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Dec 31, 2025
Axalta Q4 2025 Earnings Report
Axalta reported record earnings in Q4 2025, driven by strong operational performance and strategic execution.
Key Takeaways
Axalta Coating Systems Ltd. announced record earnings for the fourth quarter and full year ended December 31, 2025. Despite a challenging economic environment, the company achieved a record Adjusted EBITDA margin of 22.0% for the full year, exceeding its A Plan target. Fourth quarter net sales decreased 4% year-over-year to $1,262 million, primarily due to lower volumes, though partially offset by favorable foreign currency translation and positive price-mix in Mobility Coatings. Net income for the quarter was $60 million, with Adjusted EBITDA at $272 million.
Record earnings were delivered in 2025, showcasing business resilience and successful execution of the 2026 A Plan.
Adjusted EBITDA margin reached 22.0% for the full year, one of the highest in company history and 100 basis points above the A Plan target.
Fourth quarter net sales decreased 4% year-over-year to $1,262 million, mainly due to lower volumes.
Record fourth quarter cash provided by operating activities was $344 million, and record free cash flow was $290 million.
Revenue by Segment
Forward Guidance
Axalta anticipates continued financial improvement, leveraging its strong foundation and proven portfolio. The company expects to deliver meaningful value to shareholders as it prepares for its merger with AkzoNobel, which is projected to close in late 2026 or early 2027.
Positive Outlook
- Anticipated merger with AkzoNobel to create a premier global coatings company with increased global scale.
- Merger expected to improve profitability, generate sizable synergy opportunities, and create substantial long-term value.
- Strong balance sheet and proven portfolio to navigate operating environments.
- Continued focus on driving further improvement in financial performance.
- Expected Free Cash Flow of over $500 million for FY 2026.
Challenges Ahead
- Net Sales (YoY% growth) for Q1 2026 is projected to be in the mid-single digits decrease (MSD%).
- Net Sales (YoY% growth) for FY 2026 is projected to be in the low-single digits decrease (LSD%).
- The transaction remains subject to shareholder and regulatory approvals and other customary closing conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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