Axalta Coating Systems (NYSE:AXTA) Issues Earnings Results

Axalta Coating Systems (NYSE:AXTA) issued its quarterly earnings data on Thursday. The specialty chemicals company reported $0.63 EPS for the quarter, missing the consensus estimate of $0.70 by ($0.07), Zacks reports. Axalta Coating Systems had a return on equity of 22.35% and a net margin of 6.78%. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the company posted $0.67 earnings per share. The firm’s revenue for the quarter was up 1.8% compared to the same quarter last year.

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

• Full-year outlook was reduced after weaker-than-expected European Refinish volumes and increased macroeconomic uncertainty. Axalta now expects fourth-quarter sales to be roughly flat year over year, fourth-quarter adjusted EBITDA of $254 million–$264 million, and full-year adjusted EBITDA of approximately $1.10 billion–$1.11 billion.
• Mobility Coatings delivered a record quarter, with sales up 7% to $493 million and adjusted EBITDA up 13% to $94 million. Commercial Vehicle sales surged 24%, while Light Vehicle volumes remained roughly flat despite global production declining nearly 2%.
• Third-quarter adjusted EBITDA declined 4% to $282 million, pressured by lower European Refinish volumes, freight costs rising more than 15%, higher raw-material costs, and investments to convert major body-shop wins. Management also expects near-term margin pressure as those conversions accelerate.
• Cash generation and leverage improved significantly: year-to-date free cash flow rose 25% to $220 million, while gross debt fell below $3 billion and net leverage reached a record-low 2.1 times. Excluding merger-related costs, underlying free cash flow was up nearly 50%.
• The proposed AkzoNobel merger remains on track for an early-2027 closing, with regulatory clearance secured in two-thirds of required jurisdictions. Management continues to target approximately $600 million of annual run-rate cost synergies, with about 90% expected within three years after closing.

Axalta Coating Systems Stock Down 3.4%

AXTA stock traded down $1.17 during midday trading on Thursday, hitting $33.48. The stock had a trading volume of 1,932,073 shares, compared to its average volume of 2,446,342. The business has a 50-day moving average of $34.08 and a two-hundred day moving average of $32.34. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.53 and a quick ratio of 1.12. The firm has a market cap of $7.16 billion, a price-to-earnings ratio of 20.71, a price-to-earnings-growth ratio of 1.85 and a beta of 1.26. Axalta Coating Systems has a 52-week low of $24.94 and a 52-week high of $38.61.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Axalta Coating Systems from a “strong-buy” rating to a “buy” rating in a research note on Sunday, October 4th. Barclays initiated coverage on shares of Axalta Coating Systems in a research report on Monday, October 12th. They set an “overweight” rating and a $45.00 price target on the stock. The Goldman Sachs Group reissued a “buy” rating and issued a $38.00 price target on shares of Axalta Coating Systems in a research note on Friday, October 9th. Weiss Ratings upgraded shares of Axalta Coating Systems from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Finally, Robert W. Baird lifted their price objective on Axalta Coating Systems from $35.00 to $37.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Axalta Coating Systems has an average rating of “Hold” and a consensus price target of $38.18.

Axalta Coating Systems Company Profile

Axalta Coating Systems Ltd. (NYSE: AXTA) develops, manufactures and sells coatings and coating technologies designed to protect, enhance and improve the appearance of vehicles, equipment and industrial products. Its offerings include liquid, powder and electrocoat products, along with related color-management tools, application technologies and technical services.

The company serves several markets, including automotive original equipment manufacturers, automotive refinish businesses, commercial transportation, industrial equipment, architecture and general manufacturing.