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Jun 30, 2023
Axalta Q2 2023 Earnings Report
Axalta's Q2 2023 results were released, showcasing growth driven by robust pricing, focused execution, and solid market demand.
Key Takeaways
Axalta Coating Systems reported a 4.8% increase in net sales year-over-year, driven by price-mix and robust volume growth in Mobility Coatings. The company's income from operations was $137.6 million, compared to $103.6 million in Q2 2022. Net Leverage improved to 3.6x at June 30, 2023, due to earnings and cash flow improvement, with cash flow from operations reaching $131.0 million in Q2 2023.
Net sales increased 4.8% year-over-year driven by price-mix and robust volume growth in Mobility Coatings
Price-mix improved 6.8% year-over-year with strong contributions from every end-market
Income from operations of $137.6 million versus $103.6 million in Q2 2022
Net Leverage improved to 3.6x at June 30, 2023 on earnings and cash flow improvement; cash flow from operations of $131.0 million in Q2 2023
Forward Guidance
Axalta anticipates improved earnings in the second half of the year, with a positive price-cost dynamic offsetting higher compensation expenses and investments. The 2023 guidance framework points to earnings recovery, with actions taken expected to strengthen the business for long-term success.
Positive Outlook
- Anticipate pricing to moderately increase YoY with positive contribution from all end-markets driving majority of FY sales growth
- Forecast typical quarterly seasonal demand patterns, strong demand in Mobility Coatings, stability in Refinish and a softer Industrial environment
- Expect mid-to-high single digit variable cost deflation for the second half of the year to mitigate higher operating expenses
- Project 13% YoY Adjusted EBIT growth at midpoint of FY 2023 earnings guidance
Historical Earnings Impact
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Avg. Return Before/After Earnings
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