Kevin McCarthy

Eduardo framed the Yara agreement as eliminating volume/offtake risk while APD retains most of the price risk, with a commission structure that shares upside as Yara commercializes the green ammonia.

Eduardo attributed helium improvement to new long-term agreements tied to electronics projects (mostly Asia, some U.S.) and supply reliability from the Texas cavern; Qatar volumes remain very limited so APD isn't counting on Middle East supply.

Eduardo explained guidance raise reflects Q2 beat only, with second half assumptions unchanged due to significant uncertainty from Middle East conflict.

Eduardo described Kansas liquefaction capacity and Texas cavern as key flexibility. Can cover one source down but not more. 900-mile supply chain from East Texas to Kansas.

Melissa confirmed Asia price would have been slightly positive ex-helium. Global helium price impact was -1%. Americas and Europe non-helium price was up more significantly.

Melissa confirmed deconsolidation upon JV operations mid-2027. Debt comes off full balance sheet into equity affiliate line. Operating costs will ramp up pre-onstream then reduce to 33% share post-deconsolidation.

Eduardo acknowledged some pricing degradation and increased competition in rare gases but noted APD is not a significant player in this market.

Eduardo confirmed Lu'An performing well and retained. Two other gasification projects with customer payment issues set aside for sale. Impact on sales limited as only paid sales were being booked. Seeking better owner for assets.

Melissa explained ROCE is depressed by construction-in-progress (NEOM consolidation). Ex-CIP and cash, ROCE would be 500bp higher. Decline as project backlog completes will improve metric.

Eduardo emphasized capital cost certainty as the gating factor, not permits. Gave end-of-year timeline for partnership decisions.

Melissa confirmed FY2027 net cash flow positive target, noting potential for equity partnerships or project financing to further improve trajectory.

Melissa confirmed 2027 net cash flow positive target assumes NO project financing or equity partnerships, purely from project on-stream timing.

Chuck Magro framed a recovering market with volume growth and low single digit pricing down, but did not break out the product-line detail requested.

Chuck outlined remaining milestones: HQ decisions in Q2, public Form 10 filing in Q2, board announcements in H2, capital structure finalization, and September 15 Investor Day.

Chuck said EU framework agreed in December, expecting formal adoption by H1 2026. Still need China approval as last significant import market. Gene-edited fungal disease-resistant corn (disease super locus) looks fantastic in test fields, commercialization within 1-2 years of regulatory approval.

David acknowledged industry seeing higher borrowing costs and increased bankruptcies. Corteva managing well, past dues as % of AR improved 200bp YoY. About 40% of Brazil sales on barter system for risk mitigation.

Robert said fungicide growth driven by Onmira brand return to Brazil market at acceptable margins after 2023 price declines. FMC Forcivo partnership gives premium 3-way corn fungicide for North America.

Chuck confirmed on track for 2027 hybrid wheat launch with 10-20% yield unlock, $1B peak revenue potential. Winter canola pilot expanding from 30,000 to potentially hundreds of thousands of acres.

Robert attributed margin gains to biologicals, new products, spinosyns, favorable mix toward fungicides/insecticides, and $170M cost takeout in Q4.

Carter guided operating rates above 90% once the cracker turnaround completes and said the Thailand JV has adequate feedstock with improved margins.

Fitterling said most attacks relatively limited and repairable within 275-day logistics window. Exception is Qatar LNG plant critical equipment requiring 2.5-3 years to rebuild. Partners actively working on repairs. Does not expect damage to extend beyond logistics constraint duration.

Carter attributed weakness to building/construction and durables pressure globally. Fitterling said polyurethanes review active: took out 20% NA PO capacity; China 13% duty drawback expiring April; antidumping cases gaining traction.

Fitterling said order books right down the middle, not too conservative or optimistic. Cited Harvard report: US GDP ex data centers at 0.1%. MDI diverted from US showing up in Europe being dumped.

Fitterling confirmed peak timing flexing toward 2030, declined to call trough. Focus on investing at bottom of cycle to maximize upcycle. Noted China starting to acknowledge overcapacity.

Fitterling said polyurethanes had a better owner. European ethylene capacity headed toward 20% reduction which should rebalance. Idle vs shutdown depends on optionality value, cited Saint Charles cracker story.

Fitterling provided comprehensive cash flow framework: ~70% conversion, CapEx $3-3.2B, dividend $2B, infrastructure $2.4-3B, net interest $600M. Nova progress expected during year.

Sanjiv attributed the 6% Asia volume to three parts: positive base volume, sizeable electronics sale-of-equipment, and ASEAN project ramp-ups.

White said not yet a true global recovery, need all 3 regions running positively. Americas results and trends are positive. Global base volumes turned positive but not enough to round to 1%. Need to see EMEA catalyst.

White confirmed excess molecules available beyond current commitments but declined to quantify. Being selective on contract quality and customer commitment. Already signed a few new long-term deals.

Sanjiv detailed three indicators: hard goods automation equipment up (investment for expected pickup), consumables flat to slightly down, gas similar. Automotive and large ag equipment customers remain cautious with hope for H2 improvement. Cautious optimism but no consumption pickup yet.

Sanjiv expects 9-11% semiconductor industry growth over 5 years to $1T. Logic steady, HBM/memory seeing significant pickup. Gas intensity continues increasing with advanced nodes. R&D engagement with OEMs confirms next-gen tools require even more gas.

Matt said minimal ETR impact but positive for cash taxes via reinstated bonus depreciation. IRRs on US projects could improve ~100bp. Enhanced 45Q supports blue hydrogen projects.

Sanjiv gave detailed China view: steel weak, chemicals softer, but battery/EV and electronics growing. Medium-term growth moderated to low single digit IP. Smart plant AI reducing manning.

Direct answer quantifying about $25 million of new business wins per quarter and explaining the packaging comp math.

Knavish described Ozark as opportunistic, highly synergistic bolt-on at about $100M revenue, purchased at good price relative to prior sale. Raises traffic solutions margin profile. Traffic solutions valued as stable cash generator funding aerospace investments. Broader M&A: PPG has always had balance sheet capacity; discipline continues. Must be right asset (adds organic growth/margin), right time, right price. Two small bolt-ons this year plus an Allied Products productivity acquisition. M&A still not tip of the spear.

Knavish attributed weak leverage to refinish destocking (double-digit Q3, high-single Q4 declines). Higher-margin business declining overwhelms other gains. Expects flip in H2 2026 when distributor buying patterns normalize. Morales clarified segment earnings actually grew ~$20M YoY in Q4.

Knavish attributed OI decline to two factors: refinish mix (above-segment-average margins going negative) and above-normal growth spending in aerospace and PMC. Confident short-term margin hit delivers long-term shareholder value.

Knavish broke down $100M: most is auto OEM, then industrial coatings, then packaging. Packaging had known U.S. share loss offset by Europe gains and BPA NI technology wins. PMC driven by new technologies (SigmaGlide, Sale Advance, fire protection). Morales noted all 4 Performance businesses outgrew markets in Q2.

Knavish declined to predict FX but confirmed incrementally positive pricing expected. Mexico project pause likely continues into Q2. Europe is the key change driver Q1 to Q2, momentum growing, could be flat to incrementally positive.

Knavish outlined negative Q1 volumes ramping to positive low-single-digits for full year. Emphasized stabilization rather than hockey-stick recovery, with $100M industrial share gains providing visibility.

Petz named commercial as the standout and new residential plus industrial wood as the hardest, restating the 1.5x to 2x market growth expectation.

Ben clarified consolidated pricing includes both January stores increase and new incremental actions especially in Performance Coatings Group. On raws, expects heavier inflation in second half with exit rate at high end of low to mid single digits.

Heidi said realization would be at the low end of the historic range as a full-year guide given the unique competitive environment.

Al confirmed targeted price increases across Consumer Brands and Performance Coatings segments and regions to offset cost basket pressures.

Al said 20% of $105M restructuring is in gross profit (plant consolidations), majority is SG&A; expects ~$80M annual savings with good portion in H2 and rest annualizing into 2026.

Heidi said Suvinil is an obvious complement to existing LatAm business; targeting H2 close; not yet in guidance. Jim added Brazil architectural grows faster than GDP and Suvinil faster still.

Heidi said Consumer and PCG pricing is targeted by region/geography without announcing specifics. Al sized FX drag as ~1% consolidated, mid-teens hit in Latin America translating to mid-single-digit Consumer impact and ~2% PCG impact.