Axalta Coating Systems (NYSE:AXTA) Announces Earnings Results, Beats Expectations By $0.07 EPS

Axalta Coating Systems (NYSE:AXTA) issued its quarterly earnings results on Tuesday. The specialty chemicals company reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.07, FiscalAI reports. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.31 billion. Axalta Coating Systems had a return on equity of 22.35% and a net margin of 6.78%.The business’s revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.64 EPS. Axalta Coating Systems updated its FY 2026 guidance to 2.550-2.700 EPS and its Q3 2026 guidance to 0.700-0.700 EPS.

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

• Record profitability and cash generation: Adjusted EBITDA rose 5% year over year to $305 million, with a 22.7% margin, while adjusted EPS increased 13% to $0.72. Operating cash flow reached $152 million and free cash flow was $107 million.
• Refinish momentum strengthened: Sales increased 6% as destocking largely abated and price mix improved. Axalta secured roughly 2,700 net body-shop wins through July, including approximately 800 North American MSO locations, supporting expected volume growth in the second half.
• Balance sheet continued to improve: Axalta reduced gross debt by $80 million during the quarter, lowering net leverage to a record-low 2.2 times and keeping the company on track to exit 2026 below 2 times.
• Guidance was maintained amid macro uncertainty: Management cited tariffs, geopolitical tensions and the situation in Iran while retaining full-year sales, EBITDA, EPS and free-cash-flow guidance. Third-quarter EBITDA is expected at $295 million to $305 million, with sales up low single digits.
• AkzoNobel merger remains on track: Shareholders are scheduled to vote on August 5, with closing expected in late 2026 or early 2027. Axalta continues to forecast approximately $600 million in annual run-rate cost synergies, although the quarter included $31 million of merger-related costs that reduced GAAP net income.

Axalta Coating Systems Stock Up 3.0%

Shares of AXTA traded up $1.05 during mid-day trading on Thursday, reaching $35.88. The company’s stock had a trading volume of 857,814 shares, compared to its average volume of 2,718,576. The company has a market cap of $7.68 billion, a price-to-earnings ratio of 22.17, a price-to-earnings-growth ratio of 1.72 and a beta of 1.24. Axalta Coating Systems has a 1 year low of $24.94 and a 1 year high of $36.62. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.99. The business has a fifty day moving average of $32.75 and a 200 day moving average of $31.26.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Wall Street Zen raised shares of Axalta Coating Systems to a “buy” rating in a research report on Saturday, July 25th. The Goldman Sachs Group set a $36.00 target price on Axalta Coating Systems in a research note on Friday, May 1st. Citigroup started coverage on Axalta Coating Systems in a report on Thursday, June 4th. They issued a “buy” rating and a $44.00 price objective for the company. Robert W. Baird boosted their target price on shares of Axalta Coating Systems from $35.00 to $37.00 and gave the company a “neutral” rating in a research note on Wednesday. Finally, UBS Group reissued a “neutral” rating on shares of Axalta Coating Systems in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $36.00.

Institutional Trading of Axalta Coating Systems

Several institutional investors have recently made changes to their positions in the stock. Invesco Ltd. boosted its stake in shares of Axalta Coating Systems by 9.2% during the 4th quarter. Invesco Ltd. now owns 448,926 shares of the specialty chemicals company’s stock valued at $14,505,000 after buying an additional 37,925 shares during the period. Corient Private Wealth LLC acquired a new stake in Axalta Coating Systems during the fourth quarter valued at $1,331,000. Mercer Global Advisors Inc. ADV grew its stake in Axalta Coating Systems by 41.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 80,587 shares of the specialty chemicals company’s stock valued at $2,604,000 after purchasing an additional 23,697 shares in the last quarter. State of Tennessee Department of Treasury increased its position in Axalta Coating Systems by 15.6% in the 4th quarter. State of Tennessee Department of Treasury now owns 82,730 shares of the specialty chemicals company’s stock worth $2,778,000 after purchasing an additional 11,152 shares during the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in shares of Axalta Coating Systems during the 4th quarter worth about $394,000. 98.28% of the stock is currently owned by institutional investors and hedge funds.

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.