Axalta Coating Systems (NYSE:AXTA) Releases Earnings Results, Misses Estimates By $0.07 EPS

Axalta Coating Systems (NYSE:AXTA) posted its earnings results on Thursday. The specialty chemicals company reported $0.63 earnings per share for the quarter, missing analysts’ consensus estimates of $0.70 by ($0.07), Zacks reports. The business had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.33 billion. Axalta Coating Systems had a net margin of 6.46% and a return on equity of 21.28%. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period last year, the business posted $0.67 earnings per share.

Here are the key takeaways from Axalta Coating Systems’ conference call:

• Full-year outlook was reduced after weaker-than-expected European Refinish volumes and increased macroeconomic uncertainty. Axalta now expects fourth-quarter sales to be roughly flat year over year, fourth-quarter adjusted EBITDA of $254 million–$264 million, and full-year adjusted EBITDA of approximately $1.10 billion–$1.11 billion.
• Mobility Coatings delivered a record quarter, with sales up 7% to $493 million and adjusted EBITDA up 13% to $94 million. Commercial Vehicle sales surged 24%, while Light Vehicle volumes remained roughly flat despite global production declining nearly 2%.
• Third-quarter adjusted EBITDA declined 4% to $282 million, pressured by lower European Refinish volumes, freight costs rising more than 15%, higher raw-material costs, and investments to convert major body-shop wins. Management also expects near-term margin pressure as those conversions accelerate.
• Cash generation and leverage improved significantly: year-to-date free cash flow rose 25% to $220 million, while gross debt fell below $3 billion and net leverage reached a record-low 2.1 times. Excluding merger-related costs, underlying free cash flow was up nearly 50%.
• The proposed AkzoNobel merger remains on track for an early-2027 closing, with regulatory clearance secured in two-thirds of required jurisdictions. Management continues to target approximately $600 million of annual run-rate cost synergies, with about 90% expected within three years after closing.

Axalta Coating Systems Trading Up 1.1%

AXTA traded up $0.38 during trading on Friday, reaching $33.99. The company had a trading volume of 1,717,376 shares, compared to its average volume of 1,985,055. The stock has a market cap of $7.27 billion, a P/E ratio of 21.93, a PEG ratio of 1.96 and a beta of 1.26. The business has a 50 day simple moving average of $34.00 and a 200-day simple moving average of $32.34. Axalta Coating Systems has a 52 week low of $24.94 and a 52 week high of $38.61. The company has a quick ratio of 1.12, a current ratio of 1.53 and a debt-to-equity ratio of 0.93.

Axalta Coating Systems News Roundup

Here are the key news stories impacting Axalta Coating Systems this week:

• Positive Sentiment: Barclays lowered its price target modestly from $45 to $44 but maintained an “overweight” rating, implying approximately 29.5% potential upside from the referenced price. Barclays lowers Axalta price target
• Positive Sentiment: Axalta guided to approximately $1.10 billion-$1.11 billion in 2026 adjusted EBITDA and forecast fourth-quarter adjusted EPS of about $0.55, giving investors visibility into its near-term profitability expectations. Axalta guidance for 2026 EBITDA and fourth-quarter EPS
• Neutral Sentiment: Management reported third-quarter revenue of approximately $1.31 billion, up 1.8% year over year, while net income was about $95 million. The results indicate continued top-line growth but limited earnings momentum. Axalta third-quarter earnings results
• Negative Sentiment: Third-quarter adjusted EPS was $0.63, below consensus estimates near $0.70-$0.71 and down from $0.67 a year earlier. Revenue also missed expectations of roughly $1.33 billion, increasing concerns about margins and demand. Axalta third-quarter earnings and revenue miss
• Positive Sentiment: Ariel Global Fund highlighted potential cost savings from Axalta’s proposed merger with Akzo Nobel, offering a possible longer-term catalyst if the transaction produces expected synergies. Ariel Global Fund discusses Axalta and Akzo Nobel merger

Analysts Set New Price Targets

AXTA has been the subject of a number of recent research reports. Weiss Ratings raised shares of Axalta Coating Systems from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. KeyCorp restated an “overweight” rating on shares of Axalta Coating Systems in a research report on Monday, October 5th. Royal Bank Of Canada upped their target price on shares of Axalta Coating Systems from $34.00 to $36.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 8th. Barclays lowered their price target on shares of Axalta Coating Systems from $45.00 to $44.00 and set an “overweight” rating for the company in a report on Friday. Finally, Robert W. Baird lifted their price target on Axalta Coating Systems from $35.00 to $37.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Five equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $38.55.

Axalta Coating Systems Company Profile

Axalta Coating Systems Ltd. (NYSE: AXTA) develops, manufactures and sells coatings and coating technologies designed to protect, enhance and improve the appearance of vehicles, equipment and industrial products. Its offerings include liquid, powder and electrocoat products, along with related color-management tools, application technologies and technical services.

The company serves several markets, including automotive original equipment manufacturers, automotive refinish businesses, commercial transportation, industrial equipment, architecture and general manufacturing.