PHILADELPHIA, PA — Axalta Coating Systems Ltd. (NYSE: AXTA) announced robust financial performance for the first quarter of 2025, achieving record Adjusted EBITDA and improved earnings despite global economic challenges.
The company reported net sales of $1.26 billion, a 3% decline year-over-year due to foreign currency headwinds and volume decreases in Performance Coatings. However, net income surged 154% to $99 million, driven by reduced expenses related to last year’s Transformation Initiative. Adjusted EBITDA reached $270 million, marking a 4% increase, with margins expanding 140 basis points to 21.4%. Adjusted diluted earnings per share grew 16% to $0.59, also a first-quarter record.
“We achieved a record first quarter Adjusted EBITDA, expanded Adjusted Diluted EPS by 16%, and continued accelerating our performance in challenging global economic conditions,” said Chris Villavarayan, CEO and President of Axalta. “Our One Axalta culture is driving sustained operating improvement and positioning the company for long-term success.”
Segment Performance
Performance Coatings
Net sales for Performance Coatings totaled $822 million, a 3% drop attributed to volume pressures and currency effects, partially offset by contributions from the CoverFlexx acquisition. Adjusted EBITDA improved slightly to $197 million, with segment margins up to 24.1% from 23.1% the prior year.
Mobility Coatings
Mobility Coatings net sales reached $440 million, decreasing 1% due to foreign currency impacts and lower Commercial Vehicle volumes. Adjusted EBITDA for this segment climbed to $73 million from $63 million, with margins increasing to 16.5% from 14.2%, driven by positive pricing and cost efficiencies.
Strategic Priorities
Axalta continues to prioritize operational excellence under its “A Plan,” emphasizing customer solutions and service innovation. The company maintained healthy liquidity, with cash and equivalents sufficient to support ongoing initiatives, including technological advancements which recently earned it two Edison Awards™ and a BIG Innovation Award.
Despite challenges in the global economic landscape, Axalta’s performance reflects its strong operational focus and strategic execution, positioning the company for continued growth and value creation.
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