PHILADELPHIA, PA — Axalta Coating Systems Ltd. (NYSE: AXTA) has announced robust financial results for the second quarter ending June 30, 2024, showcasing significant growth across key metrics.
Second Quarter 2024 Highlights:
- Net sales increased by 4.4% year-over-year to a record $1.35 billion.
- Net income rose by $52 million to reach $113 million.
- Adjusted EBITDA surged by $64 million to $291 million, with margins improving by 400 basis points to 21.5%.
- Diluted EPS nearly doubled, jumping 89% to $0.51, while adjusted diluted EPS increased by 63% to $0.57.
- The net leverage ratio dropped to 2.6x.
- The company repurchased $50 million worth of common shares.
- Axalta raised its full-year 2024 earnings and free cash flow outlook.
Financial Performance:
Net sales for the second quarter reached $1.35 billion, marking a 4.4% increase. The growth was driven by positive contributions from all four end markets. Net income for the quarter climbed to $113 million, a $52 million rise from the previous year.
Adjusted EBITDA set a new quarterly record at $291 million, compared to $227 million in the same period last year. This resulted in an adjusted EBITDA margin of 21.5%, up from 17.5%.
Cash Flow and Liquidity:
Operating activities provided $114 million in cash during the quarter, down from $131 million last year. The company ended the quarter with $840 million in cash and equivalents, with total liquidity exceeding $1.4 billion. The improvement in cash flow includes a $185 million draw on Axalta’s revolving credit facility to finance the acquisition of CoverFlexx.
Segment Performance:
Performance Coatings:
- Net sales: $887 million, up 4%
- Refinish net sales: $546 million, a 5% increase
- Industrial net sales: $341 million, a 2% rise
- Adjusted EBITDA: $223 million, up from $181 million
- Adjusted EBITDA margin: 25.0%, compared to 21.2%
Mobility Coatings:
- Net sales: $464 million, a 6% increase
- Light Vehicle net sales: $354 million, a 7% increase
- Commercial Vehicle net sales: $110 million, a 3% rise
- Adjusted EBITDA: $68 million, up from $46 million
- Adjusted EBITDA margin: 14.8%, compared to 10.4%
Chris Villavarayan, CEO and President of Axalta, praised the company’s performance: “I am proud of our global team’s dedication and effort in achieving the highest quarterly net sales and Adjusted EBITDA in the company’s history. As One Axalta, we remain committed to driving accelerated performance and unlocking the robust earnings potential of our business.”
With strong second-quarter results and improved visibility into the year’s second half, Axalta has raised its full-year 2024 adjusted EBITDA, adjusted diluted EPS, and free cash flow guidance.
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