PHILADELPHIA, PA — Axalta Coating Systems Ltd. (NYSE: AXTA) on February 10 reported fourth-quarter and full-year 2025 financial results, citing record annual adjusted earnings and cash flow despite lower sales volumes in some markets.
For the fourth quarter ended December 31, Axalta reported net sales of $1,262 million, down 4% from a year earlier, primarily due to lower volumes amid what the company described as a challenging economic environment.
Net income for the quarter was $60 million, or $0.28 per diluted share, compared with $137 million, or $0.63 per diluted share, in the prior-year period. The decline was driven by higher income tax expense, lower net sales and increased merger and acquisition-related costs, partially offset by lower selling, general and administrative expenses and reduced interest expense.
Adjusted EBITDA for the quarter was $272 million, with an adjusted EBITDA margin of 21.5%, up 50 basis points year over year . Cash provided by operating activities reached a fourth-quarter record of $344 million, while free cash flow totaled $290 million.
For the full year ended December 31, 2025, Axalta reported net sales of $5,117 million, a 3% decrease from 2024. Net income totaled $379 million, compared with $391 million in the prior year, with diluted earnings per share of $1.74.
Adjusted EBITDA for the year reached a record $1,128 million, with an adjusted EBITDA margin of 22%. Adjusted diluted earnings per share rose to $2.49, also a company record.
Performance Coatings reported fourth-quarter net sales of $791 million, down 6% year over year, while Mobility Coatings posted net sales of $471 million, up 1%. Mobility Coatings achieved adjusted EBITDA of $92 million for the quarter, with a margin of 19.4%.
Axalta ended 2025 with net debt to trailing twelve-month adjusted EBITDA of 2.3x and cash and cash equivalents of $657 million. During the year, the company repaid $230 million in gross debt and returned $165 million to shareholders through share repurchases.
In November 2025, Axalta announced a definitive agreement to combine with AkzoNobel in an all-stock merger of equals, a transaction expected to close in late 2026 or early 2027, subject to regulatory and shareholder approvals.
For 2026, Axalta projected full-year adjusted EBITDA of $1,140 million to $1,170 million and adjusted diluted earnings per share of $2.55 to $2.70.
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