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Axalta Coating Systems (NYSE:AXTA) Q3 2025 Earnings Call October 28, 2025 08:00 AM ET Speaker3Ladies and gentlemen, thank you for standing by and welcome to Axalta Coating Systems Q3 2025 earnings call. All participants will be in a listen-only mode. A question and answer session will follow the presentation by management, and we request that you please limit yourself to only one question. Today's call is being recorded, and a replay will be available through November 4th. Those listening after today's call ...

Axalta Coating Systems (AXTA) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.69%. A quarter ago, it was expected that this high-performance coating system maker would post earnings of $0.61 per share when it actually produced earnings of $0.64, delivering a surprise of +4.92%.Over ...

October 28, 2025 Axalta Coating Systems Q3 2025 Financial Results Sensitivity: Business Internal 1 Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited to, our outlook and/or guidance, which includes net sales growth, net sales, Adjusted EBITDA, Adjusted Diluted EP ...

Financial Performance - Net sales for Q3 2025 were $1.3 billion, a decrease of 2% year over year[4] - Net income increased by $8 million year over year to $110 million, resulting in a net income margin of 8.5%, an increase of 80 basis points[5] - Adjusted EBITDA reached a record of $294 million, up $3 million year over year, with an Adjusted EBITDA margin of 22.8%, an increase of 70 basis points[5] - Diluted EPS increased by 11% to $0.51, while adjusted diluted EPS improved by 6% to $0.67[5] - Mobility Coatings net sales were $460 million, a record for Q3, increasing 4% from the prior year[10] - Performance Coatings net sales totaled $828 million, down from $877 million in the prior-year period[7] - Net sales for the three months ended September 30, 2025, were $1,288 million, a decrease of 2.4% from $1,320 million in the same period of 2024[26] - Net income attributable to common shareholders increased to $110 million for the three months ended September 30, 2025, compared to $101 million in the prior year, representing an increase of 8.9%[26] - Basic net income per share rose to $0.51 for the three months ended September 30, 2025, up from $0.46 in the same period of 2024, reflecting an increase of 10.9%[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $294 million, slightly up from $291 million in the same period of 2024, indicating a growth of 1.0%[31] - The net income margin for the three months ended September 30, 2025, was 8.5%, compared to 7.7% in the same period of 2024, reflecting an improvement of 1.0 percentage points[31] - Net income for Q3 2025 was $110 million, up from $102 million in Q3 2024, representing an increase of 7.8%[35] - Adjusted net income for Q3 2025 reached $144 million, compared to $139 million in Q3 2024, reflecting a growth of 3.6%[35] - Adjusted diluted net income per share increased to $0.67 in Q3 2025 from $0.63 in Q3 2024, a rise of 6.3%[35] Cash Flow and Share Repurchases - Free cash flow was $89 million, compared to $164 million a year ago, reflecting lower cash provided by operating activities[6] - The company executed $100 million in share repurchases during the quarter[9] - The company plans to deploy up to $250 million towards share repurchases in Q4 2025[12] - Free cash flow for Q3 2025 was $89 million, compared to $164 million in Q3 2024, indicating a decrease of 45.4%[41] - The company reported cash provided by operating activities of $137 million for Q3 2025, down from $194 million in Q3 2024, a decline of 29.4%[41] Assets and Liabilities - Total assets increased to $7,760 million as of September 30, 2025, compared to $7,249 million at December 31, 2024, marking a growth of 7.0%[28] - Total liabilities increased to $5,435 million as of September 30, 2025, from $5,293 million at December 31, 2024, an increase of 2.7%[28] - The company reported a decrease in cash at the end of the period to $610 million as of September 30, 2025, compared to $571 million at the end of the same period in 2024[30] Operational Performance - Income from operations for Q3 2025 was $204 million, up from $193 million in Q3 2024, marking an increase of 5.7%[43] - Adjusted EBIT for Q3 2025 was $231 million, slightly down from $236 million in Q3 2024, a decrease of 2.1%[43] - The company incurred $5 million in acquisition-related costs during Q3 2025, compared to $4 million in Q3 2024[43] Research and Development - Research and development expenses remained stable at $18 million for the three months ended September 30, 2025, compared to $19 million in the same period of 2024[26]

PHILADELPHIA, Oct. 28, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems Ltd. (NYSE:AXTA) (“Axalta”), a leading global coatings company, announced its financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Highlights: Third quarter net sales of approximately $1.3 billionNet income of $110 million with a net income margin of 8.5%, an increase of 80 basis points year over yearRecord quarter for Adjusted EBITDA of $294 millionAdjusted EBITDA margin expanded 70 basis points year over ...

Core Viewpoint - Axalta Coating Systems Ltd. is set to release its third quarter 2025 financial results on October 28, 2025, at 6 a.m. ET, with supporting materials available on its Investor Relations site [1] Financial Results Announcement - The financial performance review will be conducted by CEO Chris Villavarayan and CFO Carl Anderson during a conference call at 8 a.m. ET on the same day [2] - A live webcast of the conference call will be accessible, and a replay will be available shortly after the call until October 28, 2026 [2] Conference Call Details - The dial-in number for the conference call is 1-800-245-3047, with the conference ID being AXALTA [3] - For those unable to attend, a replay will be available until November 4, 2025, with the replay dial-in number being 1-844-512-2921 and the passcode 11160096 [3] Company Overview - Axalta is a global leader in the coatings industry, offering innovative and sustainable coating solutions across various applications, including vehicles and industrial uses [4] - The company has over 150 years of experience and serves more than 100,000 customers in over 140 countries [4]

Core Insights - Axalta Coating Systems Ltd. is launching two innovative products, Alesta® e-PRO FG Black and Alesta® e-PRO Dielectric Gray, at The Battery Show North America, aimed at enhancing safety and performance in electric vehicle (EV) battery applications [1][8] Product Features - Alesta® e-PRO FG Black is designed for extreme heat protection, capable of withstanding temperatures up to 1200°C, and helps delay fire propagation in EV battery systems [5][6] - Alesta® e-PRO Dielectric Gray provides superior electrical insulation in high-voltage environments, improving reliability in EV battery packs and stationary energy storage systems [5][6] Testing and Compliance - Both products have undergone rigorous testing, with Alesta® e-PRO Dielectric Gray meeting UL 94 V0 and IEC 60243-1 standards, while Alesta® e-PRO FG Black has been tested for direct flame exposure and thermal runaway scenarios [6][8] - Alesta® e-PRO FG Black produces no smoke and does not ignite during thermal events at 1200°C, ensuring safety under extreme conditions [6][7] Market Context - The global EV market is projected to exceed 20 million units in 2025, representing over a quarter of cars sold worldwide, indicating a growing demand for advanced battery safety solutions [8] - Axalta's commitment to innovation is reflected in its partnerships with leading OEMs and Tier 1 suppliers who are conducting additional testing for these new coatings [8] Recognition - Axalta has been recognized in TIME magazine's list of America's Best Midsize Companies of 2025, highlighting its performance in employee satisfaction, revenue growth, and sustainability transparency [9]

Core Viewpoint - Artisan Partners' "Artisan Select Equity Fund" underperformed the S&P 500 Index in Q2 2025, with returns of 6.77%, 6.76%, and 6.80% for its Investor, Advisor, and Institutional Classes respectively, compared to the S&P 500's 10.94% return [1] Group 1: Axalta Coating Systems Ltd. Overview - Axalta Coating Systems Ltd. (NYSE:AXTA) is a manufacturer and distributor of coatings systems, with a market capitalization of $6.084 billion [2] - As of September 26, 2025, Axalta's stock closed at $28.09 per share, experiencing a one-month return of -10.14% and a 52-week decline of 22.38% [2] Group 2: Financial Performance and Market Conditions - In Q2 2025, Axalta's net sales totaled $1.3 billion, reflecting a year-over-year decrease of approximately 3% [4] - The company reported a 10% decline in shares, with Q1 earnings deemed satisfactory despite a 2% overall sales decline [3] - The performance coatings division faced challenges due to market weakness, with increased insurance premiums and repair costs impacting consumer behavior [3] - Industrial sales were weak due to sluggish industrial activity, and the mobility business saw a slight revenue decline linked to OEM vehicle production drops [3] Group 3: Investment Perspective - Despite the weak top-line performance, Axalta managed to grow profits through variable cost reductions and effective expense management [3] - Axalta trades at a modest earnings multiple of 11X, compared to the S&P 500 Index's multiple of over 20X, indicating potential undervaluation [3] - The company is not among the top 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding its stock at the end of Q2, unchanged from the previous quarter [4]

Core Insights - Axalta Coating Systems has honored Dr. Delson Trindade with the title of Axalta Fellow, the highest recognition for scientists and engineers within the company, due to his significant contributions in scientific accomplishments, technical leadership, and commercial impact throughout his career [1][3]. Company Achievements - Dr. Trindade has nearly 40 years of experience in coating technologies, showcasing exceptional expertise and leadership that have been vital across all of Axalta's business sectors [3]. - He has played a key role in expanding Axalta's technical capabilities and enhancing customer engagement through various initiatives, including co-inventing the multi-layer "3-Wet" coating processes for the automotive industry and advancing silanated clearcoat platforms [4]. Technical Contributions - Dr. Trindade has contributed to the development of a formulation toolbox for the electrification sector and has been involved in over 100 patent filings, highlighting his innovative impact on the industry [4]. - His work emphasizes Axalta's commitment to innovation, sustainability, and market leadership, as he is an integral member of the Fellows Forum, which promotes scientific excellence within the company [5]. Professional Background - Dr. Trindade's career with Axalta began in Brazil, and he has worked in various countries including Germany, Argentina, and the U.S., currently based in Philadelphia at the Global Headquarters and Innovation Center [6]. - He holds a doctorate in Physical Chemistry from the University of São Paulo and an MBA in Technology & Innovation from Harvard University and the University of São Paulo [6]. Company Overview - Axalta is a global leader in the coatings industry, providing innovative and sustainable coating solutions across various applications, including light vehicles, commercial vehicles, and industrial uses [7]. - With over 150 years of experience, Axalta serves more than 100,000 customers in over 140 countries, focusing on preventing corrosion, increasing productivity, and enhancing durability through its products [7].