Axalta Releases Second Quarter 2026 Results

Axalta Coating Systems announced its financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights:

• Net sales of $1.35 billion, an increase of 3% year over year
• Refinish net sales increase of 6% year over year
• Net income of $89 million and net income margin of 6.6%
• Record quarter for Adjusted EBITDA of $305 million with an Adjusted EBITDA margin of 22.7%
• Diluted EPS of $0.41
• Record quarter for Adjusted Diluted EPS of $0.72, an increase of 13% year over year
• Cash provided by operating activities of $152 million, up 7% year over year
• Free cash flow of $107 million, up 6% year over year
• Total net leverage of 2.2x, the lowest in Axalta’s history
  

“We delivered an excellent second quarter with record Adjusted EBITDA and Adjusted Diluted EPS, expanded margins and strong free cash flow generation demonstrating the earnings power of our business model” said Chris Villavarayan, Chief Executive Officer and President of Axalta. “Our team continues to drive operational excellence that underpins our consistent financial performance, and we carry solid momentum into the second half of the year.”

Second Quarter 2026 Consolidated Financial Results

Second quarter 2026 net sales increased $41 million to $1.35 billion driven by favorable foreign currency translation, contributions from acquisitions, and positive price mix.

Net income decreased by $21 million year over year to $89 million resulting in a net income margin of 6.6%. The decrease was primarily driven by an incremental $31 million in merger and acquisition related costs. Adjusted net income, which excludes merger and acquisition related expenses, increased 10% year over year to $153 million driven by reduced operating expenses and lower interest expense.

Adjusted EBITDA increased 5% year over year to $305 million, a quarterly record resulting in an Adjusted EBITDA margin of 22.7%, up 30 basis points from the prior year period. Diluted EPS declined to $0.41 from $0.50 in the prior year period due to higher merger and acquisition costs. Adjusted Diluted EPS was $0.72, a record quarter and an increase of 13% from last year driven primarily by strong conversion on higher sales and lower interest expense.

Cash provided by operating activities was $152 million, an increase of 7% year over year primarily driven by improved working capital and lower interest payments. Free cash flow was $107 million, an increase of $6 million year over year, inclusive of the headwind from merger-related costs.

Discussion of Segment Results

Performance Coatings’ second quarter net sales were $872 million, up 4% year over year as favorable currency translation, contributions from acquisitions and positive price mix more than offset slightly lower volumes. Organic net sales increased year over year, supported by strong growth in Europe and Asia and favorable price mix partially offset by lower volumes in North America.

Refinish net sales increased 6% year over year to $545 million, primarily driven by contributions from acquisitions, favorable price mix and foreign currency translation. Industrial net sales increased by 2% year over year to $327 million with positive volume growth in Europe and Asia and positive price mix more than offsetting lower volumes in North America.

Performance Coatings Adjusted EBITDA increased 10% year over year to $218 million compared with $200 million in the prior year period. The increase was driven by favorable price mix and lower variable and operating expenses. Adjusted EBITDA margin improved 130 basis points year over year to 25.1%.

Mobility Coatings achieved record quarterly net sales of $474 million, up 1% year over year. Light Vehicle net sales declined slightly reflecting lower organic sales, partially offset by favorable foreign currency. Commercial Vehicle net sales increased 7% year over year, driven by volume growth in all four regions and favorable foreign currency.

Mobility Coatings delivered Adjusted EBITDA of $87 million with an Adjusted EBITDA margin of 18.4%. Stronger volumes in Commercial Vehicle were more than offset by favorable one-time items recorded in the second quarter of 2025 that did not repeat.

“We look forward to Axalta’s Special General Meeting on August 5 to approve the compelling merger of equals with AkzoNobel. This strategic combination creates a premier global coatings company and provides significant value creation opportunities for Axalta shareholders” said Chris Villavarayan, Chief Executive Officer and President of Axalta.