Axalta Coating Systems (NYSE:AXTA) Announces Quarterly Earnings Results

Axalta Coating Systems (NYSE:AXTA) announced its earnings results on Tuesday. The specialty chemicals company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.01), FiscalAI reports. The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.27 billion. Axalta Coating Systems had a net margin of 7.39% and a return on equity of 23.60%. The firm’s revenue for the quarter was down 3.7% compared to the same quarter last year. During the same period last year, the company earned $0.60 earnings per share. Axalta Coating Systems updated its Q1 2026 guidance to 0.500-0.50 EPS.

Here are the key takeaways from Axalta Coating Systems’ conference call:

• Axalta reported record 2025 financials with adjusted EBITDA of ~$1.13 billion, a 22% EBITDA margin, adjusted EPS of $2.49, and FY free cash flow of $466 million, while Q4 set records for operating and free cash flow.
• Management guided 2026 to another strong year: revenue up low single digits, adjusted EPS $2.55–$2.70, adjusted EBITDA of $1,140–$1,170 million, free cash flow >$500 million and net leverage below 2x by year-end.
• Near-term headwinds: Q1 revenue is expected to decline mid-single digits due to North America destocking/distributor consolidation and softer Industrial and Refinish volumes (North America Class 8 builds were down ~30%).
• Operational execution is driving durable margin protection — >$300 million in variable cost reductions, fixed expenses down >6%, $100 million of structural benefits, improved on-time delivery and ~$196 million of CapEx to boost productivity.
• Axalta expects the announced merger with AkzoNobel to create a scaled global leader with significant upside — management cites $600 million of identified synergies and confidence in delivering revenue and cost benefits post-close.

Axalta Coating Systems Stock Up 1.8%

AXTA opened at $34.20 on Thursday. The company has a debt-to-equity ratio of 1.33, a quick ratio of 1.59 and a current ratio of 2.06. Axalta Coating Systems has a 1 year low of $26.28 and a 1 year high of $37.72. The firm has a 50 day moving average price of $32.52 and a 200 day moving average price of $30.45. The company has a market cap of $7.30 billion, a PE ratio of 19.66, a price-to-earnings-growth ratio of 1.39 and a beta of 1.29.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Vertical Research cut Axalta Coating Systems from a “buy” rating to a “hold” rating in a research report on Wednesday, January 7th. Robert W. Baird set a $37.00 price objective on shares of Axalta Coating Systems in a report on Wednesday. Wells Fargo & Company raised their price objective on Axalta Coating Systems from $38.00 to $39.00 and gave the company an “overweight” rating in a research note on Wednesday, October 29th. UBS Group restated a “neutral” rating and set a $36.00 target price on shares of Axalta Coating Systems in a research report on Wednesday. Finally, BMO Capital Markets restated a “market perform” rating and issued a $35.00 price objective on shares of Axalta Coating Systems in a research report on Wednesday. Seven equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $36.25.

Institutional Investors Weigh In On Axalta Coating Systems

A number of large investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC acquired a new stake in shares of Axalta Coating Systems during the fourth quarter valued at about $35,000. Empowered Funds LLC bought a new stake in shares of Axalta Coating Systems during the 4th quarter valued at about $78,000. Parallel Advisors LLC raised its position in shares of Axalta Coating Systems by 71.1% during the 4th quarter. Parallel Advisors LLC now owns 3,202 shares of the specialty chemicals company’s stock worth $103,000 after purchasing an additional 1,331 shares during the period. EverSource Wealth Advisors LLC increased its position in Axalta Coating Systems by 371.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,501 shares of the specialty chemicals company’s stock worth $104,000 after buying an additional 2,758 shares during the period. Finally, CIBC Asset Management Inc acquired a new stake in shares of Axalta Coating Systems in the 4th quarter worth about $223,000. Institutional investors and hedge funds own 98.28% of the company’s stock.

Axalta Coating Systems Company Profile

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company’s product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.