AI Takeaway
PPG Industries delivered a strong FY2025 with net income surging 41.2% to $1.576B on nearly flat revenue of $15.875B, driven by improved profitability and robust operating cash flow growth of 36.7%.
Revenue
$15.88B
++0.19% YoY
EPS (Basic)
$6.96
++45.91% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
PPG's revenue grew just 0.2% YoY to $15.875B in FY2025 from $15.845B, suggesting a relatively flat top-line environment, yet the company managed to significantly expand profitability metrics, indicating strong operational leverage and cost discipline.
Source: Source: 10-K Income Statement
Net income jumped 41.2% to $1.576B from $1.116B, while diluted EPS surged 46.1% to $6.94 from $4.75, reflecting meaningful margin improvement and potentially favorable one-time items or reduced charges compared to the prior year.
Source: Source: 10-K Income Statement
Operating cash flow increased 36.7% to $1.941B from $1.420B, demonstrating PPG's ability to convert earnings into cash effectively, which supports continued dividend payments of $628M and share buybacks of $790M.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockLong-term debt increased 25.8% to $7.297B in FY2025, pushing the debt-to-equity ratio to 1.76. This elevated leverage could constrain financial flexibility and increase interest expense, particularly in a higher-for-longer interest rate environment.
Source: Source: 10-K Balance Sheet
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Upgrade to unlockReported EPS of $1.51 versus the $1.60 analyst consensus — a -5.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15.88B | $15.85B | +0.19% |
Cost of Revenue | $9.32B | $9.25B | +0.69% |
Net Income | $1.58B | $1.12B | +41.22% |
EPS (Basic) | $6.96 | $4.77 | +45.91% |
EPS (Diluted) | $6.94 | $4.75 | +46.11% |
R&D Expense | $446M | $447M | -0.22% |
SG&A Expense | $3.44B | $3.39B | +1.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $22.1B | $19.43B | +13.71% |
Current Assets | $7.96B | $6.56B | +21.38% |
Total Liabilities | $14B | $12.47B | +12.27% |
Current Liabilities | $4.9B | $5.01B | -2.27% |
Stockholders' Equity | $7.94B | $6.79B | +17.04% |
Cash & Equivalents | $2.16B | $1.27B | +70.31% |
Long-Term Debt | $7.3B | $5.8B | +25.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.94B | $1.42B | +36.69% |
Investing Cash Flow | $-700M | $107M | -754.21% |
Financing Cash Flow | $-545M | $-1.43B | +61.75% |
Dividends Paid | $628M | $622M | +0.96% |
Share Buybacks | $790M | $752M | +5.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 9.9% | — | — |
ROE | 19.8% | — | — |
ROA | 7.1% | — | — |
Current Ratio | $1.624 | — | — |
Debt to Equity | $1.763 | — | — |
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PPG had a strong FY2025 with revenue of $15.875B (up 0.2% YoY) and net income surging 41.2% to $1.576B. Diluted EPS rose 46.1% to $6.94, and operating cash flow grew 36.7% to $1.941B, reflecting significant profitability improvement on a nearly flat top line.
PPG's net income rose 41.2% to $1.576B in FY2025 despite revenue growing only 0.2%, suggesting the improvement was driven by factors below the gross profit line, such as reduced impairment charges, lower taxes, or other non-recurring benefits. The net margin expanded from approximately 7.0% to 9.9% YoY, indicating a meaningful structural or one-time improvement in profitability.
Key risks for PPG in FY2025 include a significant 25.8% increase in long-term debt to $7.297B, raising the debt-to-equity ratio to 1.76, which increases financial risk. Additionally, cost of revenue and SG&A both grew faster than revenue, and investing cash flow swung sharply negative to -$700M, suggesting large capital commitments that carry execution risk.
PPG returned approximately $1.418B to shareholders in FY2025, comprising $628M in dividends and $790M in share buybacks. This robust capital return program was supported by strong operating cash flow of $1.941B, demonstrating management's confidence in the company's financial health.
PPG's financial health is generally solid, with a current ratio of 1.62 indicating adequate liquidity, ROE of 19.8%, and strong operating cash flow of $1.941B. However, the 25.8% increase in long-term debt to $7.297B and a debt-to-equity ratio of 1.76 represent elevated leverage that investors should monitor closely.