Axalta Coating Systems (NYSE:AXTA) Releases Earnings Results

Axalta Coating Systems (NYSE:AXTA) issued its quarterly earnings results on Tuesday. The specialty chemicals company reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01), FiscalAI reports. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.27 billion. Axalta Coating Systems had a net margin of 8.81% and a return on equity of 24.92%. The company’s revenue for the quarter was down 3.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.60 EPS. 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 Price Performance

Shares of NYSE AXTA traded up $0.66 during trading hours on Tuesday, reaching $34.87. 1,184,221 shares of the stock traded hands, compared to its average volume of 3,599,550. The company has a market capitalization of $7.44 billion, a P/E ratio of 16.67, a price-to-earnings-growth ratio of 1.36 and a beta of 1.29. The company has a quick ratio of 1.59, a current ratio of 2.20 and a debt-to-equity ratio of 1.45. Axalta Coating Systems has a 52-week low of $26.28 and a 52-week high of $37.93. The company’s 50-day simple moving average is $32.36 and its two-hundred day simple moving average is $30.39.

Analyst Upgrades and Downgrades

AXTA has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Axalta Coating Systems in a research report on Wednesday, January 21st. UBS Group cut Axalta Coating Systems from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $39.00 to $35.00 in a research report on Monday, January 12th. Bank of America lowered their target price on Axalta Coating Systems from $42.00 to $41.00 and set a “buy” rating on the stock in a research note on Tuesday, October 14th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $30.00 price objective (down previously from $35.00) on shares of Axalta Coating Systems in a research report on Wednesday, November 19th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Axalta Coating Systems from $30.00 to $29.00 and set a “neutral” rating for the company in a research report on Thursday, October 30th. Seven equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $35.56.

Institutional Investors Weigh In On Axalta Coating Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. HighTower Advisors LLC boosted its stake in Axalta Coating Systems by 32.6% during the fourth quarter. HighTower Advisors LLC now owns 9,935 shares of the specialty chemicals company’s stock worth $321,000 after acquiring an additional 2,444 shares in the last quarter. Captrust Financial Advisors lifted its holdings in Axalta Coating Systems by 75.6% during the third quarter. Captrust Financial Advisors now owns 57,153 shares of the specialty chemicals company’s stock valued at $1,636,000 after purchasing an additional 24,606 shares in the last quarter. Danske Bank A S purchased a new position in shares of Axalta Coating Systems during the 3rd quarter valued at $810,000. Woodline Partners LP boosted its holdings in Axalta Coating Systems by 100.1% in the 3rd quarter. Woodline Partners LP now owns 842,430 shares of the specialty chemicals company’s stock worth $24,110,000 after buying an additional 421,485 shares during the period. Finally, Dark Forest Capital Management LP increased its stake in Axalta Coating Systems by 285.1% in the 3rd quarter. Dark Forest Capital Management LP now owns 180,533 shares of the specialty chemicals company’s stock worth $5,167,000 after buying an additional 133,657 shares in the last quarter. 98.28% of the stock is currently owned by institutional investors.

About Axalta Coating Systems

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.