Item 1. Financial Statements

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Item 1. Financial Statements

PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Income (Unaudited)


	Three Months Ended June 30		Six Months Ended June 30
($ in millions, except per share amounts)	2025	2024	2025	2024
Net sales	$4,195	$4,235	$7,879	$8,084
Cost of sales, exclusive of depreciation and amortization	2,432	2,450	4,574	4,655
Selling, general and administrative	872	858	1,710	1,708
Depreciation	102	89	191	184
Amortization	33	35	65	70
Research and development, net	106	108	208	215
Interest expense	62	62	118	117
Interest income	(44)	(45)	(87)	(87)


Other charges, net	34	27	—	29
Income before income taxes	$598	$651	$1,100	$1,193
Income tax expense	140	149	262	277
Income from continuing operations	$458	$502	$838	$916
Income/(loss) from discontinued operations, net of tax	—	35	(2)	30
Net income attributable to controlling and noncontrolling interests	$458	$537	$836	$946
Net income attributable to noncontrolling interests	(8)	(9)	(13)	(18)
Net income (attributable to PPG)	$450	$528	$823	$928
Amounts attributable to PPG:
Income from continuing operations, net of tax	$450	$493	$825	$898
Income/(loss) from discontinued operations, net of tax	—	35	(2)	30
Net income (attributable to PPG)	$450	$528	$823	$928

Earnings per common share:
Income from continuing operations, net of tax	$1.98	$2.10	$3.63	$3.82
Income/(loss) from discontinued operations, net of tax	—	0.15	(0.01)	0.13
Earnings per common share (attributable to PPG)	$1.98	$2.25	$3.62	$3.95

Earnings per common share – assuming dilution:
Income from continuing operations, net of tax	$1.98	$2.09	$3.61	$3.80
Income/(loss) from discontinued operations, net of tax	—	0.15	(0.01)	0.13
Earnings per common share (attributable to PPG) - assuming dilution	$1.98	$2.24	$3.60	$3.93

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Comprehensive Income (Unaudited)


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Net income attributable to controlling and noncontrolling interests	$458	$537	$836	$946
Other comprehensive income/(loss), net of tax:
Defined benefit pension and other postretirement benefits	(2)	20	(7)	20
Unrealized foreign currency translation adjustments	498	(434)	779	(448)

Other comprehensive income/(loss), net of tax	$496	($414)	$772	($428)
Total comprehensive income	$954	$123	$1,608	$518
Less: amounts attributable to noncontrolling interests:
Net income	(8)	(9)	(13)	(18)
Unrealized foreign currency translation adjustments	(5)	2	(6)	4
Comprehensive income attributable to PPG	$941	$116	$1,589	$504

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet (Unaudited)


($ in millions)	June 30, 2025	December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$1,561	$1,270
Short-term investments	64	88
Receivables, net	3,891	2,985
Inventories	2,224	1,846
Other current assets	450	368
Total current assets	$8,190	$6,557
Property, plant and equipment (net of accumulated depreciation of $4,586 and $4,217)	3,684	3,464
Goodwill	6,112	5,690
Identifiable intangible assets, net	2,025	1,922
Deferred income taxes	522	303
Investments	338	331
Operating lease right-of-use assets	634	597
Other assets	594	569
Total	$22,099	$19,433
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$4,061	$3,731
Restructuring reserves	147	128
Short-term debt and current portion of long-term debt	1,413	939
Current portion of operating lease liabilities	141	126
Other	—	90
Total current liabilities	$5,762	$5,014
Long-term debt	5,919	4,876
Operating lease liabilities	475	454
Accrued pensions	562	558
Other postretirement benefits	409	410
Deferred income taxes	501	405
Other liabilities	727	754
Total liabilities	$14,355	$12,471
Commitments and contingent liabilities (Note 14)
Shareholders’ equity:
Common stock	$969	$969
Additional paid-in capital	1,310	1,272
Retained earnings	22,509	21,994
Treasury stock, at cost	(14,869)	(14,342)
Accumulated other comprehensive loss	(2,342)	(3,108)
Total PPG shareholders’ equity	$7,577	$6,785
Noncontrolling interests	167	177
Total shareholders’ equity	$7,744	$6,962
Total	$22,099	$19,433

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Shareholders' Equity (Unaudited)


($ in millions)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total PPG	Non-controlling Interests	Total
January 1, 2025	$969	$1,272	$21,994	($14,342)	($3,108)	$6,785	$177	$6,962
Net income attributable to controlling and noncontrolling interests	—	—	373	—	—	373	5	378
Other comprehensive loss, net of tax	—	—	—	—	275	275	1	276
Cash dividends	—	—	(154)	—	—	(154)	—	(154)
Purchase of treasury stock	—	—	—	(385)	—	(385)	—	(385)
Issuance of treasury stock	—	29	—	8	—	37	—	37
Stock-based compensation activity	—	(4)	—	—	—	(4)	—	(4)
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(3)	(3)
Reductions in noncontrolling interests	—	—	—	—	—	—	(15)	(15)
March 31, 2025	$969	$1,297	$22,213	($14,719)	($2,833)	$6,927	$165	$7,092
Net income attributable to the controlling and noncontrolling interests	—	—	450	—	—	450	8	458
Other comprehensive loss, net of tax	—	—	—	—	491	491	5	496
Cash dividends	—	—	(154)	—	—	(154)	—	(154)
Purchase of treasury stock	—	—	—	(151)	—	(151)	—	(151)
Issuance of treasury stock	—	4	—	1	—	5	—	5
Stock-based compensation activity	—	9	—	—	—	9	—	9
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(11)	(11)

June 30, 2025	$969	$1,310	$22,509	($14,869)	($2,342)	$7,577	$167	$7,744

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($ in millions)	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total PPG	Non-controlling Interests	Total
January 1, 2024	$969	$1,202	$21,500	($13,600)	($2,239)	$7,832	$191	$8,023
Net income attributable to controlling and noncontrolling interests	—	—	400	—	—	400	9	409
Other comprehensive income, net of tax	—	—	—	—	(12)	(12)	(2)	(14)
Cash dividends	—	—	(153)	—	—	(153)	—	(153)
Purchase of treasury stock	—	—	—	(152)	—	(152)	—	(152)
Issuance of treasury stock	—	31	—	6	—	37	—	37
Stock-based compensation activity	—	(11)	—	—	—	(11)	—	(11)
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(2)	(2)
Reductions in noncontrolling interests	—	—	—	—	—	—	(11)	(11)
March 31, 2024	$969	$1,222	$21,747	($13,746)	($2,251)	$7,941	$185	$8,126
Net income attributable to the controlling and noncontrolling interests	—	—	528	—	—	528	9	537
Other comprehensive income/(loss), net of tax	—	—	—	—	(412)	(412)	(2)	(414)
Cash dividends	—	—	(152)	—	—	(152)	—	(152)
Purchase of treasury stock	—	—	—	(152)	—	(152)	—	(152)
Issuance of treasury stock	—	3	—	1	—	4	—	4
Stock-based compensation activity	—	10	—	—	—	10	—	10
Dividends paid on subsidiary common stock to noncontrolling interests	—	—	—	—	—	—	(13)	(13)



Other	—	—	—	—	—	—	(1)	(1)
June 30, 2024	$969	$1,235	$22,123	($13,897)	($2,663)	$7,767	$178	$7,945

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)


	Six Months Ended June 30
($ in millions)	2025	2024
Operating activities:
Net income attributable to controlling and noncontrolling interests	$836	$946
Less: Income/(loss) from discontinued operations	(2)	30
Income from continuing operations	$838	$916
Adjustments to reconcile net income to cash from operations:
Depreciation and amortization	256	254







Stock-based compensation expense	36	21


Deferred income taxes	(22)	(44)

Cash used for restructuring actions	(45)	(27)
Change in certain asset and liability accounts (net of acquisitions):
Receivables	(745)	(543)
Inventories	(256)	(167)
Other current assets	3	(39)
Accounts payable and accrued liabilities	300	(18)
Taxes and interest payable	(94)	(5)
Noncurrent assets and liabilities, net	(22)	35
Other	122	(35)
Cash from operating activities - continuing operations	$371	$348
Cash used for operating activities - discontinued operations	(2)	(43)
Cash from operating activities	$369	$305
Investing activities:
Capital expenditures	($330)	($367)
Business acquisitions, net of cash balances acquired	—	(27)







Other	42	31
Cash used for investing activities - continuing operations	($288)	($363)
Cash used for investing activities - discontinued operations	—	(7)
Cash used for investing activities	($288)	($370)
Financing activities:
Net proceeds from commercial paper and short-term debt	$—	$171

Proceeds from Term Loan, net of fees	309	274




Proceeds from the issuance of debt, net of discounts and fees	940	—
Repayment of long-term debt	(341)	—

Purchase of treasury stock	(540)	(312)

Dividends paid on PPG common stock	(308)	(305)


Other	(23)	(13)
Cash from/(used for) financing activities - continuing operations	$37	($185)
Cash used for financing activities - discontinued operations	—	—
Cash from/(used for) financing activities	$37	($185)
Effect of currency exchange rate changes on cash and cash equivalents	173	(133)
Cash reclassified from assets held for sale	—	5
Net increase/(decrease) in cash and cash equivalents	$291	($378)
Cash and cash equivalents, beginning of period	1,270	1,493
Cash and cash equivalents, end of period	$1,561	$1,115

Supplemental disclosures of cash flow information:
Interest paid, net of amount capitalized	$117	$134
Taxes paid, net of refunds	$230	$343

Supplemental disclosure of noncash investing activities:
Capital expenditures accrued within Accounts payable and accrued liabilities at period-end	$67	$71

The accompanying notes to the condensed consolidated financial statements are an integral part of this condensed consolidated statement.

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PPG INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

**1.**Basis of Presentation

The condensed consolidated financial statements included herein are unaudited and have been prepared following the requirements of the Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim reporting. Under these rules, certain footnotes and other financial information that are normally required for annual financial statements can be condensed or omitted. These statements include all adjustments, consisting only of normal, recurring adjustments, necessary to fairly state the financial position and shareholders' equity of PPG as of June 30, 2025 and the results of its operations and cash flows for the three and six months ended June 30, 2025 and 2024. All intercompany balances and transactions have been eliminated. Material subsequent events are evaluated through the report issuance date and disclosed where applicable. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in PPG's 2024 Annual Report on Form 10-K (the "2024 Form 10-K").

In December 2024, PPG completed the sale of 100% of its architectural coatings business in the U.S. and Canada. 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 the three and six months ended June 30, 2024. Refer to Note 3, “Divestitures” for further information relating to this transaction.

Net sales, expenses, assets and liabilities can vary during each quarter of the year. Accordingly, the results of operations for the three and six months ended June 30, 2025 and the trends in these unaudited condensed consolidated financial statements may not necessarily be indicative of the results to be expected for the full year.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on our previously reported Net income, total assets, cash flows or shareholders’ equity.

**2.**New Accounting Standards

Recently Adopted Accounting Standards

PPG did not adopt any new accounting standards during the six months ended June 30, 2025.

Recently Issued Accounting Standards

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09 “Improvements to Income Tax Disclosures (Topic 740)”. This ASU updates current income tax disclosure requirements to require disclosures of specific categories of information within the effective tax rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. This ASU will be effective for the annual period ending December 31, 2025. Adoption of this ASU will result in additional disclosure, but it will not impact PPG’s consolidated financial position, results of operations or cash flows.

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income-Expense Disaggregation (Subtopic 220-40): Disaggregation of Income Statement Expenses”. The ASU requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item. The ASU also requires disclosure of the total amount of selling expenses and our definition of selling expenses. This ASU will be effective for the annual period ending December 31, 2027. Adoption of this ASU will result in additional disclosure, but will not impact PPG’s consolidated financial position, results of operations or cash flows.

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**3.**Divestitures

U.S. and Canada Architectural Coatings Business

In December 2024, PPG completed the sale of 100% of its architectural coatings business in the U.S. and Canada to American Industrial Partners (AIP), an industrials investor. The results of the U.S. and Canada architectural coatings business were previously included in the Performance Coatings segment.

The operating results of discontinued operations related to the U.S. and Canada architectural coatings business for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Net sales	$—	$559	$—	$1,021
Cost of sales, exclusive of depreciation and amortization	—	284	—	524
Selling, general, and administrative	—	219	—	433
Depreciation	—	9	—	17
Amortization	—	1	—	4
Research and development, net	—	3	—	5
Other (income)/charges, net	(1)	1	2	—
Income/(loss) before taxes	$1	$42	($2)	$38
Income tax expense	1	7	—	8
Income/(loss) from discontinued operations, net of tax	$—	$35	($2)	$30

Sale of Russia Operations

In the fourth quarter 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 during the fourth quarter 2024, primarily related to accumulated foreign currency translation losses, which was included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the impairment charge. In the first quarter 2025, PPG completed the sale of its remaining Russian business.

4. Inventories


($ in millions)	June 30, 2025	December 31, 2024
Finished products	$1,180	$949
Work in process	270	235
Raw materials	719	613
Supplies	55	49
Total Inventories	$2,224	$1,846

Most U.S. inventories are valued using the last-in, first-out method. If the first-in, first-out ("FIFO") method of inventory valuation had been used, inventories would have been $180 million and $169 million higher as of June 30, 2025 and December 31, 2024, respectively.

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5. Goodwill and Other Identifiable Intangible Assets

The Company tests indefinite-lived intangible assets and goodwill for impairment by performing either a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount.

The Company did not identify an indication of goodwill impairment for any of its reporting units or an indication of impairment of any of its indefinite-lived intangible assets during the six months ended June 30, 2025.

The change in the carrying amount of goodwill attributable to each reportable segment for the six months ended June 30, 2025 was as follows:


($ in millions)	Global Architectural Coatings	Performance Coatings	Industrial Coatings	Total
January 1, 2025	$2,688	$1,854	$1,148	$5,690


Foreign currency impact and other	278	66	78	422
June 30, 2025	$2,966	$1,920	$1,226	$6,112

As of both June 30, 2025 and December 31, 2024, accumulated goodwill impairment losses totaled $158 million, all of which relates to the Performance Coatings reportable segment.

A summary of the carrying value of the Company's identifiable intangible assets is as follows:


	June 30, 2025			December 31, 2024
($ in millions)	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Indefinite-Lived Identifiable Intangible Assets
Trademarks	$1,245	$—	$1,245	$1,123	$—	$1,123
Definite-Lived Identifiable Intangible Assets
Acquired technology	$821	($700)	$121	$800	($666)	$134
Customer-related	1,789	(1,246)	543	1,656	(1,106)	550
Trade names	297	(183)	114	276	(162)	114
Other	46	(44)	2	43	(42)	1
Total Definite-Lived Intangible Assets	$2,953	($2,173)	$780	$2,775	($1,976)	$799
Total Identifiable Intangible Assets	$4,198	($2,173)	$2,025	$3,898	($1,976)	$1,922

The Company’s identifiable intangible assets with definite lives are being amortized over their estimated useful lives.

As of June 30, 2025, estimated future amortization expense of identifiable intangible assets is as follows:


($ in millions)			Future Amortization Expense
Remaining six months of 2025			$62
2026			$97
2027			$89
2028			$81
2029			$75
2030			$64
Thereafter			$312

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6. Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including both operations from acquisitions and headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company also incurs incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected useful life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 16, "Reportable Business Segment Information" for additional information.

The following table summarizes restructuring reserve activity for the six months ended June 30, 2025 and 2024:


	Total Reserve
($ in millions)	2025	2024
January 1	$276	$110
Approved restructuring actions	32	—
Release of prior reserves and other adjustments(a)	(24)	(1)
Cash payments	(45)	(27)
Foreign currency impact	28	(2)
June 30	$267	$80

(a)Certain releases were recorded to reflect the current estimate of costs to complete planned business restructuring actions.

The majority of the approved business restructuring actions and associated cash outlays are expected to be completed in 2025 and 2026.

7. Borrowings

Credit Agreements

In April 2023, PPG entered into a €500 million term loan credit agreement (the "Term Loan"). The Term Loan contains covenants that are consistent with those in the Credit Agreement discussed below and that are usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. 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. In January 2025, PPG borrowed the additional €300 million. The Term Loan terminates and all amounts outstanding are payable in January 2028. The Term Loan is denominated in euro and has been designated as a hedge of the net investment in the Company’s European operations. For more information, refer to Note 11 “Financial Instruments, Hedging Activities and Fair Value Measurements.”

In July 2023, PPG amended and restated its five-year credit agreement (the "Credit Agreement") dated as of August 30, 2019, extending the term through July 27, 2028. The amended and restated Credit Agreement provides for a $2.3 billion unsecured revolving credit facility. The Company has the ability to increase the size of the Credit Agreement by up to an additional $750 million, subject to the receipt of lender commitments and other conditions precedent. The Company has the right, subject to certain conditions set forth in the Credit Agreement, to designate certain subsidiaries of the Company as borrowers under the Credit Agreement. 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 June 30, 2025 and December 31, 2024.

Borrowings under the Credit Agreement may be made in U.S. Dollars or in euros. The Credit Agreement provides that loans will bear interest at rates based, at the Company’s option, on one of two specified base rates plus a margin based on certain formulas defined in the Credit Agreement. Additionally, the Credit Agreement contains a Commitment Fee, as defined in the Credit Agreement, on the amount of unused commitments under the Credit Agreement ranging from 0.060% to 0.125% per annum.

The Credit Agreement also supports the Company’s commercial paper borrowings which are classified as long-term based on PPG’s intent and ability to refinance these borrowings on a long-term basis. There were no commercial paper borrowings outstanding as of both June 30, 2025 and December 31, 2024.

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The Credit Agreement contains usual and customary restrictive covenants for facilities of its type, which include, with specified exceptions, limitations on the Company’s ability to create liens or other encumbrances, to enter into sale and leaseback transactions and to enter into consolidations, mergers or transfers of all or substantially all of its assets. The Credit Agreement also requires 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. As of June 30, 2025, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 48%.

The Credit Agreement contains, among other things, customary events of default that would permit the lenders to accelerate the loans, including the failure to make timely payments when due under the Credit Agreement or other material indebtedness, the failure to satisfy covenants contained in the Credit Agreement, a change in control of the Company and specified events of bankruptcy and insolvency.

Other Long-term Debt Activities

In March 2025, PPG completed a public offering of €900 million 3.250% Notes due 2032. These notes were issued pursuant to PPG’s existing shelf registration statement and pursuant to an indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented (the "2025 Indenture"). The 2025 Indenture governing these notes contains covenants that limit the Company’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale-leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all the Company’s assets. The terms of these notes also require the Company to make an offer to repurchase Notes upon a Change of Control Triggering Event (as defined in the 2025 Indenture) at a price equal to 101% of their principal amount plus accrued and unpaid interest. The Company may issue additional debt from time to time pursuant to the Indenture. The aggregate cash proceeds from the notes, net of discounts and fees, was $940 million. The notes are denominated in euro and a portion of the notes have been designated as hedges of net investments in the Company’s European operations. Refer to Note 12 “Financial Instruments, Hedging Activities and Fair Value Measurements.” for additional information.

In June 2025, PPG's €300 million 1.875% notes matured, and the Company repaid this obligation using cash on hand.

In August 2024, PPG's $300 million 2.4% notes matured, and the Company repaid this obligation using cash on hand.

Restrictive Covenants and Cross-Default Provisions

As of June 30, 2025, PPG was in full compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures.

Additionally, the Company’s Credit Agreement contains customary cross-default provisions. These provisions provide that a default on a debt service payment of $100 million or more for longer than the grace period provided under another agreement may result in an event of default under this agreement. None of the Company’s primary debt obligations are secured or guaranteed by the Company’s affiliates.

Letters of Credit and Surety Bonds

The Company had outstanding letters of credit and surety bonds of $296 million and $302 million as of June 30, 2025 and December 31, 2024, respectively.

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8. Earnings Per Common Share

The effect of dilutive securities on the weighted average common shares outstanding included in the calculation of earnings per diluted common share for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
(number of shares in millions)	2025	2024	2025	2024
Weighted average common shares outstanding	226.8	234.5	227.4	235.1
Effect of dilutive securities:
Stock options	0.1	0.4	0.1	0.5
Other stock compensation plans	0.8	0.8	0.8	0.7
Potentially dilutive common shares	0.9	1.2	0.9	1.2
Adjusted weighted average common shares outstanding	227.7	235.7	228.3	236.3

Dividends per common share	$0.68	$0.65	$1.36	$1.30

Antidilutive securities(a):
Stock options	3.0	1.1	3.0	0.7

(a)Excluded from the computation of earnings per diluted share due to their antidilutive effect.

9. Income Taxes


	Six Months Ended June 30
	2025		2024
Effective tax rate on pretax income	23.8	%	23.2	%

Income tax expense for the six months ended June 30, 2025 and 2024 is based on an estimated annual effective rate, which requires management to make its best estimate of annual pretax income or loss. During the year, PPG management regularly updates forecasted annual pretax results for the various countries in which PPG operates based on changes in factors such as prices, shipments, product mix, raw material inflation and manufacturing operations. To the extent that actual 2025 pretax results for U.S. and foreign income or loss vary from estimates, the actual Income tax expense recognized in 2025 could be different from the forecasted amount used to estimate Income tax expense for the six months ended June 30, 2025.

United States Tax Law Change

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes a number of tax provisions and multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact of the OBBBA on its consolidated financial statements.

10. Pensions and Other Postretirement Benefits

The service cost component of net periodic pension and other postretirement benefit cost is included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative, and Research and development, net in the accompanying condensed consolidated statement of income. All other components of net periodic benefit cost are recorded in Other charges, net in the accompanying condensed consolidated statement of income.

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Net periodic pension benefit cost and other postretirement benefit cost for the three and six months ended June 30, 2025 and 2024 was as follows:


	Pension
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Service cost	$2	$2	$4	$4
Interest cost	26	26	51	52
Expected return on plan assets	(26)	(27)	(52)	(54)
Amortization of actuarial losses	6	5	12	11
Settlements	—	8	1	8
Net periodic benefit cost	$8	$14	$16	$21


	Other Postretirement Benefits
	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Service cost	$—	$1	$1	$2
Interest cost	6	6	11	12

Amortization of actuarial gains	—	(1)	—	(1)
Amortization of prior service credit	(1)	—	(2)	(2)

Net periodic benefit cost	$5	$6	$10	$11

PPG expects 2025 full year net periodic pension expense of approximately $35 million and net periodic other postretirement expense of approximately $20 million.

Contributions to Defined Benefit Pension Plans


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
U.S. defined benefit pension contributions	$7	$—	$7	$—
Non-U.S. defined benefit pension contributions	$1	$1	$1	$2

PPG expects to make required mandatory contributions to its defined benefit pension plans in the range of $10 million to $20 million during the remaining six months of 2025. In addition to any mandatory contributions, PPG may elect to make voluntary contributions to its defined benefit pension plans in 2025 and beyond.

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11. Accumulated Other Comprehensive Loss (AOCL)


($ in millions)	Foreign Currency Translation Adjustments (a)	Pension and Other Postretirement Benefit Adjustments, net of tax (b)	Unrealized Gain on Derivatives, net of tax	Accumulated Other Comprehensive Loss
January 1, 2024	($1,746)	($494)	$1	($2,239)
Current year deferrals to AOCL	(444)	8	—	(436)
Reclassifications from AOCL to net income	—	12	—	12
June 30, 2024	($2,190)	($474)	$1	($2,663)

January 1, 2025	($2,651)	($458)	$1	($3,108)
Current year deferrals to AOCL	634	(15)	—	619
Reclassifications from AOCL to net income	139	8	—	147
June 30, 2025	($1,878)	($465)	$1	($2,342)

(a)The tax (benefit)/cost related to unrealized foreign currency translation adjustments on net investment hedges was $(39) million and $75 million as of June 30, 2025 and 2024, respectively.

(b)The tax benefit related to the adjustment for pension and other postretirement benefits was $3 million and $6 million for the six months ended June 30, 2025 and 2024, respectively. Reclassifications from AOCL are included in the computation of net periodic benefit cost (See Note 10, "Pensions and Other Postretirement Benefits").

12. Financial Instruments, Hedging Activities and Fair Value Measurements

Financial instruments include cash and cash equivalents, short-term investments, cash held in escrow, marketable equity securities, accounts receivable, company-owned life insurance, accounts payable, short-term and long-term debt instruments, and derivatives. The fair values of these financial instruments approximated their carrying values at June 30, 2025 and December 31, 2024, in the aggregate, except for long-term debt instruments.

Hedging Activities

The Company has exposure to market risk from changes in foreign currency exchange rates and interest rates. As a result, financial instruments, including derivatives, have been used to hedge a portion of these underlying economic exposures. Certain of these instruments may qualify as fair value, cash flow, and net investment hedges upon meeting the requisite criteria, including effectiveness of offsetting hedged or underlying exposures. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in Income before income taxes in the period incurred.

PPG’s policies do not permit speculative use of derivative financial instruments. PPG enters into derivative financial instruments with high credit quality counterparties and diversifies its positions among such counterparties in order to reduce its exposure to credit losses. The Company did not realize a credit loss on derivatives during the six months ended June 30, 2025 and 2024.

All of PPG's outstanding derivative instruments are subject to accelerated settlement in the event of PPG’s failure to meet its debt or payment obligations under the terms of the instruments’ contractual provisions. In addition, if the Company would be acquired and its payment obligations under its derivative instruments’ contractual arrangements are not assumed by the acquirer, or if PPG would enter into bankruptcy, receivership or reorganization proceedings, its outstanding derivative instruments would also be subject to accelerated settlement.

There were no derivative instruments de-designated or discontinued as hedging instruments during the six months ended June 30, 2025 and 2024, and there were no gains or losses deferred in Accumulated other comprehensive loss on the condensed consolidated balance sheet that were reclassified to Income before income taxes in the condensed consolidated statement of income in the six months ended June 30, 2025 and 2024 related to hedges of anticipated transactions that were no longer expected to occur.

Fair Value Hedges

The Company uses interest rate swaps from time to time to manage its exposure to changing interest rates. When outstanding, the interest rate swaps are typically designated as fair value hedges of certain outstanding debt obligations of the Company and are recorded at fair value.

PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both June 30, 2025 and December 31, 2024. These swaps are designated as fair value hedges and are carried at fair value.

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Changes in the fair value of these swaps and changes in the fair value of the related debt are recorded in interest expense in the accompanying condensed consolidated statement of income. The fair value of these interest rate swaps were liabilities of $8 million and $16 million at June 30, 2025 and December 31, 2024, respectively.

Cash Flow Hedges

At times, PPG designates certain foreign currency forward contracts as cash flow hedges of the Company’s exposure to variability in exchange rates on third party transactions denominated in foreign currencies. There were no outstanding cash flow hedges at June 30, 2025 and December 31, 2024.

Net Investment Hedges

PPG uses cross currency swaps and foreign currency euro-denominated debt to hedge a significant portion of its net investment in its European operations, as follows:

PPG had U.S. dollar to euro cross currency swap contracts with total notional amounts of $375 million as of June 30, 2025 and December 31, 2024, respectively, and designated these contracts as hedges of the Company's net investment in its European operations. During the term of these contracts, PPG will receive payments in U.S. dollars and make payments in euros to the counterparties. As of June 30, 2025 and December 31, 2024, the fair value of the U.S. dollar to euro cross currency swap contracts were net assets of $9 million and $50 million, respectively.

At June 30, 2025 and December 31, 2024, PPG had designated €3.9 billion and €3.2 billion, respectively, of euro-denominated borrowings as hedges of a portion of its net investment in the Company's European operations. The carrying value of these instruments were $4.6 billion and $3.3 billion as of June 30, 2025 and December 31, 2024, respectively.

Other Financial Instruments

PPG uses foreign currency forward contracts to manage certain net transaction exposures that either have not been elected, or do not qualify for hedge accounting; therefore, the change in the fair value of these instruments is recorded in Other charges, net in the condensed consolidated statement of income in the period of change. Underlying notional amounts related to these foreign currency forward contracts were $3.4 billion and $2.8 billion at June 30, 2025 and December 31, 2024, respectively. The fair values of these contracts were net assets of $40 million and net liabilities of $53 million as of June 30, 2025 and December 31, 2024, respectively.

Gains/Losses Deferred in Accumulated Other Comprehensive Loss

The following table summarizes the amount of gains and losses deferred in Other comprehensive income ("OCI") and the amount and location of gains and losses recognized within the condensed consolidated statement of income related to derivative and debt financial instruments for the three and six months ended June 30, 2025 and 2024. All amounts are shown on a pretax basis.


	Three Months Ended
	June 30, 2025		June 30, 2024		Caption In Condensed Consolidated Statement of Income
($ in millions)	Loss Deferred in OCI	Gain/(Loss) Recognized	Gain Deferred in OCI	Gain/(Loss) Recognized
Economic
Foreign currency forward contracts	$—	$43	$—	$13	Other charges, net
Fair Value
Interest rate swaps	—	(1)	—	(2)	Interest expense


Total forward contracts and interest rate swaps	$—	$42	$—	$11
Net Investment

Cross currency swaps	($31)	$2	$2	$3	Interest expense
Foreign denominated debt	(379)	—	22	—
Total Net Investment	($410)	$2	$24	$3

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	Six Months Ended
	June 30, 2025		June 30, 2024		Caption In Condensed Consolidated Statement of Income
($ in millions)	Loss Deferred in OCI	Gain/(Loss) Recognized	Gain Deferred in OCI	Gain/(Loss) Recognized
Economic
Foreign currency forward contracts	$—	$59	$—	$26	Other charges, net
Fair Value
Interest rate swaps	—	(3)	—	(5)	Interest expense


Total forward contracts and interest rate swaps	$—	$56	$—	$21
Net Investment

Cross currency swaps	($42)	$4	$11	$5	Interest expense
Foreign denominated debt	(553)	—	96	—
Total Net Investment	($595)	$4	$107	$5

Fair Value Measurements

The Company follows a fair value measurement hierarchy to measure its assets and liabilities. As of June 30, 2025 and December 31, 2024, the assets and liabilities measured at fair value on a recurring basis were cash equivalents, equity securities and derivatives. In addition, the Company measures its pension plan assets at fair value (see Note 14, "Employee Benefit Plans" under Item 8 in the 2024 Form 10-K for further details). The Company's financial assets and liabilities are measured using inputs from the following three levels:

Level 1 inputs are quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 1 inputs are considered to be the most reliable evidence of fair value as they are based on unadjusted quoted market prices from various financial information service providers and securities exchanges.

Level 2 inputs are directly or indirectly observable prices that are not quoted on active exchanges, which include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. The fair values of the derivative instruments reflect the instruments' contractual terms, including the period to maturity, and uses observable market-based inputs, including forward curves.

Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities. The Company did not have any recurring financial assets or liabilities recorded in its condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 that were measured using Level 3 inputs.

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Assets and liabilities reported at fair value on a recurring basis


	June 30, 2025			December 31, 2024
($ in millions)	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Assets:
Other current assets:
Marketable equity securities	$10	$—	$—	$9	$—	$—
Foreign currency forward contracts (a)	$—	$47	$—	$—	$5	$—


Investments:
Marketable equity securities	$79	$—	$—	$85	$—	$—
Other assets:
Cross currency swaps (b)	$—	$14	$—	$—	$50	$—

Liabilities:
Accounts payable and accrued liabilities:
Foreign currency forward contracts (a)	$—	$7	$—	$—	$58	$—


Other liabilities:
Cross currency swaps (b)	$—	$5	$—	$—	$—	$—
Interest rate swaps (c)	$—	$8	$—	$—	$16	$—

(a)Derivatives not designated as hedging instruments

(b)Net investment hedges

(c)Fair value hedges

Long-Term Debt


($ in millions)	June 30, 2025(a)	December 31, 2024 (b)
Long-term debt - carrying value	$7,322	$5,801
Long-term debt - fair value	$7,204	$5,634

(a)Excludes finance lease obligations of $6 million and short-term borrowings of $4 million as of June 30, 2025.

(b)Excludes finance lease obligations of $7 million and short-term borrowings of $7 million as of December 31, 2024.

The fair values of the debt instruments were measured using Level 2 inputs, including discounted cash flows and interest rates then currently available to the Company for instruments of the same remaining maturities.

13. Stock-Based Compensation

The Company’s stock-based compensation includes stock options, restricted stock units (“RSUs”) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return ("TSR"). All current grants of stock options, RSUs and contingent shares are made under the PPG Industries, Inc. Amended and Restated Omnibus Incentive Plan (“PPG Amended Omnibus Plan”), which was amended and restated effective April 21, 2016.


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Stock-based compensation expense	$13	$10	$36	$21
Income tax benefit recognized	$3	$2	$8	$4

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Grants of stock-based compensation during the six months ended June 30, 2025 and 2024 were as follows:


	Six Months Ended June 30
	2025		2024
	Shares	Fair Value	Shares	Fair Value
Stock options	542,263	$32.93	426,939	$43.83
Restricted stock units	275,472	$111.55	235,633	$135.49
Contingent shares (a)	76,925	$114.39	51,543	$142.65

(a)The number of contingent shares represents the target value of the award.

Stock options are generally exercisable 36 months after being granted and have a maximum term of 10 years. Compensation expense for stock options is recorded over the vesting period based on the fair value on the date of grant. The fair value of the stock options granted during the six months ended June 30, 2025 was calculated with the following weighted average assumptions:


Weighted average exercise price	$114.39
Risk-free interest rate	4.2	%
Expected life of option in years	5.5
Expected dividend yield	1.8	%
Expected volatility	29.4	%

The risk-free interest rate is determined by using the U.S. Treasury yield curve at the date of the grant and using a maturity equal to the expected life of the option. The expected term assumption is estimated based on the weighted average term of historical stock option grants. The expected dividend yield and volatility are based on historical stock prices and dividend amounts over past time periods equal in length to the expected life of the options.

Time-based RSUs generally vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the vesting period.

Performance-based RSUs vest based on achieving specific annual performance targets for adjusted earnings per share growth and cash flow return on capital over the three calendar year-end periods following the date of grant. Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the Company’s discretion at the end of the three-year performance period if PPG meets the performance targets. The amount paid upon vesting of performance-based RSUs may range from 0% to 200% of the original grant, based upon the level of adjusted earnings per share growth achieved and frequency with which the annual cash flow return on capital performance target is met over the three calendar year periods comprising the vesting period. Performance against the earnings per share growth and the cash flow return on capital target is calculated annually, and the annual payout for each goal is weighted equally over the three-year period.

The Company also provides grants of contingent shares to selected key executives that may be earned based on PPG's TSR over the three-year period following the date of grant. Contingent share grants (referred to as “TSR awards”) are made annually and are paid out at the end of each three-year period based on the Company’s stock performance. Performance is measured by determining the percentile rank of the total shareholder return of PPG common stock in relation to the TSR of the S&P 500 Index for the three-year period following the date of grant. This comparison group represents the entire S&P 500 Index as it existed at the beginning of the performance period, excluding any companies that were removed from the index because they ceased to be publicly traded. The payment of awards following the three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. A payout of 100% is earned if target performance is achieved. Contingent share awards earn dividend equivalents for the award period, which are paid to participants or credited to the participants’ deferred compensation plan accounts with the award payout at the end of the period based on the actual number of contingent shares that are earned. Any payments made at the end of the award period may be in the form of stock, cash or a combination of both. The TSR awards are classified as liability awards, and compensation expense is recognized over the three-year award period based on the fair value of the awards (giving consideration to the Company’s percentile rank of TSR) remeasured in each reporting period until settlement of the awards.

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14. Commitments and Contingent Liabilities

PPG is involved in a number of lawsuits and claims, both actual and potential, including some that it has asserted against others, in which substantial monetary damages are sought. These lawsuits and claims may relate to contract, patent, environmental, product liability, asbestos exposure, antitrust, employment, securities and other matters arising out of the conduct of PPG’s current and past business activities. To the extent that these lawsuits and claims involve personal injury, property damage and certain other claims, PPG believes it has adequate insurance; however, certain of PPG’s insurers are contesting coverage with respect to some of these claims, and certain insurers may contest coverage with respect to claims in the future. PPG’s lawsuits and claims against others include claims against insurers and other third parties with respect to actual and contingent losses related to contract, environmental, asbestos and other matters.

The results of any current or future litigation and claims are inherently unpredictable. However, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG will not have a material effect on PPG’s consolidated financial position or liquidity; however, such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized.

Asbestos Matters

As of June 30, 2025, the Company was aware of certain asbestos-related claims pending against the Company and certain of its subsidiaries. The Company is defending these asbestos-related claims vigorously. The asbestos-related claims consist of claims against the Company alleging:

exposure to asbestos or asbestos-containing products manufactured, sold or distributed by the Company or its subsidiaries (“Products Claims”);
personal injury caused by asbestos on premises presently or formerly owned, leased or occupied by the Company (“Premises Claims”); and
asbestos-related claims against a subsidiary the Company acquired in 2013 (“Subsidiary Claims”).

The Company monitors and reviews the activity associated with its asbestos claims and evaluates, on a periodic basis, its estimated liability for such claims and all underlying assumptions to determine whether any adjustment to the reserves for these claims is required. Additionally, as a supplement to its periodic monitoring and review, the Company conducts discussions with counsel and engages valuation consultants to analyze its claims history and estimate the amount of the Company’s potential liability for asbestos-related claims. As of June 30, 2025 and December 31, 2024, the Company's asbestos-related reserves totaled $43 million and $45 million, respectively.

The Company believes that, based on presently available information, the total reserves for asbestos-related claims will be sufficient to encompass all of the Company’s current and estimable potential future asbestos liabilities. These reserves, which are included within Other liabilities on the accompanying consolidated balance sheets, involve significant management judgment and represent the Company’s current best estimate of its liability for these claims.

The amount reserved for asbestos-related claims by its nature is subject to many uncertainties that may change over time, including (i) the ultimate number of claims filed; (ii) whether closed, dismissed or dormant claims are reinstituted, reinstated or revived; (iii) the amounts required to resolve both currently known and future unknown claims; (iv) the amount of insurance, if any, available to cover such claims; (v) the unpredictable aspects of the tort system, including a changing trial docket and the jurisdictions in which trials are scheduled; (vi) the outcome of any trials, including potential judgments or jury verdicts; (vii) the lack of specific information in many cases concerning exposure for which the Company is allegedly responsible, and the claimants’ alleged diseases resulting from such exposure; and (viii) potential changes in applicable federal and/or state tort liability law. All of these factors may have a material effect upon future asbestos-related liability estimates. While the ultimate outcome of the Company’s asbestos litigation cannot be predicted with certainty, the Company believes that any financial exposure resulting from its asbestos-related claims will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.

Environmental Matters

In management’s opinion, the Company operates in an environmentally sound manner and the outcome of the Company’s environmental contingencies will not have a material effect on PPG’s financial position or liquidity; however, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Management anticipates that the resolution of the Company’s environmental contingencies will occur over an extended period of time.

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As remediation at certain environmental sites progresses, PPG continues to refine its assumptions underlying the estimates of the expected future costs of its remediation programs. PPG’s ongoing evaluation may result in additional charges against income to adjust the reserves for these sites. In 2024 and 2025, certain charges have been recorded based on updated estimates to increase existing reserves for these sites. Certain other charges related to environmental remediation actions are expensed as incurred.

As of June 30, 2025 and December 31, 2024, PPG had reserves for environmental contingencies associated with PPG’s former chromium manufacturing plant in Jersey City, New Jersey (“New Jersey Chrome”), glass and chemical manufacturing sites, and for other environmental contingencies, including current manufacturing locations and National Priority List sites. These reserves are reported as Accounts payable and accrued liabilities and Other liabilities in the accompanying condensed consolidated balance sheet.


Environmental Reserves
($ in millions)	June 30, 2025	December 31, 2024
New Jersey Chrome	$63	$58
Glass and chemical	51	51
Other	114	113
Total environmental reserves	$228	$222
Current portion	$49	$39

Pretax charges against income for environmental remediation costs are included in Other charges, net in the accompanying condensed consolidated statement of income. The pretax charges and cash outlays related to such environmental remediation for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Environmental remediation pretax charges	$16	$21	$16	$24
Cash outlays for environmental remediation activities	$7	$5	$10	$13

In the second quarter 2025, the Company recognized pretax environmental remediation charges of $16 million related to certain legacy PPG manufacturing sites. These legacy environmental remediation charges primarily relate to an increase in the expected cost of surrounding site remediation at the New Jersey Chrome site and remedial actions at a legacy glass manufacturing site.

Remediation: New Jersey Chrome

In June 2009, PPG entered into a settlement agreement with the New Jersey Department of Environmental Protection (“NJDEP”) and Jersey City, New Jersey (which had asserted claims against PPG for lost tax revenue) which was in the form of a Partial Consent Judgment (the "Consent"). Under the Consent, PPG accepted sole responsibility for the remediation activities at its former chromium manufacturing location in Jersey City and a number of additional surrounding sites. Remediation of the New Jersey Chrome sites requires PPG to remediate soil and groundwater contaminated by hexavalent chromium, as well as perform certain other environmental remediation activities. The most significant assumptions underlying the estimate of remediation costs for all New Jersey Chrome sites relate to the extent and concentration of chromium in the soil.

PPG regularly evaluates the assessments of costs incurred to date versus current progress and the potential cost impacts of the most recent information, including the extent of impacted soils and groundwater, and engineering, administrative and other associated costs. Based on these assessments, the reserve is adjusted accordingly. As of June 30, 2025 and December 31, 2024, PPG's reserve for remediation of all New Jersey Chrome sites was $63 million and $58 million, respectively. The major cost components of this liability are related to excavation of impacted soil as well as groundwater remediation. These components each account for approximately 60% and 15% of the amount accrued at June 30, 2025, respectively.

There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and applicable governmental agency or community organization approvals. Considerable uncertainty exists regarding the timing of these future events for the New Jersey Chrome sites. Further resolution of these events is expected to occur over the next several years. As these events occur and to the extent that the cost estimates of the environmental remediation remedies change, the existing reserve for this environmental remediation matter will continue to be adjusted.

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Remediation: Glass, Chemicals and Other Sites

Among other sites at which PPG is managing environmental liabilities, remedial actions are occurring at a chemical manufacturing site in Barberton, Ohio where PPG has completed a Facility Investigation and Corrective Measure Study under the United States Environmental Protection Agency's Resource Conservation and Recovery Act Corrective Action Program. PPG has also been addressing the impacts from a legacy plate glass manufacturing site in Kokomo, Indiana under the Voluntary Remediation Program of the Indiana Department of Environmental Management and a site associated with a legacy plate glass manufacturing site near Ford City, Pennsylvania under the Pennsylvania Land Recycling Program under the oversight of the Pennsylvania Department of Environmental Protection. PPG is currently performing additional investigation and remedial activities at these locations.

With respect to certain other waste sites, the financial condition of other potentially responsible parties also contributes to the uncertainty of estimating PPG’s final costs. Although contributors of waste to sites involving other potentially responsible parties may face governmental agency assertions of joint and several liability, in general, final allocations of costs are made based on the relative contributions of wastes to such sites. PPG is generally not a major contributor to such sites.

Remediation: Reasonably Possible Matters

In addition to the amounts currently reserved for environmental remediation, the Company may be subject to loss contingencies related to environmental matters estimated to be as much as $100 million to $200 million. Such unreserved losses are reasonably possible but are not currently considered to be probable of occurrence. These reasonably possible unreserved losses relate to environmental matters at a number of sites, none of which are individually significant. The loss contingencies related to these sites include significant unresolved issues such as the nature and extent of contamination at these sites and the methods that may have to be employed to remediate them.

The impact of evolving programs, such as natural resource damage claims, industrial site re-use initiatives and domestic and international remediation programs, also adds to the present uncertainties with regard to the ultimate resolution of this unreserved exposure to future loss. The Company’s assessment of the potential impact of these environmental contingencies is subject to considerable uncertainty due to the complex, ongoing and evolving process of investigation and remediation, if necessary, of such environmental contingencies, and the potential for technological and regulatory developments.

15. Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. For most transactions, control passes in accordance with agreed upon delivery terms.

The Company delivers products to company-owned stores, home centers and other regional or national consumer retail outlets, paint dealers, concessionaires and independent distributors, company-owned distribution networks, and directly to manufacturing companies and retail customers. Each product delivered to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates. Accounts receivable are recognized when there is an unconditional right to consideration. Payment terms vary from customer to customer, depending on creditworthiness, prior payment history and other considerations.

The Company also provides services by applying coatings to customers' manufactured parts and assembled products and by providing technical support to certain customers. Performance obligations are satisfied over time as critical milestones are met and as services are provided. PPG is entitled to payment as the services are rendered. For the three and six months ended June 30, 2025 and 2024, service revenue constituted less than 5% of total revenue.

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Net sales by segment and region for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Global Architectural Coatings

Europe, Middle East and Africa ("EMEA")	657	664	1,199	1,239
Asia Pacific	49	61	95	117
Latin America	312	345	581	680
Total	$1,018	$1,070	$1,875	$2,036
Performance Coatings
United States and Canada	$923	$844	$1,660	$1,502
EMEA	329	317	642	626
Asia Pacific	233	228	423	413
Latin America	27	29	52	61
Total	$1,512	$1,418	$2,777	$2,602
Industrial Coatings
United States and Canada	$572	$636	$1,119	$1,258
EMEA	448	473	865	948
Asia Pacific	445	445	856	860
Latin America	200	193	387	380
Total	$1,665	$1,747	$3,227	$3,446
Total Net Sales
United States and Canada	$1,495	$1,480	$2,779	$2,760
EMEA	1,434	1,454	2,706	2,813
Asia Pacific	727	734	1,374	1,390
Latin America	539	567	1,020	1,121
Total PPG	$4,195	$4,235	$7,879	$8,084

Allowance for Doubtful Accounts

All trade receivables are reported on the condensed consolidated balance sheet at the outstanding principal amount adjusted for any allowance for doubtful accounts and any charge-offs. PPG provides an allowance for doubtful accounts to reduce trade receivables to their estimated net realizable value equal to the amount that is expected to be collected. This allowance is estimated based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable, assessments of current creditworthiness of customers and forward-looking information. The use of forward-looking information is based on certain macroeconomic and microeconomic indicators, including, but not limited to, regional business environment risk, political risk, and commercial and financing risks.

PPG reviews its allowance for doubtful accounts on a quarterly basis to ensure the estimate reflects regional risk trends as well as current and future global operating conditions.

The following table summarizes the activity for the allowance for doubtful accounts for the six months ended June 30, 2025 and 2024:


	Trade Receivables Allowance for Doubtful Accounts
($ in millions)	2025	2024
January 1	$23	$23
Bad debt expense	7	3
Write-offs and recoveries of previously reserved trade receivables	(11)	(2)
Other	1	—
June 30	$20	$24

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16. Reportable Business Segment Information

PPG is a multinational manufacturer with 10 operating segments (which the Company refers to as “strategic business units”) that are organized based on the Company’s major products lines. The operating segments are aggregated into reportable business segments based on their similar economic characteristics, including similar nature of products, production processes, end-use markets and methods of distribution.

Effective December 31, 2024, the Company revised the aggregation of its ten operating segments to present three reportable business segments: Global Architectural Coatings, Performance Coatings and Industrial Coatings. This expanded segmentation provides investors with enhanced visibility as the Company drives growth and performance. Prior year amounts have been recast to conform to current year presentation.

The Global Architectural Coatings reportable business segment is comprised of the architectural coatings EMEA and architectural coatings Latin America and Asia Pacific operating segments. This reportable business segment primarily supplies paints, wood stains, adhesives, sealants and purchased sundries.

The Performance Coatings reportable business segment is comprised of the automotive refinish coatings, aerospace coatings, protective and marine coatings and traffic solutions operating segments. This reportable business segment primarily supplies a variety of coatings, solvents, adhesives, sealants, foams and finishes, along with pavement marking products, transparencies and paint films.

The Industrial Coatings reportable business segment is comprised of the automotive original equipment manufacturer ("OEM") coatings, industrial coatings, packaging coatings, and the specialty products operating segments. This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, metal pretreatment products, optical monomers and coatings, low-friction coatings, paint films and other specialty products.

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Reportable business segment net sales and segment income for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Global Architectural Coatings
Net sales to external customers	$1,018	$1,070	$1,875	$2,036
Cost of sales, exclusive of depreciation and amortization	498	513	927	971
Selling, general and administrative	308	309	582	610
Depreciation and amortization	27	26	53	52
Other (a)	25	11	35	26
Global Architectural Coatings segment income	$160	$211	$278	$377
Performance Coatings
Net sales to external customers	$1,512	$1,418	$2,777	$2,602
Cost of sales, exclusive of depreciation and amortization	819	773	1,494	1,401
Selling, general and administrative	275	261	531	506
Depreciation and amortization	33	34	66	68
Other (a)	29	24	56	50
Performance Coatings segment income	$356	$326	$630	$577
Industrial Coatings
Net sales to external customers	$1,665	$1,747	$3,227	$3,446
Cost of sales, exclusive of depreciation and amortization	1,113	1,164	2,152	2,283
Selling, general and administrative	205	210	405	422
Depreciation and amortization	49	53	96	105
Other (a)	71	61	132	128
Industrial Coatings segment income	$227	$259	$442	$508
Total Net Sales	$4,195	$4,235	$7,879	$8,084
Total Segment income	$743	$796	$1,350	$1,462
Corporate / Non-Segment Items
Corporate / non-segment unallocated, exclusive of depreciation and amortization	(74)	(67)	(154)	(143)
Corporate / non-segment depreciation and amortization	(15)	(11)	(30)	(29)
Interest expense, net of interest income	(18)	(17)	(31)	(30)
Business restructuring-related costs, net (b)	(20)	(4)	(29)	(15)
Portfolio optimization (c)	(2)	(26)	4	(32)
Insurance recovery (d)	—	—	6	—
Legacy environmental remediation charges (e)	(16)	(20)	(16)	(20)
Total Income from continuing operations before income taxes	$598	$651	$1,100	$1,193

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	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Expenditures for property (including business acquisitions)
Global Architectural Coatings	$19	$28	$57	$92
Performance Coatings	27	34	78	94
Industrial Coatings	32	32	117	106
Corporate / Non-Segment Items	43	38	78	102
Total	$121	$132	$330	$394
Share of net earnings of equity affiliates
Global Architectural Coatings	$—	$1	$1	$1
Performance Coatings	2	2	3	3
Industrial Coatings	—	—	—	1
Corporate / Non-Segment Items	3	2	6	5
Total	$5	$5	$10	$10


($ in millions)	June 30, 2025	June 30, 2024
Segment assets (f)
Global Architectural Coatings	$6,819	$6,651
Performance Coatings	6,268	5,736
Industrial Coatings	5,696	5,551
Total segment assets	$18,783	$17,938
Corporate / Non-Segment Items	3,316	3,791
Total	$22,099	$21,729
Investment in equity affiliates
Global Architectural Coatings	$23	$23
Performance Coatings	27	25
Industrial Coatings	21	19
Total segment investment in equity affiliates	$71	$67
Corporate / Non-Segment Items	80	78
Total	$151	$145


	Three Months Ended June 30		Six Months Ended June 30
($ in millions)	2025	2024	2025	2024
Geographic Information
Segment income
United States and Canada	$360	$323	$633	$574
EMEA	163	194	307	351
Asia Pacific	100	129	187	232
Latin America	120	150	223	305
Total	$743	$796	$1,350	$1,462

(a)Other segment items for each reportable business segment includes research and development, net and other segment (income)/expense, net.

(b)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Other charges, net on the condensed consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the condensed 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 condensed consolidated statement of income.

(c)Portfolio optimization includes gains and losses on the sale of non-core assets, including a gain recognized on the sale of a business in the first quarter 2025 and a loss recognized on the sale of the Company’s traffic solutions business in Argentina in the second quarter 2024, which are included in Other charges, net in the condensed consolidated statement of income. Portfolio optimization also includes

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advisory, legal, accounting, valuation, other professional or consulting fees, and certain internal costs directly incurred to effect acquisitions, as well as similar fees and other costs to effect divestitures and other portfolio optimization exit actions. These costs are included in Selling, general and administrative expense on the condensed consolidated statement of income. There was no tax expense associated with the gain recognized on the sale of a business in the first quarter 2025.

(d)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.

(e)Legacy environmental remediation charges represent environmental remediation costs at certain non-operating PPG manufacturing sites. These charges are included in Other charges, net in the condensed consolidated statement of income.

(f)Segment assets are the total assets used in the operation of each segment. Corporate assets principally include amounts recorded in Cash and cash equivalents, Deferred income taxes, and Property, plant and equipment, net on the consolidated balance sheet.

17. Supplier Finance

PPG has certain voluntary supply chain finance programs with financial intermediaries which provide participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. PPG’s responsibility is limited to making payments on the terms originally negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The range of payment terms PPG negotiates with suppliers are consistent, regardless of whether a supplier participates in a supply chain finance program. These amounts are included within Accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheet.

The rollforward of outstanding obligations confirmed as valid under the supplier finance programs for the six months ended June 30, 2025 and 2024 is as follows:


($ in millions)	2025	2024
January 1	$251	$286
Invoices confirmed	267	308
Confirmed invoices paid	(280)	(354)
Currency impact	28	(8)
June 30	$266	$232

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