Axalta Coating Systems Ltd., a leading global coatings company, announced its financial results for the second quarter ended June 30, 2024. Axalta reported Q2 2024 increase in net sales by 4.4% year over year to US$ 1.35 billion with positive contributions from all four end markets.

Net income increased by US$ 52 million year over year to US$ 113 million. Adjusted net income improved by US$ 50 million year over year to US$ 127 million driven by variable cost deflation and net sales growth. Adjusted EBITDA of US$ 291 million was a quarterly record, compared to US$ 227 million in the prior year period. Adjusted EBITDA margin expanded by 400 basis points to 21.5%. Diluted earnings per share increased by 89% to $0.51 compared to $0.27 in the prior year period. Adjusted diluted earnings per share improved by 63% to $0.57.

Second quarter 2024 cash provided by operating activities was US$ 114 million versus US$ 131 million in the same period last year. Cash and cash equivalents at quarter end were US$ 840 million and total liquidity was over US$ 1.4 billion. The sequential improvement in cash includes a $185 million draw on Axalta’s revolving credit facility to finance the previously announced acquisition of CoverFlexx, which closed in early July. Axalta’s net debt to trailing twelve month (LTM) Adjusted EBITDA ratio (total net leverage ratio or net leverage ratio) was 2.6x at quarter-end versus 3.6x as of June 30, 2023. Axalta repurchased over 1.4 million common shares for total consideration of $50 million.

“Axalta continues to execute exceptionally well," said Chris Villavarayan, CEO and President of Axalta. "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 the solid second quarter performance and better visibility into the second half of the year, we are raising our full year 2024 Adjusted EBITDA, Adjusted Diluted EPS and Free Cash Flow guidance.”