Item 6. [Reserved]
Issuer Purchases of Equity Securities - Fourth Quarter 2024 Month Total Number of Shares Purchased Avg. Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Max.
Issuer Purchases of Equity Securities - Fourth Quarter 2025 Month Total Number of Shares Purchased Avg. Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Max.
Number of Shares That May Yet Be Purchased Under the Programs (1) October 2024 Repurchase program — $— — 24,177,629 November 2024 Repurchase program — $— — 24,204,845 December 2024 Repurchase program 2,034,464 $122.92 2,034,464 23,108,291 Total quarter ended December 31, 2024 Repurchase program 2,034,464 — 2,034,464 23,108,291 (1) In December 2017, PPG's board of directors approved a $2.5 billion share repurchase program.
Number of Shares That May Yet Be Purchased Under the Programs (1) October 2025 Repurchase program — $— — 21,264,544 November 2025 Repurchase program 119,832 $100.16 119,832 20,657,807 December 2025 Repurchase program 858,658 $102.41 858,658 19,311,666 Total quarter ended December 31, 2025 Repurchase program 978,490 $102.13 978,490 19,311,666 (1) In April 2024, PPG’s Board of Directors approved a $2.5 billion share repurchase plan.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

77 edited+21 added−52 removed45 unchanged
Biggest changeCost of sales, exclusive of depreciation and amortization % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cost of sales, exclusive of depreciation and amortization $9,252 $9,678 $9,975 (4.4)% (3.0)% Cost of sales as a % of net sales 58.4 % 59.6 % 63.9 % (1.2)% (4.3)% 2024 vs. 2023 Cost of sales, exclusive of depreciation and amortization, decreased $426 million due to the following: ● Moderating raw material costs ● Lower sales volume 2023 vs. 2022 Cost of sales, exclusive of depreciation and amortization, decreased $297 million due to the following: ● Moderating raw material costs ● Lower sales volume Partially offset by: ● Wage and other cost inflation Selling, general and administrative expenses % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Selling, general and administrative expenses $3,391 $3,401 $3,037 (0.3)% 12.0% Selling, general and administrative expenses as a % of net sales 21.4 % 20.9 % 19.5 % 0.5% 1.4% 2024 vs. 2023 Selling, general and administrative expenses decreased $10 million primarily due to: ● Restructuring cost savings ● Lower performance-based compensation Partially offset by: ● Wage and other cost inflation 2023 vs. 2022 Selling, general and administrative expenses increased $364 million primarily due to: ● Wage and other cost inflation ● Unfavorable foreign currency translation ● Higher performance-based compensation expense 2024 PPG ANNUAL REPORT AND FORM 10-K 20 ● Selling, general and administrative expenses from acquired businesses Partially offset by: ● Restructuring cost savings Other charges and other income % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Interest expense $241 $247 $167 (2.4)% 47.9% Interest income ($177) ($140) ($54) 26.4% 159.3% Business restructuring, net $233 ($2) $33 N/A N/A Impairment and other related charges, net $146 $160 $231 (8.8)% (30.7)% Pension settlement charge $— $190 $— N/A N/A Other charges/(income), net ($8) $80 ($66) N/A N/A Interest expense Interest expense decreased $6 million in 2024 versus 2023 primarily due to lower debt balances.
Biggest changeCost of sales, exclusive of depreciation and amortization % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Cost of sales, exclusive of depreciation and amortization $9,316 $9,252 0.7% Cost of sales as a % of net sales 58.7 % 58.4 % 0.3% Cost of sales, exclusive of depreciation and amortization, increased $64 million due to the following: ● Wage and other cost inflation ● Higher sales volumes ● Unfavorable foreign currency translation Partially offset by: ● Increased manufacturing productivity ● Divestitures Selling, general and administrative expenses % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Selling, general and administrative expenses $3,439 $3,391 1.4% Selling, general and administrative expenses as a % of net sales 21.7 % 21.4 % 0.3% Selling, general and administrative expenses increased $48 million primarily due to: ● Wage and other cost inflation ● Unfavorable foreign currency translation Partially offset by: ● Restructuring savings ● Divestitures Depreciation % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Depreciation $403 $360 11.9% Depreciation as a % of net sales 2.5 % 2.3 % 0.2% Depreciation increased $43 million primarily due to: ● Accelerated depreciation expense ● Unfavorable foreign currency translation Partially offset by: ● Divestitures Other charges and other income % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Interest expense $241 $241 —% Interest income ($153) ($177) (13.6)% Business restructuring, net $6 $233 (97.4)% Impairment and other related charges, net $24 $146 (83.6)% Other charges/(income), net $6 ($8) N/A 2025 PPG ANNUAL REPORT AND FORM 10-K 20 Business restructuring, net In October 2024, the Company approved a comprehensive cost reduction program focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the divestitures of PPG’s silicas products business and the architectural coatings business in the U.S. and Canada.
Refer to Note 18, “Other (Income)/Charges, Net” in Item 8 of this Form 10-K for additional information.
Refer to Note 18, “Other Charges/(Income), Net” in Item 8 of this Form 10-K for additional information.
(2) Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization and Selling, general and administrative on the consolidated statement of income.
(2) Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges/(income), net on the consolidated statement of income.
The Term Loan and the Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Term Loan and the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time.
The Term Loan and the Credit Agreement require the Company to maintain a ratio of Total Indebtedness to Total Capitalization, as defined in the Credit Agreement, of 60% or less; provided, that for any fiscal quarter in which the Company has made an acquisition for consideration in excess of $1 billion and for the next five fiscal quarters thereafter, the ratio of Total Indebtedness to Total Capitalization may not exceed 65% at any time.
Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the Company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net in the consolidated statement of income.
Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net on the consolidated statement of income.
Refer to Note 10, “Borrowings and Lines of Credit” in Item 8 of this Form 10-K for information regarding notes entered into and repaid as well as details regarding the use and availability of committed and uncommitted lines of credit, letters of credit and debt covenants. 2024 PPG ANNUAL REPORT AND FORM 10-K 32 Cash requirements We continue to believe that our cash on hand and short-term investments, cash from operations and the Company’s access to capital markets will continue to be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans, and PPG’s significant cash requirements.
Refer to Note 10, “Borrowings and Lines of Credit” in Item 8 of this Form 10-K for information regarding notes entered into and repaid as well as details regarding the use and availability of committed and uncommitted lines of credit, letters of credit and debt covenants. 2025 PPG ANNUAL REPORT AND FORM 10-K 29 Cash requirements We continue to believe that our cash on hand and short-term investments, cash from operations and the Company’s access to capital markets will continue to be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans, and PPG’s significant cash requirements.
Accounting Standards to be Adopted in Future Years Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes accounting pronouncements that have been promulgated prior to December 31, 2024 but are not effective until a future date.
Accounting Standards to be Adopted in Future Years Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes accounting pronouncements that have been promulgated prior to December 31, 2025 but are not effective until a future date.
Raw materials are the Company’s most significant input cost. PPG experiences fluctuating energy and raw material costs driven by various factors, including changes in supplier feedstock costs and inventories, global industry activity levels, foreign currency exchange rates, and global supply and demand factors. In 2024, the company incurred wage inflation, which adversely impacted operating costs compared to 2023.
Raw materials are the Company’s most significant input cost. PPG experiences fluctuating energy and raw material costs driven by various factors, including changes in supplier feedstock costs and inventories, global industry activity levels, foreign currency exchange rates, tariffs and global supply and demand factors. In 2025, the Company incurred wage inflation, which adversely impacted operating costs compared to 2024.
In addition to using management estimates and negotiated amounts, the Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities including: third-party appraisals for the estimated value and lives of identifiable 2024 PPG ANNUAL REPORT AND FORM 10-K 33 intangible assets and property, plant and equipment; third-party actuaries for the estimated obligations of defined benefit pension plans and similar benefit obligations; and legal counsel or other experts to assess the obligations associated with legal, environmental and other contingent liabilities.
In addition to using management 2025 PPG ANNUAL REPORT AND FORM 10-K 30 estimates and negotiated amounts, the Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities including: third-party appraisals for the estimated value and lives of identifiable intangible assets and property, plant and equipment; third-party actuaries for the estimated obligations of defined benefit pension plans and similar benefit obligations; and legal counsel or other experts to assess the obligations associated with legal, environmental and other contingent liabilities.
Such factors include statements related to global economic conditions, geopolitical issues, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the imposition of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, cybersecurity events, global human health issues, the unpredictability of existing and possible future 2024 PPG ANNUAL REPORT AND FORM 10-K 34 litigation, including asbestos litigation, and government investigations.
Such factors include statements related to global economic conditions, geopolitical issues, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the imposition of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, cybersecurity events, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and government investigations.
This range is the Company’s best estimate and represents an increase compared to the 2024 adjusted effective tax rate driven by higher rates in certain countries, including the impact of recent global minimum tax standards, and the geographic mix of earnings.
This range is the Company’s best estimate and represents an increase compared to the 2025 adjusted effective tax rate driven by higher rates in certain countries, including the impact of global minimum tax standards, and the geographic mix of earnings.
Other liquidity matters At December 31, 2024, the total amount of unrecognized tax benefits for uncertain tax positions, including an accrual of related interest and penalties along with positions only impacting the timing of ta x benefits, was $152 million. The timing of payments will depend on the progress of examinations by tax authorities.
Other liquidity matters At December 31, 2025, the total amount of unrecognized tax benefits for uncertain tax positions, including an accrual of related interest and penalties along with positions only impacting the timing of ta x benefits, was $122 million. The timing of payments will depend on the progress of examinations by tax authorities.
In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of December 31, 2024, December 31, 2023 and December 31, 2022.
In connection with any such designation, the Company is required to guarantee the obligations of any such subsidiaries under the Credit Agreement. There were no amounts outstanding under the Credit Agreement as of December 31, 2025 and December 31, 2024.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion includes a comparison of our results of operations and liquidity and capital resources for the years ended December 31, 2024, 2023 and 2022.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion includes a comparison of our results of operations and liquidity and capital resources for the years ended December 31, 2025 and 2024.
As of December 31, 2024, Total Indebtedness to Total Capitalization as defined under the Credit Agreement and the Term Loan was 45%. In addition to the amounts available under lines of credit, the Company maintains access to the capital markets and may issue debt or equity securities from time to time, which may provide an additional source of liquidity.
As of December 31, 2025, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 47%. In addition to the amounts available under lines of credit, the Company maintains access to the capital markets and may issue debt or equity securities from time to time, which may provide an additional source of liquidity.
Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. Accounting Standards Adopted in 2024 Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes the Company’s recently adopted accounting pronouncements.
Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time. 2025 PPG ANNUAL REPORT AND FORM 10-K 26 Accounting Standards Adopted in 2025 Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes the Company’s recently adopted accounting pronouncements.
The 2025 effective tax rate from continuing operations is expected to be in the range of 23% to 25%, varying by quarter.
The 2026 effective tax rate from continuing operations is expected to be in the range of 24% to 25%, varying by quarter.
Comparing spot exchange rates at December 31, 2023 and at December 31, 2022, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso. As a result, consolidated net assets at December 31, 2023 increased by $508 million from December 31, 2022.
Currency Comparing spot exchange rates at December 31, 2025 and at December 31, 2024, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso and the euro. As a result, consolidated net assets at December 31, 2025 increased by $949 million from December 31, 2024.
During 2025, capital expenditures, which are expected to be approximately $725 million to $775 million, will support future organic growth opportunities. The Company will continue to deploy cash focused on shareholder value creation.
During 2026, capital expenditures, which are expected to be approximately $650 million to $700 million, will support future organic growth opportunities. The Company will continue to deploy cash focused on shareholder value creation.
(3) Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other (income)/charges, net on the consolidated statement of income, including the gain of $129 million on the sale of the Company's silicas products business in the fourth quarter 2024, and the losses on the sales of the Company's traffic solutions business in Argentina in the second quarter 2024, the Company's European and Australian Traffic Solutions businesses in the fourth quarter 2023 and the Company's legacy industrial Russian operations in the third quarter 2023.
(3) Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other charges/(income), net on the consolidated statement of income, including the gain of $129 million on the sale of the company's silicas products business in the fourth quarter 2024, and the loss on the sale of the company's traffic solutions business in Argentina in the second quarter 2024.
Results were supported by the breadth and diversity of the business portfolio, as the Company benefited from higher prices in several businesses which was more than offset by unfavorable foreign currency translation, divestitures and lower sales volumes.
Results were supported by the breadth and diversity of the business portfolio, as the Company benefited from higher prices and sales volumes in several businesses and favorable foreign currency translation, which was offset by the impact of divestitures completed in 2024.
Traffic solutions organic sales increased by a low single-digit percentage year over year due to higher sales volumes, which benefited from market share gains across North America.
Traffic solutions organic sales increased by a mid single-digit percentage year over year due to higher sales volumes, which benefited from market share gains across North America, partially offset by lower selling prices.
In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million. In January 2025, PPG borrowed the additional €300 million.
In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million. In December 2024, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €300 million.
This had a favorable impact of approximately $25 million on full year 2023 Income before income taxes from the translation of this foreign income into U.S. dollars. Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company.
This resulted in an unfavorable impact of $8 million on full year 2025 Income before income taxes from the translation of foreign income into U.S. dollars. Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company.
We expect that foreign currency exchange rates will have a net unfavorable impact on net income from continuing operations in 2025; however, the Company generally purchases raw materials, incurs manufacturing costs and sells finished goods in the same currency, which reduces foreign currency transaction-related impacts to net income.
Based on recent exchange rates, we expect that foreign currency exchange rates will have a slightly favorable impact on net income 2025 PPG ANNUAL REPORT AND FORM 10-K 22 from continuing operations in 2026; however, the Company generally purchases raw materials, incurs manufacturing costs and sells finished goods in the same currency, which reduces foreign currency transaction-related impacts to net income.
The Company expects strong cash generation in 2025. Regulation G Reconciliations - Results from Operations PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, PPG’s effective tax rate and segment income adjusted for certain items.
Regulation G Reconciliations - Results from Operations PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, and PPG’s effective tax rate adjusted for certain items, and segment income before interest, taxes, depreciation and amortization.
Performance Overview Net Sales by Region % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 United States and Canada $5,352 $5,485 $5,346 (2.4)% 2.6% Europe, Middle East and Africa (EMEA) 5,386 5,617 5,458 (4.1)% 2.9% Asia Pacific 2,912 2,873 2,824 1.4% 1.7% Latin America 2,195 2,267 1,986 (3.2)% 14.1% Total $15,845 $16,242 $15,614 (2.4)% 4.0% 2024 vs. 2023 Net sales decreased $397 million due to the following: ● Lower sales volumes (-1%) ● Unfavorable foreign currency translation and divestitures (-1%) 2024 PPG ANNUAL REPORT AND FORM 10-K 19 For specific business results, see the Performance of Reportable Business Segments section within Item 7 of this Form 10-K. 2023 vs. 2022 Net sales increased $628 million due to the following: ● Higher selling prices (+5%) ● Favorable foreign currency translation (+1%) Partially offset by: ● Lower sales volumes (-2%) For specific business results, see the Performance of Reportable Business Segments section within Item 7 of this Form 10-K.
Performance Overview Net Sales by Region % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 United States and Canada $5,372 $5,352 0.4% Europe, Middle East and Africa (EMEA) 5,368 5,386 (0.3)% Asia Pacific 2,937 2,912 0.9% Latin America 2,198 2,195 0.1% Total $15,875 $15,845 0.2% Net sales increased $30 million due to the following: ● Higher selling prices (+1%) ● Higher sales volumes (+1%) ● Favorable foreign currency translation (+1%) 2025 PPG ANNUAL REPORT AND FORM 10-K 19 Partially offset by: ● Divestitures (-3%) For specific business results, see the Performance of Reportable Business Segments section within Item 7 of this Form 10-K.
Over the past four years, the Company used nearly $1.3 billion of cash to repurchase approximately nine million shares of PPG stock, including using $752 million to repurchase shares of PPG stock during 2024. The Company ended the year with approximately $2.8 billion remaining under its current share repurchase authorization.
Over the past three years, the Company used nearly $1.6 billion of cash to repurchase approximately 12 million shares of PPG stock, including using $790 million to repurchase shares of PPG stock during 2025. The Company ended the year with approximately $2.0 billion remaining under its current share repurchase authorization.
Looking Ahead In the first quarter 2025, demand in Mexico is expected to continue to be robust, and consumer sentiment in Europe is expected to be tepid. Aggregate organic sales for the segment are expected to be in the range of flat to an increase of a low single-digit percentage compared to the first quarter 2024.
Looking Ahead In the first quarter 2026, demand in Mexico is expected to be strong and consumer sentiment in Europe is expected to be tepid. First quarter 2026 organic sales for the Global Architectural Coatings segment are anticipated to increase in the range of by a low single-digit percentage to a mid-single-digit percentage compared to the first quarter 2025.
In October 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented, including savings of $60 million in 2025.
In October 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented. Total restructuring savings were approximately $75 million in 2025 and the Company expects approximately $50 million in incremental savings in 2026.
As a result, the Company classified the business as held for sale as of December 31, 2024 and recognized an impairment charge of $146 million, primarily related to accumulated foreign currency translation losses.
In 2024, the Company received written approval from Russian regulatory authorities of a definitive agreement to sell the Company’s remaining Russian business. As a result, the Company classified the business as held for sale as of December 31, 2024 and recognized an impairment charge of $146 million, primarily related to accumulated foreign currency translation losses.
Specialty products organic sales increased by a mid-single-digit percentage primarily due to higher sales volumes, partially offset by lower selling prices.
Sales volume increases were partially offset by lower index-based selling prices in all regions. Specialty products organic sales increased by a mid-single-digit percentage due to higher sales volumes and higher selling prices.
However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and in Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
However, it is not possible to predict or identify all such factors. 2025 PPG ANNUAL REPORT AND FORM 10-K 31 Consequently, while the list of factors presented here and in Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.
($ in millions, except percentages and per share amounts) Income Before Income Taxes Income Tax Expense Effective Tax Rate Net Income (attributable to PPG) Earnings per Diluted Share (1) Year-ended December 31, 2024 As reported, continuing operations $1,852 $475 25.6 % $1,344 $5.72 Includes: Acquisition-related amortization expense 132 32 24.2 % 100 0.42 Business restructuring-related costs, net (2) 377 53 14.1 % 324 1.39 Portfolio optimization (3) 59 (6) (10.2 %) 65 0.28 Legacy environmental remediation charges (4) 24 6 25.0 % 18 0.07 Insurance recoveries (7) (4) (1) 25.0 % (3) (0.01) Adjusted, continuing operations, excluding certain items $2,440 $559 22.9 % $1,848 $7.87 ($ in millions, except percentages and per share amounts) Income Before Income Taxes Income Tax Expense Effective Tax Rate Net Income (attributable to PPG) Earnings per Diluted Share (1) Year-ended December 31, 2023 As reported, continuing operations $1,690 $428 25.3 % $1,223 $5.16 Includes: Acquisition-related amortization expense 154 39 25.3 % 115 0.48 Business restructuring-related costs, net (2) 41 8 19.5 % 33 0.14 Portfolio optimization (3) 53 (7) (13.2 %) 58 0.24 Legacy environmental remediation charges (4) 24 7 29.2 % 17 0.07 Impairment and other related charges, net (5) 160 — — % 160 0.67 Argentina currency devaluation losses (6) 20 (4) (20.0 %) 24 0.10 Insurance recoveries (7) (16) (4) 25.0 % (12) (0.05) Pension settlement charge (8) 190 46 24.2 % 144 0.61 Adjusted, continuing operations, excluding certain items $2,316 $513 22.2 % $1,762 $7.42 2024 PPG ANNUAL REPORT AND FORM 10-K 24 ($ in millions, except percentages and per share amounts) Income Before Income Taxes Income Tax Expense Effective Tax Rate Net Income (attributable to PPG) Earnings per Diluted Share (1) Year-ended December 31, 2022 As reported, continuing operations $1,355 $320 23.6 % $1,007 $4.24 Includes: Acquisition-related amortization expense 145 35 24.1 % 110 0.46 Business restructuring-related costs, net (2) 72 18 25.3 % 54 0.23 Portfolio optimization (3) 10 (2) (20.0 %) 12 0.05 Impairment and other related charges, net (5) 231 29 12.7 % 202 0.86 Adjusted, continuing operations, excluding certain items $1,813 $400 22.1 % $1,385 $5.84 (1) Earnings per diluted share is calculated based on unrounded numbers.
($ in millions, except percentages and per share amounts) Income Before Income Taxes Income Tax Expense Effective Tax Rate Net Income (attributable to PPG) Earnings per Diluted Share (1) Year-ended December 31, 2025 As reported, continuing operations $2,045 $458 22.4 % $1,571 $6.92 Includes: Acquisition-related amortization expense 125 31 24.4 % 94 0.41 Business restructuring-related costs, net (2) 54 14 25.9 % 40 0.18 Portfolio optimization (3) 1 3 N/A (2) (0.01) Income from legal settlement (4) (12) (3) 24.3 % (9) (0.04) Resolution of tax matter (5) 41 27 67.4 % 14 0.06 Legacy environmental remediation charges (6) 16 4 24.3 % 12 0.05 Insurance recoveries (7) (6) (2) 24.3 % (4) (0.02) Impairment and other related charges, net (8) 24 6 24.3 % 6 0.03 Adjusted, continuing operations, excluding certain items $2,288 $538 23.5 % $1,722 $7.58 2025 PPG ANNUAL REPORT AND FORM 10-K 23 ($ in millions, except percentages and per share amounts) Income Before Income Taxes Income Tax Expense Effective Tax Rate Net Income (attributable to PPG) Earnings per Diluted Share (1) Year-ended December 31, 2024 As reported, continuing operations $1,852 $475 25.6 % $1,344 $5.72 Includes: Acquisition-related amortization expense 132 32 24.2 % 100 0.42 Business restructuring-related costs, net (2) 377 53 14.1 % 324 1.39 Portfolio optimization (3) 59 (6) (10.2 %) 65 0.28 Legacy environmental remediation charges (6) 24 6 25.0 % 18 0.07 Insurance recoveries (7) (4) (1) 25.0 % (3) (0.01) Adjusted, continuing operations, excluding certain items $2,440 $559 22.9 % $1,848 $7.87 (1) Earnings per diluted share is calculated based on unrounded numbers.
Segment income increased $172 million year over year primarily due to higher selling prices and moderating raw material costs, partially offset by wage and other cost inflation and lower sales volumes.
Segment income decreased $18 million year over year primarily due lower index-based selling prices and wage and other cost inflation, partially offset by increased manufacturing productivity, higher sales volumes, and restructuring and other cost savings.
Share repurchase activity ($ in millions, except number of shares) 2024 2023 2022 Number of shares repurchased (millions) 5.8 0.6 1.5 Cash paid for shares repurchased $752 $86 $190 The Company has approximately $2.8 billion remaining under the current authorization from the Board of Directors.
Share repurchase activity ($ in millions, except number of shares) 2025 2024 Number of shares repurchased (millions) 6.9 5.8 Cash paid for shares repurchased $790 $752 The Board of Directors authorized a $2.5 billion share repurchase plan in April 2024. The Company has approximately $2.0 billion remaining under the current authorization. The repurchase program does not have an expiration date.
Effective tax rate and earnings per diluted share, continuing operations % Change % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Income tax expense $475 $428 $320 11.0% 33.8% Effective tax rate 25.6 % 25.3 % 23.6 % 0.3% 1.7% Adjusted effective tax rate, continuing operations* 22.9 % 22.2 % 22.1 % 0.7% 0.1% Earnings per diluted share, continuing operations $5.72 $5.16 $4.24 10.9% 21.7% Adjusted earnings per diluted share, continuing operations* $7.87 $7.42 $5.84 6.1% 27.1% *See the Regulation G reconciliations - results of operations The effective tax rate on continuing operations for the year ended December 31, 2024 was 25.6%, an increase of 0.3% compared to the prior year.
Effective tax rate and earnings per diluted share, continuing operations % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Income tax expense $458 $475 (3.6)% Effective tax rate 22.4 % 25.6 % (3.2)% Adjusted effective tax rate, continuing operations* 23.5 % 22.9 % 0.6% Earnings per diluted share, continuing operations $6.92 $5.72 21.0% Adjusted earnings per diluted share, continuing operations* $7.58 $7.87 (3.7)% *See the Regulation G reconciliations - results of operations The effective tax rate on continuing operations for the year ended December 31, 2025 was 22.4%, a decrease of 3.2% compared to the prior year, primarily due to the absence of the 2024 impairment charge, which had no associated income tax benefit, and a reduction in the provision for uncertain tax positions.
Earnings per diluted share from continuing operations for the year ended December 31, 2023 increased year over year primarily due to increased selling prices, moderating raw material cost inflation and favorable foreign currency translation impact, partially offset by lower sales volumes. Refer to the Regulation G Reconciliations - Results from Operations for additional information.
Adjusted earnings per diluted share from continuing operations for the year ended December 31, 2025 decreased year over year due to the unfavorable impact of sales mix and overhead and other cost inflation, partially offset by higher selling prices, increased manufacturing productivity and restructuring savings. Refer to the Regulation G Reconciliations - Results from Operations for additional information.
Aggregate organic sales for the segment are anticipated to decrease by a mid-single-digit percentage to a low single-digit percentage compared to the first quarter 2024.
First quarter 2026 organic sales for the segment are anticipated to be within the range of down by a low single-digit percentage to flat compared to the first quarter 2025.
Dividends paid to shareholders ($ in millions) 2024 2023 2022 Dividends paid to shareholders $622 $598 $570 PPG has paid uninterrupted annual dividends since 1899, and 2024 marked the 53rd successive year of increased annual per-share dividend payments to shareholders. The Company raised its per-share quarterly dividend by approximately 5% to $0.68 per share in July 2024.
Dividends paid to shareholders ($ in millions) 2025 2024 Dividends paid to shareholders $628 $622 PPG has paid uninterrupted annual dividends since 1899, and 2025 marked the 54th successive year of increased annual per-share dividend payments to shareholders.
Cash used for financing activities % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cash used for financing activities $1,425 $1,550 $409 (8.1)% 279.0% 2024 vs. 2023 The $125 million decrease in cash used for financing activities was primarily due to lower repayments of long-term debt, partially offset by higher share repurchases. 2023 vs. 2022 The $1,141 million increase in cash used for financing activities was primarily due to repayment of long-term debt and lower proceeds from the issuance of debt, partially offset by the absence of net payments on commercial paper.
Cash used for financing activities % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Cash used for financing activities $545 $1,425 (61.8)% The $880 million decrease in cash used for financing activities was primarily due to increased proceeds from long-term debt, partially offset by higher repayments of long-term debt.
(4) Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other (income)/charges, net in the consolidated statement of income.
In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income. (6) Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges/(income), net on the consolidated statement of income.
During 2024, the Company deployed $721 million for capital expenditures, $622 million for dividends and $31 million for acquisitions. In 2024, PPG marked the 53rd annual per share dividend increase and the 125th successive year of annual dividend payments. 2024 PPG ANNUAL REPORT AND FORM 10-K 23 PPG ended 2024 with approximately $1.4 billion in cash and short-term investments.
During 2025, the Company deployed $778 million for capital expenditures and $628 million for dividends. In 2025, PPG marked the 54th annual per share dividend increase and the 126th successive year of annual dividend payments. PPG ended 2025 with approximately $2.2 billion in cash and short-term investments. The Company expects strong cash generation in 2026.
Review and Outlook During 2024, PPG demonstrated resilience in a challenging industrial macroeconomic environment by growing adjusted EPS, improving aggregate segment margins and generating $1.4 billion in operating cash flow. Net sales were $15.8 billion, a decrease of 2% over the prior year.
Review and Outlook During 2025, PPG demonstrated resilience in a challenging macroeconomic environment by growing both selling prices and sales volumes and generating $1.9 billion in operating cash flow. Net sales were $15.9 billion, similar to the prior year.
In July 2023, PPG amended and restated the Credit Agreement, extending the term through July 27, 2028. The amended and restated Credit Agreement provides for a $2.3 billion unsecured revolving credit facility.
The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028.
Comparing average exchange rates during 2023 to those of 2022, the U.S. dollar weakened against the currencies of certain countries where PPG operates, including the Mexican peso and the euro, partially offset by strengthening against the Chinese yuan and Argentine peso.
Comparing average exchange rates during 2025 to those of 2024, the U.S. dollar strengthened against the currencies of certain countries where PPG operates, including the Mexican peso and the euro, during the first half of 2025, but the U.S. dollar weakened in the second half of the year, resulting in a net unfavorable impact to Income before taxes in the first half of the year partially offset by a net favorable impact in the second half of 2025.
Net sales decreased during 2024, primarily driven by lower sales volumes. Architectural coatings EMEA organic sales decreased by a low single-digit percentage year over year due to lower sales volumes partially offset by higher selling prices. Consumer confidence remained weak, and regional demand was uneven by country.
Overall demand for architectural coatings in Europe was lower and mixed by country. Architectural coatings Latin America and Asia Pacific organic sales increased by a low single-digit percentage during the year primarily due to higher selling prices partially offset by lower sales volumes.
($ in millions, except percentages) 2024 2023 Trade receivables, net $2,477 $2,622 Inventories, FIFO 2,015 2,117 Trade creditors’ liabilities 2,161 2,438 Operating working capital $2,331 $2,301 Operating working capital as a % of fourth quarter sales, annualized 15.6 % 14.7 % Trade receivables, net as a % of fourth quarter sales, annualized 16.6 % 16.8 % Days sales outstanding 51 55 Inventories, FIFO as a % of fourth quarter sales, annualized 13.5 % 13.5 % Inventory turnover 4.5 4.2 Environmental expenditures ($ in millions) 2024 2023 2022 Cash outlays related to environmental remediation activities $28 $31 $73 We expect cash outlays for environmental remediation activities to be between $20 million to $60 million annually from 2025 through 2029.
($ in millions, except percentages) 2025 2024 Trade receivables, net $2,783 $2,477 Inventories, FIFO 2,177 2,015 Less: trade creditors’ liabilities 2,212 2,161 Operating working capital $2,748 $2,331 Operating working capital as a % of fourth quarter sales, annualized 17.6 % 15.6 % Trade receivables, net as a % of fourth quarter sales, annualized 17.8 % 16.6 % Days sales outstanding 59 51 Inventories, FIFO as a % of fourth quarter sales, annualized 13.9 % 13.5 % Inventory turnover 4.4 4.5 Environmental expenditures ($ in millions) 2025 2024 Cash outlays related to environmental remediation activities $24 $28 We expect cash outlays for environmental remediation activities to be between $20 million and $60 million annually from 2026 through 2030. 2025 PPG ANNUAL REPORT AND FORM 10-K 27 Cash used for investing activities - continuing operations % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Cash used for investing activities - continuing operations $700 $399 75.4% The $301 million increase in cash used for investing activities - continuing operations was primarily due to higher capital expenditures and the absence of proceeds from the divestiture of our silicas products business that occurred in 2024.
Performance of Reportable Business Segments Global Architectural Coatings $ Change % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 2024 vs. 2023 2023 vs. 2022 Net sales $3,921 $4,021 $3,852 ($100) $169 (2.5)% 4.4% Segment income $678 $673 $558 $5 $115 0.7% 20.6% Depreciation and amortization expense $104 $101 $102 $3 ($1) 3.0% (1.0)% Segment income before interest, taxes, depreciation and amortization (EBITDA) $782 $774 $660 $8 $114 1.0% 17.3% 2024 PPG ANNUAL REPORT AND FORM 10-K 25 2024 vs. 2023 Global Architectural Coatings net sales decreased due to the following: ● Lower sales volumes (-2%) ● Foreign currency translation (-1%) Partially offset by: ● Higher selling prices (+1%) The Global Architectural Coatings segment, which was previously reported as part of the Performance Coatings segment, is comprised of architectural coatings Europe, Middle East and Africa (EMEA) and architectural coatings Latin America and Asia Pacific.
Performance of Reportable Business Segments Global Architectural Coatings $ Change % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 2025 vs. 2024 Net sales $3,838 $3,921 ($83) (2.1)% Segment income $599 $678 ($79) (11.7)% Depreciation and amortization expense $109 $104 $5 4.8% Segment income before interest, taxes, depreciation and amortization (EBITDA) $708 $782 ($74) (9.5)% Global Architectural Coatings net sales decreased due to the following: ● Divestitures (-3%) ● Lower sales volumes (-2%) Partially offset by: ● Higher selling prices (+2%) ● Favorable foreign currency translation (+1%) 2025 PPG ANNUAL REPORT AND FORM 10-K 24 Architectural coatings EMEA organic sales decreased by a low single-digit percentage year over year due to lower sales volumes partially offset by higher selling prices.
In 2024, foreign currency exchange rates were volatile, with the U.S. dollar strengthening in the second half of the year against certain currencies in the countries within the regions where PPG operates, resulting in a net unfavorable impact to net income from continuing operations of approximately $20 million.
In 2025, the U.S. dollar strengthened against certain currencies in the countries where PPG operates during the first half of 2025, but weakened in the second half of the year, resulting in a net unfavorable impact to net income from continuing operations in the first half of the year partially offset by a net favorable impact in the second half of the year.
Earnings per diluted share from continuing operations for the year ended December 31, 2024 increased year over year primarily due to lower overhead costs, restructuring cost savings and moderating raw material costs, partially offset by lower sales volumes.
Earnings per diluted share from continuing operations for the year ended December 31, 2025 increased year over year primarily due to lower business restructuring and impairment and other related charges, higher selling prices, improved manufacturing productivity, restructuring savings and the lower effective tax rate, partially offset by the unfavorable impact of sales mix and overhead and other cost inflation.
In Mexico, the concessionaire network demand was strong throughout 2023. Segment income increased $115 million year over year primarily due to higher selling prices and moderating raw material costs, partially offset by wage and other cost inflation and lower sales volumes.
In Mexico, retail demand for architectural coatings was solid and project-related spending continued to improve throughout the year. Segment income decreased $79 million year over year primarily due to wage and other cost inflation and lower sales volumes, partially offset by higher selling prices and cost reductions, including restructuring savings.
Net payments on commercial paper were zero for both the years ended December 31, 2024 and December 31, 2023 and $440 million for the year ended December 31, 2022. Credit agreements and lines of credit In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan").
Credit agreements and lines of credit In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan").
During 2022, the Company recorded Impairment and other related charges, net of $231 million primarily related to the wind down of the Company’s operations in Russia. Refer to Note 6, “Goodwill and Other Identifiable Intangible Assets” and Note 7 ”Impairment and Other Related Charges, Net” in Item 8 of this Form 10-K for additional information.
Refer to Note 7 ”Impairment and Other Related Charges, Net” in Item 8 of this Form 10-K for additional information.
Automotive OEM coatings organic sales decreased by a high single-digit percentage year over year driven by lower sales volumes and lower indexed-based selling prices for certain customer contracts. Sales volume increases in the Latin America and Asia Pacific regions were more than offset by declines in the U.S. and Europe.
Sales volume increases in the Latin America and Asia-Pacific regions were partially offset by declines in the United States and Europe, which decreased primarily due to lower new vehicle production. For the industrial coatings business, organic sales decreased by a low single-digit percentage due to lower selling prices, including the impact of lower index-based prices under certain customer contracts.
Net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") decreased 1% during the year with continued strong growth in our aerospace coatings business, which was more than offset by declines in the industrial coatings and automotive OEM coatings businesses. On a regional basis, sales volumes were modestly higher in the Asia Pacific and Latin America regions.
Net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased 2% during the year with continued strong growth in our aerospace coatings business and share gains in both the packaging coatings business and the protective and marine business, which were partially offset by declines in the automotive refinish coatings, industrial coatings and architectural coatings EMEA businesses.
Despite the lower demand, PPG outperformed the market in both Latin America and Asia Pacific. In the U.S. and Canada, demand was strong for aerospace coatings, packaging coatings and traffic solutions but declined for most other businesses.
On a regional basis, sales volume increases in the United States and Canada, Asia-Pacific and Latin America regions were partially offset by decreases in Europe. In the U.S. and Canada, demand was strong for aerospace coatings, protective and marine coatings, packaging coatings and traffic solutions but declined for most other businesses.
We achieved selling price improvement across several businesses in 2024 stemming from our advantaged products and solutions. The Company will carefully monitor all costs during 2025 and assess the need for additional selling price increases.
The Company will carefully monitor all costs during 2026 and assess the need for additional selling price increases.
Aerospace coatings organic sales increased by a double-digit percentage driven by increases in both price and sales volume in all regions. Demand remained strong and customer order backlogs are at similar levels to the prior year. Global air travel has improved year over year, but domestic flights remain about 3% below pre-pandemic levels.
Aerospace coatings organic sales increased by a double-digit percentage driven by increases in both price and sales volume in all regions. Demand remained strong, and customer order backlogs increased to approximately $315 million, even with improved production and other productivity gains.
Automotive refinish coatings organic sales increased a low single-digit percentage year over year. Price gains in all regions and sales volume growth in the Latin America and Asia Pacific regions were partially offset by lower sales volumes in all other regions. Aerospace coatings organic sales were higher by 20% driven by increases in both price and volume.
Sales volume increases in Europe and the Asia-Pacific region were offset by decreases in the United States. Packaging coatings organic sales increased by a high single-digit percentage year over year due to higher sales volumes in all regions, including share gains in Europe aided by expanding regional regulations.
In the first quarter 2023, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2020. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.
(7) In the first quarter 2025, the Company received reimbursement under its insurance policies for damages incurred at a southern U.S. factory from a winter storm in 2021. In the fourth quarter 2024, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters.
First quarter aggregate organic sales for the Performance Coatings segment are anticipated to increase by a low single-digit percentage to a mid-single-digit percentage compared to the first quarter 2024. 2024 PPG ANNUAL REPORT AND FORM 10-K 27 Industrial Coatings $ Change % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 2024 vs. 2023 2023 vs. 2022 Net sales $6,687 $7,089 $6,970 ($402) $119 (5.7)% 1.7% Segment income $893 $968 $646 ($75) $322 (7.7)% 49.8% Depreciation and amortization expense $206 $213 $207 ($7) $6 (3.3)% 2.9% Segment EBITDA $1,099 $1,181 $853 ($82) $328 (6.9)% 38.5% 2024 vs. 2023 Industrial Coatings segment net sales decreased due to the following: ● Lower selling prices (-3%) ● Lower sales volumes (-2%) ● Unfavorable foreign currency translation and the silicas products business divestiture (-1%) In 2024, Industrial Coatings segment Net sales decreased due to lower selling prices and lower sales volume driven by lower industry demand.
First quarter 2026 organic sales for the segment are anticipated to be within the range of down by a low single-digit percentage to flat compared to the first quarter 2025. 2025 PPG ANNUAL REPORT AND FORM 10-K 25 Industrial Coatings $ Change % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 2025 vs. 2024 Net sales $6,524 $6,687 ($163) (2.4)% Segment income $875 $893 ($18) (2.0)% Depreciation and amortization expense $192 $206 ($14) (6.8)% Segment EBITDA $1,067 $1,099 ($32) (2.9)% Industrial Coatings segment net sales decreased due to the following: ● Divestitures (-4%) ● Lower selling prices (-1%) Partially offset by: ● Higher sales volumes (+2%) ● Favorable foreign currency translation (+1%) Automotive OEM coatings organic sales were flat year over year with higher sales volumes offset by lower index-based selling prices for certain customer contracts.
Cash and cash equivalents and short-term investments ($ in millions) 2024 2023 Cash and cash equivalents $1,270 $1,493 Short-term investments 88 75 Total $1,358 $1,568 Cash from operating activities - continuing operations ($ in millions, except percentages) % Change 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cash from operating activities - continuing operations $1,391 $2,294 $1,000 (39.4)% 129.4% 2024 vs. 2023 The $903 million decrease in Cash from operating activities - continuing operations was primarily due to unfavorable changes in working capital compared to the prior year.
Cash and cash equivalents and short-term investments ($ in millions) 2025 2024 Cash and cash equivalents $2,163 $1,270 Short-term investments 56 88 Total $2,219 $1,358 Cash from operating activities - continuing operations ($ in millions, except percentages) % Change 2025 2024 2025 vs. 2024 Cash from operating activities - continuing operations $1,936 $1,391 39.2% The $545 million increase in Cash from operating activities - continuing operations was primarily due to higher net income and higher accounts payable and accrued liabilities, including the impact of lower incentive-based compensation payouts in 2025 versus 2024.
Despite the macroeconomic environment, we expect to deliver organic sales growth of a low single-digit percentage for the year. We anticipate demand growth in China, India and Mexico, continued strength in aerospace coatings as well as protective and marine coatings and expect growth in automotive refinish coatings above industry rates.
Despite the macroeconomic environment, we expect growth will be driven by aerospace coatings and architectural coatings in Mexico as well as share gains in our Industrial Coatings segment, resulting in organic sales growth in the range of flat to a positive low single-digit percentage.
Gaining momentum in infrastructure spending should aid the traffic solutions business in 2025. Global industrial production is expected to be a headwind and remain at a low level in the first quarter with improvement in the Asia Pacific and Latin America regions offset by sluggishness in Europe and in the U.S.
Looking Ahead In the first quarter 2026, global industrial production is expected to remain at a relatively low level with the potential for slight improvement in the United States, Europe and the Asia-Pacific region and lower demand in Latin America.
Debt issued and repaid Debt Issued (net of premium/discount and issuance costs) Year $ in millions Term Loan Credit Agreement, due 2026 2024 $274 Term Loan Credit Agreement, due 2026 2023 $550 1.875% notes (€300) due 2025 2022 $319 2.750% notes (€700) due 2029 2022 $742 1.95% note (€50) due 2037 2022 $55 Debt Repaid Year $ in millions 2.4% notes ($300) 2024 $300 3.2% notes ($300) 2023 $300 Term Loan Credit Agreement, due 2024 2023 $1,100 Term Loan Credit Agreement, due 2024 2022 $300 Acquired debt 2022 $2 2024 PPG ANNUAL REPORT AND FORM 10-K 31 The Company’s commercial paper borrowings are classified as long-term debt based on PPG’s intent and ability to refinance these borrowings on a long-term basis.
The Company raised its per-share quarterly dividend by approximately 5% to $0.71 per share in July 2025. 2025 PPG ANNUAL REPORT AND FORM 10-K 28 Debt issued and repaid Debt Issued (net of premium/discount and issuance costs) Year $ in millions 4.375% notes ($700), due 2031 2025 $693 3.250% notes (€900), due 2032 2025 $940 Term Loan, due 2028 (1) 2025 $309 Term Loan, due 2028 (1) 2024 $274 Term Loan, due 2028 (1) 2023 $550 Debt Repaid Year $ in millions 0.875% notes (€600) 2025 $698 1.875% notes (€300) 2025 $341 2.4% notes ($300) 2024 $300 3.2% notes ($300) 2023 $300 Term Loan Credit Agreement, due 2024 2023 $1,100 (1) As of December 31, 2025, the Term Loan was due in 2028.
Cash used for investing activities - continuing operations % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Cash used for investing activities - continuing operations $399 $525 $430 (24.0)% 22.1% 2024 vs. 2023 The $126 million decrease in cash used for investing activities - continuing operations was primarily due to proceeds from the sale of our silicas products business, partially offset by higher capital expenditures. 2023 vs. 2022 The $95 million increase in cash used for investing activities was primarily due to higher capital expenditures and lower proceeds from asset sales. 2024 PPG ANNUAL REPORT AND FORM 10-K 30 Capital expenditures, including business acquisitions % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Capital expenditures (1) $721 $516 $486 39.7% 6.2% Business acquisitions, net of cash balances acquired $31 $109 $114 (71.6)% (4.4)% Total capital expenditures, including acquisitions $752 $625 $600 20.3% 4.2% Capital expenditures, excluding acquisitions, as a % of sales 4.6 % 3.2 % 3.1 % 43.8% 3.2% (1) Includes modernization and productivity improvements, expansion of existing businesses and environmental control projects.
Capital expenditures, including business acquisitions % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 Capital expenditures (1) $778 $721 7.9% Business acquisitions, net of cash balances acquired $1 $31 (96.8)% Total capital expenditures, including acquisitions $779 $752 3.6% Capital expenditures, excluding acquisitions, as a % of sales 4.9 % 4.6 % 0.3% (1) Includes modernization and productivity improvements, expansion of existing businesses and environmental control projects.
The Company remains focused on debottlenecking and expanding manufacturing capabilities to drive volume and earnings growth. Protective and marine coatings organic sales increased by a low single-digit percentage compared to the prior year driven by higher sales volumes in Europe and Asia.
Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior year driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.
Performance Coatings $ Change % Change ($ in millions, except percentages) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 2024 vs. 2023 2023 vs. 2022 Net sales $5,237 $5,132 $4,792 $105 $340 2.0% 7.1% Segment income $1,142 $1,019 $847 $123 $172 12.1% 20.3% Depreciation and amortization expense $132 $139 $142 ($7) ($3) (5.0)% (2.1)% Segment EBITDA $1,274 $1,158 $989 $116 $169 10.0% 17.1% 2024 PPG ANNUAL REPORT AND FORM 10-K 26 2024 vs. 2023 Performance Coatings net sales increased due to the following: ● Higher selling prices (+3%) ● Higher sales volumes (+1%) Partially offset by: ● Divestiture-related sales and other (-2%) Net sales for the Performance Coatings segment, which is now comprised of aerospace coatings, automotive refinish coatings, protective and marine coatings, and traffic solutions, increased 2% during 2024.
Performance Coatings $ Change % Change ($ in millions, except percentages) 2025 2024 2025 vs. 2024 2025 vs. 2024 Net sales $5,513 $5,237 $276 5.3% Segment income $1,148 $1,142 $6 0.5% Depreciation and amortization expense $134 $132 $2 1.5% Segment EBITDA $1,282 $1,274 $8 0.6% Performance Coatings net sales increased due to the following: ● Higher selling prices (+3%) ● Higher sales volumes (+2%) Automotive refinish coatings organic sales decreased by a mid-single-digit percentage with lower sales volumes partially offset by higher selling prices.
PPG made significant progress to reduce costs and improve the profitability of the overall business portfolio through the global restructuring programs that were announced in 2022 and 2023. Total restructuring savings were approximately $40 million in 2024.
This reflects the strength of our focused organization and our sharpened portfolio of technology-advantaged products and services. Significant other factors During the year, PPG made significant progress to reduce costs and improve the profitability of the overall business portfolio through the global restructuring programs.
The adjusted effective tax rate was 22.9%, which was higher than the prior year adjusted effective tax rate in part due to the adverse impact of the Pillar 2 global minimum tax.
The adjusted effective tax rate was 23.5%, which was slightly higher than the prior year adjusted effective tax rate.
There was an ample supply of commodity-related raw materials in all regions, and raw material costs were a favorable impact to our operating costs for 2024 versus 2023. In 2025, we anticipate that increased raw material costs and enacted tariffs will result in low single-digit percentage inflation. Additionally, we expect manufacturing efficiencies to improve as the year progresses.
There was an ample supply of commodity-related raw materials in all regions, and raw material inflation had a negligible impact on our operating costs for 2025 versus 2024. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during 2025.
The Term Loan terminates and all amounts outstanding are payable in April 2026. In April 2023, PPG borrowed €500 million under the Term Loan. In December 2023, PPG obtained lender commitments sufficient to increase the size of the Term Loan by €250 million. In January 2024, PPG borrowed the additional €250 million.
In January 2025, PPG borrowed the additional €300 million. In January 2026, the Term Loan was amended to extend its maturity. Based on this amendment, the Term Loan terminates and all amounts outstanding are payable in January 2029.
In Latin America, demand was solid throughout the year with steady demand for architectural products and growth in automotive OEM products and packaging coatings. The PPG Comex business made strong contributions, supported by a focus on its omnichannel sales approach. Demand was soft in Europe with the largest impact on the automotive OEM coatings business and the architectural coatings business.
However, demand for architectural retail sales was strong within the region, and the Company delivered growth in automotive OEM products and packaging coatings. Demand was soft in Europe with the largest impact on the automotive OEM coatings business and the architectural coatings business. In 2026, we anticipate demand in Europe and in global industrial end-use markets to remain challenged.
Earnings per diluted share from continuing operations was $5.72, compared to $5.16 in the prior year. Adjusted earnings per diluted share was $7.87, up 6% compared to $7.42 in 2023. Combined, segment income increased by 2%. Aggregate segment margins were 70 basis points higher than the prior year, driven by sales of our technology-advantaged products and strong brands.
Earnings per diluted 2025 PPG ANNUAL REPORT AND FORM 10-K 21 share from continuing operations was $6.92, compared to $5.72 in the prior year. Adjusted earnings per diluted share was $7.58, a decrease of 4% compared to $7.87 in 2024. Total segment income decreased by 3%.
Segment income increased $123 million year over year primarily due to higher selling prices and moderating raw material costs, partially offset by wage and other cost inflation. 2023 vs. 2022 Performance Coatings net sales increased due to the following: ● Higher selling prices (+7%) In 2023, all businesses within the Performance Coatings reportable business segment achieved higher selling prices.
Segment income increased $6 million year over year with higher selling prices and manufacturing efficiencies, offset by the impact of unfavorable sales mix and raw material, wage and other cost inflation. Looking Ahead In the first quarter 2026, continued strength in aerospace coatings is anticipated.
Demand for PPG products was mixed by end-use market and geographic region during 2024. Demand for aerospace coatings, which was impacted by mobility restrictions in 2020 and 2021, continues to recover. Global automotive OEM manufacturers’ production decreased by about 1% versus 2023 due to lower demand and extended maintenance periods in the U.S. and Europe.
Demand for PPG products was mixed by end-use market and geographic region during 2025. Demand for aerospace coatings and protective and marine coatings was strong with double-digit percentage organic sales growth year over year. Automotive refinish coatings demand was impacted by lower collision claims in the U.S. which drove volume declines in the second half of 2025.
Removed
The Company’s financial results have been recast to present the results of the architectural coatings business in the U.S. and Canada as discontinued operations for all periods presented.
Added
A discussion of changes in our results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023 has been omitted from this Form 10-K, but may be found in “Item 7.
Removed
Highlights Net sales were approximately $15.8 billion in 2024, a decrease of 2% compared to the prior year, due to sales volumes declining and the combination of unfavorable foreign currency translation and divestitures reducing net sales.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+1 added−0 removed3 unchanged
Biggest changeAs of both December 31, 2024 and 2023, PPG had non-U.S. dollar denominated debt outstanding of $3.3 billion. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses of $369 million and $363 million as of December 31, 2024 and 2023, respectively.
Biggest changeA weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses of $457 million and $369 million as of December 31, 2025 and 2024, respectively.
Interest Rate Risk The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both December 31, 2024 and December 31, 2023, respectively.
Interest Rate Risk The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both December 31, 2025 and December 31, 2024, respectively.
The potential reduction in PPG’s Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies for the years ended December 31, 2024 and 2023 would have been $429 million and $402 million, respectively.
The potential reduction in PPG’s Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies for the years ended December 31, 2025 and 2024 would have been $447 million and $429 million, respectively.
Certain foreign currency forward contracts outstanding during 2024 and 2023 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts were net liabilities of $53 million and net assets of $23 million as of December 31, 2024 and December 31, 2023, respectively .
Certain foreign currency forward contracts outstanding during 2025 and 2024 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts were net assets of $1 million and net liabilities of $53 million as of December 31, 2025 and December 31, 2024, respectively .
A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $31 million and $46 million at December 31, 2024 and 2023, respectively.
A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $40 million and $31 million at December 31, 2025 and 2024, respectively.
Further, a 10% reduction in interest rates would have increased the fair value of the Company’s fixed rate debt by approximately $77 million and $96 million as of December 31, 2024 and 2023, respectively; however, such changes would not have had an effect on PPG’s annual Income before income taxes or cash flows. 2024 PPG ANNUAL REPORT AND FORM 10-K 35
Further, a 10% reduction in interest rates would have increased the fair value of the Company’s fixed rate debt by approximately $73 million and $77 million as of December 31, 2025 and 2024, respectively; however, such changes would not have had an effect on PPG’s annual Income before income taxes or cash flows. 2025 PPG ANNUAL REPORT AND FORM 10-K 32
The fair values of these contracts were liabilities of $16 million and $14 million as of December 31, 2024 and 2023, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased interest expense by $5 million for both the periods ended December 31, 2024 and 2023.
The fair values of these contracts were liabilities of $6 million and $16 million as of December 31, 2025 and 2024, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased interest expense by $2 million and $5 million for the periods ended December 31, 2025 and 2024, respectively.
PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $375 million and $475 million as of December 31, 2024 and December 31, 2023, respectively . The fair value of these contracts were net assets of $50 million and $33 million as of December 31, 2024 and 2023, respectively.
PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $375 million as of both December 31, 2025 and December 31, 2024 . The fair value of these contracts were net assets of $11 million and $50 million as of December 31, 2025 and 2024, respectively.
Considering the debt balance outstanding as of December 31, 2024 and 2023, a 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $3 million and by $2 million, respectively.
Considering the debt balance outstanding as of December 31, 2025 and 2024, a 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $3 million for both the periods ended December 31, 2025 and 2024.
Added
As of December 31, 2025 and December 31, 2024, PPG had non-U.S. dollar denominated debt outstanding of $4.1 billion and $3.3 billion, respectively.

Other PPG 10-K year-over-year comparisons