PPG Industries Inc. (PPG) stock plummeted 5.51% in after-hours trading on Thursday after the company reported lackluster fourth-quarter results and provided a disappointing outlook for 2025.

For the fourth quarter of 2024, PPG reported:

• Net sales from continuing operations of $3.7 billion, missing consensus estimates of $4.05 billion
• Adjusted earnings per share of $1.61, slightly below expectations of $1.65
• Net income attributable to PPG of $2 million, or $0.01 per share, down significantly from $103 million or $0.43 per share in the prior-year quarter

The company's revenue and earnings decline was primarily driven by lower sales volumes and unfavorable foreign currency translation. While PPG achieved higher selling prices and cost control actions, these efforts were offset by general cost inflation and a challenging macroeconomic environment.

Looking ahead to 2025, PPG anticipates adjusted earnings per share in the range of $7.75 to $8.05, which at the midpoint represents a 7% year-over-year increase excluding the impact of foreign currency translation and a higher tax rate. However, this guidance fell short of analysts' expectations due to ongoing soft global industrial production and mixed demand across various regions.

PPG's chairman and CEO, Tim Knavish, stated that the company expects a slow start to 2025, with first-quarter organic growth flat to slightly down, and stronger results in the second half driven by share gains. The company plans to deploy about $400 million toward share repurchases during the first quarter to enhance shareholder value.