PHILADELPHIA, PA — Axalta Coating Systems Ltd. (NYSE: AXTA) delivered a strong second quarter, reporting record highs in adjusted earnings and profitability despite a modest decline in overall sales.
The company posted net sales of $1.3 billion for the quarter ended June 30, down 3% from the prior year. Weaker volumes in the Performance Coatings segment weighed on results, but contributions from the CoverFlexx acquisition and favorable currency effects provided partial offsets.
Net income for the quarter was $110 million, down slightly from $113 million a year earlier, yielding a net margin of 8.4%. The dip was attributed to restructuring costs aimed at improving efficiency. However, adjusted net income climbed to $139 million, bolstered by lower operating and interest expenses and improved cost management.
Axalta set new company records for adjusted EBITDA and adjusted diluted earnings per share. Adjusted EBITDA reached $292 million, up $1 million from the prior year, while the margin expanded 90 basis points to 22.4%. Adjusted diluted EPS rose 5% to $0.64, even as reported EPS dipped 2% to $0.50.
“We delivered another excellent quarter,” said CEO Chris Villavarayan. “Our performance reflects Axalta’s drive for operational excellence and our commitment to meet financial targets and create value.”
Cash from operating activities jumped 25% year over year to $142 million. Free cash flow improved to $101 million, supported by strong execution and disciplined capital investment. The company also returned $65 million to shareholders through share repurchases.
Segment Performance
Performance Coatings recorded sales of $836 million, down 6% from last year. Organic volume declines—particularly in Refinish coatings in North America—outweighed gains from acquisitions and currency. The segment generated $200 million in adjusted EBITDA with a margin of 23.8%, a solid result given the volume pressure.
Mobility Coatings saw sales increase 1% to $469 million, with strength in Light Vehicle coatings across most regions offsetting weakness in North American demand. Commercial Vehicle sales fell 4%, impacted by a slowdown in Class 8 truck production and currency headwinds. Still, the segment posted a sharp 35% year-over-year jump in adjusted EBITDA to $92 million, pushing its margin to 19.8%.
Axalta’s performance earned it the 2025 Automotive News PACE Pilot Innovation to Watch award, further solidifying its leadership in coatings innovation.
With margin gains, cost discipline, and strategic investments underpinning results, the company remains focused on executing its growth strategy despite industry headwinds.
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