PPG Shares Climb After Positive First-Quarter Earnings Report

Shares of paints and coatings company PPG (NYSE: PPG) surged by as much as 6.1% in early trading today. Investors reacted positively to its first-quarter earnings report and full-year guidance. Amid economic uncertainties surrounding tariffs, maintaining full-year guidance is viewed favorably by the market.

Quarterly Performance Overview

Management has reiterated its guidance, projecting adjusted earnings per share (EPS) between $7.75 and $8.05. This forecast reflects an improvement in its performance coatings division, which is offsetting some weakness in other segments.

Examining PPG’s sales trends offers insight into broader economic conditions. On a positive note, the performance coatings segment reported a 6% increase in volume during the quarter. Key markets like aerospace and automotive refinish indicate resilience in the economy.

However, the company also faced declines in other areas. Volume dipped by 3% in global architectural coatings and 1% in industrial coatings. Management noted, “a pause in project-related business and governmental spending in Mexico due to recent geopolitical uncertainty.” In addition, growth in packaging volumes within industrial coatings wasn’t enough to counter a decline in the automotive original equipment manufacturer (OEM) market, as automakers are reducing production in 2025 due to economic concerns.

Image source: Getty Images.

Looking Ahead for PPG

Despite the mixed signals from different market segments, PPG is managing to navigate uncertainties effectively. CEO Tim Knavish stated, “more than 95% of what we buy is locally sourced or faces no tariffs.” PPG’s impact from tariffs is mainly felt through its end markets, which are currently stable.

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