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 ...

Core Insights - Axalta Coating Systems Ltd. reported strong financial results for Q3 2025, achieving record Adjusted EBITDA and Adjusted Diluted EPS, reflecting operational excellence despite macroeconomic challenges [3][4]. Financial Performance - Net sales for Q3 2025 decreased by 2% year-over-year to $1.3 billion, with favorable foreign currency translation and organic net sales in Mobility partially offsetting declines in Performance Coatings [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 compared to the previous year [5]. - Adjusted EBITDA reached a record $294 million, up $3 million year-over-year, with an Adjusted EBITDA margin expanding by 70 basis points to 22.8% [5][9]. - Diluted EPS increased by 11% to $0.51, while adjusted diluted EPS improved by 6% to $0.67, primarily due to lower interest expense and a reduction in shares outstanding [5][9]. Segment Results - Performance Coatings reported net sales of $828 million, down from $877 million in the prior-year period, with a decline in Refinish net sales by 7% year-over-year [7]. - Mobility Coatings achieved record net sales of $460 million, a 4% increase from the prior year, driven by positive price-mix and favorable foreign currency translation [9][10]. - Adjusted EBITDA for Mobility Coatings was $83 million, up 20% compared to the prior-year period, with an Adjusted EBITDA margin improvement of 230 basis points to 18.0% [11]. Cash Flow and Capital Allocation - Cash provided by operating activities was $137 million in Q3 2025, down from $194 million in the prior-year period, primarily due to higher working capital [6]. - Free cash flow decreased to $89 million compared to $164 million a year ago, reflecting lower cash from operating activities and higher capital expenditures [6]. - The company executed $100 million in share repurchases during the quarter and plans to accelerate its capital allocation strategy with up to $250 million for share repurchases in Q4 2025 [12]. Outlook - For Q4 2025, Axalta projects net sales growth in the mid-single digits and expects Adjusted EBITDA of approximately $284 million [13]. - The full-year 2025 outlook includes net sales exceeding $5.1 billion and Adjusted EBITDA of approximately $1.14 billion [13].

Core Insights - BASF Coatings has expanded its collaboration with Xiaomi to co-develop 100 car paint colors over the next three years, focusing on innovation and personalization in automotive design [1][8] - The collaboration aims to enhance Xiaomi's smart mobility through advanced coating technologies, including dual-layer clearcoats for vivid finishes [2][8] Product Development - The new colors include Velocity Red, Dawn Pink (Matte), Nightfall Rose, Buttercup Yellow, and Amethyst Purple, utilizing advanced dual-layer clearcoat technology for high saturation and various finishes [2][8] - BASF's full-layer coatings are being provided for Xiaomi's SU7 and YU7 models, incorporating e-coat, primer, basecoat, and clearcoat solutions [3][8] Market Performance - BASF's shares have increased by 6% over the past year, contrasting with a 29.7% decline in the industry [4]

Q3 2025 Financial Performance - Net sales reached $1.05 billion, a 2.5% increase compared to the previous year[10] - Operating margin improved by 120 bps to 13.5%[10] - Diluted EPS increased by 21.2% to $4.98[10] Segment Performance - Infrastructure sales increased by 6.6% to $808.3 million, with operating income up by 15.9%[27, 28] - Utility sales grew by 12.3% to $391.9 million, while Telecommunications saw a significant increase of 37.0% to $88.1 million[31] - Agriculture sales decreased by 9.0% to $241.3 million, with operating income down by 19.7%[34, 35] Capital Allocation and Cash Flow - Q3 2025 operating cash flows were $112.5 million[43] - The company invested $42 million in capital expenditures[41] - Share repurchases amounted to $26 million at an average price of $374.33 per share[41] Outlook - Full-year 2025 net sales are projected to be approximately $4.1 billion[46] - Adjusted diluted EPS outlook raised to $18.70 to $19.50[46] - The adjusted effective tax rate is expected to be around 25.0%[46]

Summary of BASF Coatings Business Transaction Conference Call Company and Industry - **Company**: BASF (OTCPK:BASF.Y) - **Industry**: Coatings, specifically focusing on automotive and industrial applications Core Points and Arguments 1. **Transaction Announcement**: BASF has reached a binding agreement with Carlisle to divest its Coatings business, aiming to create a leading standalone coatings company [4][6] 2. **Financial Performance**: In 2024, BASF Coatings generated sales of €3.8 billion, with significant contributions from automotive OEM coatings (€2 billion) and automotive refinish coatings (€800 million) [6] 3. **Transaction Value**: The enterprise value of the transaction is €7.7 billion, with BASF expected to receive approximately €5.8 billion in pretax cash proceeds upon closing, retaining a 40% equity stake in the new entity [6][8] 4. **Market Position**: The Coatings business is well-positioned in large markets with high customer loyalty, particularly in automotive and aerospace sectors [5] 5. **Future Growth Potential**: BASF believes in the future value creation of the Coatings business and sees the partnership with Carlisle as a means to unlock additional growth opportunities [7][40] 6. **Tax Implications**: The maximum tax leakage from the transaction is estimated to be in the mid-triple-digit million range [18][50] 7. **Governance Structure**: The joint venture will have a board structure that includes representatives from both BASF and Carlyle, with Carlyle as the controlling partner [55] 8. **Use of Proceeds**: The cash proceeds from the transaction will be used to strengthen BASF's balance sheet and may include share buybacks starting earlier than 2027 [41][42] Additional Important Information 1. **Valuation Metrics**: The implied 2024 EV/EBITDA multiple for the Coatings division is approximately 13x, indicating a premium valuation compared to its previous grouping within BASF [8] 2. **Equity Stake Clarification**: The 40% equity stake retained by BASF is viewed as a commitment to the business's future and potential for value creation, with plans for a joint exit strategy in the future [12][46] 3. **Goodwill and Book Value**: The book value of the Coatings business is approximately €3.3 billion, with an attractive book gain expected from the transaction [70] 4. **Market Strategy**: BASF's relationship with the automotive industry remains strong, and the divestiture is not expected to negatively impact its positioning in the market [67] 5. **Future CapEx**: Future capital expenditures for the joint venture will be determined by Carlyle, as they will strategically steer the new entity [26] This summary encapsulates the key points discussed during the conference call regarding BASF's strategic move to divest its Coatings business while retaining a minority stake, highlighting the financial implications, market positioning, and future growth potential.

BASF and Carlyle reach binding transaction agreement on coatings business to create a leading standalone company Conference Call, October 10, 2025 Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are depende ...

Core Insights - The Sherwin-Williams Company (NYSE:SHW) is recognized as one of the 12 Most Promising Dividend Stocks by Wall Street Analysts [1] - The company has a long-standing legacy since its establishment in 1866, evolving from a modest paint business to a significant player in the coatings industry with over 5,400 stores and 140 manufacturing and distribution centers [2] - The appeal of SHW as an income stock is attributed to its consistent and sustainable dividends, maintaining a conservative payout ratio of approximately 26.6% supported by strong free cash flow [3] Dividend Performance - Sherwin-Williams has rewarded shareholders with steady dividend increases for 46 consecutive years, and if this trend continues for another four years, it will achieve the status of Dividend Kings [4] - The company currently pays a quarterly dividend of $0.79 per share, resulting in a yield of about 0.94% as of October 8 [4]

Core Insights - The article discusses the increasing appeal of dividend-paying stocks amid rising inflation, prolonged higher interest rates, and market volatility, particularly for risk-averse investors [2][4] Dividend Stock Trends - Global assets under management in dividend-focused ETFs reached nearly $600 billion as of December 31, 2024, more than double the amount recorded in December 2020, indicating a significant rise in dividend investing popularity [3] Methodology for Stock Selection - The article outlines a methodology that involves scanning stocks with consistent dividend records and sustained shareholder payouts, further refining the selection to those with a projected upside potential of over 10% based on analyst price targets as of October 8 [6] Company Profiles Verizon Communications Inc. (NYSE:VZ) - Verizon has a modest revenue growth expectation of about 3% for this year and next, despite adding 278,000 new fixed wireless access subscribers in Q2 2025, bringing the total to over 5.1 million [9][10] - The company generated nearly $9 billion in free cash flow in the first half of 2025, with projections for FY25 free cash flow between $19.5 billion and $20.5 billion, supporting its dividend payments of nearly $12 billion annually and a dividend yield of 6.68% [10][11] PepsiCo, Inc. (NASDAQ:PEP) - PepsiCo has a diversified portfolio contributing about 55% of its revenue, with international operations accounting for roughly 40% of total sales and operating profits in 2024 [13] - The company has raised its dividend for 53 consecutive years, currently offering a quarterly payout of $1.4225 per share, yielding about 4.10% as of October 8 [15] The Sherwin-Williams Company (NYSE:SHW) - Sherwin-Williams has maintained a conservative payout ratio of about 26.6% over the past decade, supported by strong free cash flow [17] - The company has rewarded shareholders with steady dividend increases for 46 consecutive years, paying a quarterly dividend of $0.79 per share, translating to a yield of roughly 0.94% as of October 8 [18]

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]

Carlyle is now the frontrunner to buy BASF’s coatings business after KPS Capital exited the bid https://t.co/W2xQoQaQBh ...