Axalta Releases Second Quarter 2025 Results

Axalta Coating Systems Ltd. announced its financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights:

• Second quarter net sales of $1.3 billion
• Net income of $110 million with a net income margin of 8.4%
• Record quarter for Adjusted EBITDA of $292 million
• Adjusted EBITDA margin expanded 90 basis points year over year to 22.4%
• Diluted EPS decreased 2% to $0.50
• Record quarter for Adjusted Diluted EPS of $0.64, an increase of 5%
• Cash provided by operating activities increased 25% year over year to $142 million
• Executed $65 million in share repurchases
• Won 2025 Automotive News PACE Pilot Innovation to Watch award, highlighting Axalta’s innovation leadership

“We delivered another excellent quarter, setting new records for Adjusted EBITDA and Adjusted Diluted EPS,” said Chris Villavarayan, CEO and President of Axalta. “Our performance reflects Axalta’s drive for operational excellence, and our commitment to meet financial targets and create value through our A Plan objectives.”

Second Quarter 2025 Consolidated Financial Results

Net sales decreased 3% year over year to $1.3 billion in the second quarter of 2025. Volume declines, primarily in Performance Coatings, more than offset contributions from the CoverFlexx acquisition and favorable currency translation.

Net income decreased by 3% year over year to $110 million compared to $113 million in the prior year period resulting in a net income margin of 8.4%. The decrease was largely due to costs from restructuring programs initiated in the quarter designed to drive efficiencies, partially offset by a decline in operating expenses and lower interest and tax expense. Adjusted net income improved by $4 million year over year to $139 million driven by lower operating expenses, reduced interest expense and improved variable costs. Adjusted EBITDA was a new quarterly record of $292 million, an increase of $1 million year over year, and Adjusted EBITDA margin expanded by 90 basis points year over year to 22.4%. Diluted earnings per share decreased by 2% to $0.50 compared to $0.51 in the prior year period, while adjusted diluted earnings per share improved by 5% to $0.64.

In the second quarter of 2025, Axalta generated $142 million in cash provided by operating activities, a significant improvement from $114 million in the same period last year. This year-over-year increase reflects the company’s focus on margin expansion and operational discipline. In the second quarter, free cash flow was $101 million, up from $95 million in the prior year, driven by stronger operating performance, partially balanced by increases in strategic capital expenditures to support productivity and long term growth.

Discussion of Segment Results

Performance Coatings second quarter 2025 net sales were $836 million, compared to $887 million in the prior year period. Contributions from the CoverFlexx acquisition and favorable currency impacts helped partially offset the decline in organic net sales. Refinish net sales declined 6% year over year to $514 million predominantly driven by organic net sales decline in North America. Industrial net sales decreased by 6% year over year to $322 million as positive price-mix and favorable foreign currency translation were offset by lower volumes.

The Performance Coatings segment generated Adjusted EBITDA of $200 million compared to $223 million in the prior year period, reflecting resilient earnings in the face of softer volumes. While organic net sales moderated, the segment maintained a healthy Adjusted EBITDA margin of 23.8% supported by lower operating and variable expenses compared to the prior year period.

Mobility Coatings second quarter 2025 net sales were $469 million, an increase of 1% from the prior year period. Light Vehicle net sales were up 2% year over year due to organic net sales growth in three out of four regions, which more than offset declines in North America. Commercial Vehicle net sales decreased by 4% year over year to $107 million due to lower volumes from Class 8 builds and foreign currency translation headwinds partially mitigated by positive price-mix. Mobility Coatings price-mix drove a 4% benefit year over year.

The Mobility Coatings segment delivered exceptional performance in the second quarter, generating Adjusted EBITDA of $92 million, a significant increase from the $68 million in the prior year period. The segment’s Adjusted EBITDA margin expanded to 19.8%, up from 14.8% in the prior year period, reflecting benefits from positive price-mix and disciplined cost management. This strong margin expansion underscores Axalta’s ability to drive profitable growth.