Shares in paints and coatings company PPG (PPG 4.44%) rose by as much as 6.1% in early trading today as investors cheered its first-quarter earnings report and full-year guidance. Given the pressure on the economy due to the uncertainty around tariffs, any company that merely restates its full-year guidance must be looked at positively.

A mixed quarter for PPG

Management reiterated guidance for adjusted earnings per share (EPS) of $7.75-$8.05, as an improvement in its performance coatings segment is more than offsetting weakness in other segments.

Looking at its sales momentum across PPG's segments is a great way to get a handle on trends in the economy. On the positive side, in performance coatings (volumes up 6% in the quarter), the aerospace sector and automotive refinish (a market that tends to be less cyclical, as it's driven by crashes and repair work) indicate areas of strength in the economy.

On the other hand, the 3% and 1% volume declines in global architectural and industrial coatings demonstrate the weak points, with management noting "a pause in project-related business and governmental spending in Mexico due to recent geopolitical-related uncertainty." In industrial coatings, growth in packaging volumes failed to offset a decline in the automotive original equipment manufacturer (OEM) market as automakers cut production in 2025 in response to economic uncertainty.

Image source: Getty Images.

Where next for PPG?

PPG's end markets are mixed, but that's good enough for now. According to CEO Tim Knavish, "more than 95% of what we buy is locally sourced or no tariffs," and in terms of finished goods, "we're almost completely local." As such, PPG's key impact from tariffs comes from its end markets, which are holding up for now.