Our Valued Shareholders,
As we reflect on 2025, I am proud of the global PPG team that demonstrated resilience, discipline and a commitment to delivering value for our customers and shareholders. Building on a strong foundation, we navigated opportunities and challenges while continuing to strengthen our position as a global leader in coatings, specialty products and productivity solutions for our customers.
Following our strategic divestitures in 2024, we strengthened our financial profile and further sharpened the focus on driving our enterprise growth strategy. This allowed us to deliver stronger commercial and innovation execution, resulting in positive momentum throughout 2025 and into 2026.
In 2025, PPG's $15.9 billion in net sales included a 2% increase in organic sales due to higher sales volumes and selling prices. This above-market performance was led by sales volume growth in the Performance Coatings segment in the aerospace coatings, protective and marine coatings, and traffic solutions businesses, and share gains in the Industrial Coatings segment in automotive original equipment manufacturer (OEM) coatings, industrial coatings and packaging coatings.
Our legacy of strong cash generation continued, enabling us to maintain a disciplined approach to capital allocation. In 2025, PPG returned $1.4 billion to shareholders, including approximately $630 million in dividends and $790 million in share repurchases. We also extended our record of paying uninterrupted annual dividends for 126 years and increasing dividends for 54 consecutive years.
Our digital transformation continued to be a major enabler of internal operational efficiency and an enhanced customer experience. This transformation created new pathways for growth in 2025, including the expansion of global ecommerce platforms and the increased use of AI in manufacturing and product development. From AI-designed coatings like PPG DELTRON® NXT Premium Glamour Speed Clearcoat, to our Color Visualizer, our teams at PPG are using contemporary digital tools to shorten development cycles, reduce waste and improve productivity.
Sustainability has remained an important focus area that will continue to influence technology development based on evolving customer needs. Sustainably advantaged products accounted for 43% of PPG's 2025 sales, reflecting our continued focus on technologies that use less water and energy and reduce emissions across the value chain.
Our community investments totaled $18.1 million, supporting hundreds of community organizations worldwide. As part of this, our COLORFUL COMMUNITIES® program brought together PPG volunteers and customers, PPG products and financial support to rejuvenate community spaces. In 2025, we celebrated the 10-year milestone of the global program, completing 43 projects in 23 countries. We also extended the Colorful Communities program for an additional 10 years, committing $15 million to celebrate the next decade of the program.
Looking ahead, we are focused on accelerating our momentum, and we remain committed to our purpose: WE PROTECT AND BEAUTIFY THE WORLD®, which marks its 10th year in 2026. We are confident that our sharpened portfolio, ongoing financial discipline, and innovation capabilities will continue to position us as our customers' first choice partner.
Thank you for your continued trust and confidence in PPG.
Sincerely,
Tim Knavish
Chairman and Chief Executive Officer