A Message From Our Chairman and Chief Executive Officer

PPG Annual Report 2024 cover showing packaging, aerospace and marine coatings

Our Valued Shareholders,

PPG's approximately 46,000 employees throughout the world remain focused on being a trusted partner for customers, delivering value for shareholders and supporting the communities where the company operates. Throughout 2024, we demonstrated resilience in a challenging industrial macroeconomic environment.

The PPG team delivered:

  • Portfolio optimization - At the core of our enterprise growth strategy is a focus on markets where we hold leading positions and offer a differentiated portfolio of paints, coatings and surface solutions. In 2024, we further strengthened that focus and optimized our portfolio through the divestitures of both our silica products and our architectural coatings U.S. and Canada businesses. These divestitures improve our financial profile, including higher operating margins, and better position the company to deliver sustainable organic growth. As a result, PPG is a sharper, more focused company.

  • Increased margin and earnings - We have delivered nine consecutive quarters of segment margin and segment EBITDA margin expansion through the end of 2024. Full-year 2024 net sales from continuing operations were $15.8 billion and adjusted EPS increased 6% supported by favorable business mix and driven by sales of our technology-advantaged products and strong brands. We delivered record results in several of our businesses, including aerospace coatings, automotive refinish coatings, and architectural coatings Latin America.

  • Rewarding shareholders - The team's work throughout the year has enabled PPG to continue to reward our shareholders throughout 2024 by returning a total of $1.4 billion to them. In 2024, the company paid approximately $620 million in dividends and repurchased $750 million of stock, which represented approximately 3% of our outstanding shares. PPG has raised its annual dividend payout for 53 consecutive years and has paid uninterrupted annual dividends for 125 years.

  • Accelerated digital transformation - From rolling out global ecommerce platforms to using artificial intelligence to expedite manufacturing, PPG is using digital technology to streamline how we serve customers and conduct business. One example of our progress this year was our continued growth in subscriptions to our PPG LINQ™ services. In addition, we added more than 600 PPG Moonwalk® installations in 2024, further supporting customer productivity and related share gain.

  • Enhanced sustainability - In 2024, PPG continued to innovate and deliver sustainably-advantaged solutions based on demand from our customers to improve their productivity and reduce overall value chain environmental impacts. These products comprised 41% of our sales.

  • Community support - We invested $18.4 million worldwide in 2024, an increase of $900,000 over 2023. The 2024 funding supported more than 400 community partners and programs that are focused on advancing education and delivering community support, while encouraging PPG employee volunteerism. In 2025, the COLORFUL COMMUNITIES® program is reaching an important milestone, marking 10 years since the program’s launch and a decade of brightening communities around the world alongside our employee volunteers and community partners.​ We have extended the Colorful Communities program for 10 more years and doubled the initial investment to contribute an additional $15 million through 2035, bringing the total investment to more than $25 million.

Looking ahead:

We are focused on controlling the controllables, including executing our self-help cost savings initiatives as we anticipate a slow start to 2025. Despite the macroeconomic environment, we expect to deliver organic sales growth for the full year based on stronger results in the second half of 2025 and the launch of recently won share gains. In the meantime, we are taking decisive action to reduce costs, including global structural costs and European manufacturing consolidations. Our balance sheet remains strong, which continues to provide us with financial flexibility, and we remain committed to driving shareholder value creation.

Thank you to our PPG team around the world who make it happen and deliver on our purpose every day: WE PROTECT AND BEAUTIFY THE WORLD®. And thank you for your continued confidence and investment in PPG.

Tim Knavish
Chairman and Chief Executive Officer