Axalta Q2 2023 Earnings Report
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
Axalta
Axalta
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