Axalta Coating Systems Stock Earnings Reports

Axalta reported Q3 2025 results with record adjusted EBITDA ($294M) and record adjusted diluted EPS ($0.67) despite a 2% year-over-year decline in net sales (~$1.3B). Margins continued to expand (company adjusted EBITDA margin 22.8%), driven by strong execution of the A Plan, cost discipline and pricing actions. Performance Coatings delivered a 25.5% adjusted EBITDA margin; Mobility sales rose 4% to a record $460M with an 18% margin. Refinish faced mid- to high-single-digit weakness driven by North American destocking and lower claims, but management expects stabilization and a return to positive Refinish volumes and revenue growth starting in Q2 2026. Industrial sales remain muted but profitability is ahead of plan. Capital allocation: Axalta repurchased $100M of stock in Q3 ($165M YTD) and plans to repurchase up to $250M in Q4, targeting deployment of the majority of free cash flow to buybacks while keeping net leverage at ~2.5x (historical low). Full-year 2025 outlook: net sales > $5.1B, adjusted EBITDA ~ $1.140B (low end of prior range), adjusted diluted EPS ~$2.50, and free cash flow expected near $450M, with Q4 net sales down mid-single digits and adj. EBITDA ~ $284M / adj. EPS ~ $0.60. Key drivers cited: continued margin improvement from structural cost actions (Transformation Initiative ~ $40M in 2025, ~$75M target overall), stable raw material costs near-flat, and interest expense reduction.