Core Viewpoint - Axalta Coating Systems is set to release its second quarter 2025 financial results on July 30, 2025, at 6 a.m. ET, with a conference call scheduled for 8 a.m. ET on the same day to discuss the financial performance [1][2]. Company Overview - Axalta is a global leader in the coatings industry, providing innovative and sustainable coatings solutions for various applications, including light vehicles, commercial vehicles, and industrial uses [4]. - The company has over 150 years of experience in the coatings industry and serves more than 100,000 customers in over 140 countries [4].

Core Viewpoint - The article discusses the investment potential of Axalta Coating Systems (NYSE: AXTA), highlighting its past performance and future earnings growth as key factors influencing its valuation multiples [1]. Group 1: Company Performance - Axalta Coating Systems has been a mediocre performer in recent years, but earnings growth has contributed to a reduction in valuation multiples over time [1]. Group 2: Investment Opportunities - The investing group "Value In Corporate Events" provides members with opportunities to capitalize on significant corporate events such as IPOs, mergers & acquisitions, and earnings reports, covering about 10 major events a month [1].

Core Insights - Axalta Coating Systems announced that Dr. Lei Qiao has been recognized as one of the 100 Leading Women in the North American Auto Industry by Automotive News, highlighting her significant impact in the automotive field [1][3] - Dr. Qiao leads the Mobility technology team at Axalta's Global Innovation Center in Philadelphia, overseeing technology growth initiatives in the Mobility business unit [2] - The recognition of Dr. Qiao is part of a broader initiative that included a rigorous nomination and judging process, showcasing the contributions of female leaders across various sectors in the automotive industry [3] Company Overview - Axalta is a global leader in the coatings industry, providing innovative and sustainable coatings solutions for various applications, including light vehicles, commercial vehicles, and industrial uses [4] - The company has over 150 years of experience and serves more than 100,000 customers in over 140 countries, focusing on enhancing durability and productivity through its products [4]

[PART I: Financial Information](index=3&type=section&id=PART%20I%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) Q1 2025 saw decreased net sales but significantly higher net income, asset growth, and lower operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Despite lower Q1 2025 net sales, net income more than doubled due to reduced costs and operating charges Q1 2025 vs Q1 2024 Statement of Operations (in millions, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $1,262 | $1,294 | | Cost of goods sold | $829 | $865 | | Other operating charges | $14 | $61 | | Income from operations | $176 | $121 | | Net income attributable to common shareholders | $99 | $41 | | Diluted net income per share | $0.45 | $0.18 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q1 2025 comprehensive income turned positive to $161 million, driven by favorable currency translation adjustments Q1 2025 vs Q1 2024 Comprehensive Income (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $99 | $39 | | Foreign currency translation adjustments | $62 | $(44) | | Comprehensive income (loss) attributable to common shareholders | $161 | $(3) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $7.41 billion as of March 31, 2025, with a corresponding increase in shareholders' equity Balance Sheet Overview (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $2,821 | $2,723 | | Total assets | $7,411 | $7,249 | | Total current liabilities | $1,330 | $1,354 | | Total liabilities | $5,289 | $5,293 | | Total shareholders' equity | $2,122 | $1,956 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow decreased due to working capital changes, while investing cash use increased Q1 2025 vs Q1 2024 Cash Flows (in millions) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $26 | $34 | | Cash used for investing activities | $(44) | $(19) | | Cash used for financing activities | $(8) | $(82) | | Decrease in cash | $(26) | $(67) | | Cash at end of period | $578 | $627 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a $9 million acquisition, transformation initiative costs, a lower tax rate, and segment sales data - In Q1 2025, the company completed a strategic acquisition in the Performance Coatings segment for aggregate consideration of **$9 million**[30](index=30&type=chunk) - The 2024 Transformation Initiative resulted in pre-tax charges of **$6 million for Q1 2025**, primarily for employee severance and exit costs[34](index=34&type=chunk) - The effective tax rate for Q1 2025 was **23.0%**, a decrease from 33.9% in Q1 2024, due to favorable tax benefit changes and prior-year initiative impacts[53](index=53&type=chunk) Net Sales by Segment (in millions) | Segment | Q1 2025 Net Sales | Q1 2024 Net Sales | | :--- | :--- | :--- | | Performance Coatings | $822 | $848 | | Mobility Coatings | $440 | $446 | | **Total** | **$1,262** | **$1,294** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 2.5% net sales decrease due to currency and volume, offset by improved profitability [Overview](index=24&type=section&id=Overview) Axalta is a global coatings manufacturer with two operating segments and a presence in over 140 countries - The company operates in two segments: **Performance Coatings** (refinish and industrial) and **Mobility Coatings** (light and commercial vehicle OEMs)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - Axalta has a global presence with **43 manufacturing facilities**, 4 technology centers, 45 customer training centers, and serves over 140 countries[109](index=109&type=chunk) [Business Highlights](index=25&type=section&id=Business%20Highlights) Q1 2025 net sales fell 2.5% due to currency headwinds and lower volume, despite acquisition contributions Net Sales by End-Market (in millions) | End-Market | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Refinish | $511 | $519 | (1.5)% | | Industrial | $311 | $329 | (5.6)% | | Light Vehicle | $340 | $342 | (0.8)% | | Commercial Vehicle | $100 | $104 | (3.2)% | | **Total** | **$1,262** | **$1,294** | **(2.5)%** | - The **2.5% decrease in net sales** was driven by a 2.7% headwind from foreign currency and a 1.5% volume decline, partially offset by a 1.1% acquisition contribution and 0.6% from price/mix[113](index=113&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Lower cost of sales, reduced operating charges, and decreased interest expense improved Q1 2025 profitability - Net sales decreased by **$32 million (-2.5%)** due to unfavorable currency effects (-2.7%) and lower volume (-1.5%), partially offset by acquisition (+1.1%) and price/mix improvements (+0.6%)[119](index=119&type=chunk) - Cost of sales as a percentage of net sales **decreased from 66.8% to 65.7%**, driven by lower variable input costs and favorable price/mix[120](index=120&type=chunk)[122](index=122&type=chunk) - Other operating charges **decreased by $47 million**, primarily due to a $44 million reduction in costs related to the 2024 Transformation Initiative[124](index=124&type=chunk)[126](index=126&type=chunk) - Interest expense, net, **decreased by $10 million** due to lower principal and decreased variable interest rates on term loans[128](index=128&type=chunk) [Segment Results](index=29&type=section&id=Segment%20Results) Performance Coatings' margin improved despite lower sales, while Mobility Coatings' Adjusted EBITDA grew 14.5% Performance Coatings Segment Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $822 | $848 | (3.1)% | | Adjusted EBITDA | $197 | $196 | 1.0% | | Adjusted EBITDA Margin | 24.1% | 23.1% | N/A | Mobility Coatings Segment Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $440 | $446 | (1.3)% | | Adjusted EBITDA | $73 | $63 | 14.5% | | Adjusted EBITDA Margin | 16.5% | 14.2% | N/A | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $778 million available and expects savings from its transformation initiative - As of March 31, 2025, availability under the Revolving Credit Facility was **$778 million**[140](index=140&type=chunk) - The 2024 Transformation Initiative is expected to result in total cash expenditures of **$105-115 million** and yield annualized net savings of approximately **$75 million** once fully executed[144](index=144&type=chunk) - The company believes cash flow from operations, cash on hand, and available borrowing capacity will be **adequate to meet liquidity needs** for the next twelve months[155](index=155&type=chunk) Cash Flow Summary (in millions) | Activity | Three Months Ended March 31, 2025 | | :--- | :--- | | Net Cash Provided by Operating Activities | $26 | | Net Cash Used for Investing Activities | $(44) | | Net Cash Used for Financing Activities | $(8) | [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported from the previous year-end Form 10-K disclosure - There have been **no material changes** in the market risks previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[164](index=164&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective as of March 31, 2025**[165](index=165&type=chunk) - **No changes occurred** in the Company's internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, these controls[166](index=166&type=chunk) [PART II: Other Information](index=35&type=section&id=PART%20II%20Other%20Information) [Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not involved in any material litigation outside the ordinary course of business - The company is not involved in any litigation other than that which has arisen in the ordinary course of business and **does not expect any pending lawsuits to have a material adverse effect**[167](index=167&type=chunk) [Risk Factors](index=36&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes in risk factors were reported from the previous year-end Form 10-K disclosure - There have been **no material changes** in our risk factors from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[170](index=170&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[171](index=171&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[172](index=172&type=chunk) [Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) No material other information was reported, and no new director or officer trading plans were adopted - During the three months ended March 31, 2025, **no director or officer** of the Company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[173](index=173&type=chunk) [Exhibits](index=36&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and required certifications

Axalta Coating Systems (AXTA) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Colleen Lubic - Vice President - IRChris Villavarayan - President, CEO & DirectorCarl Anderson - Senior VP & CFOChristopher Parkinson - Managing DirectorMichael Leithead - Director - Equity ResearchKevin McCarthy - PartnerVincent Andrews - Managing DirectorCaleb Boehnlein - Equity Research Senior AssociateLaurent Favre - Managing DirectorDavid Begleiter - DirectorMichael Sison - Managing Director Conference Cal ...

Axalta Coating Systems (AXTA) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to the Axalta Coating Systems Q1 twenty twenty five Earnings Call. All participants will be in a listen only mode. A question and answer session will follow the presentation by management. Today's call is being recorded and a replay will be available through May 14. Those listening after today's call should please note that information provided in the recording will ...

分组1 - Axalta Coating Systems reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and up from $0.48 per share a year ago, representing an earnings surprise of 9.26% [1] - The company posted revenues of $1.26 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.97%, and down from $1.29 billion year-over-year [2] - Over the last four quarters, Axalta has surpassed consensus EPS estimates four times and topped revenue estimates three times [2] 分组2 - The stock has declined approximately 2.8% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $1.36 billion, and for the current fiscal year, it is $2.48 on revenues of $5.34 billion [7] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 44% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Axalta reported a decline in net sales but significant improvements in net income and Adjusted EBITDA, with cash flow impacted by working capital changes [Consolidated Financial Results](index=1&type=section&id=First%20Quarter%202025%20Consolidated%20Financial%20Results) Q1 2025 net sales declined 3% to $1.26 billion, while net income surged 154% to $99 million and Adjusted EBITDA grew 4% to $270 million Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.26 billion | $1.29 billion | -3% | | Net Income | $99 million | $39 million | +154% | | Adjusted EBITDA | $270 million | $259 million | +4% | | Adjusted EBITDA Margin | 21.4% | 20.0% | +140 bps | | Diluted EPS | $0.45 | $0.18 | +150% | | Adjusted Diluted EPS | $0.59 | $0.51 | +16% | - The decline in **net sales** was attributed to **volume decreases**, primarily in Performance Coatings, and a **3% negative impact from foreign currency translation**. These factors were partially offset by contributions from the **CoverFlexx acquisition** and **favorable price-mix**[3](index=3&type=chunk) - The substantial increase in **net income** was largely due to the **absence of $55 million in expenses related to the 2024 Transformation Initiative**, which were recorded in the prior-year period[4](index=4&type=chunk) [Cash Flow](index=1&type=section&id=Cash%20Flow) Operating cash flow decreased to $26 million due to working capital increases, resulting in a free cash flow use of $14 million Q1 2025 Cash Flow Summary (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $26 million | $34 million | | Free Cash Flow | ($14 million) | $15 million | - The year-over-year decrease in **operating cash flow** was primarily driven by **increases in working capital**, which partially offset **higher earnings**[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Discussion%20of%20Segment%20Results) Performance Coatings saw sales decline but stable EBITDA, while Mobility Coatings experienced sales decrease but strong EBITDA growth driven by cost control [Performance Coatings](index=1&type=section&id=Performance%20Coatings) Performance Coatings net sales decreased 3% to $822 million, but Adjusted EBITDA remained stable at $197 million with margin improvement to 24.1% Performance Coatings Q1 2025 Results (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $822 million | $847 million (approx) | -3% | | - Refinish Net Sales | $511 million | $521 million (approx) | -2% | | - Industrial Net Sales | $311 million | $331 million (approx) | -6% | | Adjusted EBITDA | $197 million | $196 million | +0.5% | | Adjusted EBITDA Margin | 24.1% | 23.1% | +100 bps | - **Refinish net sales** declined **2% YoY**, which included a **3% currency headwind**. The **CoverFlexx acquisition** contributed **270 basis points** of growth[6](index=6&type=chunk) - **Industrial net sales** decreased **6% YoY** as **positive price-mix** was more than offset by **lower volumes** and **foreign currency headwinds**[6](index=6&type=chunk) [Mobility Coatings](index=1&type=section&id=Mobility%20Coatings) Mobility Coatings net sales decreased 1% to $440 million, while Adjusted EBITDA grew 16% to $73 million, expanding margin to 16.5% Mobility Coatings Q1 2025 Results (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $440 million | $444 million (approx) | -1% | | - Light Vehicle Net Sales | $340 million | $343 million (approx) | -1% | | - Commercial Vehicle Net Sales | $100 million | $103 million (approx) | -3% | | Adjusted EBITDA | $73 million | $63 million | +15.9% | | Adjusted EBITDA Margin | 16.5% | 14.2% | +230 bps | - The increase in **segment Adjusted EBITDA** and **margin** was driven by **positive price-mix**, **lower variable costs**, and **lower operating costs**[9](index=9&type=chunk) - **Commercial Vehicle net sales** decreased due to **lower volumes** from **Class 8 builds** in North America and Latin America[8](index=8&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) Management highlighted strong Q1 performance and provided a cautious Q2 outlook, with full-year projections for sales, EBITDA, EPS, and free cash flow [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Chris Villavarayan highlighted record Q1 Adjusted EBITDA and 16% Adjusted Diluted EPS growth, crediting 'One Axalta' culture and 'A Plan' strategy - CEO Chris Villavarayan stated: 'We achieved a **record first quarter Adjusted EBITDA**, expanded **Adjusted Diluted EPS by 16%** and continued accelerating our performance in challenging global economic conditions'[11](index=11&type=chunk) - The company's strategic focus is on its '**One Axalta**' culture to drive **sustained operating improvement** and deliver on its '**A Plan**' for **long-term success**[11](index=11&type=chunk) [Second Quarter and Full Year 2025 Outlook](index=2&type=section&id=Second%20Quarter%20and%20Full%20Year%202025%20Outlook) Axalta forecasts a low single-digit net sales decline for Q2 2025, with full-year net sales projected at $5.3-$5.375 billion and Adjusted EBITDA at $1.15-$1.175 billion 2025 Financial Outlook | Item | Q2 2025 Projection | FY 2025 Projection | | :--- | :--- | :--- | | Net Sales (YoY % growth) | Low single digit decline | $5,300 - $5,375 million | | Adjusted EBITDA | $280 - $290 million | $1,150 - $1,175 million | | Adjusted Diluted EPS | $0.60 - $0.63 | $2.50 - $2.60 | | Free Cash Flow | N/A | $475 - $500 million | [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) Detailed financial statements show Q1 2025 sales decline but improved net income, with balance sheet stability and comprehensive non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Q1 2025 net sales were $1,262 million, but net income significantly increased to $99 million from $39 million, resulting in $0.45 diluted EPS Q1 2025 Statement of Operations Highlights (in millions) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $1,262 | $1,294 | | Income from operations | $176 | $121 | | Net income | $99 | $39 | | Diluted net income per share | $0.45 | $0.18 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) As of March 31, 2025, total assets increased to $7,411 million, with total liabilities stable and shareholders' equity rising to $2,122 million Balance Sheet Highlights (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $2,821 | $2,723 | | Total assets | $7,411 | $7,249 | | Total current liabilities | $1,330 | $1,354 | | Total liabilities | $5,289 | $5,293 | | Total shareholders' equity | $2,122 | $1,956 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Q1 2025 operating cash flow was $26 million, down from $34 million, while cash used for investing increased to $44 million, leading to a $26 million cash decrease Q1 Cash Flow Highlights (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $26 | $34 | | Cash used for investing activities | ($44) | ($19) | | Cash used for financing activities | ($8) | ($82) | | Decrease in cash | ($26) | ($67) | | Cash at end of period | $578 | $627 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The report reconciles Q1 2025 Net Income of $99 million to Adjusted EBITDA of $270 million and Adjusted Net Income of $129 million, with Free Cash Flow at a use of $14 million - **Q1 2025 Adjusted EBITDA** was **$270 million**, reconciled from a **Net Income** of **$99 million**. Key adjustments included **depreciation & amortization** (**$70M**), **termination benefits** (**$11M**), and **stock-based compensation** (**$5M**)[30](index=30&type=chunk) - **Q1 2025 Adjusted Net Income** was **$129 million**, reconciled from **Net Income** of **$99 million**. Major adjustments included **amortization of acquired intangibles** (**$24M**), **termination benefits** (**$11M**), and **related income tax impacts** (**$10M**)[35](index=35&type=chunk) - **Q1 2025 Free Cash Flow** was a **use** of **$14 million**, derived from **$26 million** in **cash from operating activities**, less **$43 million** for **property, plant, and equipment purchases**, plus **$3 million** in **interest proceeds on swaps**[40](index=40&type=chunk)

Financial Performance - Net sales for the first quarter of 2025 decreased by 3% year over year to $1.26 billion, impacted by a 3% headwind from foreign currency translation [3] - Net income increased by 154% year over year to $99 million, resulting in a net income margin of 7.8% [4] - Adjusted EBITDA rose by 4% to $270 million compared to $259 million in the prior year period, with an adjusted EBITDA margin expanding by 140 basis points to 21.4% [4][10] Segment Results - Performance Coatings net sales were $822 million, down 3% year over year, primarily due to volume declines and foreign currency headwinds [6] - Mobility Coatings net sales were $440 million, a decrease of 1% from the prior year period, with Light Vehicle net sales declining by 1% year over year [8] Cash Flow and Expenditures - Cash provided by operating activities was $26 million, down from $34 million in the same period last year, primarily due to increases in working capital [5] - Free cash flow was a use of $14 million in the first quarter of 2025 compared to a use of $15 million in the prior year period [5] Outlook - For Q2 2025, net sales are projected to grow at a low single-digit percentage, with full-year net sales expected to be between $5.3 billion and $5.375 billion [12] - Adjusted EBITDA for Q2 2025 is projected to be between $280 million and $290 million, with full-year adjusted EBITDA expected to be between $1.15 billion and $1.175 billion [12] Awards and Recognition - The company won two Edison Awards™ and a BIG Innovation Award for advancements in automotive materials and electrical systems [10] Management Commentary - The CEO emphasized the record first quarter Adjusted EBITDA and the company's focus on delivering exceptional solutions and service for customers amid challenging global economic conditions [11]

Core Insights - Axalta Coating Systems' digital paint technology, Axalta NextJet™, has been recognized as a 2025 Automotive News PACE Pilot Innovation to Watch, highlighting its potential impact in the automotive and future mobility sectors [1][4] Company Overview - Axalta is a global leader in the coatings industry, providing innovative and sustainable coatings solutions across various applications, including light vehicles, commercial vehicles, and industrial uses [5] - The company has over 150 years of experience and serves more than 100,000 customers in over 140 countries [5] Technology Innovation - Axalta NextJet™ is a next-generation digital paint technology that allows for precise paint placement and design flexibility, eliminating the need for masking and reducing labor, energy, and waste [2] - The technology can contribute to a 30% reduction in CO2 emissions and offers significant cost savings for vehicle manufacturers [2] Industry Recognition - The Automotive News PACE Pilot program recognizes innovations that have the potential to transform the automotive industry, with Axalta's technology being selected after a thorough review process [3][4] - The recognition emphasizes the importance of early-stage innovations that can have a long-term impact on productivity and sustainability in the automotive sector [3]