Axalta Coating Systems LLC | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.346 B

Revenue: As of FY2026 Q2, the actual value is USD 1.346 B, beating the estimate of USD 1.316 B.

EPS: As of FY2026 Q2, the actual value is USD 0.41, missing the estimate of USD 0.6142.

EBIT: As of FY2026 Q2, the actual value is USD 171 M.

Second Quarter 2026 Consolidated Financial Results

Axalta Coating Systems Ltd. reported net sales of $1.35 billion for the second quarter of 2026, an increase of 3% year-over-year. Refinish net sales increased by 6% year-over-year. The company achieved a net income of $89 million, representing a net income margin of 6.6%. This was a decrease of $21 million year-over-year, primarily due to an incremental $31 million in merger and acquisition related costs. Adjusted net income, excluding these expenses, increased by 10% year-over-year to $153 million, driven by reduced operating expenses and lower interest expense.

Operating Profitability

Adjusted EBITDA reached a record $305 million, marking a 5% increase year-over-year, with an Adjusted EBITDA margin of 22.7%, up 30 basis points from the prior year period. Income from operations for the quarter was $167 million, down from $193 million in the prior year. Other operating charges were $42 million, compared to $12 million in the second quarter of 2025. Selling, general and administrative expenses were $213 million, up from $208 million in the prior year. Research and development expenses were $18 million, down from $20 million in the prior year. Amortization of acquired intangibles was $25 million, compared to $24 million in the prior year. Interest expense, net, was $37 million, a decrease from $45 million in the prior year period. Provision for income taxes was $45 million, up from $33 million in the prior year.

Cash Flow

Cash provided by operating activities was $152 million, an increase of 7% year-over-year, driven by improved working capital and lower interest payments. Free cash flow was $107 million, an increase of $6 million year-over-year, even with the headwind from merger-related costs. For the six months ended June 30, 2026, cash provided by operating activities was $220 million, compared to $168 million in the same period of 2025. Free cash flow for the six-month period was $128 million, up from $87 million in the prior year period. Purchases of property, plant and equipment for the six months ended June 30, 2026, totaled - $98 million, compared to - $88 million in the same period of 2025.

Balance Sheet Metrics

Axalta Coating Systems Ltd. achieved its lowest total net leverage in history at 2.2x. As of June 30, 2026, cash and cash equivalents were $633 million. Total current assets were $2,990 million, and total assets were $7,699 million. Total current liabilities were $1,950 million, and long-term borrowings stood at $2,549 million.

Segment Results

Performance Coatings

Performance Coatings reported net sales of $872 million, an increase of 4% year-over-year, driven by favorable currency, contributions from acquisitions, and positive price mix. Refinish net sales increased by 6% year-over-year to $545 million. Industrial net sales increased by 2% year-over-year to $327 million. Adjusted EBITDA for Performance Coatings increased by 10% year-over-year to $218 million, with an Adjusted EBITDA margin of 25.1%, an improvement of 130 basis points.

Mobility Coatings

Mobility Coatings achieved record quarterly net sales of $474 million, up 1% year-over-year. Commercial Vehicle net sales increased by 7% year-over-year. Adjusted EBITDA for Mobility Coatings was $87 million, with an Adjusted EBITDA margin of 18.4%.

Outlook

For the third quarter of 2026, Axalta Coating Systems Ltd. anticipates low single-digit percentage (LSD%) net sales growth and Adjusted EBITDA between $295 million and $305 million. The full-year 2026 outlook projects LSD% net sales growth, Adjusted EBITDA of $1,140 million to $1,170 million, and free cash flow greater than $500 million. Additionally, the company expects full-year 2026 capital expenditures to be $180 million to $200 million.