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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.

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

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PPG Industries

ppg industries

Good morning. My name is Brika, and I will be your conference operator today. At this time, I would like to welcome everyone to the 4th Quarter PPG Earnings Conference Call.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Session. Thank you. I would now like to turn the call over to Alex Lopez, Director of Investor Relations.

Thank you, Rica, and good morning, everyone. This is Alex Lopez, Director, Investor Relations. We appreciate your continued interest in PPG and welcome you to our Q4 and full year 2024 earnings conference call. Joining me today from PPG are Tim Kaniewicz, 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 Thursday, January 30, 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 a 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 effect on PPG'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 PPG's filing with the SEC.

Now let me introduce PPG's Chairman and CEO, Tim Kanabish.

Thanks, Alex, and good morning, everyone. Welcome to our Q4 and full year 2024 earnings call. Before I start, I'd like to offer prayers and condolences to those who lost their lives in yesterday's terrible air collision in Washington, D. C. Our prayers are with their family, friends, loved ones, terrible tragedy and I hope and pray that none of you had any loved ones affected.

Now I'll begin by providing a few highlights of our full year 2024 and Q4 financial performance and then I'll move to our outlook. And on behalf of PPG, I'd also like to apologize for the volume of changes, recasting of financials, the new segmentation, the guide structure. But this is a positive and critical inflection point for our company. We wanted to structure the reporting on a go forward basis to reflect this. As a result of the Architectural Coatings U.

S. And Canada divestiture, all financial information provided in the earnings material has been recast to reflect this business as a discontinued operation consistent with U. S. GAAP requirements. In 2024, the team demonstrated resilience in a challenging macro by driving growth in adjusted EPS from continuing operations and aggregate segment EBITDA led by sales of our technology advantage products, structural cost actions and moderated input costs.

We delivered record results in several of our businesses including Aerospace Coatings, Automotive Refinish Coatings and Architectural Coatings Latin America. Despite strong share gains in certain businesses, organic sales declined a low single digit percentage year over year driven by overall weak macros. However, we delivered growth in Mexico and China as well as growth in aerospace, protective and marine, packaging, traffic solution businesses offset by industry declines in auto OEM, industrial and our architectural EMEA coatings business. For the full year, adjusted EPS was $7.87 which grew 6% year over year and excludes $0.27 of EPS that has been reclassified to discontinued operations. It reflected results of the divestiture of the U.

S. And Canada architectural business with the exception of certain allocated costs. Strategically, during the Q4, we further optimized our portfolio as we completed the divestitures of our silica products and Architectural Coatings U. S. And Canada businesses.

This is a significant step forward for our company. As these divestitures improve our financial profile, including higher operating margins and results in a more focused organization, which positions the company to deliver sustainable organic growth. As we've said, our portfolio moves this past year have strengthened the company's financial profile. When you combine the impact of these transactions with the organic improvement in margins we delivered on our remaining businesses, you will note that we have now achieved top tier EBITDA margins. This performance reflects the value that our customers assign to our technology advantaged products and services, our solutions, our well trusted brands, our strong global positions across the coatings verticals and the cross synergies of our business portfolio.

We believe that both this margin profile and our enterprise growth actions are great catalysts for the future value creation of PPG. Given the revised portfolio, we have expanded our segment reporting structure and will now report all of our Architectural Coatings businesses as a separate segment, Global Architectural Coatings. The reporting of the remainder of the businesses within Performance Coatings and the Industrial Coatings segment will remain the same. This expanded segmentation provides investors with enhanced visibility as we drive the company's growth and performance. Our Global Architectural Coatings and Performance Coatings segments both now have full year EBITDA margins at or above 20%, reflecting the differential technologies and strong brand positions of our various businesses.

Our Industrial Coatings segment delivered 16% EBITDA margin despite operating a weak global industrial macro environment. Each of our segments has unique characteristics that allow us to deliver exceptional value to our customers. By leveraging the distinct strengths of our businesses, we are positioned to drive innovation, increase demand for our technology advantaged products and deliver sustainable and profitable growth while increasing returns to our shareholders. In our Global Architectural Coatings segment, we have excellent and well recognized brands with world class distribution and a strong number 1 or number 2 position in more than 15 countries. Our Performance Coatings segment is focused on various aftermarkets that traditionally are more stable and have a more fragmented customer base.

Within this segment, we offer differentiated and highly specified product and digital solutions that enable our customers' productivity. Our Industrial Coating segment delivers highly technical products and services for our global B2B customers. We operate field service teams in our customers' facilities, which allows us to develop strong relationships and deep understanding of their productivity needs. Also, we typically grow with our customers as they expand around the world. In the Q4, despite the choppy environment, our adjusted EPS grew by 6% year over year excluding the impact of unfavorable foreign currency translation.

We delivered strong organic sales growth in Aerospace Coatings, Protective and Marine Coatings and Traffic Solutions. This was our 9th consecutive quarter of aggregate segment margin improvement and we have delivered cumulative margin improvement of approximately 400 basis points since 2022. In the Global Architectural Coatings segment, 4th quarter net sales were significantly impacted by unfavorable foreign currency translation, primarily the Mexican peso. Sales volumes declined due to weak consumer confidence in the European architectural coatings market. However, we benefited from our strong concessionary concessionary network in Mexico, where demand is robust for our products and services.

For the full year, segment EBITDA margin improved by 70 basis points as lower volumes were offset by our cost control actions and net price impact during the year. In the Performance Coatings segment, 4th quarter organic sales grew 4% with both price and sales volume improvements. Within the segment, Aerospace Coatings demonstrated continued strong performance with record 4th quarter sales and double digit percentage organic sales growth. Despite improved production capacity and other productivity gains, the order backlog increased to approximately $300,000,000 demonstrating the strong demand for our technology advantaged products as well as excellent industry dynamics. In auto refinish, sales volumes declined in the U.

S. With benefits from share gains more than offset by lower industry collision claims. These share gains are a product of the demand for our technology advantage products and services. In 2024, the company grew the number of LINK services subscriptions and added more than 600 additional Moonwalk installations that now total more than 2,500 around the world adding to our subscription revenue. Protective and Marine Coatings demonstrated strong growth in the 4th quarter supported by increasing global demand of our technologies and our recent share gains.

This was the 7th consecutive quarter with positive year over year sales volume growth and we expect the positive momentum to continue. Segment EBITDA margin improved in both the 4th quarter and full year due to positive volume and strong net price impact. In the Industrial Coatings segment, demand was constrained by soft global industrial production and weak automotive OEM industry production. As expected and forecasted by industry consultants, auto OEM industry production was lower year over year in the U. S.

And Europe. Our results followed that lower demand trend and we were able to partially offset the decline in sales volumes with share gains in Latin America and China. Industrial production was also sluggish in Europe and the U. S, which resulted in lower year over year sales volume in the Industrial Coatings business. Sales volume declines in those regions were partially offset by strong growth in Latin America.

Prices in the Industrial Coatings segments declined due to lower index based selling prices as raw material costs declined in the latter part of 2024. This impact is expected to moderate in 2025 as most have reached their anniversaries and will be reset based on recent stability in raw material pricing. Segment EBITDA margin reduced 160 basis points for the quarter and was slightly lower on a full year basis as the lower volumes were partially offset by strong cost control actions. We ended the Q4 with cash of about $1,400,000,000 During the quarter, we completed $250,000,000 in share repurchases and paid approximately $160,000,000 in dividends. On a year to date basis, we repurchased approximately $750,000,000 of stock, which represented approximately 3% of our outstanding shares.

We honored our pledge to return cash to shareholders and combined with our dividend, we've returned $1,400,000,000 to our shareholders in 2024. Our balance sheet remains strong, which continues to provide us with financial flexibility and we remain committed to driving shareholder value creation. Thus, we're deploying about $400,000,000 towards share repurchases during the Q1 of 2025. Looking ahead, we anticipate a slow start to 2025 as demand in Europe and in global industrial end use markets remains challenged. However, we expect stabilization on a full year basis, some key economic indicators like light vehicle builds and global industrial production as well as additional aircraft deliveries.

In the Q1 of 2025, we'll begin to see the impacts of already enacted tariffs, which is expected to result in low single digit percentage inflation and raw material costs, while raw material inflation was flat in the Q4 of 2024. Despite a challenging macroeconomic landscape and a slow macro start for 2025, I'm genuinely optimistic about this year. We expect to deliver organic sales growth of low single digit percentage for the year, with the Q1 organic growth flat to slightly down. Stronger results in the second half of the year supported by the realization of more than $100,000,000 in annual share gains in our Industrial Coatings segment. As we enter the next chapter for PPG with a new sharper portfolio and focus, we're progressing further on the execution of our enterprise growth strategy with several elements that include building upon our organic growth capabilities on commercial excellence with the right processes, people, tools and incentives, taking decisive self help actions to further reduce costs, including global structural costs and European manufacturing consolidations.

This program will deliver approximately $175,000,000 once fully implemented, including savings of $60,000,000 in 2025. Execution of our operational excellence programs will also deliver manufacturing productivity that will more than offset general inflation. We'll deploy cash in a disciplined manner investing for growth, selective M and A if appropriate and returning cash to shareholders. As a result of these actions, we expect to deliver adjusted earnings per share for the full year in 2025 in the range of $7.75 to $8.05 which at midpoint represents an EPS growth of 7% excluding impact of foreign currency and higher tax. Consistent with our sales growth, EPS growth will be weighted towards the second half of twenty twenty five as global industrial demand weakened and the U.

S. Dollar strengthened in the second half of twenty twenty four. I'm excited about 2025 and beyond. We have a sharper, more focused future facing portfolio and a higher growth and margin profile company. For our customers, we're both delivering solutions that ensure their success today and innovating tomorrow to improve both their productivity and their success.

We remain committed to our heritage of strong cost management and improved productivity that reinforces the ability to maintain our momentum in driving higher margins and earnings growth. The result will be profitable organic growth for PPG and shareholder returns for our owners. These successful divestitures and solid performance in 2024 would not have been possible without the dedication of our employees. We are now a much more focused organization dedicated to driving ongoing growth with strong margins. Thank you to our PPG teams around the world who make it happen and deliver on our purpose every day.

Thank you for your continued confidence in PPG and this concludes our prepared remarks. And would you now please open the line for questions?

Thank you. The first question we have from the phone lines comes from John Roberts with Mizuho. Please go ahead.

Thank you. Could you talk about the $100,000,000 new win for industrial? Is that related to a major competitor pulling back or is something else driving that?

Good morning, John. Thanks for the question.

Certainly the South American exit of one of our competitors is a part of that. I'd say slightly less than half of that. We've got a number of other significant wins in auto OEM as well as our industrial coatings and our packaging coatings businesses. And as you know in the industrial segment, the time lag between win and conversion is longer than our other segments because these are B2B factories that need change over time, etcetera. But the wins are kind of spread across those 3 major businesses, but a big piece of it is the exit in South America.

We now have Ghansham Panjorbi with Baird. Please go ahead when you're ready.

Thank you, operator. Hey, Tim, just given your comments on the slight increase in raw material prices for 2025, your tariffs and whatever else, can you just give us more specifics on how are you adjusting pricing across the portfolio to reduce the risk of any sort of price cost mismatch as 2025 unfolds in context of all this uncertainty on tariffs?

Sure, Ghansham. So what's in our guide for raw materials, which is basically up low single digits inflation throughout the year is almost entirely based on the tariffs that have already been enacted in our basket, which is pretty much TiO2 and epoxies. So we've got that as well as our mitigation efforts of those already baked into our guide. So what you'll see from a pricing standpoint is, I think Q1 will be flattish to slightly positive as some of our businesses are on traditional calendars as to when they raise prices and that's scattered throughout the 1st few months of the year. In raw material pricing, index pricing on the Industrial segment, we'll still have a little bit of carryover for the Q1, but then for the full year, we're expecting positive pricing, low single digit positive pricing for the company across the board.

Now we'll remain flexible and agile and do what we need to do if there's other tariffs or things we need to do from a competition standpoint to remain competitive in the market, but that's what's baked into our guide.

And Ghansham, this is Vince. If you pull back to 50,000 feet and look at the supply chain, it's still a loose supply chain, still a buyer's market for coatings commodities beyond the tariffs.

Thank you. We now have David Begleiter with Deutsche Bank.

Hi, it's David Huang here for Dave. I guess you're expecting full year segment margins to be up 50 bps and down 150 bps in Q1. How do you expect margins to trend, I guess from Q2 to Q4?

This is Vince. I'll start and I'll let Tim add some color. As we noted in our materials in Q1 and Tim just also noted, we have some raw material inflation around those enacted tariffs in Q1, pricings coming in throughout the quarter. We also have expect a flat to low single digit decline in volumes. And as you progress through the year, our volume performance gets better.

So that's the differential between Q1 and full year in terms of the margin progression.

Yes. I would just add a little bit of color, particularly on the Industrial Coatings segment. That's our most volume sensitive segment at this point from a margin standpoint because of the leverage that you get with a little uptick in margin. So as we have a very soft Q1, you'll see that look pretty much like Q4 with the volume kicking in in Industrial segment more in the second half of the year.

Thank you. We have Chris Parkinson with Wolfe Research on the line now.

Tim, I'm guessing getting on Slide 5, no one was more excited to get that one out than you because it just represents obviously everything you've been working for. When we take a step back and look at the 3 new segments, can you just give kind of the 1 or 2 points on I understand the first half macro is what it is. But can you just talk about how you and your teams are now thinking about the respective growth rates of those end markets in terms of share gain, market outperformance, just anything that would potentially filter into the buy side perceptions of PPG's ability to grow in the new framework would be particularly helpful. Thank you.

Yes. Sure, Chris. So Global Architectural Coatings, now that we have our business refined to where we've got positions where we got a really good strong right to win in those countries. We you could use housing, construction, GDP as kind of proxies for the base growth rate of the end markets. But then because of the strength of our position, you can add incremental share gain on top of that.

If you look at Performance Coatings, that's now largely an aftermarket business. And the demand there is a lot more steady on average. And as you know from things like our refinish business and the new differentiated technology that we've launched for marine aftermarket for example, we feel that we've got a pretty strong advantage in the performance coating standpoint to pick up additional share. And with industrial coatings that's much more tied to industrial production. So automotive that's the easiest, we'll just follow the builds, beyond that we'll follow industrial production as the baseline market and then share gains from our technologies on top of that.

So that's how we think about those 3 different segments.

Yes, yes. Chris, if I could just add a couple of bits of color here. As Tim mentioned on the industrial side, given the differential or specified technologies, we picked up share in packaging over the past 2 years. Certainly, in certain industrial end markets, we've grown our position globally, including growing our market share in powder, some of that inorganically. And then if you look at the Performance Coatings segment, we've talked a lot about some of our tools in the refinish area, especially the digital tools.

And on those digital tools, we're recognizing subscription revenue in addition to the customer intimacy that brings. So those are some of the differential items that will give us, I think, an advantage versus the market rates.

Yes. If I could just add one more piece of color, Chris, refinish in Performance Coatings, good example. Collision claims in the U. S. Were down high single digits in 2024 and we far outperformed that and won about 2,500 net new shops.

So that's how we should think about the market drivers plus our differentiated advantage in each of those segments.

We now have a question from Duffy Fischer with Goldman Sachs. Your line is open.

Yes, good morning, guys. I was hoping you could help me. If you look the published number for last year was 787, the midpoint of your guide for this year is 790, right? So basically on top of each other for the year. But when you look at the shape of how that 787 came about last year, how does that look this year?

So can you help us kind of with the shape the year over year either EPS or EBIT, whichever way you want to look at it? It sounds like you're going to be beating more in the second half, probably behind in the first half, but can you just help us with kind of the year over year shape of those two numbers?

Well Duffy, considering how little time we gave you to digest all these new numbers, you're pretty darn close. We'll be behind last year in the first half, particularly in the Q1 and then we'll be nicely above it in the second half. That's your last comment. If you look at it operationally, it's 7% operational EPS growth. And then there's a couple of big things on top of that that bring it down about to the same level with the biggest one being about $0.33 of EPS of FX.

And then my CFO will give you all the details below it. But high level, weaker in the first half, especially first quarter, strong second half YOY, net net 7% operational EPS gain for the full year.

Yes. Duffy, we provided, as Tim mentioned, a flurry of information last night. One of the pieces we want to add to that is our quarterly EPS for the last 2 years on a recast basis. So Alex, could you give those numbers?

Yes. For your reference, Duffy, last year Q1, as you saw in the exhibit, it's $1.87 adjusted EPS Q2 $2.35 Q3 $2.03 Q4 $1.61 for the full year of $7.87 In 2023, Q1 adjusted EPS $1.75 Q2 $2.12 Q3, dollars 1.98 Q4, dollars 1.56 with a full year of $7.42

And then if you look at the shape of the year, we talked about this on an earlier question, Duffy. If you look at the shape of the year, again, because of the slightly negative volumes in Q1 and the additional tariffs that were enacted in Q4 that will affect Q1. Our Q1 is light, but we'll interject pricing as we go through that Q1. We'll see the volumes flatten and grow in the back half of the year. We'll also get some more restructuring benefit as we progress through the year.

We talked about our self help actions and those will drive some cost benefit later in the year.

Thank you, Duffy. We now have Frank Mitsch with Clarion Research. Please go ahead.

What are you putting your money on Frank and I'll go the opposite.

So the $400,000,000 buyback in 1Q, I think Vince on the last call you indicated that the sale of North American Architectural with all your moves to the cash, etcetera, would wind up being neutral or accretive on EPS. I'm curious if that's still the case. And in terms of the $400,000,000 buyback in 1Q, that almost indicates that there's not much you're seeing right now on the M and A side of things because one would have thought that you might keep your powder dry. Some of the coatings companies have indicated that they are looking at portfolio moves and divestitures and so forth. So any comments in terms of use of cash and the and when the final when all is said and done with respect to the divestiture of North American Architectural, accretive, neutral, dilutive?

Yes, Frank, this is Vince. I'll talk to you. I'll take the $400,000,000 and the proceeds from the divestiture. We did receive those proceeds in late in Q4 and 2024. They're not appearing in our cash flow statement we put out last night because we didn't put out a discontinued operations cash item, but there will be in the 10 ks when we file that.

Certainly, we're putting those proceeds to work immediately as we committed to do in Q1, which again reflects that $400,000,000 Tim, you want to take the M and A?

Sure. So let me just be very clear. First of all, I think part of your question on the $400,000,000 was it accretive and the answer is absolutely yes. And but on the M and A, let me be very clear, our strategy on M and A has not changed from what I told you all in May of 2023 when I first came into the job that it's not the tip of the spear for us and we're very focused on building an organic growth machine, but that we would still evaluate any targets because we believe there still is consolidation to happen in this industry and there are some good assets out there that would add shareholder value. So that has not changed.

And if you look 2023, I told everybody we'd pay down debt. We did that early and then we started buying back shares for the first time in a long time in Q4 of 2023. 2024, I said if there was no targeted selective M and A, we buy back shares and we bought back 750,000,000 dollars As we come into this year, we're starting off Q1 buying shares. We fully expect to have another good cash generation year. So we've got good optionality, especially with where our leverage is right now.

There are also a couple of assets coming to market or already on market. One of them I've already said does not fit our enterprise growth strategy, so not interested. One of them, the Brazilian asset is an attractive asset. It's a good asset. It's a good fit to our strategy of either being a strong number 1 or strong number 2.

But we have to decide we were not the only ones that would draw that conclusion. So we have to decide right price, right time. We want to make sure that whatever we do, if we do anything on acquisitions that it doesn't distract from building the organic growth machine. But if we do it, if we do want to take a look at that asset or any of the other assets that may come, is it the best use of our shareholders' cash? Because right now, we believe our stock is undervalued and we're generating cash and so we can deliver returns by buying back shares.

So it all come down right asset, right time so as to not distract the organization. And finally, of course, right price is the best use of the cash.

Thank you. Your next question comes from Stephen Byrne with Bank of America. Please go ahead.

Yes. Thank you. So Tim, if your end markets normalized and now you have 3 segments with more transparency and you've divested slower growth businesses and you focus on share gains, etcetera, what do you target as a sustainable earnings growth rate down the road here? And what do you think it needs to get to move you out

Multiple? Yes. Hey, Steve. I'll be consistent with what I've been saying in my 1st 2 plus years now is that, as we start to deliver on each of our commitments, this is an 8% to 12% EPS growth company and where it falls in that range is dependent on macros. If you look at 2025, operationally, we're going to be a 7, which compared to the macros that are in front of everybody right now is a good is I think a pretty robust number.

Now going forward as all the things you said in the beginning of your question are exactly right, more focused portfolio. We don't have the drag on the company from a business that was underperforming. We're not distracted by a high CapEx business that didn't fit our ambitions. And we've been investing in the organic growth muscle. And so we're still confident that this is an 8% to 12% EPS growth company.

Yes. Steve, I could just add a couple of bits of color. This is Vince. Again, if you look by segment, we've got 2 segments at or above 20% EBITDA margins. So obviously, as they grow, that will enforce our mix benefits.

The industrial segment, which has been in a we've been in a 2 year industrial recession globally. So we think that business and that segment by itself is hopefully close to trough or a trough in terms of volumes. And as Tim mentioned earlier, that's our most volume sensitive segment. So as we see any volume return there, it should come at enhanced incrementals and get back to a different differential EBITDA margin on a go forward basis.

Thank you. Your next question comes from Kevin McCarthy with VRP.

Yes. Thank you and good morning everyone. Tim, I think you mentioned that in the Q1 you would expect volume to be flat to down. My question would be how do you expect volume to trend through the balance of the year? And how much of the implied improvement in the progression relates to potential macro uplift getting out of this 2 year industrial recession that we've been in?

And how much relates to company specific controllables such as the 100,000,000 share pickup that John asked about in industrial. Maybe you can kind of parse that out and give us a sense of your level of confidence in restoring volume growth here and what that balance looks like? Thank you.

Yes. Hey, Kevin. So the Q1 will be a challenge as we've said multiple times and you just reinforced. So we're expecting negative volume, similar trend to what we saw in Q4. You'll then start to see it flattish to positive low single digits and we expect that then certainly for the rest of the year low to mid single digits as we get into the second half.

All in, what we are expecting is positive volume on a full year basis at about low single digits. Now as far as the breakdown of the components, we are not in none of the segments are we excluding a hockey stick kind of recovery. We're expecting stabilization, frankly, stabilization in if you look at Europe, for example, stabilization in European architectural demand, stabilization in refinish, but we're not expecting recovery, frankly, in Europe. Auto builds, IHS has them essentially flat for the year. So we're not it's not like we've got this big hope and prayer build into that.

It's about stabilization in the end markets plus the $100,000,000 or so share gains in the industrial segments. And then the ongoing share gains that we have in some of our key performance coatings and global architectural coatings. But those are a lot of singles as opposed triples and home runs that you get when on the industrial side. So all in, we're expecting the year to be positive volume in low single digits, negative in Q1 and then ramping up from there.

Yes, Kevin, this is Vince. I'll add a couple of points of color about Q1. We did have a strong very strong Q1 in 2024, especially in China, high single digit growth in China. So we're comping against that. We also had double digit growth in a couple of businesses, including packaging.

So some of the Q1 year over year comp is related to just hard comparables. And again, as Tim mentioned, the trend line in our industrial business really just continuing in the second half of twenty twenty four. We saw activity globally decline in the second half. So as we anniversary that in the first half of twenty twenty five, again, we're not expecting significant hockey stick in the back half.

Thank you. We now have the next question from Michael Sison with Wells Fargo. Please go ahead when you're ready.

For Performance Coatings and Industrial Coatings, when you look at the business units within that, are they all are the businesses in there the ones that you want to run similar to U. S. Architecture you like

PPG Industries (PPG) Q4 2024 Earnings Call Transcript

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