Axalta ting Systems .(US:AXTA)2025-10-28 10:02Financial 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]