PPG US Equity☆

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion includes a comparison of our results of operations and liquidity and capital resources for the years ended December 31, 2025 and 2024. A discussion of changes in our results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023 has been omitted from this Form 10-K, but may be found in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2024 Form 10-K, filed with the Securities and Exchange Commission on February 20, 2025.

Highlights

Net sales of approximately $15.9 billion in 2025 were flat compared to 2024, with higher selling prices, sales volume growth and favorable foreign currency translation offset by the impact of divestitures.

Income before income taxes was $2,045 million in 2025, an increase of $193 million compared to the prior year. This increase was primarily due to lower business restructuring charges and impairment and other related charges, higher selling prices, improved manufacturing productivity and restructuring savings, partially offset by the impact of unfavorable sales mix and overhead and other cost inflation.

Performance Overview

Net Sales by Region

% Change

Europe, Middle East and Africa (EMEA) 5,368 5,386 (0.3)%

Net sales increased $30 million due to the following:

● Higher selling prices (+1%)

● Higher sales volumes (+1%)

● Favorable foreign currency translation (+1%)

2025 PPG ANNUAL REPORT AND FORM 10-K 19

Partially offset by:

● Divestitures (-3%)

For specific business results, see the Performance of Reportable Business Segments section within Item 7 of this Form 10-K.

Cost of sales, exclusive of depreciation and amortization

% Change

Cost of sales, exclusive of depreciation and amortization $9,316 $9,252 0.7%

Cost of sales as a % of net sales 58.7 % 58.4 % 0.3%

Cost of sales, exclusive of depreciation and amortization, increased $64 million due to the following:

● Wage and other cost inflation

● Higher sales volumes

● Unfavorable foreign currency translation

Partially offset by:

● Increased manufacturing productivity

● Divestitures

Selling, general and administrative expenses

% Change

Selling, general and administrative expenses $3,439 $3,391 1.4%

Selling, general and administrative expenses increased $48 million primarily due to:

● Wage and other cost inflation

● Unfavorable foreign currency translation

Partially offset by:

● Restructuring savings

● Divestitures

Depreciation

% Change

Depreciation as a % of net sales 2.5 % 2.3 % 0.2%

Depreciation increased $43 million primarily due to:

● Accelerated depreciation expense

● Unfavorable foreign currency translation

Partially offset by:

● Divestitures

Other charges and other income

% Change

Business restructuring, net $6 $233 (97.4)%

Impairment and other related charges, net $24 $146 (83.6)%

Other charges/(income), net $6 ($8) N/A

2025 PPG ANNUAL REPORT AND FORM 10-K 20

Business restructuring, net

In October 2024, the Company approved a comprehensive cost reduction program focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the divestitures of PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. In connection with approval of this restructuring program, the Company recorded a pretax restructuring charge of $239 million, representing employee severance and other cash costs. Refer to Note 8, “Business Restructuring” in Item 8 of this Form 10-K for additional information.

Impairment and other related charges, net

In 2025, the Company recognized pretax net impairment and other related charges of $24 million related to a consolidated joint venture in the Performance Coatings segment. The charges primarily represented the impairment of definite-lived identified intangible assets.

In 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, primarily related to accumulated foreign currency translation losses.

Refer to Note 7 ”Impairment and Other Related Charges, Net” in Item 8 of this Form 10-K for additional information.

Other charges/(income), net

Other charges/(income), net was higher in 2025 compared to 2024 primarily due to a net charge related to the anticipated resolution of an outstanding tax matter that includes both income taxes and non-income taxes and the absence of a gain recognized in 2024 on the divestiture of the silicas products business. Refer to Note 18, “Other Charges/(Income), Net” in Item 8 of this Form 10-K for additional information.

Effective tax rate and earnings per diluted share, continuing operations

% Change

Adjusted effective tax rate, continuing operations* 23.5 % 22.9 % 0.6%

Earnings per diluted share, continuing operations $6.92 $5.72 21.0%

Adjusted earnings per diluted share, continuing operations* $7.58 $7.87 (3.7)%

*See the Regulation G reconciliations - results of operations

The effective tax rate on continuing operations for the year ended December 31, 2025 was 22.4%, a decrease of 3.2% compared to the prior year, primarily due to the absence of the 2024 impairment charge, which had no associated income tax benefit, and a reduction in the provision for uncertain tax positions. The adjusted effective tax rate was 23.5%, which was slightly higher than the prior year adjusted effective tax rate.

Earnings per diluted share from continuing operations for the year ended December 31, 2025 increased year over year primarily due to lower business restructuring and impairment and other related charges, higher selling prices, improved manufacturing productivity, restructuring savings and the lower effective tax rate, partially offset by the unfavorable impact of sales mix and overhead and other cost inflation.

Adjusted earnings per diluted share from continuing operations for the year ended December 31, 2025 decreased year over year due to the unfavorable impact of sales mix and overhead and other cost inflation, partially offset by higher selling prices, increased manufacturing productivity and restructuring savings.

Refer to the Regulation G Reconciliations - Results from Operations for additional information.

Review and Outlook

During 2025, PPG demonstrated resilience in a challenging macroeconomic environment by growing both selling prices and sales volumes and generating $1.9 billion in operating cash flow. Net sales were $15.9 billion, similar to the prior year. Results were supported by the breadth and diversity of the business portfolio, as the Company benefited from higher prices and sales volumes in several businesses and favorable foreign currency translation, which was offset by the impact of divestitures completed in 2024.Net sales, excluding the impact of currency, acquisitions and divestitures ("organic sales") increased 2% during the year with continued strong growth in our aerospace coatings business and share gains in both the packaging coatings business and the protective and marine business, which were partially offset by declines in the automotive refinish coatings, industrial coatings and architectural coatings EMEA businesses. Earnings per diluted

2025 PPG ANNUAL REPORT AND FORM 10-K 21

share from continuing operations was $6.92, compared to $5.72 in the prior year. Adjusted earnings per diluted share was $7.58, a decrease of 4% compared to $7.87 in 2024. Total segment income decreased by 3%. Aggregate segment margins were 60 basis points lower than the prior year, driven by a decline in industry project-related spending on architectural coatings in Mexico in the first half of 2025 and a decline in automotive refinish coatings sales volumes in the second half of the year.

Demand for PPG products was mixed by end-use market and geographic region during 2025. Demand for aerospace coatings and protective and marine coatings was strong with double-digit percentage organic sales growth year over year. Automotive refinish coatings demand was impacted by lower collision claims in the U.S. which drove volume declines in the second half of 2025. Global automotive OEM manufacturers’ production increased by about 4% versus 2024 with higher demand in the Asia-Pacific and Latin America regions more than offsetting lower demand in the United States and Europe. PPG outperformed the market in the third and fourth quarters of 2025 driven by share gains.

On a regional basis, sales volume increases in the United States and Canada, Asia-Pacific and Latin America regions were partially offset by decreases in Europe. In the U.S. and Canada, demand was strong for aerospace coatings, protective and marine coatings, packaging coatings and traffic solutions but declined for most other businesses. In Asia, demand was strong with sales volume growth in protective and marine coatings, automotive OEM coatings, and packaging coatings. In Latin America, demand was negatively impacted in the first half of the year as project-related spending was paused due to tariff uncertainties. However, demand for architectural retail sales was strong within the region, and the Company delivered growth in automotive OEM products and packaging coatings. Demand was soft in Europe with the largest impact on the automotive OEM coatings business and the architectural coatings business.

In 2026, we anticipate demand in Europe and in global industrial end-use markets to remain challenged. Despite the macroeconomic environment, we expect growth will be driven by aerospace coatings and architectural coatings in Mexico as well as share gains in our Industrial Coatings segment, resulting in organic sales growth in the range of flat to a positive low single-digit percentage. This reflects the strength of our focused organization and our sharpened portfolio of technology-advantaged products and services.

Significant other factors

During the year, PPG made significant progress to reduce costs and improve the profitability of the overall business portfolio through the global restructuring programs. In October 2024, the Company approved a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented. Total restructuring savings were approximately $75 million in 2025 and the Company expects approximately $50 million in incremental savings in 2026. The multi-year program is focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the divestitures of PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. The Company will continue to monitor and manage its cost structure to ensure alignment with the overall demand environment.

Raw materials are the Company’s most significant input cost. PPG experiences fluctuating energy and raw material costs driven by various factors, including changes in supplier feedstock costs and inventories, global industry activity levels, foreign currency exchange rates, tariffs and global supply and demand factors.

In 2025, the Company incurred wage inflation, which adversely impacted operating costs compared to 2024. There was an ample supply of commodity-related raw materials in all regions, and raw material inflation had a negligible impact on our operating costs for 2025 versus 2024. PPG did not experience a significant decrease in customer demand, significant increase in raw material costs, or other significant adverse impacts related to tariffs during 2025. The Company continues to monitor overall economic demand and customer order patterns and is prepared to take actions intended to mitigate adverse impacts, as necessary, through supply chain contingency plans, pricing actions, and/or cost reduction actions. In 2026, we anticipate that raw material costs will remain relatively flat compared to 2025. Additionally, we expect manufacturing efficiencies to improve as the year progresses.

We achieved selling price improvement across several businesses in 2025 stemming from our technology-advantaged products and solutions, partially offset by lower selling prices in the Industrial Coatings segment from certain index-based customer contracts. The Company will carefully monitor all costs during 2026 and assess the need for additional selling price increases.

In 2025, the U.S. dollar strengthened against certain currencies in the countries where PPG operates during the first half of 2025, but weakened in the second half of the year, resulting in a net unfavorable impact to net income from continuing operations in the first half of the year partially offset by a net favorable impact in the second half of the year. Based on recent exchange rates, we expect that foreign currency exchange rates will have a slightly favorable impact on net income

2025 PPG ANNUAL REPORT AND FORM 10-K 22

from continuing operations in 2026; however, the Company generally purchases raw materials, incurs manufacturing costs and sells finished goods in the same currency, which reduces foreign currency transaction-related impacts to net income.

The 2026 effective tax rate from continuing operations is expected to be in the range of 24% to 25%, varying by quarter. This range is the Company’s best estimate and represents an increase compared to the 2025 adjusted effective tax rate driven by higher rates in certain countries, including the impact of global minimum tax standards, and the geographic mix of earnings.

Over the past three years, the Company used nearly $1.6 billion of cash to repurchase approximately 12 million shares of PPG stock, including using $790 million to repurchase shares of PPG stock during 2025. The Company ended the year with approximately $2.0 billion remaining under its current share repurchase authorization. During 2025, the Company deployed $778 million for capital expenditures and $628 million for dividends. In 2025, PPG marked the 54th annual per share dividend increase and the 126th successive year of annual dividend payments.

PPG ended 2025 with approximately $2.2 billion in cash and short-term investments. The Company expects strong cash generation in 2026.

Regulation G Reconciliations - Results from Operations

PPG believes investors’ understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations, and PPG’s effective tax rate adjusted for certain items, and segment income before interest, taxes, depreciation and amortization. PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate and segment income adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income from continuing operations, earnings per diluted share from continuing operations, the effective tax rate, segment income or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share and the adjusted effective tax rate may not be comparable to similarly titled measures as reported by other companies.

Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below.

Includes:

Portfolio optimization(3) 1 3 N/A (2) (0.01)

Income from legal settlement(4) (12) (3) 24.3 % (9) (0.04)

Legacy environmental remediation charges(6) 16 4 24.3 % 12 0.05

Impairment and other related charges, net(8) 24 6 24.3 % 6 0.03

2025 PPG ANNUAL REPORT AND FORM 10-K 23

Includes:

Legacy environmental remediation charges(6) 24 6 25.0 % 18 0.07

(1)Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding.

(2)Business restructuring-related costs, net include business restructuring charges, offset by releases related to previously approved programs, which are included in Business restructuring, net on the consolidated statement of income, accelerated depreciation of certain assets, which is included in Depreciation on the consolidated statement of income, and other restructuring-related costs, which are included in Cost of sales, exclusive of depreciation and amortization, Selling, general and administrative and Other charges/(income), net on the consolidated statement of income. Business restructuring-related costs, net also includes the fourth quarter 2024 recognition of accumulated foreign currency translation losses of $110 million related to the company's exit of its Argentina operations in connection with a restructuring program, which are included in Other (income)/charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 recognition of the accumulated foreign currency translation losses.

(3)Portfolio optimization includes gains and losses related to the sale of certain assets, which are included in Other charges/(income), net on the consolidated statement of income, including the gain of $129 million on the sale of the company's silicas products business in the fourth quarter 2024, and the loss on the sale of the company's traffic solutions business in Argentina in the second quarter 2024. Portfolio optimization includes 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 consolidated statement of income. Portfolio optimization also includes an impairment charge of $146 million recognized during the fourth quarter 2024 when the company's remaining operations in Russia were classified as held for sale, which is included in Impairment and other related charges, net on the consolidated statement of income. No tax benefit was recorded on the fourth quarter 2024 impairment charge.

(4)In the fourth quarter 2025, the Company settled a legal matter related to a legacy business that it no longer operates. The related gain is included in Other charges/(income), net on the consolidated statement of income.

(5)In the fourth quarter 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. The portion of the charge related to non-income taxes is included in Other charges/(income), net on the consolidated statement of income. In connection with this matter, the Company reduced its provision for uncertain tax positions, the impact of which is included in income tax expense on the consolidated statement of income.

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

(7)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. In the fourth quarter 2024, the company received reimbursement for previously approved insurance claims under policies covering legacy asbestos-related matters. These insurance recoveries are included in Other charges/(income), net on the consolidated statement of income.

(8)In the third quarter 2025, the Company recorded net impairment and other related charges related to a consolidated joint venture in the Performance Coatings segment, which are included in Impairment and other related charges, net on the consolidated statement of income.

Performance of Reportable Business Segments

Global Architectural Coatings

$ Change % Change

Depreciation and amortization expense $109 $104 $5 4.8%

Global Architectural Coatings net sales decreased due to the following:

● Divestitures (-3%)

● Lower sales volumes (-2%)

Partially offset by:

● Higher selling prices (+2%)

● Favorable foreign currency translation (+1%)

2025 PPG ANNUAL REPORT AND FORM 10-K 24

Architectural coatings EMEA organic sales decreased by a low single-digit percentage year over year due to lower sales volumes partially offset by higher selling prices. Overall demand for architectural coatings in Europe was lower and mixed by country.

Architectural coatings Latin America and Asia Pacific organic sales increased by a low single-digit percentage during the year primarily due to higher selling prices partially offset by lower sales volumes. In Mexico, retail demand for architectural coatings was solid and project-related spending continued to improve throughout the year.

Segment income decreased $79 million year over year primarily due to wage and other cost inflation and lower sales volumes, partially offset by higher selling prices and cost reductions, including restructuring savings.

Looking Ahead

In the first quarter 2026, demand in Mexico is expected to be strong and consumer sentiment in Europe is expected to be tepid. First quarter 2026 organic sales for the Global Architectural Coatings segment are anticipated to increase in the range of by a low single-digit percentage to a mid-single-digit percentage compared to the first quarter 2025.

Performance Coatings

$ Change % Change

Depreciation and amortization expense $134 $132 $2 1.5%

Performance Coatings net sales increased due to the following:

● Higher selling prices (+3%)

● Higher sales volumes (+2%)

Automotive refinish coatings organic sales decreased by a mid-single-digit percentage with lower sales volumes partially offset by higher selling prices. Organic sales in the United States were lower as demand was suppressed by lower collision claims and as distributors managed their order patterns for PPG products toward the first half of 2025. The Company continues to grow the number of PPG LINQTM subscriptions and PPG MoonwalkTM installations, further supporting customer productivity and related share gains.

Aerospace coatings organic sales increased by a double-digit percentage driven by increases in both price and sales volume in all regions. Demand remained strong, and customer order backlogs increased to approximately $315 million, even with improved production and other productivity gains. Global international and domestic air travel improved year over year, and passenger air traffic is forecasted to grow 5% in 2026. As demand for PPG’s technology-advantaged products grows, the Company remains focused on debottlenecking and further expanding manufacturing capabilities to drive additional sales volume and earnings growth.

Protective and marine coatings organic sales increased by a double-digit percentage compared to the prior year driven by higher sales volumes. Increased sales volumes were driven by share gains in both protective and marine, reflecting demand for PPG's sustainably-advantaged products.

Traffic solutions organic sales increased by a mid single-digit percentage year over year due to higher sales volumes, which benefited from market share gains across North America, partially offset by lower selling prices.

Segment income increased $6 million year over year with higher selling prices and manufacturing efficiencies, offset by the impact of unfavorable sales mix and raw material, wage and other cost inflation.

Looking Ahead

In the first quarter 2026, continued strength in aerospace coatings is anticipated. Protective and marine coatings will begin to lap prior year share gains resulting in growth similar to the industry. In automotive refinish coatings, we anticipate lower organic sales due to customer order patterns and low industry demand. Traffic solutions is expected to follow typical seasonal trends. First quarter 2026 organic sales for the segment are anticipated to be within the range of down by a low single-digit percentage to flat compared to the first quarter 2025.

2025 PPG ANNUAL REPORT AND FORM 10-K 25

Industrial Coatings

$ Change % Change

Depreciation and amortization expense $192 $206 ($14) (6.8)%

Industrial Coatings segment net sales decreased due to the following:

● Divestitures (-4%)

● Lower selling prices (-1%)

Partially offset by:

● Higher sales volumes (+2%)

● Favorable foreign currency translation (+1%)

Automotive OEM coatings organic sales were flat year over year with higher sales volumes offset by lower index-based selling prices for certain customer contracts. Sales volume increases in the Latin America and Asia-Pacific regions were partially offset by declines in the United States and Europe, which decreased primarily due to lower new vehicle production.

For the industrial coatings business, organic sales decreased by a low single-digit percentage due to lower selling prices, including the impact of lower index-based prices under certain customer contracts. Sales volume increases in Europe and the Asia-Pacific region were offset by decreases in the United States.

Packaging coatings organic sales increased by a high single-digit percentage year over year due to higher sales volumes in all regions, including share gains in Europe aided by expanding regional regulations. Sales volume increases were partially offset by lower index-based selling prices in all regions.

Specialty products organic sales increased by a mid-single-digit percentage due to higher sales volumes and higher selling prices.

Segment income decreased $18 million year over year primarily due lower index-based selling prices and wage and other cost inflation, partially offset by increased manufacturing productivity, higher sales volumes, and restructuring and other cost savings.

Looking Ahead

In the first quarter 2026, global industrial production is expected to remain at a relatively low level with the potential for slight improvement in the United States, Europe and the Asia-Pacific region and lower demand in Latin America. First quarter 2026 organic sales for the segment are anticipated to be within the range of down by a low single-digit percentage to flat compared to the first quarter 2025.

Commitments and Contingent Liabilities, including Environmental Matters

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. Refer to Item 3. “Legal Proceedings” and Note 15, “Commitments and Contingent Liabilities” in Item 8 of this Form 10-K for a description of certain of these lawsuits.

As discussed in Item 3 and Note 15, although the result of any future litigation of such lawsuits and claims is inherently unpredictable, management believes that, in the aggregate, the outcome of all lawsuits and claims involving PPG, including asbestos-related claims, will not have a material effect on PPG’s consolidated 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.

As also discussed in Note 15, PPG has significant reserves for environmental contingencies. Refer to the Environmental Matters section of Note 15 for details of these reserves. It is PPG’s policy to accrue expenses for contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted. 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.

2025 PPG ANNUAL REPORT AND FORM 10-K 26

Accounting Standards Adopted in 2025

Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes the Company’s recently adopted accounting pronouncements.

Accounting Standards to be Adopted in Future Years

Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K describes accounting pronouncements that have been promulgated prior to December 31, 2025 but are not effective until a future date.

Liquidity and Capital Resources

During the past two years, PPG had sufficient financial resources to meet its operating requirements, to fund capital spending, including acquisitions, share repurchases and pension plans, and to pay increasing dividends to shareholders.

Cash and cash equivalents and short-term investments

Short-term investments 56 88

Cash from operating activities - continuing operations

($ in millions, except percentages) % Change

Cash from operating activities - continuing operations $1,936 $1,391 39.2%

The $545 million increase in Cash from operating activities - continuing operations was primarily due to higher net income and higher accounts payable and accrued liabilities, including the impact of lower incentive-based compensation payouts in 2025 versus 2024.

Operating working capital

Operating working capital is a subset of total working capital and represents (1) receivables from customers, net of allowance for doubtful accounts, (2) inventories, and (3) trade liabilities. Refer to Note 3, “Working Capital Detail” in Item 8 of this Form 10-K for further information related to the components of the Company’s operating working capital. We believe operating working capital represents the key components of working capital under the operating control of our businesses.

A key metric we use to measure our working capital management is operating working capital as a percentage of sales (fourth quarter sales annualized).

($ in millions, except percentages) 2025 2024

Less: trade creditors’ liabilities 2,212 2,161

Trade receivables, net as a % of fourth quarter sales, annualized 17.8 % 16.6 %

Days sales outstanding 59 51

Inventories, FIFO as a % of fourth quarter sales, annualized 13.9 % 13.5 %

Inventory turnover 4.4 4.5

Environmental expenditures

Cash outlays related to environmental remediation activities $24 $28

We expect cash outlays for environmental remediation activities to be between $20 million and $60 million annually from 2026 through 2030.

2025 PPG ANNUAL REPORT AND FORM 10-K 27

Cash used for investing activities - continuing operations

% Change

Cash used for investing activities - continuing operations $700 $399 75.4%

The $301 million increase in cash used for investing activities - continuing operations was primarily due to higher capital expenditures and the absence of proceeds from the divestiture of our silicas products business that occurred in 2024.

Capital expenditures, including business acquisitions

% Change

Business acquisitions, net of cash balances acquired $1 $31 (96.8)%

Total capital expenditures, including acquisitions $779 $752 3.6%

Capital expenditures, excluding acquisitions, as a % of sales 4.9 % 4.6 % 0.3%

(1)Includes modernization and productivity improvements, expansion of existing businesses and environmental control projects.

During 2026, capital expenditures, which are expected to be approximately $650 million to $700 million, will support future organic growth opportunities. The Company will continue to deploy cash focused on shareholder value creation.

Cash used for financing activities

% Change

Cash used for financing activities $545 $1,425 (61.8)%

The $880 million decrease in cash used for financing activities was primarily due to increased proceeds from long-term debt, partially offset by higher repayments of long-term debt.

Share repurchase activity

($ in millions, except number of shares) 2025 2024

Number of shares repurchased (millions) 6.9 5.8

Cash paid for shares repurchased $790 $752

The Board of Directors authorized a $2.5 billion share repurchase plan in April 2024. The Company has approximately $2.0 billion remaining under the current authorization. The repurchase program does not have an expiration date.

Dividends paid to shareholders

Dividends paid to shareholders $628 $622

PPG has paid uninterrupted annual dividends since 1899, and 2025 marked the 54th successive year of increased annual per-share dividend payments to shareholders. The Company raised its per-share quarterly dividend by approximately 5% to $0.71 per share in July 2025.

2025 PPG ANNUAL REPORT AND FORM 10-K 28

Debt issued and repaid

Debt Issued (net of premium/discount and issuance costs) Year $ in millions

Debt Repaid Year $ in millions

(1)As of December 31, 2025, the Term Loan was due in 2028. In January 2026, the Term Loan was amended to extend its maturity to January 2029.

The Company’s commercial paper borrowings are classified as long-term debt based on PPG’s intent and ability to refinance these borrowings on a long-term basis. Net payments on commercial paper were zero for both the years ended December 31, 2025 and December 31, 2024.

Credit agreements and lines of credit

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. In January 2026, the Term Loan was amended to extend its maturity. Based on this amendment, the Term Loan terminates and all amounts outstanding are payable in January 2029.

In July 2023, PPG amended and restated its P5Y-year credit agreement (the "Credit Agreement") dated as of August 30, 2019, extending the term through July 27, 2028. In October 2025, PPG amended the Credit Agreement to extend its maturity as to certain commitments. The amended Credit Agreement provides for a $2.3 billion unsecured revolving credit facility, of which $2,148 million of the total commitment has a term through July 2029 and $152 million of the total commitment has a term through July 2028. 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 December 31, 2025 and December 31, 2024.

The Term Loan and the Credit Agreement require 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 December 31, 2025, Total Indebtedness to Total Capitalization as defined under the Credit Agreement was 47%.

In addition to the amounts available under lines of credit, the Company maintains access to the capital markets and may issue debt or equity securities from time to time, which may provide an additional source of liquidity.

Refer to Note 10, “Borrowings and Lines of Credit” in Item 8 of this Form 10-K for information regarding notes entered into and repaid as well as details regarding the use and availability of committed and uncommitted lines of credit, letters of credit and debt covenants.

2025 PPG ANNUAL REPORT AND FORM 10-K 29

Cash requirements

We continue to believe that our cash on hand and short-term investments, cash from operations and the Company’s access to capital markets will continue to be sufficient to fund our operating activities, capital spending, acquisitions, dividend payments, debt service, share repurchases, contributions to pension plans, and PPG’s significant cash requirements. The Company’s significant cash requirements include the following contractual obligations and commitments.

Obligations Due In:

Unconditional purchase commitments(4) $169 $76 $63 $21 $9

(1)As of December 31, 2025, the Term Loan with an outstanding balance of $1,233 million was due in 2028. The Term Loan is shown as due in 2028 within this table. In January 2026, the Term Loan was amended to extend its maturity to January 2029.

(2)Interest on all outstanding debt.

(3)Includes interest payments.

(3)The unconditional purchase commitments are principally take-or-pay obligations related to the purchase of certain materials, utilities and services consistent with customary industry practice.

The Company’s off-balance sheet arrangements include unconditional purchase commitments disclosed in the “Liquidity and Capital Resources” section in the cash requirements table as well as letters of credit as discussed in Note 10, “Borrowings and Lines of Credit” in Item 8 of this Form 10-K.

Other liquidity matters

At December 31, 2025, the total amount of unrecognized tax benefits for uncertain tax positions, including an accrual of related interest and penalties along with positions only impacting the timing of tax benefits, was $122 million. The timing of payments will depend on the progress of examinations by tax authorities. PPG does not expect a significant tax payment related to these obligations within the next year. The Company is unable to make a reasonably reliable estimate as to if, or when, any significant cash settlements with tax authorities may occur.

Critical Accounting Estimates

Management has evaluated the accounting policies used in the preparation of the financial statements and related notes presented in Item 8 of this Form 10-K and believes those policies to be reasonable and appropriate. We believe that the most critical accounting estimates made in the preparation of our financial statements are those related to accounting for contingencies, under which we accrue a loss when it is probable that a liability has been incurred and the amount can be reasonably estimated, and to accounting for pensions, other postretirement benefits, business combinations, goodwill and other identifiable intangible assets with indefinite lives because of the importance of management judgment in making the estimates necessary to apply these policies.

Contingencies

Contingencies, by their nature, relate to uncertainties that require management to exercise judgment both in assessing the likelihood that a liability has been incurred as well as in estimating the amount of potential loss. The most important contingencies impacting our financial statements are those related to environmental remediation, to pending, impending or overtly threatened litigation against the Company and to the resolution of matters related to open tax years. For more information on these matters, see Note 15, “Commitments and Contingent Liabilities” and Note 13, “Income Taxes” in Item 8 of this Form 10-K.

Defined Benefit Pension and Other Postretirement Benefit Plans

Accounting for pensions and other postretirement benefits involves estimating the cost of benefits to be provided well into the future and attributing that cost over the time period each employee works. To accomplish this, we make extensive use of assumptions about inflation, investment returns, mortality, turnover, medical costs and discount rates. The Company has established a process by which management reviews and selects these assumptions annually. Refer to Note 14, “Employee Benefit Plans” in Item 8 of this Form 10-K for information on these plans and the assumptions used.

Business Combinations

The Company uses the acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. The excess costs of acquired businesses over the fair values of the assets acquired and liabilities assumed is recognized as goodwill. The valuations of the acquired assets and liabilities impacts the determination of future operating results. In addition to using management

2025 PPG ANNUAL REPORT AND FORM 10-K 30

estimates and negotiated amounts, the Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities including: third-party appraisals for the estimated value and lives of identifiable intangible assets and property, plant and equipment; third-party actuaries for the estimated obligations of defined benefit pension plans and similar benefit obligations; and legal counsel or other experts to assess the obligations associated with legal, environmental and other contingent liabilities.

The business and technical judgment of management is used in determining which acquired intangible assets have indefinite lives and in determining the useful lives of acquired finite-lived intangible assets in accordance with the accounting guidance for goodwill and other intangible assets.

Goodwill and Intangible Assets

The Company tests indefinite-lived intangible assets and goodwill for impairment by either performing 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. In the quantitative test, fair values are estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model include projected future revenues, discount rates, operating cash flows, capital expenditures and tax rates. For more information on these matters, see Note 1, “Summary of Significant Accounting Policies” in Item 8 of this Form 10-K.

We believe that the amounts recorded in the financial statements in Item 8 of this Form 10-K related to these contingencies, pensions, other postretirement benefits, business combinations, goodwill and other identifiable intangible assets with indefinite lives are based on the best estimates and judgments of the appropriate members of PPG’s management, although actual outcomes could differ from our estimates.

Currency

Comparing spot exchange rates at December 31, 2025 and at December 31, 2024, the U.S. dollar weakened against the currencies of many countries within the regions PPG operates, most notably the Mexican peso and the euro. As a result, consolidated net assets at December 31, 2025 increased by $949 million from December 31, 2024.

Comparing average exchange rates during 2025 to those of 2024, the U.S. dollar strengthened against the currencies of certain countries where PPG operates, including the Mexican peso and the euro, during the first half of 2025, but the U.S. dollar weakened in the second half of the year, resulting in a net unfavorable impact to Income before taxes in the first half of the year partially offset by a net favorable impact in the second half of 2025. This resulted in an unfavorable impact of $8 million on full year 2025 Income before income taxes from the translation of foreign income into U.S. dollars.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Management’s Discussion and Analysis and other sections of this Annual Report contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the SEC. Also, note the following cautionary statements.

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include statements related to global economic conditions, geopolitical issues, increasing price and product competition by our competitors, fluctuations in cost and availability of raw materials, energy, labor and logistics, the ability to achieve selling price increases, the ability to recover margins, customer inventory levels, PPG inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings opportunities, the timing and expected benefits of our acquisitions, difficulties in integrating acquired businesses and achieving expected synergies therefrom, the amount of future share repurchases, economic and political conditions in the markets we serve, the imposition of tariffs, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions, cybersecurity events, global human health issues, the unpredictability of existing and possible future litigation, including asbestos litigation, and government investigations. However, it is not possible to predict or identify all such factors.

2025 PPG ANNUAL REPORT AND FORM 10-K 31

Consequently, while the list of factors presented here and in Item 1A is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or income, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of this Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

PPG is exposed to market risks related to changes in foreign currency exchange rates and interest rates. The Company may enter into derivative financial instrument transactions in order to manage or reduce these market risks. A detailed description of these exposures and the Company’s risk management policies are provided in Note 11, “Financial Instruments, Hedging Activities and Fair Value Measurements” in Item 8 of this Form 10-K.

The following disclosures summarize PPG’s exposure to market risks and information regarding the use of and fair value of derivatives employed to manage its exposure to such risks. Quantitative sensitivity analyses have been provided to reflect how reasonably possible, unfavorable changes in market rates could impact PPG’s consolidated results of operations, cash flows and financial position.

Foreign Currency Risk

We conduct operations in many countries around the world. Our results of operations are subject to both currency transaction and currency translation risk. Certain foreign currency forward contracts outstanding during 2025 and 2024 served as a hedge of a portion of PPG’s exposure to foreign currency transaction risk. The fair value of these contracts were net assets of $1 million and net liabilities of $53 million as of December 31, 2025 and December 31, 2024, respectively. The potential reduction in PPG’s Income before income taxes resulting from the impact of adverse changes in exchange rates on the fair value of its outstanding foreign currency hedge contracts of 10% for European and Canadian currencies and 20% for Asian and Latin American currencies for the years ended December 31, 2025 and 2024 would have been $447 million and $429 million, respectively.

PPG had U.S. dollar to euro cross currency swap contracts with a total notional amount of $375 million as of both December 31, 2025 and December 31, 2024. The fair value of these contracts were net assets of $11 million and $50 million as of December 31, 2025 and 2024, respectively. A 10% increase in the value of the euro to the U.S. dollar would have had an unfavorable effect on the fair value of these swap contracts by reducing the value of these instruments by $40 million and $31 million at December 31, 2025 and 2024, respectively.

As of December 31, 2025 and December 31, 2024, PPG had non-U.S. dollar denominated debt outstanding of $4.1 billion and $3.3 billion, respectively. A weakening of the U.S. dollar by 10% against European currencies and by 20% against Asian and South American currencies would have resulted in unrealized translation losses of $457 million and $369 million as of December 31, 2025 and 2024, respectively.

Interest Rate Risk

The Company manages its interest rate risk by balancing its exposure to fixed and variable rates while attempting to minimize its interest costs. PPG has interest rate swaps which converted $375 million of fixed rate debt to variable rate debt as of both December 31, 2025 and December 31, 2024, respectively. The fair values of these contracts were liabilities of $6 million and $16 million as of December 31, 2025 and 2024, respectively. An increase in variable interest rates of 10% would have lowered the fair values of these swaps and increased interest expense by $2 million and $5 million for the periods ended December 31, 2025 and 2024, respectively. Considering the debt balance outstanding as of December 31, 2025 and 2024, a 10% increase in interest rates in the U.S., Canada, Mexico and Europe and a 20% increase in interest rates in Asia and South America would have increased annual interest expense associated with PPG's variable rate debt obligations by $3 million for both the periods ended December 31, 2025 and 2024. Further, a 10% reduction in interest rates would have increased the fair value of the Company’s fixed rate debt by approximately $73 million and $77 million as of December 31, 2025 and 2024, respectively; however, such changes would not have had an effect on PPG’s annual Income before income taxes or cash flows.

2025 PPG ANNUAL REPORT AND FORM 10-K 32

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of PPG Industries, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheet of PPG Industries, Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become

2025 PPG ANNUAL REPORT AND FORM 10-K 33

inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Annual Goodwill Impairment Test – Architectural Coatings Europe, Middle East and Africa Reporting Unit

As described in Notes 1 and 6 to the consolidated financial statements, the Company’s consolidated goodwill balance was $6,149 million as of December 31, 2025, a portion of which relates to the goodwill for the Architectural Coatings Europe, Middle East and Africa (EMEA) reporting unit. Management tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test, at least annually in connection with management’s strategic planning process or more frequently if an indication of impairment exists. Management’s quantitative goodwill impairment testing, if deemed necessary, is performed during the fourth quarter of each year by comparing the estimated fair value of an associated reporting unit to its carrying value. In 2025, the annual impairment testing of goodwill did not result in impairment of any of the Company’s reporting units. As disclosed by management, in the quantitative test, fair values are estimated using a discounted cash flow model. Key assumptions used in the discounted cash flow model included projected future revenues, discount rates, operating cash flows, capital expenditures, and tax rates.

The principal considerations for our determination that performing procedures relating to the annual goodwill impairment test of the Architectural Coatings EMEA reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Architectural Coatings EMEA reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumption related to the discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment test, including controls over the valuation of the Architectural Coatings EMEA reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the Architectural Coatings EMEA reporting unit; (ii) evaluating the appropriateness of the discounted cash flow model used by management; (iii) testing the completeness and accuracy of underlying data used in the discounted cash flow model; and (iv) evaluating the reasonableness of the significant assumption used by management related to the discount rate. Evaluating management’s assumption related to the discount rate involved evaluating whether the assumption used by management was reasonable considering (i) the current and past performance of the Architectural Coatings EMEA reporting unit and (ii) whether the assumption was consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the discounted cash flow model and (ii) the reasonableness of the discount rate assumption.

/s/ PricewaterhouseCoopers LLP

Pittsburgh, Pennsylvania

February 19, 2026

We have served as the Company’s auditor since 2013.

2025 PPG ANNUAL REPORT AND FORM 10-K 34

Management Report

Management’s Annual Report on Internal Control Over Financial Reporting

We are responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. In making this evaluation, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Based on this evaluation we have concluded that, as of December 31, 2025, the Company’s internal control over financial reporting was effective.

PricewaterhouseCoopers LLP, an independent registered public accounting firm, has issued their report, included on pages 33-34 of this Form 10-K, regarding the Company’s internal control over financial reporting.

/s/ Timothy M. Knavish /s/ Vincent J. Morales

2025 PPG ANNUAL REPORT AND FORM 10-K 35

Consolidated Statement of Income

For the Year

Cost of sales, exclusive of depreciation and amortization 9,316 9,252 9,678

Business restructuring, net 6 233 (2)

Impairment and other-related charges, net 24 146 160

Pension settlement charge — — 190

Other charges/(income), net 6 (8) 80

Income/(loss) from discontinued operations, net of tax 5 (228) 47

Less: Net income attributable to noncontrolling interests 16 33 39

Amounts attributable to PPG

Income from continuing operations, net of tax $1,571 $1,344 $1,223

Income/(loss) from discontinued operations, net of tax 5 (228) 47

Earnings per common share

Income from continuing operations, net of tax $6.94 $5.75 $5.18

Income/(loss) from discontinued operations, net of tax 0.02 (0.98) 0.20

Net income (attributable to PPG) $6.96 $4.77 $5.38

Earnings per common share - assuming dilution

Income from continuing operations, net of tax $6.92 $5.72 $5.16

Income/(loss) from discontinued operations, net of tax 0.02 (0.97) 0.19

Net income (attributable to PPG) $6.94 $4.75 $5.35

The accompanying notes to the consolidated financial statements are an integral part of these consolidated statements.

Consolidated Statement of Comprehensive Income

For the Year

Other comprehensive income/(loss), net of tax

Defined benefit pension and other postretirement benefits (17) 36 63

Unrealized foreign currency translation adjustments 950 (916) 509

Other comprehensive income/(loss), net of tax 933 (880) 572

Less: amounts attributable to noncontrolling interests:

Unrealized foreign currency translation adjustments (1) 11 (1)

Comprehensive income attributable to PPG $2,508 $247 $1,841

The accompanying notes to the consolidated financial statements are an integral part of these consolidated statements.

2025 PPG ANNUAL REPORT AND FORM 10-K 36

Consolidated Balance Sheet

December 31

Assets

Current assets

Short-term investments 56 88

Property, plant and equipment, net 4,005 3,464

Identifiable intangible assets, net 1,971 1,922

Operating lease right-of-use assets 604 597

Liabilities and Shareholders’ Equity

Current liabilities

Accounts payable and accrued liabilities $3,957 $3,731

Restructuring reserves 99 128

Short-term debt and current portion of long-term debt 706 939

Current portion of operating lease liabilities 138 126

Operating lease liabilities 450 454

Other postretirement benefits 392 410

Commitments and contingent liabilities (Note 15)

Shareholders’ equity

Accumulated other comprehensive loss (2,176) (3,108)

Total PPG shareholders’ equity $7,941 $6,785

Noncontrolling interests 156 177

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

2025 PPG ANNUAL REPORT AND FORM 10-K 37

Consolidated Statement of Shareholders’ Equity

Other comprehensive loss, net of tax — — — — 571 571 1 572

Purchase of treasury stock — — — (100) — (100) — (100)

Issuance of treasury stock — 58 — 25 — 83 — 83

Stock-based compensation activity — 14 — — — 14 — 14

Acquisitions of noncontrolling interests — — — — — — 55 55

Other comprehensive loss, net of tax — — — (869) (869) (11) (880)

Purchase of treasury stock — — (759) — (759) — (759)

Issuance of treasury stock — 50 — 17 — 67 — 67

Stock-based compensation activity — 20 — — — 20 — 20

Reductions in noncontrolling interests — — — — — — (11) (11)

Other comprehensive income, net of tax — — — — 932 932 1 933

Purchase of treasury stock — — — (790) — (790) — (790)

Issuance of treasury stock — 39 — 13 — 52 — 52

Stock-based compensation activity — 14 — — — 14 — 14

Reductions in noncontrolling interests — — — — — — (15) (15)

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

2025 PPG ANNUAL REPORT AND FORM 10-K 38

Consolidated Statement of Cash Flows

For the Year

Operating activities

Less: Income/(loss) from discontinued operations $5 ($228) $47

Adjustments to reconcile net income to cash from operations:

Pension settlement charge — — 190

Impairment and other related charges, net 24 146 160

Stock-based compensation expense 46 42 56

Deferred income taxes (27) (97) (187)

Business restructuring, net 6 233 (2)

Cash contributions to pension plans (29) (26) (46)

Cash used for restructuring actions (82) (52) (56)

Change in certain asset and liability accounts (net of acquisitions):

Other current assets (1) (30) (41)

Accounts payable and accrued liabilities 67 (259) 151

Noncurrent assets and liabilities, net (40) (73) (50)

Taxes and interest payable (105) (31) 71

Cash from operating activities - continuing operations $1,936 $1,391 $2,294

Cash from operating activities - discontinued operations 5 29 117

Investing activities

Business acquisitions, net of cash balances acquired (1) (31) (109)

Proceeds from divestiture of businesses 43 325 36

Cash used for investing activities - continuing operations ($700) ($399) ($525)

Cash from/(used for) investing activities - discontinued operations — 506 (31)

Cash (used for)/from investing activities ($700) $107 ($556)

Financing activities

Proceeds from Term Loan, net of fees $309 $274 $550

Repayment of Term Loan Credit Agreement — — (1,100)

Proceeds from the issuance of debt, net of discounts and fees 1,633 — —

Purchase of treasury stock (790) (752) (86)

Dividends paid on PPG common stock (628) (622) (598)

Cash used for financing activities - discontinued operations — — —

Cash used for financing activities ($545) ($1,425) ($1,550)

Cash reclassified to assets held for sale — — (5)

Net increase/(decrease) in cash and cash equivalents $893 ($223) $410

Cash and cash equivalents, beginning of year $1,270 $1,493 $1,083

Supplemental disclosures of cash flow information:

Interest paid, net of amount capitalized $210 $247 $213

Supplemental disclosure of noncash investing and financing activities:

Purchases of treasury stock transacted but not yet settled $4 $12 $14

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

2025 PPG ANNUAL REPORT AND FORM 10-K 39

1. Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of PPG Industries, Inc. (“PPG” or the “Company”) and all subsidiaries, both U.S. and non-U.S., that it controls. PPG owns more than 50% of the voting stock of most of the subsidiaries that it controls. For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests. Investments in companies in which PPG owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting. As a result, PPG’s share of income or losses from such equity affiliates is included in the consolidated statement of income and PPG’s share of these companies’ shareholders’ equity is included in Investments on the consolidated balance sheet. Transactions between PPG and its subsidiaries are eliminated in consolidation.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Such estimates also include the fair value of assets acquired and liabilities assumed resulting from the allocation of the purchase price related to business combinations consummated. Actual outcomes could differ from those estimates.

Revenue Recognition

Revenue is recognized as performance obligations with the customer are satisfied, at an amount that is determined to be collectible. For the sale of products, this generally occurs at the point in time when control of the Company’s products transfers to the customer based on the agreed upon shipping terms.

Shipping and Handling Costs

Amounts billed to customers for shipping and handling are reported in Net sales in the consolidated statement of income. Shipping and handling costs incurred by the Company for the delivery of goods to customers are included in Cost of sales, exclusive of depreciation and amortization in the consolidated statement of income.

Selling, General and Administrative Costs

Amounts presented in Selling, general and administrative in the consolidated statement of income are comprised of selling, customer service, distribution and advertising costs, as well as the costs of providing corporate-wide functional support in areas such as finance, law, human resources and planning. Distribution costs pertain to the movement and storage of finished goods inventory at company-owned and leased warehouses and other distribution facilities.

Advertising Costs

Advertising costs are charged to expense as incurred and totaled $199 million, $203 million and $193 million in 2025, 2024 and 2023, respectively.

Research and Development

Research and development costs, which consist primarily of employee-related costs, are charged to expense as incurred.

Research and development – total $446 $447 $446

Less: depreciation on research facilities 23 24 22

Legal Costs

Legal costs, which primarily include costs associated with acquisition and divestiture transactions, general litigation, environmental regulation compliance, patent and trademark protection and other general corporate purposes, are charged to expense as incurred.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating losses and tax credit carryforwards as well as differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income tax expense in the consolidated statement of income in the period that includes the enactment date.

2025 PPG ANNUAL REPORT AND FORM 10-K 40

A valuation allowance is provided against deferred tax assets in situations where PPG determines it is more likely than not such assets will not ultimately be realized.

PPG does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, PPG recognizes a tax benefit measured at the largest amount of the tax benefit that, in PPG’s judgment, is greater than 50 percent likely to be realized. PPG records interest and penalties related to uncertain tax positions in Income tax expense in the consolidated statement of income.

Foreign Currency Translation

The functional currency of most significant non-U.S. operations is their local currency. Assets and liabilities of those operations are translated into U.S. dollars using year-end exchange rates. Income and expenses are translated using the average exchange rates for the reporting period. Unrealized foreign currency translation gains and losses are deferred in Accumulated other comprehensive loss on the consolidated balance sheet.

Cash Equivalents

Cash equivalents are highly liquid investments (valued at cost, which approximates fair value) acquired with an original maturity of three months or less.

Short-term Investments

Short-term investments are highly liquid, high credit quality investments (valued at cost plus accrued interest) that have stated maturities of greater than three months to less than one year. The purchases and sales of these investments are classified as Investing activities in the consolidated statement of cash flows.

Marketable Equity Securities

The Company’s investment in marketable equity securities is recorded at fair market value and reported as Other current assets and Investments on the consolidated balance sheet with changes in fair market value recorded in income.

Inventories

Inventories are stated at the lower of cost or net realizable value. Most U.S. inventories are stated at cost, using the last-in, first-out (“LIFO”) method of accounting, which does not exceed net realizable value. All other inventories are stated at cost, using the first-in, first-out (“FIFO”) method of accounting, which does not exceed net realizable value. PPG determines cost using either average or standard factory costs, which approximate actual costs, excluding certain fixed costs such as depreciation and property taxes. Refer to Note 3, “Working Capital Detail” for further information related to the Company’s inventories.

Derivative Financial Instruments

The Company recognizes all derivative financial instruments (a “derivative”) as either assets or liabilities at fair value on the consolidated balance sheet. The accounting for changes in the fair value of a derivative depends on the use of the instrument.

For derivative instruments that are designated and qualify as cash flow hedges, the unrealized gains or losses on the derivatives are recorded in the consolidated statement of comprehensive income. Amounts in Accumulated other comprehensive loss on the consolidated balance sheet are reclassified into Income before income taxes in the consolidated statement of income in the same period or periods during which the hedged transactions are recorded in Income before income taxes in the consolidated statement of income.

For derivative instruments that are designated and qualify as fair value hedges, the change in the fair value of the derivatives are reported in Income before income taxes in the consolidated statement of income, offsetting the gain or loss recognized for the change in fair value of the asset, liability, or firm commitment that is being hedged.

For derivatives, debt or other financial instruments that are designated and qualify as net investment hedges, the gains or losses associated with the financial instruments are reported as translation gains or losses in Accumulated other comprehensive loss on the consolidated balance sheet. Gains and losses in Accumulated other comprehensive loss related to hedges of the Company’s net investments in foreign operations are reclassified out of Accumulated other comprehensive loss and recognized in Income before income taxes in the consolidated statement of income upon a substantial liquidation, sale or partial sale of such investments or upon impairment of all or a portion of such investments. The cash flow impact of these instruments is classified as Investing activities in the consolidated statement of cash flows.

Changes in the fair value of derivative instruments not designated as hedges for hedge accounting purposes are recognized in Income before income taxes in the consolidated statement of income in the period of change.

2025 PPG ANNUAL REPORT AND FORM 10-K 41

Property, Plant and Equipment

Property, plant and equipment is recorded at cost. Depreciation is computed on a straight-line method based on the estimated useful lives of related assets. Accelerated depreciation expense is recorded when facilities or equipment are subject to abnormal economic conditions, restructuring actions or obsolescence.

The cost of significant improvements that add to productive capacity or extend the lives of properties are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When a capitalized asset is retired or otherwise disposed of, the original cost and related accumulated depreciation balance are removed from the accounts and any related gain or loss is recorded in Income before income taxes in the consolidated statement of income. The amortization cost of finance lease assets is recorded in Depreciation expense in the consolidated statement of income. Property and other long-lived assets are reviewed for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable. Refer to Note 4, “Property, Plant and Equipment” for further details.

Goodwill and Identifiable Intangible Assets

Goodwill represents the excess of the cost over the fair value of acquired identifiable tangible and intangible assets less liabilities assumed from acquired businesses. Identifiable intangible assets acquired in business combinations are recorded based upon their fair value at the date of acquisition.

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 product lines. These operating segments are also the Company’s reporting units for purposes of testing goodwill for impairment, which is tested at least annually in connection with PPG’s strategic planning process or more frequently if an indication of impairment exists. The Company tests goodwill for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a quantitative test. Quantitative goodwill impairment testing, if deemed necessary, is performed during the fourth quarter of each year by comparing the estimated fair value of an associated reporting unit to its carrying value. Fair value is estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model include projected future revenues, discount rates, operating cash flows, capital expenditures and tax rates.

The annual indefinite-lived intangible asset impairment assessment takes place in the fourth quarter of each year either by completing a qualitative assessment or quantitatively by comparing the estimated fair value of each trademark to its carrying value. Fair value is estimated using the relief from royalty method (a discounted cash flow methodology). The qualitative assessment includes consideration of factors, including revenue relative to the asset being assessed, the operating results of the related business and industry, market and general economic conditions, to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount.

Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives (1 to 30 years) and are reviewed for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable.

Receivables and Allowances

All trade receivables are reported on the consolidated balance sheet at the outstanding principal adjusted for any allowance for doubtful accounts and any charge offs. The Company provides an allowance for doubtful accounts to reduce receivables to their estimated net realizable value when it is probable that a loss will be incurred. Those estimates are 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. Refer to Note 20, “Revenue Recognition” for further details.

Leases

The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately. For certain equipment leases, lease and non-lease components are accounted for as a single lease component.

Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

Variable lease expense is based on contractual arrangements with PPG’s lessors determined based on external indices or other relevant market factors. In addition, PPG’s variable lease expense also includes elements of a contract that do not represent a good or service but for which the lessee is responsible for paying.

2025 PPG ANNUAL REPORT AND FORM 10-K 42

Nearly all of PPG’s lease contracts do not provide a readily determinable implicit rate. For these contracts, PPG’s estimated incremental borrowing rate is based on information available at the inception of the lease.

Product Warranties

The Company accrues for product warranties at the time the associated products are sold based on historical claims experience. The reserve, pretax charges against income and cash outlays for product warranties were not significant to the consolidated financial statements of the Company for any year presented.

Asset Retirement Obligations

An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. PPG recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. PPG’s asset retirement obligations are primarily associated with the retirement or closure of certain assets used in PPG’s manufacturing process. The accrued asset retirement obligation is recorded in Accounts payable and accrued liabilities and Other liabilities on the consolidated balance sheet and was $12 million and $11 million as of December 31, 2025 and December 31, 2024, respectively.

PPG’s only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain PPG production facilities. The asbestos in PPG’s production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed. This asbestos is encapsulated in place and, as a result, there is no current legal requirement to abate it. Because there is no requirement to abate, the Company does not have any current plans or an intention to abate and therefore the timing, method and cost of future abatement, if any, are not known. The Company has not recorded an asset retirement obligation associated with asbestos abatement, given the uncertainty concerning the timing of future abatement, if any.

Environmental Contingencies

It is PPG’s policy to accrue expenses for environmental contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Reserves for environmental contingencies are exclusive of claims against third parties and are generally not discounted.

Assets and Liabilities Held for Sale

The Company classifies assets and liabilities as held for sale (a “disposal group”) when management commits to a plan to sell the disposal group, the sale is probable within one year and the disposal group is available for immediate sale in its present condition. The Company considers various factors, particularly whether actions required to complete the plan indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets held for sale are measured at the lower of carrying value or fair value less costs to sell. Any loss resulting from the measurement is recognized in the period the held-for-sale criteria are met. Conversely, gains are not recognized until the date of the sale. When the disposal group is classified as held for sale, depreciation and amortization ceases and the Company tests the assets for impairment.

Reclassifications

Certain reclassifications of prior years’ data have been made to conform to the current year presentation. These reclassifications had no impact on our previously reported Net income, cash flows or shareholders’ equity.

Accounting Standards Adopted in 2025

Effective for the annual period ended December 31, 2025, PPG adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2023-09 “Improvements to Income Tax Disclosures (Topic 740)”. This ASU updated 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. PPG elected to apply ASU 2023-09 prospectively. Adoption of this ASU resulted in additional disclosure, but did not impact PPG’s consolidated financial position, results of operations or cash flows.

Accounting Standards to be Adopted in Future Years

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

2025 PPG ANNUAL REPORT AND FORM 10-K 43

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.

In September 2025, the FASB issued ASU 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”. The ASU is intended to modernize the recognition and disclosure framework for internal-use software costs, removing the previous “development stage” model to align the accounting rules with how software is developed today. This ASU will be effective for PPG beginning January 1, 2028. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

2. Divestitures

U.S. and Canada Architectural Coatings Business

In 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. PPG received $516 million in proceeds and recorded a loss on the sale of $285 million. No tax benefit was recorded on the loss. The loss on the sale was recorded in “Income/(loss) from discontinued operations, net of tax” in the consolidated statement of income. The proceeds from the sale were recorded in “Cash from/(used for) investing activities - discontinued operations” in the consolidated statement of cash flows.

The sale represented a strategic shift in PPG’s business portfolio that had a major effect on the Company’s operations and financial results. Accordingly, the Company’s consolidated results of operations and cash flows were recast to present the results of the architectural coatings business in the U.S. and Canada as discontinued operations for all periods presented. 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 years ended December 31, 2025, 2024, and 2023 were as follows:

Cost of sales, exclusive of depreciation and amortization — 976 1,067

Selling, general, and administrative — 787 821

Amortization — 6 13

Research and development, net — 9 9

Other charges, net 8 1 5

Loss on sale of discontinued operations — 285 —

(Loss)/income before income taxes ($8) ($214) $58

Income tax (benefit)/expense (13) 14 11

Income/(loss) from discontinued operations, net of tax $5 ($228) $47

The following table presents the significant non-cash items and capital expenditures for the discontinued operations related to the U.S. and Canada architectural coatings business that are included in the Consolidated Statement of Cash Flows for the three years ended December 31, 2025, 2024, and 2023:

Depreciation and amortization $— $34 $44

Capital expenditures $— $10 $33

In conjunction with the divestiture of U.S. and Canada architectural coatings business, PPG entered into a supply agreement with the divested business to sell certain products, which are recognized as Net sales in the refinish coatings, industrial coatings and protective and marine coatings businesses. Additionally, PPG entered into transition services agreements to provide administrative services subsequent to the sale. The fees for services rendered under the transition services agreements are expected to offset the cost of providing those services.

Silicas Products Business

In 2024, PPG completed the sale of its silicas products business for $325 million in proceeds and recorded a pre-tax gain on the sale of $129 million. The gain on the sale was recorded in “Other charges/(income), net” in the consolidated statement of income. The Company determined that the divestiture did not meet the criteria of a discontinued operation as it did not represent a strategic shift for the Company, and therefore, its historical results are included in the Company's continuing operations within the Industrial Coatings reportable business segment.

2025 PPG ANNUAL REPORT AND FORM 10-K 44

3. Working Capital Detail

Receivables

Inventories(1)

Accounts payable and accrued liabilities

Other postretirement and pension benefits 75 76

(1)Most U.S. inventories are valued using the LIFO method. If the FIFO method of inventory valuation had been used, inventories would have been $181 million and $169 million higher as of December 31, 2025 and 2024, respectively.

4. Property, Plant and Equipment

($ in millions) Useful Lives (years) 2025 2024

Construction in progress 756 735

Less: accumulated depreciation 4,724 4,217

5. Investments

Investments in equity affiliates $151 $141

Marketable equity securities (See Note 11) 79 85

Investments in equity affiliates represent PPG’s ownership interests in entities between 20% and 50% that manufacture and sell coatings and certain chemicals.

PPG’s share of undistributed net earnings of equity affiliates was $19 million, $20 million and $21 million in 2025, 2024 and 2023, respectively. Dividends received from equity affiliates were $12 million, $14 million and $17 million in 2025, 2024 and 2023, respectively.

2025 PPG ANNUAL REPORT AND FORM 10-K 45

6. Goodwill and Other Identifiable Intangible Assets

Goodwill

Acquisitions, including purchase accounting adjustments — 2 — 2

Divestitures — — (2) (2)

Foreign currency impact and other (308) (61) (56) (425)

In the fourth quarter, the Company tests the carrying value of goodwill for impairment, as discussed in Note 1. “Summary of Significant Accounting Policies.” In both 2025 and 2024, the annual impairment testing of goodwill did not result in impairment of any of the Company’s reporting units. In conjunction with the 2023 assessment, the Company determined that the estimated fair value of the traffic solutions reporting unit was less than its carrying value, resulting in recognition of a goodwill impairment charge of $158 million in Impairment and other related charges, net in the accompanying consolidated statements of income. The fair value of the traffic solutions reporting unit was estimated using a discounted cash flow model. Key assumptions and estimates used in the discounted cash flow model included projected future revenues, a discount rate, operating cash flows, capital expenditures, and a tax rate. The decline in the fair value of the traffic solutions reporting unit compared to prior periods was primarily due to an increase in the weighted average cost of capital (discount rate assumption) reflecting the current interest rate environment. In addition, the fair value was impacted by a decline in the reporting unit’s long-term cash generation forecast due to the highly inflationary environment in Argentina and the fourth quarter 2023 divestitures of its European and Australian businesses.

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

Identifiable Intangible Assets

Indefinite-Lived Identifiable Intangible Assets

Definite-Lived Identifiable Intangible Assets

In the fourth quarter, the Company tests the carrying value of indefinite-lived trademarks for impairment, as discussed in Note 1, “Summary of Significant Accounting Policies.” In both 2025 and 2024, the annual impairment testing review of indefinite-lived intangibles did not result in an impairment. In conjunction with the 2023 annual impairment test, the Company determined that the estimated fair value of certain trademarks in the Global Architectural Coatings segment were less than the carrying value, resulting in recognition of impairment charges of $2 million in Impairment and other related charges, net in the accompanying consolidated statement of income.

Aggregate amortization expense was $125 million, $132 million and $154 million in 2025, 2024 and 2023, respectively. In the fourth quarter 2023, the Company recognized accelerated amortization expense of $6 million related to the exit of a non-core business.

2025 PPG ANNUAL REPORT AND FORM 10-K 46

7. Impairment and Other Related Charges, Net

In 2025, the Company recognized pretax net impairment and other related charges of $24 million related to a consolidated joint venture in the Performance Coatings segment. The charges primarily represented the impairment of definite-lived identified intangible assets and are included in Impairment and other related charges, net in the consolidated statement of income. Net loss of $12 million related to the charges was attributable to noncontrolling interests.

In 2023, the Company recorded a goodwill impairment charge for the traffic solutions reporting unit and indefinite-lived intangible asset impairment charges related to certain trademarks. Refer to Note 6, “Goodwill and Other Identifiable Intangible Assets” for further detail related to this charge, which is included in Impairment and other related charges, net in the accompanying consolidated statement of income.

Sale of Russia Operations

In 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 2024, primarily related to accumulated foreign currency translation losses, which was included in Impairment and other related charges, net in the consolidated statement of income. No tax benefit was recorded on the impairment charge. The remaining liabilities of the business were reported as held for sale in Other current liabilities on the consolidated balance sheet as of December 31, 2024. In the first quarter 2025, PPG completed the sale of its remaining Russian business. The results of the business were reported within the Global Architectural Coatings reportable business segment.

8. Business Restructuring

The Company records restructuring liabilities that represent charges incurred in connection with consolidations of certain operations, including operations from acquisitions, as well as headcount reduction programs. These charges consist primarily of severance costs and certain other cash costs. As a result of these programs, the Company will also incur incremental non-cash accelerated depreciation expense for certain assets due to their reduced expected asset life. These charges are not allocated to the Company’s reportable business segments. Refer to Note 21, “Reportable Business Segment Information” for additional information.

In 2024, the Company approved a comprehensive cost reduction program. The multi-year program focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the divestitures of PPG’s silicas products business and the architectural coatings business in the U.S. and Canada. The program includes various facility closures and other targeted fixed cost reductions. In connection with approval of this restructuring program, the Company recorded a pretax restructuring charge of $239 million, representing employee severance and other cash costs. As a result of this program, the Company also recognized a $110 million non-cash charge in 2024 due to the recognition of accumulated currency losses related to the exit of its Argentina operations.

The majority of the remaining approved business restructuring actions and associated cash outlays are expected to be completed in 2026 and 2027.

The following table summarizes restructuring reserve activity for the years ended December 31, 2025 and 2024:

Total Reserve

Approved restructuring actions 39 239

Release of prior reserves and other adjustments(a) (33) (6)

Cash payments (82) (52)

Foreign currency impact 26 (15)

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

9. Leases

PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.

The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:

2025 PPG ANNUAL REPORT AND FORM 10-K 47

Operating lease cost Selling, general and administrative 150 141 138

Finance lease cost:

Amortization of right-of-use assets Depreciation $1 $1 $1

Interest on lease liabilities Interest expense 1 1 1

Total finance lease cost $2 $2 $2

Total operating lease cost for the years ended December 31, 2025, 2024 and 2023 is inclusive of the following:

Variable lease costs $10 $9 $9

Short-term lease costs $19 $20 $19

The lease amounts included in the consolidated balance sheet as of December 31, 2025 and 2024 were as follows:

($ in millions) Classification on the Consolidated Balance Sheet 2025 2024

Assets:

Operating Operating lease right-of-use assets $604 $597

Finance(1) Property, plant, and equipment, net 15 12

Liabilities:

Current

Operating Current portion of operating lease liabilities $138 $126

Finance Short-term debt and current portion of long-term debt 2 2

Noncurrent

Operating Operating lease liabilities 450 454

Finance Long-term debt 5 5

Total lease liabilities $595 $587

(1)Net of accumulated depreciation of $16 million and $14 million as of December 31, 2025 and 2024, respectively.

Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows paid for operating leases $168 $157 $155

Operating cash flows paid for finance leases $1 $1 $1

Financing cash flows paid for finance leases $2 $2 $2

Right-of-use assets obtained in exchange for lease obligations:

Finance leases $2 $1 $1

Lease terms and discount rates as of December 31, 2025, 2024 and 2023 were as follows:

Weighted-average remaining lease term (in years)

Weighted-average discount rate

Operating leases 3.6 % 3.6 % 3.0 %

Finance leases 6.7 % 6.8 % 6.0 %

2025 PPG ANNUAL REPORT AND FORM 10-K 48

As of December 31, 2025, maturities of lease liabilities were as follows:

($ in millions) Operating Leases Finance Leases

Total lease payments $658 $8

Less: Interest 70 1

Total lease obligations $588 $7

10. Borrowings and Lines of Credit

Long-term Debt Obligations

Finance lease obligations Various 7 7

Impact of derivatives on debt(3) N/A (6) (16)

Less payments due within one year N/A 702 932