Axalta posts record earnings, eyes growth ahead of AkzoNobel deal

Strong pricing, cost management, and favorable currency translation helped offset headwinds

Axalta Coating Systems has reported record earnings for 2025, highlighting resilient performance amid a challenging economic environment and setting the stage for its upcoming chapter with AkzoNobel.

“We delivered record earnings in 2025, demonstrating the resilience of our business and the successful execution of our 2026 A Plan in the midst of a challenging macro environment,” said Chris Villavarayan, Chief Executive Officer and President of Axalta.

“We are building top line momentum, and our 2025 Adjusted EBITDA margin was 22%—one of the highest in the company’s history and 100 basis points above our A Plan target.

“Looking ahead, we will continue to leverage the strong foundation we’ve established to drive further improvement in our financial performance. Axalta’s balance sheet is strong, and we believe our proven portfolio and ability to navigate any operating environment will enable us to deliver meaningful value to shareholders as we prepare for our next chapter with AkzoNobel.”

Fourth Quarter Highlights:

• Net sales: $1.26 billion, down 4% year-over-year
• Net income: $60 million (margin 4.8%)
• Adjusted EBITDA: $272 million (margin 21.5%, up 50 bps)
• Diluted EPS: $0.28; Adjusted Diluted EPS: $0.59
• Record cash from operations: $344 million
• Record free cash flow: $290 million

Despite a slight dip in sales due to lower volumes, strong pricing, cost management, and favorable currency translation helped offset headwinds. Fourth quarter Mobility Coatings achieved record Adjusted EBITDA of $92 million, up 300 basis points year-over-year, driven by price-mix and cost savings.

Full Year 2025 Performance:

• Net sales: $5.12 billion (down 3%)
• Net income: $379 million (margin 7.4%)
• Record Adjusted EBITDA: $1.13 billion (margin 22%)
• Diluted EPS: $1.74; record Adjusted Diluted EPS: $2.49
• Cash from operations: $649 million; free cash flow: $466 million

Operational discipline and strategic cost management drove record profitability despite modest volume declines, with Performance Coatings and Mobility Coatings segments both showing resilience in different markets.

Axalta also strengthened its balance sheet, achieving the lowest net debt-to-EBITDA ratio in company history at 2.3x. The company returned $165 million to shareholders through share repurchases and paid down $230 million in debt during the year.

With robust cash flow, record margins, and a strong portfolio, Axalta positions itself for continued growth and shareholder value creation as it moves toward integration with AkzoNobel.