Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $270 million, representing a 4% increase year over year, marking a record for the first quarter [8][20] - Adjusted diluted EPS grew by 16% year over year to $0.59, marking the seventh consecutive quarter of growth [10][22] - Net sales decreased by approximately 3% year over year to $1.26 billion, primarily due to unfavorable foreign currency impact and lower volumes [20][22] Business Line Data and Key Metrics Changes - Performance Coatings net sales declined 3% year over year to $822 million, driven by lower volumes and unfavorable foreign currency impacts [22] - Refinish net sales decreased 2% to $511 million, with contributions from CoverFlex partially offsetting declines [22] - Mobility Coatings net sales were $440 million, a decrease of 1% from the prior year, but grew 2% on a constant currency basis [24] Market Data and Key Metrics Changes - Three of the four end markets showed macro declines, but the company generated positive organic net sales in mobility end markets [12] - Light vehicle organic net sales increased by 2%, aligning with global auto production growth of 1% [13] - Commercial vehicle organic net sales grew by 2%, despite a 17% drop in Class eight heavy-duty production in North America [14] Company Strategy and Development Direction - The company is focused on driving A Plan initiatives, improving operations, and reinvesting in the business [9] - The strategy includes expanding into the economy segment and accelerating accessory growth, with a focus on adding new body shops [28][67] - The company aims to mitigate tariff impacts through various means, including sourcing raw materials locally and reformulating products [18][75] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains uncertain, with recent industry data showing softer trends than previously forecasted [26] - The company expects the Refinish industry to decline low single to mid single digits year over year, with insurance claims data continuing to decline [27] - Despite challenges, management remains confident in achieving four of five financial objectives a year ahead of schedule [34] Other Important Information - The company received two Edison Awards and a Big Innovation Award for its products, highlighting its commitment to innovation [10][11] - Capital expenditures nearly doubled compared to Q1 of 2024, aimed at enhancing productivity [9] Q&A Session Summary Question: Can you provide more detail on cost execution, share gains, and price discipline in the current economic environment? - Management emphasized that the A Plan continues to drive operational excellence and growth, with significant progress made despite market changes [38] Question: How does the team view the decline in collision claims and body shop activity in the Refinish business? - Management acknowledged the structural changes affecting the market but noted potential stabilization in the second half of the year [45][49] Question: What is the status of the margin expansion target for the Industrial segment? - Management indicated that they are on track to exceed the 400 basis points margin improvement target set previously [55] Question: Can you clarify the free cash flow guidance and the impact of restructuring expenses? - Management explained that the range for free cash flow was introduced due to higher restructuring cash outlays anticipated for the year [99] Question: How is the Refinish value segment performing relative to the broader market? - Management reported that the Refinish value segment is growing faster than the overall Refinish business, despite weaker consumer confidence [104]

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]

Company Overview - Axalta Coating Systems (AXTA) shares increased by 11.5% to close at $31.76, following a significant trading volume compared to typical sessions, despite a 16.1% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $0.54 per share, reflecting a year-over-year increase of 12.5%, while revenues are projected to be $1.28 billion, a decrease of 1.4% from the previous year [2] Earnings Estimates and Trends - The consensus EPS estimate for Axalta has been revised 0.8% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [3] - Empirical research suggests a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring AXTA's performance [2][3] Industry Context - Axalta is part of the Zacks Chemical - Specialty industry, which includes other companies like Minerals Technologies (MTX), whose shares rose by 9.1% to $58.45, despite a -20.2% return over the past month [3] - For Minerals Technologies, the consensus EPS estimate remains unchanged at $1.33, representing a decline of 10.7% from the previous year [4]

PHILADELPHIA, April 09, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems (NYSE: AXTA), a leading global coatings company, will release its first quarter 2025 financial results at 6 a.m. ET on Wednesday, May 7. The release and supporting materials will be posted to Axalta’s Investor Relations site. In addition, the company will host a conference call at 8 a.m. ET on May 7. Chris Villavarayan, Chief Executive Officer and President, and Carl Anderson, Senior Vice President and Chief Financial Officer, will revi ...

Group 1: Company Overview - Pitney Bowes (PBI) is a global technology company facilitating billions of transactions in commerce, with a Zacks Rank 1 (Strong Buy) and a current year earnings estimate increase of 8% over the last 60 days [1] - BJ's Restaurants (BJRI) operates a chain of high-end casual dining restaurants in the U.S., also holding a Zacks Rank 1, with a current year earnings estimate increase of 13.6% over the last 60 days [2] - Axalta Coating Systems (AXTA) is a global coatings company involved in manufacturing and distributing coatings systems, carrying a Zacks Rank 1 and a current year earnings estimate increase of 7.2% over the last 60 days [3] Group 2: Financial Metrics - Pitney Bowes has a PEG ratio of 0.44, which is lower than the industry average of 0.45, and possesses a Growth Score of A [2] - BJ's Restaurants has a PEG ratio of 1.35 compared to the industry average of 2.12, with a Growth Score of B [2] - Axalta Coating Systems has a PEG ratio of 0.76, slightly higher than the industry average of 0.63, and also has a Growth Score of B [3]

Core Insights - Axalta Coating Systems has won two 2025 Edison Awards for its innovative products, with Axalta Irus Scan™ receiving Silver and MyColor receiving Bronze in the Automotive Materials category [1][5] Group 1: Product Innovations - Axalta Irus Scan™ is the first handheld color measurement device for automotive coatings, featuring patented measurement capabilities such as colored sparkle detection, hue-shifting pigments detection, and gloss measurement, which enhances accuracy in color matching for collision repairs [3] - MyColor addresses the demand for complex, custom colors, significantly reducing the time for automotive OEM approvals from 26-104 weeks to just four weeks, while also improving inventory control and reducing waste [4] Group 2: Company Commitment to Innovation - The company emphasizes that innovation is central to its operations, continuously investing in technologies that solve customer challenges related to surface aesthetics, performance, and productivity [2] - Axalta has been recognized for seven consecutive years with Edison Awards, highlighting its commitment to market-leading innovations in new products and services [1][5] Group 3: Company Overview - Axalta is a global leader in the coatings industry, serving over 100,000 customers in more than 140 countries, with a focus on providing sustainable and innovative coating solutions across various applications [6]