Axalta Coating Systems (AXTA) Q4 2025 earnings summary

Executive summary

• Achieved record financial results in 2025, with Adjusted EBITDA of $1,128M and Adjusted Diluted EPS of $2.49, despite a 3% decline in net sales due to lower volumes in North America and macro headwinds.

• Delivered strong operational execution, margin performance, and over $300M in cumulative variable cost savings from 2023 to 2025.

• Announced a merger of equals with AkzoNobel, expected to create a global leader in performance coatings with $17B in combined net sales and significant synergy potential.

Financial highlights

• Q4 2025 net sales were $1,262M, down 4% year-over-year; Adjusted EBITDA was $272M (21.5% margin, up 50 bps YoY).

• Full-year 2025 net sales were $5,117M, down 3%; Adjusted EBITDA was $1,128M (22.0% margin, up 80 bps YoY); Adjusted Diluted EPS was $2.49, up 6%.

• Free cash flow reached a record $466M, up over $300M from 2022; Q4 free cash flow was $290M, up 64%.

• Q4 net income was $60M, down from $137M last year, impacted by higher tax expense and merger-related costs; full-year net income was $379M.

Outlook and guidance

• 2026 expected to start slow, with recovery building in the second half, driven by catalysts like interest rate reductions and higher vehicle prices.

• Full-year 2026 revenue expected to grow low single digits; Adjusted EBITDA guided to $1,140M–$1,170M; Adjusted Diluted EPS to $2.55–$2.70; free cash flow projected above $500M.

• Capital expenditures projected at $180M–$200M; net leverage expected below 2x by year-end.