PHILADELPHIA, PA — Axalta Coating Systems Ltd. (NYSE: AXTA) reported solid third-quarter 2025 results, delivering record profitability despite a modest decline in overall revenue.
Net sales for the quarter totaled approximately $1.3 billion, down 2% from the prior year, with growth in the company’s Mobility Coatings division partially offset by weaker demand in Performance Coatings, particularly in North America. Net income rose to $110 million, up $8 million year over year, translating to an 8.5% margin—an 80-basis-point improvement. Adjusted EBITDA reached a record $294 million, while Adjusted EBITDA margin expanded to 22.8%.
“We executed another strong quarter delivering record Adjusted EBITDA and Adjusted Diluted EPS,” said Chris Villavarayan, Axalta’s Chief Executive Officer and President. “Our results reflect our focus on operational excellence while the team has done an exceptional job navigating the challenging macroeconomic environment.”
Performance Coatings generated $828 million in sales, down from $877 million a year earlier, due to lower refinish demand in North America. Still, the segment’s Adjusted EBITDA margin improved to 25.5%. Mobility Coatings set a third-quarter record with $460 million in sales, up 4% year over year, fueled by higher pricing, favorable foreign exchange, and growth in Latin America and China.
Axalta’s operating cash flow for the quarter totaled $137 million, compared to $194 million in the same period last year, as higher inventory levels weighed on working capital. Free cash flow came in at $89 million. The company repurchased 3.3 million shares during the quarter for $100 million and plans to deploy up to $250 million toward additional buybacks in the fourth quarter.
For the remainder of 2025, Axalta expects net sales to exceed $5.1 billion, Adjusted EBITDA around $1.14 billion, and Adjusted Diluted EPS near $2.50. The company remains on track to deliver its twelfth consecutive quarter of year-over-year margin growth and says it is “well prepared for 2026.”
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