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Sep 30, 2025
Axalta Q3 2025 Earnings Report
Axalta reported record adjusted EBITDA and EPS in Q3 2025 despite a slight decline in net sales.
Key Takeaways
Axalta delivered strong third-quarter 2025 results with record adjusted EBITDA and adjusted EPS. Net sales reached $1.29 billion, down 2% year over year, while net income rose to $110 million and adjusted diluted EPS grew 6% to $0.67. Mobility Coatings achieved a record third-quarter revenue, partially offsetting softness in Performance Coatings, particularly in North America.
Net sales were $1.29 billion, down 2% year over year.
Net income rose to $110 million with an 8.5% margin.
Record adjusted EBITDA reached $294 million with a 22.8% margin.
Free cash flow totaled $89 million, reflecting higher working capital and capex.
Revenue by Segment
Forward Guidance
Axalta expects continued momentum in Q4 2025, projecting mid-single-digit net sales growth with strong free cash flow generation and steady margins.
Positive Outlook
- Q4 2025 adjusted EBITDA projected around $284 million.
- Full-year adjusted EBITDA expected near $1.14 billion.
- Adjusted diluted EPS guidance at approximately $0.60 for Q4 and $2.50 for FY25.
- Free cash flow expected around $450 million for FY25.
- Maintained strong balance sheet and share repurchase plans up to $250 million in Q4.
Challenges Ahead
- Continued macroeconomic softness in North America impacting Performance Coatings.
- Volume decline in Commercial Vehicle segment due to lower truck production.
- Higher working capital needs reducing cash flow versus prior year.
- Increased capital expenditures for productivity and growth initiatives.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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