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Mar 31, 2025
Axalta Q1 2025 Earnings Report
Axalta reported a record first quarter adjusted EBITDA and strong earnings growth despite a slight revenue decline.
Key Takeaways
Axalta posted a solid Q1 2025 with adjusted EBITDA reaching a record $270 million. Despite a 3% decline in net sales due to currency headwinds and volume pressures, net income rose sharply to $99 million, and adjusted EPS reached $0.59. The company demonstrated resilience through cost management and strategic pricing.
Net income jumped 154% YoY to $99 million, driven by reduced one-time expenses.
Adjusted EBITDA reached a record $270 million with margin expansion to 21.4%.
Performance Coatings and Mobility Coatings both delivered improved segment EBITDA margins.
Free cash flow was negative at $14 million due to higher capex and working capital.
Revenue by Segment
Forward Guidance
Axalta expects modest top-line growth and continued margin improvements in Q2 and FY 2025, with an emphasis on cost controls and disciplined capital deployment.
Positive Outlook
- Q2 adjusted EBITDA expected between $280–$290 million.
- FY 2025 adjusted EPS projected at $2.50–$2.60.
- Free cash flow for FY 2025 expected between $475–$500 million.
- Positive price-mix expected to continue aiding margins.
- Ongoing benefit from the A Plan driving operational efficiency.
Challenges Ahead
- Foreign currency headwinds remain a challenge.
- Volume softness continues in Performance Coatings.
- Commercial Vehicle segment under pressure from North America Class 8 build slowdown.
- Free cash flow impacted by higher capex in Q1.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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