Axalta Releases Q2 2025 Financials

Axalta Coating Systems Ltd., a leading global coatings company, announced its financial results for the second quarter ended June 30, 2026.

“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 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 driven by an incremental $31 million in merger and acquisition-related costs. Adjusted net income, excluding merger and acquisition-related expenses, increased 10% year over year to $153 million.

Performance Coatings’ Q2 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 offset by lower volumes in North America.

Refinish net sales increased 6% year over year to $545 million, because of 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.

“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.