Axalta Coating Systems Reports Strong Third-Quarter 2024 Financial Performance

Axalta Coating Systems

PHILADELPHIA, PAAxalta Coating Systems Ltd. (NYSE: AXTA) has announced robust financial results for the third quarter of 2024, showcasing record net sales and significant income growth amidst challenging economic conditions. The company achieved a third-quarter net sales record of $1.32 billion, marking a 0.8% increase from the previous year. This growth was driven by contributions from the recent CoverFlexx acquisition and increased sales volumes, which offset some raw material cost impacts.

Net income for the quarter rose by an impressive 40% year over year, reaching $102 million with a net income margin of 7.7%. Adjusted EBITDA also hit a record $291 million, reflecting a 12% increase, while the margin improved by 220 basis points to 22.1%. Earnings per share saw a substantial rise, with diluted EPS up by 39% to $0.46 and Adjusted Diluted EPS up by 31% to $0.59.

Axalta also reported a strategic move to strengthen shareholder value by repurchasing $50 million worth of common shares during the quarter. Despite a slight drop in operating cash flow to $194 million, largely due to higher working capital, the company’s cash reserves stood at $567 million, with total liquidity surpassing $1.2 billion. The net debt-to-Adjusted EBITDA ratio improved to 2.7x from 3.2x the previous year.

Segment-wise, Performance Coatings reported net sales of $877 million, a 2% increase from the prior year, supported by gains in the Refinish segment, which grew by 5%. This was attributed to the CoverFlexx acquisition and new body shop partnerships. However, Industrial sales faced a slight decline due to lower volumes. The segment’s Adjusted EBITDA rose to $221 million, reflecting improved margins from cost efficiencies.

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Mobility Coatings experienced a 2% decline in net sales, totaling $443 million, impacted by reduced volumes in the Commercial Vehicle segment. Nonetheless, the segment achieved a higher Adjusted EBITDA of $70 million, driven by cost reductions and new business wins.

CEO Chris Villavarayan expressed pride in the company’s achievements, stating, “Our results in the third quarter were exceptional. Despite macroeconomic headwinds, we are successfully executing our 2026 A Plan and outperforming industry benchmarks.”

Axalta’s strong performance underscores its strategic focus on operational efficiencies and market expansion, reinforcing its position in the coatings industry.

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