Axalta Coating Systems (AXTA) Q2 2026 earnings summary

Executive summary

• Achieved record net sales of $1.35 billion in Q2 2026, up 3% year-over-year, with Adjusted EBITDA of $305 million and Adjusted Diluted EPS of $0.72, up 13% year-over-year.

• Free cash flow reached $107 million, up 6% year-over-year, and total net leverage dropped to 2.2x, the lowest in company history.

• Net income was $89 million for Q2 2026, down year-over-year due to $31 million in merger-related costs.

• The proposed all-stock merger with AkzoNobel is pending, with shareholder votes scheduled for August 2026 and expected closing in late 2026 or early 2027.

• On track to achieve key milestones in the 2026 A Plan, with $600 million in expected annual cost synergies from the merger.

Financial highlights

• Adjusted net income rose 10% year-over-year to $153 million, excluding $31 million in merger-related costs.

• Adjusted EBITDA margin reached 22.7%, up 30 basis points year-over-year, marking the tenth consecutive quarter above 20%.

• Operating cash flow improved to $152 million, and gross debt was reduced by $135 million in the first half of 2026.

• Interest expense decreased 16% year-over-year.

• Net income for the six months ended June 30, 2026 was $179 million, down from $208 million in the prior year period.

Outlook and guidance

• Q3 2026 net sales expected to grow low single digits year-over-year; Adjusted EBITDA guidance of $295–$305 million.

• Full-year 2026 Adjusted Diluted EPS guidance is $2.55–$2.70; free cash flow expected to exceed $500 million.

• Expects to exit the year with net leverage below 2x.

• Capital expenditures for FY 2026 projected at $180–$200 million.