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F500 2021-219-PPG Industries

With operations in nearly 70 countries around the world, PPG is a global supplier of paints, coatings, and specialty materials.

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F500-2020-209-PPG-Industires

The Pittsburgh-based company makes paint, protective and decorative coatings, glass, silica products, and other materials, and operates in nearly 70 countries. PPG saw profits and revenues dip last year, bumping it four spots lower on our ranking.

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Founded in 1883, PPG is the world’s second-largest coatings producer and a top player in nearly every end market it serves, including auto manufacturing, aerospace, and refinishing. It manufactures and distributes paints, coatings, and specialty materials through three segments: Global Architectural Coatings, Performance Coatings, and Industrial Coatings. It's divested several divisons in recent years, including its silicas products business and its U.S. and Canada architectural coatings business in 2024. After the divestments, the paints and coatings giant still operates in more than 70 countries.

Q2 2026

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PPG Industries (PPG): Company Profile, Stock Price, News, Rankings

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PPG Industries

ppg industries

Ladies and gentlemen, the first quarter twenty twenty five PPG earnings call will begin shortly with our host, Alex Lopez. We appreciate your patience as we prepare your session today. During the call, we encourage participants to raise any questions they may have. Good morning, all, and thank you for joining us for the First Quarter twenty twenty five PPG Earnings Conference Call. My name is Carly, and I'll be coordinating the call today.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I'd now like to hand over to our host, Alex Lopez. The floor is yours.

Thank you, Carly, and good morning, everyone. This is Alex Lopez. We appreciate your continued interest in PPG and welcome you to our first quarter twenty twenty five earnings conference call. Joining me today from PPG are Tim Kenevich, Chairman and Chief Executive Officer and Vince Morales, Senior Vice President and Chief Financial Officer. Our comments relate to the financial information released after U.

S. Equity markets closed on Tuesday, 04/29/2025. We have posted detailed commentary and the accompanying presentation slides, which are being shown on this webcast on the Investor Center of our website, ppg.com. Following management's perspective on the company's results, we will move to Q and A session. Both the prepared commentary and discussion during this call may contain forward looking statements reflecting the company's current view of future events and their potential effects on PPE's operating and financial performance.

These statements involve uncertainties and risks, which may cause actual results to differ. The company is under no obligation to provide subsequent updates to these forward looking statements. The presentation also contains certain non GAAP financial measures. The company has provided in the appendix of the presentation materials, which are available on our website, reconciliations of these non GAAP financial measures to the most directly comparable GAAP financial measures. For additional information, please refer to filings with the SEC.

Now let me introduce PPG Chairman and CEO, Tim Kaniewicz.

Thank you, Alex, and welcome, everyone. I'd like to start by providing a few highlights on our first quarter twenty twenty five financial performance and then I'll move to our outlook. The PPG team delivered sales of $3,700,000,000 This is a decrease of four percent compared with the first quarter of twenty twenty four, primarily due to unfavorable foreign currency translation and the impact from business divestitures including the Silicas business. We are beginning to realize the benefits of our enterprise growth strategy as organic sales grew year over year with increases in both sales volumes and selling prices. Regionally, we delivered year over year organic sales growth in Asia driven by strong performance in China, India and Vietnam.

In The U. S, after six quarters of declines or flat performance, we achieved 4% organic sales growth led by share gains in several of our businesses and improvement in industrial production. Organic sales in Latin America were up slightly with growth tempered by the recent geopolitical environment. European organic sales were down 1%, which was significant improvement versus prior quarters as demand for our products were stabilizing in the region. Our top line results reinforce our positive organic growth momentum and contributed to improved manufacturing productivity.

As we noted in our earnings materials released last night, our first quarter segment EBITDA margin was 19.4% and adjusted earnings per diluted share was $1.72 Also, we repurchased approximately $400,000,000 of our stock and ended the quarter with a strong balance sheet. Before we go through the quarterly details, let me first talk about how our results and momentum reflect the consistent disciplined execution of the enterprise growth strategy that we launched in 2023. We are beginning to benefit from the actions we have taken to optimize and focus our portfolio. The development of PPG's organic growth muscle and strategic investments in innovation are driving positive momentum. The company is aggressively managing the bottom line including decisive self help, Combined with our disciplined capital allocation and strong balance sheet, in today's environment, PPG is in a great and differentiated position to prevail in the current economic conditions.

Looking at our segment performance. In the Global Architectural Coatings segment, first quarter net sales were significantly impacted by unfavorable foreign currency translation, which decreased sales by 7% as both the Mexican peso and Europe weakened year over year compared to the U. S. Dollar. In Architectural Coatings EMEA, organic sales were flat versus prior year with improved selling prices offset by slightly lower sales volumes.

Sales increased in Central Europe and in The Nordic region while they declined in Western Europe. Our volumes in Europe were slightly unfavorable but stabilizing and we expect flat to higher volumes year over year in the second quarter. We are making rapid progress reducing structural costs in this region and anticipate strong incremental earnings leverage as demand trends improve. In Architectural Coatings, Latin America and Asia Pacific, sales volumes declined reflecting a pause in project related business and governmental spending in Mexico due to recent geopolitical related uncertainty. However, core retail sales were solid.

We anticipate economic activity and project spending in Mexico will resume in the upcoming quarters as more certainty regarding regional trade evolves. With its structural advantages, Mexico will remain a strong growth country for PPG. Segment EBITDA margin decreased three ten basis points versus prior year driven by lower sales volumes and regional inflation stemming from the weaker peso, partially offset by cost control actions. In the Performance Coatings segment, first quarter organic sales increased 9% with both price and sales volume improvements. Within the segment, Aerospace delivered double digit percentage organic sales growth with record first quarter sales and earnings.

Customer order backlogs were stable at $300,000,000 even with growth related investments that improved our output in the quarter. The backlog demonstrates excellent industry dynamics and strong demand for our technology advantaged products. In automotive refinish, global organic sales increased a low single digit percentage versus the prior year. In The U. S, sales volumes improved a mid single digit percentage with benefits from customer order patterns and share gains offsetting lower industry collision claims.

In the first quarter, the company grew the number of LINX subscriptions as well as Moonwalk installations, which now total more than 2,700 in service, further supporting customer productivity and partnerships. Protective and Marine Coatings delivered double digit percentage organic sales growth supported by increasing global demand for our technologies and our recent share gains in Marine. This was the eighth consecutive quarter with positive year over year sales volume growth in this business and we are increasing our growth related investments to support demand. Traffic Solutions delivered above market mid single digit percentage sales growth in the quarter. Demand is expected to remain strong for this business throughout the year, including in the second quarter when demand steps up seasonally.

Segment EBITDA was up 8% year over year, a new first quarter record, reflecting the organic sales growth as our various growth investments in the segment are yielding benefits. In the Industrial Coatings segment, net sales declined compared to the first quarter of twenty twenty four, primarily due to the impact of foreign currency translation and the divestiture of the silica products business in 2024. These items combined lowered sales by 6%. Organic sales for the segment were down less than 2%, which is a significant improvement versus the fourth quarter of twenty twenty four, which was down 6%. In the first quarter, selling prices declined 1% due to carryover of certain index based customer contracts.

Segment sales volumes also decreased 1% as strength in Industrial Coatings and Packaging Coatings was offset by soft automotive industry builds. From a business unit perspective, automotive OEM industry production was lower year over year in The U. S. And Europe and our results followed that lower demand trend. We partially mitigated this volume decline with growth in Asia and Latin America including our share gains in Brazil.

During the first quarter, we narrowed the gap in our volume performance versus auto industry builds. We expect to grow above industry levels starting in the third quarter of this year driven by already won share gains and our market outperformance in Asia. Industrial Coatings organic sales were flat with lower index based pricing offset by improved sales volume after several quarters of weak industrial production. Demand for PPG's industrial products grew in all regions, but varied across sub segments. Packaging Coatings organic sales increased by a low single digit percentage year over year driven by share gains on top of strong growth in the prior year.

Segment EBITDA margin declined 90 basis points year over year as lower sales volumes and price were partially offset by strong cost control and productivity actions. For the Industrial segment, we expect organic results in the second quarter to be generally similar with the first quarter with share gains adding aiding organic results in the back half of the year. Now let me talk about our balance sheet and cash. We issued €900,000,000 of debt during the quarter at 3.25%. We have euro debt maturities of €300,000,000 and €600,000,000 due in the second and fourth quarter respectively.

During the quarter, we completed approximately €400,000,000 in share repurchases and paid approximately $160,000,000 in dividends. We have repurchased $1,200,000,000 in our stock over the last six quarters and paid $930,000,000 in dividends over that same time period. Our balance sheet remains strong, which continues to provide us with financial flexibility, and we remain committed to driving shareholder value. Looking ahead, obviously, the current macroeconomic environment is highly dynamic. Our business model has historically proven to be well positioned to navigate and perform during periods of uncertainty.

As it relates specifically to recent tariffs, let me highlight a few relevant business traits that provide structural resilience for PPG. We have a balanced global business portfolio without reliance on any single country, region or end market. We primarily buy, make and sell local for local. We are flexible batch process manufacturers, which results in an asset light footprint that is easily adaptable to volume shifts. We have a highly variable cost structure that allows us to adjust our conversion costs according to demand.

Our input cost model is very dependent on commodity materials, including oil, that are reliant on supply and demand. Historically, we have been successful in adjusting our selling prices, including through surcharges, to account for any changes in our delivered cost of raw materials. Finally, we have a demonstrated track record of consistent cash generation through all stages of the business cycle to complement our strong balance sheet. While these structural advantageous attributes of PPG provide a buffer for macro impacts, we are not immune to lower economic demand and continue to closely monitor customer order patterns and quickly adjust as necessary. Like all companies, we have potential downsides if overall demand significantly weakens and we are diligently monitoring these conditions.

With regard to our supply chain, we are executing our contingency plans and already working with suppliers on alternative sourcing and you should expect us to aggressively manage our costs and productivity. Now a few more details of what we are seeing. In the first quarter, we already realized a step down in demand in Mexico as project related spending was paused, yet the overall PBG enterprise still performed. Beyond Mexico, we did not see any other significant changes to demand and we did not experience any noteworthy customer pull forward into the first quarter. This pattern has continued for the first four weeks of the second quarter as we have not seen evidence of any curtailment of customer orders in our businesses.

Some customers, however, have publicly expressed the need to eventually assess their production depending on the duration and eventual framework of trade outcomes. Additionally, we have not experienced any significant change to our raw material pricing as our suppliers continue to favor volume over pricing. We are monitoring this situation and we will react accordingly with pricing actions and or self help cost actions to mitigate any impacts. When considering our guidance, we see structural strength in our Performance Coatings segment driven by our technology advantaged products in Aerospace and Protective and Marine. We expect European architectural coatings volume trends to improve and also anticipate short term tepid business conditions in Mexico given the economic uncertainty.

Demand for various general industrial markets improved in the first quarter and we see increasing momentum in the coming quarters. While auto OEM industry demand forecasts were slightly reduced, our share gains are beginning to yield benefits and we expect to outperform the market beginning in the third quarter. We sized our annual share gains in the Industrial segment at $100,000,000 and we are tracking to that annualized figure. Finally, we expect growing benefits from our self help programs and other discretionary cost management programs, the pace and scope of which we have stepped up over the past few months. In closing, I am confident in our ability to successfully navigate this uncertainty given our improved business portfolio, the diversity of our regions and businesses, our self help actions and our share gain momentum.

We are reaffirming our full year earnings per share guidance range of $7.75 to $8.5 Thank you to our PPG team around the world who make it happen and deliver on our purpose every day. We appreciate your continued confidence in PPG. This concludes our prepared remarks. And now would you please open the line for questions.

Thank you very much. We'd now like to open the lines for Q and A. Our first question comes from David Belize of Deutsche Bank. David, your line is now open.

on Global Architectural, I know margins are under pressure here. How do you expect margins to trend in Q2? Any relief from the pressure

Yes. I don't think we'll get some margin benefit from sequential volume improvement, David. But otherwise, we've had positive price in that segment. And so really, it's a volume story for us with Europe still being down a bit and then the Mexico the project side of Mexico slowing down, it was really a volume story. So we fully expect that margin to recover.

And David, just a reminder, typically in Europe, there's a seasonal step up in the business, so we'll get some leverage from that.

Got it. And Tim, just on COMEX, how much was the business down in Q1? And what gives you the confidence the business will come back over the next few quarters?

Yes. Look, the confidence comes from a couple of things. First of all, leading up to the tariff of April 2, prior to that, there was already a pause in project related spending for business and government investment projects. This pause, it affected our Architectural segment and EBIT in Mexico. It's very important to note that our retail sales, our core retail sales in Mexico remained very solid in Q1.

Now why our confidence? We're very well connected in Mexico with our scale and presence. We're very well connected to the project owners. We're connected to the project managers. We're well connected to key advisers that close to the to the government and to, you know, the economists in the country.

And they all believe that things will continue to be a bit soft in Q2. But as we move through the year, the project spending will increase. Many of these projects are already in flight. We have not seen any cancellation of projects. We continue to see new projects coming on in our pipeline.

So certainly, if trade discussions and with any reasonable framework for Mexico, that would allow all this spending to resume fully. But even without that, we do expect the project spending to increase again and particularly in the second half. And we're still confident that given a multitude of factors, favorable business climate, favorable unemployment, favorable inflation, good workforce, good population demographics, proximity, we still believe Mexico remains a strong growth country for some time for PPG.

Thank you very much. Our next question comes from Duffy Fischer of Goldman Sachs. Duffy, your line is now open.

Yes. Good morning, Just a question on Refinish. If you look at the last four years, you were kind of down mid single digits, up mid single digits, down low single digits, up low single digits. So that business seems to have gotten much more volatile than what it had been historically. So just and you kind of see it in the insurance claims data as well.

What's really happening in that industry? Are there structural changes going on there? And does that in any way impair your ability to get kind of that consistent pricing year on year in that business?

Duffy. Thanks for the question. I'll answer the last part first. The, let's call it, the lumpiness that we see with our sell out, has nothing to do with our ability to get pricing in that business. And we've demonstrated that year over year over year over year despite this lumpiness.

And the reason for that is the strength of our total value proposition around customer body shop productivity where the actual cost of the paint is only a fraction of the cost of the total process, and our productivity solutions help that total process. So one, it does not at all impact our ability to get price. Second, to the lumpiness, this business has always had a bit of lumpiness because of the two step distribution model. And the distributors are all independent private business people that are managing their own cash flows, trying to time things based on when they think pricing and demand may go certain directions. So this business is always a bit lumpy quarter over quarter.

And you really have to look at this at a yearly and multi year basis sometimes. Now to the longer term picture in Refinish, and I think you're referring to some of the lower collision claims, Let me comment on that. This is a critical coatings vertical because of the reasons that I mentioned earlier where our contributions both inside the chemistry and outside the chemistry with our productivity tools are so important to the body shop owners. You've got labor tightness when it comes to skilled painters. So we play a critical role to the body shop.

And that's why you don't hear it just from us. Every coatings company in the world wants to be in refinish and grow and refinish. And collision claims have been trending lower for years, and we've continued to grow and perform during that time period, and that's because of our world class, best in class total productivity value proposition. We have the best chemistry in the can, but you also we actually capture more value and additional value with what we do outside the can with you've heard about some of our digital productivity tools. We do a lot with related products, allied products, which are associated with the painting process but not actually inside the can of paint itself.

We've grown there organically and inorganically and the CAGR over a multiyear period for those Allied products has consistently been double digit despite these year over year decreasing collisions. The reality is the players that deliver the best overall productivity solution will continue to win, will be continue to be able to capture price as long as they continue to increase the productivity solution that they deliver. It's probably the weaker players that don't have those solutions that are to lose share and pay the price.

Thank you very much. Our next question comes from Kevin McCarthy of VRP. Kevin, your line is now open.

Yes. Thank you and good morning. I was wondering if you could unpack the sales guidance that you've provided on Slide 11 for Global Architectural Coatings in particular. You were down 11% in the first quarter. Appreciate a lot of that was currency, is swinging.

But maybe you could kind of talk through your year over year volume expectations in that business. For example, would you expect the negative 3% that you saw in the first quarter to penetrate positive territory? Any other color on that outlook would be much appreciated.

Yes. Thanks for the question Kevin. I'm not going to comment on currency. I wish I were that smart as to predict what that's going to do. So but I will talk about price and volume.

We will price as we need to price. We got some positive price in Q1 and we'll continue to monitor all the stuff that's happening outside of our business in the macros. So you should expect that to be again incrementally positive like it was in Q1. On the volume side, we do think this project pause in Mexico will largely continue into Q2, may get sequentially better, but we're not counting on that in our guide. We do expect we've seen some momentum in Europe finally, and we do expect that to improve.

It could it's been down for a long, long time. It could be flat. It could be incrementally positive. That's really the change in Q2 versus Q1, much more Europe focused than anywhere else.

Great. Thank you very much. Our next question comes from Michael Sison of Wells Fargo. Michael, your line is now open.

Hey, good morning. Great start to the year. Seeing it started in the Browns or Steelers draft, but I just want to dig into Performance Coatings real quick. Volume is pretty impressive there. What do you think your volume should be for this year in total?

And then what do you think market demand is? I know it's a little bit different per little business unit, but I suspect the market share gains are really what's driving that growth.

Mike, thanks for the question. The challenge for our Performance Coatings business is to deliver higher growth than a number of quarterbacks that Cleveland Browns now have in their quarterback room. That'll be a challenge, but we're confident in it because, you you look at the performance in Q1 across the businesses, aerospace double digit as much as we can make will ship. PMC double digit, great momentum, great pipeline. Traffic will sequentially improve, one, because of share we won last year and two, because of seasonality.

So I think we see a good set there of dynamics and demand with each of the businesses in our Performance Coatings segment.

Yes, Mike, and this is Vince. Just a little tag along comment here. We are delivering consistent growth in these businesses. We are starting to comp against some more difficult comps in the back half of the year. On a two year stack basis, most of these businesses are up.

Aerospace, Protective Marine up double digits Refinish and Traffic up low to mid single digits in organic sales growth and we expect those traits to continue.

Great. Thank you very much. Our next question comes from Ghansham Panjabi of Baird. Ghansham, your line is now open.

Thank you, operator. Good morning, everybody. Tim, I just want to go back to your comments on Europe as a region. Just for the color as it relates to what do you think is going on there from a macro perspective? Is it just easier comparisons that are kind of flowing through to you specifically?

Or do you sense an actual inflection in demand that could be a little bit more sustainable than what we've seen over the last few years?

Again, Jim, this is Vince. Let me start and Tim will add some color here. When we look at Europe, we've seen obviously some easier comps. But across the continent, we're seeing stabilization in a couple of areas. Industrial production was stabilized relative to recent past.

We also saw in Western Europe better order pattern, especially exiting the quarter for our Western European countries in architectural. We do know there's some sentiment on increased governmental spending there. And I think there is in The Nordics recovery underway from a couple of tough years.

Yes. I would just add to that, that it's a lot of it is based on the momentum we saw growing as we move through Q1, Ghansham. And even automotive, which has been down for quite some time, you've got the easier comps, you've got some of our key customers launching new models as we move through the second half of the year. So we are not expecting a hockey stick at all. But we've been saying for years in Europe, all we need is stabilization and a little bit of volume because we've been doing so much structural cost action that we will get really good earnings leverage when that happens.

Thank you very much. Our next question comes from John McNulty of BMO. John, your line is now open.

Yeah, good morning. Thanks for taking my question. So I guess the first one is, look, the first quarter came in a good bit better than I think was expected. It seems like you've got now an FX tailwind. It also looks like, if anything from volume perspective year over year you're thinking things are maybe better in 2Q than they were in 1Q and yet you maintain the guide.

So I guess can you help us to think about what is maybe holding you back on that? It sounds like tariffs don't seem to be making too many waves yet for you, maybe that's just conservatism. But can you just help us to think about that?

John. I'm going to give I'll give a little tariff overview for PPG, and then Vince can take your more specific questions around FX and volume. So overall for PPG based on what we know today, look, the team as you would expect, we've been running many scenarios and game theories on how this is going play out. We've got external help. We're on top of it on a very granular basis.

And I put it into three buckets of potential PPG impact. First of all, our products, our finished goods, very minimal impact because we're almost completely local for local. So our finished goods don't really cross too many borders. Second bucket, the direct cost impact to PPG. We are heavily localized from a raw material standpoint.

More than 95% of what we buy is locally sourced or no tariffs. And just a few factoids. If you look at our U. S. Businesses, our top 30 suppliers for our U.

S. Businesses, zero of them are Chinese. If you look at our top 100 suppliers in The U. S. And add up that aggregate spend, 1% is from China.

So we're largely locally sourced and the mitigation actions and the way we've taken advantage of our global footprint has positioned us well. In some of the larger categories, TiO2, epoxy, they were already tariffed coming into this year and mitigation actions were already put in place. The upstream chemical supply market is very long, so not all the announced tariffs will actually directly pass through to us. And if and when there is a direct impact to us, we'll work with our customers on pricing, surcharges, reformulations, substitutions, things like that. So the third bucket of potential impact for us is demand.

We have built this into our guide. We've built in everything we know and everything we can estimate is already built into our guide. You'll note that Mexico already impacted in Q1 and the enterprise still performed. The biggest potential impacts, you think auto, China, Mexico, we included that on the slides. Each of these impacts based on everything that's out there today, we expect each of them to be less than 1% of total PPG sales.

China example, everything that we paint in China, only 10% of it gets shipped to The U. S. So the vast majority of what we do is local to local. And as I mentioned, one month into quarter two, our order patterns are consistent with our expectations. Then you get to mitigations.

I mentioned a few of them, but a number of our levers. We're doing volume deals with suppliers. We're working with customers on formulation tweaks and adjustments, maximizing our footprint flexibility. And we always have in our toolbox pricing surcharges if necessary. And look, there's a key mitigator that I think is differentiated for PPG, and I call it the PPG shock absorber, a little bit of a buffer impact that's structural.

Our diverse portfolio lack of dependency on any individual country, geography or segment, our highly variable cost structure. We're even more asset light than we've ever been with the divestitures. We divested two of our heaviest asset fixed asset businesses when we got rid of 11 factories and seven fifty brick and mortar stores. And we've got a natural hedge where demand drops typically so does the price of our primary input costs. So we have a shock absorber that does help us with macro events.

And then finally, our guide, based on everything we know, we identified a clear path, a clear path to meet our full year EPS guide. And we've got momentum in share. We've got momentum in self help. We've got momentum in productivity. Combined with the structural resilience and mitigation efforts that I just meant, we do have line of sight to our guide.

So look, we clearly recognize there's uncertainty and a lot of things are moving fast and we're not immune to that. We'll flex things as they change and charge forward, but we are laser focused on controlling what we can control.

Yes. Just to try to provide some granular thoughts on what I would call where we were in January versus what we see today on a full year basis. A couple of things that are moving against us. Mexico, we were not aware in January obviously of the project spending pause. Again, we feel that will eventually come back.

The automotive industry has stepped down 1% or 2% versus the guide in the forecast in January. Offsetting that, foreign currencies moved in our direction. We had a pretty stiff headwind to foreign currencies coming into the year. We still have a headwind in Q2 and for some currencies, the balance of the year based on current rates. We've upped our self help expectations for the year and we're tracking to those higher expectations.

We got share gains that are coming in quicker than we had anticipated. And finally, Tim alluded to this in an earlier question, Europe's stabilizing at a faster clip, albeit modest than we had anticipated in our original guide. So some puts and takes like there are every quarter, but those were the bigger pieces.

Thank you very much. Our next question comes from John Roberts of Mizuho. John, your line is now open.

Thanks and congrats on a return to growth here. Tim, there were a lot of not yet in your opening comments. Assuming the tariffs stay as is, how long before you see customers repositioning production?

to idle any of your auto OEM paint lines?

Hey, John. Thanks. Second part first. I don't think we'll have

idle any lines. We may decrease staffing, decrease output as necessary. We'll flex, but we don't have to idle any factories. And I can't really say what when any customer would decide to significantly change their production plans. We are positioned virtually everywhere in the world.

So wherever they decide to go, we can make coatings for them. So we feel that we have a lot of flexibility. If there's something dramatic and severe, we'll talk about that. But we have the ability to follow our customers wherever they go.

Yes, John. Vince here. Just two things I want to reiterate what Tim said. We are batch process. So small or large changes in customer order patterns, we're able to easily see and adapt our staffing levels to just also what we said in our opening remarks, we have not seen any significant change in our customer order patterns through April.

And we have order patterns looking into May depending on our short cycle or long cycle businesses. And in our short cycle businesses, looking at the first couple of weeks of May, again, no discernible change right now.

Yes. One last part on the idling of assets that you questioned. We don't need to do that in response to what our customers may do. But I want to remind everyone that we have a significant rightsizing as part of our self help already underway where we'll be closing a number of facilities over the next three years. And so that's separate from what's happening, but that will give us even more leverage going forward than what we have today.

Thank you very much. Our next question comes from Laurent Favre of BNP Paribas. Laurent, your line is now open.

Yes. Good morning all. A question on capital allocation, if I May. So you didn't get the BASF souvenir assets. And with all the uncertainty, assume that deal activity is going to come to a pause anyway.

So I was wondering if you could talk about the intensity on and the intent, I guess, any intensity on share buybacks after the $400,000,000 in Q1? Thank you.

Hey Laurent. Let me answer M and A first and then I'll get to repo. So we've been very consistent on this since 2023 that we're changing from the tip of the spear for growth being M and A and secondary organic to tip of the spear for us being organic and secondary M and A. So it's still part of our long term growth strategy, but it's not what we're leading with. We will look at any asset that comes available or any asset that we think would fit with our enterprise growth strategy.

But I'll continue to say it's got to be the right asset fitting with our enterprise growth strategy. It's got to be the right price. We're not going to overpay. And it's got to be the right time relative to what else we have going on with focus and balance on organic growth. And you mentioned Brazil.

I've said many times that that was a good asset that we would look at and we were interested in, but that didn't fit my right price category. The price wasn't where we would have paid relative to other options for use of that cash, which then brings us to the repo question. I hope, again, I've been consistent with saying exactly the same thing since I took over relative to capital deployment that the first thing we did, we paid down debt back in 2023. Beyond that, I said I wouldn't let it grow on the balance sheet. And after not buying shares for many quarters, we've now gone six straight quarters of buying shares.

It's been best use of our cash to deliver shareholder value. And I would just you should expect to see that continued prioritization for me. And the reason I can't and won't commit to a specific number is more than ever right now it is a highly variable environment. And so we'll make that decision as we move through with the months and quarters. But I would just say you should expect to see the same decision making process that has been made for the last seven quarters or six quarters.

Thank you very much. Our next question comes from Vincent Andrews of Morgan Stanley. Vincent, your line is now open.

PPG Industries (PPG) Q1 2025 Earnings Call Transcript

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