Axalta Coating Systems Ltd. Overview
Axalta is a pure-play performance coatings company and, on PCI Magazine's 2026 ranking, the sixth-largest coatings producer in the world, with FY2025 net sales of USD 5117 million. It is unusual among large coatings groups in having no architectural paint exposure: every dollar of revenue comes from automotive refinish, industrial liquid and powder coatings, and original-equipment coatings for light and commercial vehicles. The franchise rests on three assets: a refinish colour-matching system installed in roughly 96000 body shops, deep on-site technical integration at more than 200 vehicle assembly plants, and a record of cost discipline that lifted Adjusted EBITDA margin from 16.6% in FY2022 to 22.0% in FY2025. The company has never paid a dividend, has deleveraged to 2.2x net debt/EBITDA, and is now preparing to combine with AkzoNobel into a roughly USD 17 billion-revenue group in which Axalta holders will own approximately 45%.
Company's own description. The FY2025 Form 10-K describes Axalta as "a leading global manufacturer, marketer and distributor of high-performance coatings systems and products" and stresses its heritage, brand recognition and technology and service leadership. The company reports that it serves more than 100000 customers in over 140 countries through its own sales and technical organisation and more than 5000 independent distributors.
Independent characterisation. Axalta is best understood as two different businesses that share chemistry, colour science and manufacturing assets.
The first, Performance Coatings (64% of FY2025 net sales), is an aftermarket and general-industrial franchise. Its refinish business sells paint systems, tints, clearcoats and ancillary products to collision repair shops, mostly through independent distributors and, in parts of Europe, through company-owned stores. Economically this is a consumables model with high switching costs: once a body shop installs a supplier's mixing bank, colour-retrieval software and spectrophotometer, it buys that supplier's products almost exclusively. Paint is a small share of the total repair bill but decisive for customer satisfaction, which gives the supplier pricing power. The industrial business sells liquid, powder and electrocoat products to a fragmented base of manufacturers in building products, construction, energy and battery solutions, transportation components and general metal finishing.
The second, Mobility Coatings (36% of FY2025 net sales), is a direct-supply business to vehicle manufacturers. It provides the full paint-shop layer stack to light-vehicle OEMs and specialised low-bake systems to heavy-duty truck, bus, rail and related commercial-vehicle producers. It is volume-sensitive, concentrated (top ten customers were approximately 61% of segment sales in FY2025) and lower-margin than refinish, but margins have improved materially as pricing, raw-material indexation and cost actions took hold.
Revenue model. Essentially 100% product sales. There is no material subscription, licensing or stand-alone service revenue line disclosed. Services (on-site technical representatives at OEM plants, body-shop training at 48 customer training centres, colour tools, the Axalta Nimbus digital platform, the Axalta Advantage consulting offer) are bundled into product economics rather than billed separately. Refinish customer acquisition frequently involves up-front incentives to body shops and distributors that are capitalised and amortised against sales; the "prepaid expenses and other assets" cash outflows of USD 129 million (FY2025) and USD 130 million (FY2024) in the cash flow statement largely reflect this practice.
Value chain position. Axalta sits between petrochemical and specialty-chemical suppliers (resins, pigments, solvents, monomers, isocyanates and additives, in the company's six-category taxonomy) and end users. Raw materials are the largest production cost. The company formulates, manufactures, tints and distributes; it does not produce its own base petrochemicals. Management stated on the Q1 2026 call that more than half of Mobility revenue is now tied to raw-material indices, which mechanically passes input cost movements through to customers.
Customer types and end-markets.
Source: Form 10-K FY2025 segment note.
Seasonality. First-quarter sales are typically the weakest, driven by refinish repair patterns in North America and EMEA; operating cash flow is typically strongest in the fourth quarter (Form 10-K FY2025).
Strategy
Stated strategic themes (paraphrased from the FY2025 Form 10-K, the May 2024 Strategy Day and 2025–2026 earnings materials).
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"One Axalta" operating model — enterprise-first decision-making, speed, simplification and the removal of internal silos, embedded through company-wide training.
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The 2026 A Plan (FY2024–FY2026) — a three-year programme of margin expansion, disciplined growth and balanced capital allocation.
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Refinish leadership through technology — net body-shop wins, the Irus Scan–Match–Mix digital workflow, the Nimbus platform, and extension into mainstream, economy and accessories tiers (U-POL, CoverFlexx).
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Mobility margin restoration — price/mix, raw-material indexation (above 50% of Mobility revenue), new business wins particularly in China and Latin America, and cost reduction.
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Industrial repositioning — exit of low-margin customers, focus on energy and battery solutions, powder and building products.
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Deleveraging and capital returns — net leverage reduction and opportunistic buybacks (suspended from November 2025).
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Transformational scale through the AkzoNobel combination.
Initiatives announced or active in the last 24 months
| Initiative | Date | Target / status | Source |
|---|---|---|---|
| 2026 A Plan | Launched May 2024 | Adjusted EBITDA margin target of 21% by FY2026, exceeded by 100 bps in FY2025 (22.0%); other A Plan targets not re-verified | Q4 2025 release |
| 2024 Transformation Initiative | Announced February 2024 | Structural cost reduction; termination and related costs of USD 67 million in FY2024 and USD 23 million in FY2025; originally announced run-rate savings target not re-verified | Earnings releases |
| CoverFlexx integration | Acquired July 2024 | Revolver draw of USD 105 million fully repaid by Q4 2024 | Q4 2024 release |
| Manufacturing productivity investment | FY2025 | Capital expenditure raised to USD 196 million; FY2026 guidance USD 180–200 million | Q4 2025 release |
| Tariff mitigation | 2025–2026 | Mitigation strategies referenced in risk language; no quantified target disclosed | Earnings releases |
| Refinish price increases | Effective March 2026 | Average price increase including Spies Hecker in North America | Trade press, May 2026 |
| European distribution build-out | Ongoing | Acquisition of three European distributors into the Axalta Axcess network; H1 2026 acquisition spend USD 8 million | Company newsroom; Q2 2026 release |
| Term loan paydown | Q4 2025 – H1 2026 | USD 204 million repaid in Q4 2025; USD 135 million of long-term debt repaid in H1 2026; term loan balance USD 1342 million at 30 June 2026 | Q4 2025 release; Form 10-Q Q2 2026 |
| Merger of equals with AkzoNobel | Signed 18 November 2025 | Approximately USD 600 million pre-tax run-rate cost synergies, 90% within three years of close; combined revenue about USD 17 billion; Adjusted EBITDA about USD 3.3 billion including synergies; net leverage target 2.0x–2.5x; investment-grade commitment | Joint press release |
Management guidance for FY2026 (maintained 28 July 2026)
| Item | Q3 2026 | FY2026 |
|---|---|---|
| Net sales growth year over year | Low single digit % | Low single digit % |
| Adjusted EBITDA (USD M) | 295–305 | 1140–1170 |
| Adjusted diluted EPS (USD) | Approximately 0.70 | 2.55–2.70 |
| Free cash flow (USD M) | — | Above 500 |
| Depreciation and amortization (USD M) | — | 305 |
| Tax rate, as adjusted | — | Approximately 24% |
| Diluted shares (M) | — | Approximately 215 |
| Interest expense (USD M) | — | Approximately 150 |
| Capital expenditures (USD M) | — | 180–200 |
Sustainability commitments.
Products & Services
Pricing is not publicly disclosed for any product line; coatings are sold on negotiated, customer-specific terms.
Performance Coatings — Refinish
| Offering | Description and capability | Target customer | Launch / status |
|---|---|---|---|
| Cromax | Premium global refinish paint system (waterborne and high-solids solventborne basecoats, primers, clearcoats) focused on body-shop productivity | Independent shops, MSOs, dealer body shops | Long-standing brand |
| Standox | Premium refinish brand of German origin with strong OEM approvals | Premium and OEM-approved repairers | Brand dates to 1955 |
| Spies Hecker | Premium refinish brand of German origin; subject of a North American price increase effective 1 March 2026 | Premium repairers | Brand dates to 1882 |
| Syrox | Mainstream refinish system | Value-oriented body shops, particularly in emerging and European markets | — |
| Raptor | Tough protective coating and bedliner brand acquired with U-POL | Body shops, retail and trade users, vehicle customisers | Acquired 2021 |
| U-POL | Fillers, aerosols, adhesives, polishing and refinish accessories | Distributors, retailers, body shops | Acquired 2021 |
| Nason, Duxone, Challenger, Cromax Mosaic and other regional brands | Mainstream and economy refinish lines listed among company trademarks | Regional economy tier | — |
| CoverFlexx portfolio | Economy refinish coatings and aftermarket products in North America | Economy tier, distributors | Acquired July 2024 |
| Axalta Irus Scan | Hand-held spectrophotometer that reads colour and flake characteristics of the specific vehicle and connects to the colour database | All refinish customers | Current generation |
| Axalta Irus Mix | Fully automated, hands-free refinish mixing machine working with dedicated packaging; company reported its 100th installation and first Middle East installations | Body shops seeking labour and waste reduction | — |
| ColorNet | Colour-retrieval database; the system covers approximately 230000 colour variations from more than four million formulations | All refinish customers | Ongoing |
| VINdicator | Database identifying vehicle colour from the vehicle identification number | All refinish customers | Ongoing |
| Axalta Nimbus | Global digital customer-experience platform integrating colour retrieval, ordering, inventory management, training and business analytics | Body-shop owners and managers | — |
| Customer training | 48 customer training centres globally | Refinish technicians | Ongoing |
| Axalta Axcess | Company-owned/affiliated distribution network in Europe, expanded through distributor acquisitions | European body shops | Ongoing |
Performance Coatings — Industrial
| Offering | Description and capability | Target customer | Launch / status |
|---|---|---|---|
| Alesta | Thermoset powder coatings series for architectural, general industrial and transportation uses | Extruders, job coaters, component makers | — |
| Nap-Gard | Fusion-bonded epoxy powder for pipeline and rebar corrosion protection | Oil and gas, infrastructure | — |
| Abcite and Plascoat | Thermoplastic powder coatings for corrosion protection and functional applications | Water, infrastructure, general industry | Plascoat acquired 2017 |
| Voltatex | Wire enamels, impregnating resins and electrical-steel coatings for motors, generators and transformers | Electric motor, transformer and EV drivetrain makers | — |
| Imron Industrial, Tufcote Industrial, Corlar Industrial, Strenex Industrial | Liquid polyurethane, alkyd and epoxy systems for general industrial and transportation equipment | Agricultural, construction and earth-moving OEMs; general metal finishing | — |
| PercoTop | Liquid industrial coating system for components and machinery | European general industry | — |
| AquaEC | Electrocoat (e-coat) for corrosion protection | Component makers and vehicle OEMs | — |
| Durapon 70 and Ceranamel | Coil and extrusion coatings (including PVDF-type architectural finishes) | Coil coaters, metal building products | — |
| UNRIVALED, Zenamel, Cerulean | Wood and building-products coatings for cabinets, flooring, furniture and exterior building products | North American building-products OEMs | Largely from the 2017 wood coatings acquisition |
| Energy and Battery Solutions | Liquid and powder dielectric, insulation and thermal-management coatings for battery cells, packs and e-motors | EV and energy-storage manufacturers | Named focus area in Form 10-K FY2025 |
| Colour and specification services | In-house colour experts, trend collections and colour experience rooms | Architects and designers | Ongoing |
Mobility Coatings — Light Vehicle
| Offering | Description and capability | Target customer | Launch / status |
|---|---|---|---|
| AquaEC electrocoat | First corrosion-protection layer applied by dip | Light-vehicle OEMs | — |
| HyperDur primer | Primer layer for adhesion, chip resistance and smoothness | Light-vehicle OEMs | — |
| ChromaDyne basecoat | Colour layer | Light-vehicle OEMs | — |
| Lumeera clearcoat | Gloss and durability top layer | Light-vehicle OEMs | — |
| 3-Wet, Eco-Concept, 2-Wet Monocoat | Consolidated application processes that remove bake steps to cut energy use and raise throughput | OEM paint shops seeking cost and CO2 reduction | — |
| Harmonized Coating Technologies | Compacted paint-process platform (listed trademark) | OEM paint shops | — |
| Axalta NextJet | Digital, maskless paint application for two-tone and personalised finishes; named a 2025 Automotive News PACE Pilot "Innovation to Watch" | OEMs offering customisation | Recognised April 2025 |
| Advanced Mobility Solutions | Coatings with enhanced LiDAR and radar compatibility, and protective coatings for EV platforms and components | OEMs with ADAS and EV platforms | Named category in Form 10-K FY2025 |
| Axalta Advantage | Consulting and services: application design, process improvement, cost and CO2 modelling, troubleshooting | OEM paint-shop management | Named category in Form 10-K FY2025 |
| Global Automotive Color of the Year | Annual colour programme; the 2027 colour, "Redefined", was unveiled 8 September 2026 | OEM design studios | Annual |
Mobility Coatings — Commercial Vehicle
| Offering | Description and capability | Target customer | Launch / status |
|---|---|---|---|
| Imron and Imron Elite | Flagship polyurethane topcoat family for heavy-duty trucks; low-bake chemistry for mixed metal and composite cabs | HDT and MDT OEMs, fleets, body builders | Imron is a decades-old brand |
| Imron ExcelPro | Listed trademark in the Imron family | Commercial vehicle OEMs | — |
| Centari | Basecoat system | Commercial vehicle and fleet refinish | — |
| Rival | Mainstream commercial-vehicle topcoat line | Fleet and trailer makers | — |
| Corlar epoxy undercoats | Primers for corrosion protection | Truck, bus, rail, trailer | — |
| AquaEC | Electrocoat for chassis and cabs | Commercial vehicle OEMs | — |
| Colour library | More than 90000 commercial-vehicle colours, delivered by on-site mixing or premixed shipment | Truck OEMs with custom fleet colours | Ongoing |
Source for all product and brand names: Form 10-K FY2025 Items 1 and trademark list; awards per PCI Magazine and company releases.
Financial Narrative
Sources: Q4 2022 earnings release (FY2021, FY2022), Q4 2024 earnings release (FY2023, FY2024), Q4 2025 earnings release and Form 10-K FY2025 (FY2025). FY2021–FY2022 were reported in tenths of millions; later years in whole millions.
Income statement
Adjusted diluted EPS for FY2021 and FY2022 is on the definition in force at the time (excluding only DuPont-acquisition step-up D&A); FY2023 onward is on the revised definition excluding all acquired-intangible amortisation. The series is therefore not strictly comparable across the FY2022/FY2023 boundary.
Margins and growth (derived, except Adjusted EBITDA margin which matches company-reported figures)
Revenue CAGR FY2021–FY2025 is 3.7% (derived). FY2021 growth is measured against FY2020 net sales of USD 3737.6 million (Form 10-K FY2021).
Commentary — income statement. Three phases are visible. In FY2021–FY2022 the top line recovered strongly (price/mix contributed 10.1 points of FY2022 growth) but input inflation outran pricing: gross margin fell 340 basis points and operating income declined despite USD 468 million of extra sales. In FY2023–FY2024 the price/cost gap closed, raw materials deflated and the 2024 Transformation Initiative reduced fixed cost; gross margin recovered 510 basis points over two years and Adjusted EBITDA crossed USD 1.1 billion. In FY2025 volume turned negative, mainly in North America, and sales fell 3%, yet Adjusted EBITDA still rose to a record because SG&A fell 5%, variable costs declined and Mobility margins expanded. The fall in acquired-intangible amortisation after FY2022 reflects the 2013 DuPont step-up assets becoming fully amortised. FY2025 net income was held back by a higher tax charge (a valuation-allowance increase in Q4 2025, against a one-time USD 27 million deferred tax benefit in Q4 2024) and USD 32 million of merger and acquisition costs.
Balance sheet
Commentary — balance sheet. Gross debt has been reduced by USD 631 million since FY2021 and equity has grown by USD 854 million, taking debt/equity from 2.5x to 1.3x. Goodwill and intangibles are 39% of total assets, a legacy of the 2013 buyout and subsequent bolt-ons; the FY2025 goodwill increase largely reflects currency translation (accumulated other comprehensive loss improved by USD 199 million). Pension deficits are modest relative to the balance sheet. At 30 June 2026 total debt was USD 3068 million (USD 519 million current, including the USD 500 million 2027 notes now classified as current, and USD 2549 million long-term), cash was USD 633 million and equity USD 2569 million (Q2 2026 release; Form 10-Q Q2 2026).
Cash flow
Company-defined free cash flow is operating cash flow less capital expenditures plus interest proceeds on swaps designated as net investment hedges.
Commentary — cash flow. FY2022 was the anomaly: USD 359 million was absorbed by receivables and inventory as prices and safety stocks rose. Since then free cash flow has been remarkably stable at USD 447–466 million, despite capital expenditure stepping up to USD 196 million in FY2025 for manufacturing productivity projects. Over five years the company generated roughly USD 1.98 billion of free cash flow and deployed it as follows: about USD 1.1 billion on acquisitions, USD 759 million on buybacks, and the balance on net debt reduction. Buybacks were suspended on signing the AkzoNobel agreement.
Ratios (derived unless noted)
Commentary — ratios. Returns improved decisively through FY2024 and slipped in FY2025 only because of the higher tax rate; pre-tax operating returns continued to rise. Net leverage has fallen 1.5 turns from the FY2022 peak and stood at 2.2x at 30 June 2026, the lowest in the company's history (Q2 2026 release); management guided on the February 2026 call to below 2.0x by year-end 2026. The one deteriorating metric is the cash conversion cycle, which has lengthened by about three weeks since FY2021 as payables days shortened and receivable days rose. This is a working-capital efficiency opportunity that the cost-focused narrative tends to obscure.
Year-to-date FY2026 (Q2 2026 earnings release)
GAAP earnings are down because merger costs rose ninefold; underlying earnings are flat to slightly up. Q2 2026 Adjusted EBITDA of USD 305 million (22.7% margin) and Adjusted diluted EPS of USD 0.72 were both quarterly records.
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View Subscription PlansFinancial Detail
Revenue by Segment
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Refinish net sales (USD Mn) | 1,776.4 | 1,943.4 | 2,084 | 2,164 | 2,051 |
Industrial net sales (USD Mn) | 1,319.9 | 1,383.3 | 1,324 | 1,291 | 1,226 |
Performance Coatings net sales (USD Mn) | 3,096.3 | 3,326.7 | 3,408 | 3,455 | 3,277 |
Light Vehicle net sales (USD Mn) | 1,013.1 | 1,181.1 | 1,340 | 1,405 | 1,438 |
Commercial Vehicle net sales (USD Mn) | 306.8 | 376.6 | 436 | 416 | 402 |
Mobility Coatings net sales (USD Mn) | 1,319.9 | 1,557.7 | 1,776 | 1,821 | 1,840 |
Total net sales (USD Mn) | 4,416.2 | 4,884.4 | 5,184 | 5,276 | 5,117 |
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View Subscription PlansResults by Segment and Segment Margins & Growth (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Performance Coatings Adjusted EBITDA (USD Mn) | 700 | 742 | 838 | 788 |
Mobility Coatings Adjusted EBITDA (USD Mn) | 111 | 209 | 278 | 340 |
Total Adjusted EBITDA (USD Mn) | 811 | 951 | 1,116 | 1,128 |
Performance Coatings Adjusted EBITDA margin (%) | 21.0 | 21.8 | 24.3 | 24.0 |
Mobility Coatings Adjusted EBITDA margin (%) | 7.1 | 11.8 | 15.3 | 18.5 |
Total Adjusted EBITDA margin (%) | 16.6 | 18.4 | 21.2 | 22.0 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Performance Coatings net sales growth (%) | 2.4 | 1.4 | -5.2 |
Mobility Coatings net sales growth (%) | 14.0 | 2.5 | 1.0 |
Refinish net sales growth (%) | 7.2 | 3.8 | -5.2 |
Industrial net sales growth (%) | -4.3 | -2.5 | -5.0 |
Light Vehicle net sales growth (%) | 13.5 | 4.9 | 2.3 |
Commercial Vehicle net sales growth (%) | 15.8 | -4.6 | -3.4 |
Performance Coatings share of total net sales (%) | 65.7 | 65.5 | 64.0 |
Mobility Coatings share of total net sales (%) | 34.3 | 34.5 | 36.0 |
Performance Coatings share of Adjusted EBITDA (%) | 78.0 | 75.1 | 69.9 |
Mobility Coatings share of Adjusted EBITDA (%) | 22.0 | 24.9 | 30.1 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales (USD Mn) | 4,416.2 | 4,884.4 | 5,184 | 5,276 | 5,117 |
Cost of goods sold (USD Mn) | 2,987.3 | 3,465.6 | 3,566 | 3,478 | 3,355 |
Gross profit, net sales less COGS (USD Mn) | 1,428.9 | 1,418.8 | 1,618 | 1,798 | 1,762 |
SG&A expenses (USD Mn) | 738.7 | 772.4 | 840 | 847 | 805 |
R&D expenses (USD Mn) | 62.4 | 66.4 | 74 | 74 | 71 |
Amortization of acquired intangibles (USD Mn) | 121.4 | 125.3 | 88 | 92 | 98 |
Other operating charges (USD Mn) | 44.0 | 31.5 | 28 | 79 | 53 |
Income from operations (USD Mn) | 462.4 | 423.2 | 588 | 706 | 735 |
Interest expense, net (USD Mn) | 134.2 | 139.8 | 213 | 205 | 176 |
Income before income taxes (USD Mn) | 340.5 | 257.3 | 355 | 496 | 546 |
Provision for income taxes (USD Mn) | 76.1 | 65.1 | 86 | 105 | 167 |
Net income (USD Mn) | 264.4 | 192.2 | 269 | 391 | 379 |
Net income attributable to common shareholders (USD Mn) | 263.9 | 191.6 | 267 | 391 | 378 |
Depreciation and amortization (USD Mn) | 316.5 | 303.1 | 276 | 280 | 295 |
EBITDA, unadjusted (USD Mn) | 791.2 | 700.2 | 844 | 981 | 1,017 |
Adjusted EBITDA (USD Mn) | 847.8 | 810.8 | 951 | 1,116 | 1,128 |
Basic EPS (USD) | 1.14 | 0.86 | 1.21 | 1.78 | 1.75 |
Diluted EPS (USD) | 1.14 | 0.86 | 1.21 | 1.78 | 1.74 |
Adjusted diluted EPS (USD) | 1.67 | 1.48 | 1.68 | 2.35 | 2.49 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Diluted weighted average shares (M) | 231.9 | 222.3 | 221.9 | 220.4 | 217.0 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net sales growth (%) | 18.2 | 10.6 | 6.1 | 1.8 | -3.0 |
Gross margin (%) | 32.4 | 29.0 | 31.2 | 34.1 | 34.4 |
Operating margin (%) | 10.5 | 8.7 | 11.3 | 13.4 | 14.4 |
Adjusted EBITDA margin (%) | 19.2 | 16.6 | 18.4 | 21.2 | 22.0 |
Net income margin (%) | 6.0 | 3.9 | 5.2 | 7.4 | 7.4 |
Effective tax rate (%) | 22.3 | 25.3 | 24.2 | 21.2 | 30.6 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 7,217.2 | 7,059.2 | 7,272 | 7,249 | 7,599 |
Cash and cash equivalents (USD Mn) | 840.6 | 645.2 | 700 | 593 | 657 |
Accounts and notes receivable, net (USD Mn) | 937.5 | 1,067.4 | 1,260 | 1,248 | 1,229 |
Inventories (USD Mn) | 669.7 | 829.6 | 741 | 734 | 756 |
Accounts payable (USD Mn) | 657.4 | 733.5 | 725 | 659 | 637 |
Current portion of borrowings (USD Mn) | 79.7 | 40.1 | 26 | 20 | 20 |
Long-term borrowings (USD Mn) | 3,749.9 | 3,664.2 | 3,478 | 3,401 | 3,179 |
Total debt (USD Mn) | 3,829.6 | 3,704.3 | 3,504 | 3,421 | 3,199 |
Net debt (USD Mn) | 2,989.0 | 3,059.1 | 2,804 | 2,828 | 2,542 |
Total shareholders' equity incl. noncontrolling interests (USD Mn) | 1,538.7 | 1,499.5 | 1,773 | 1,956 | 2,393 |
Goodwill (USD Mn) | 1,592.7 | 1,498.0 | 1,591 | 1,640 | 1,795 |
Identifiable intangibles, net (USD Mn) | 1,278.2 | 1,112.3 | 1,130 | 1,149 | 1,147 |
Goodwill and intangibles (USD Mn) | 2,870.9 | 2,610.3 | 2,721 | 2,789 | 2,942 |
Working capital, current assets less current liabilities (USD Mn) | 1,240.7 | 1,298.9 | 1,393 | 1,369 | 1,446 |
Accrued pensions (USD Mn) | 269.3 | 205.1 | 252 | 220 | 238 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash provided by operating activities (USD Mn) | 558.6 | 293.8 | 575 | 576 | 649 |
Capital expenditures (USD Mn) | 121.6 | 150.9 | 138 | 140 | 196 |
Free cash flow, company definition (USD Mn) | 455.0 | 162.8 | 447 | 451 | 466 |
Acquisitions, net of cash acquired (USD Mn) | 649.0 | 3.0 | 106 | 301 | 48 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Share repurchases (USD Mn) | 243.8 | 200.1 | 50 | 100 | 165 |
Payments on long-term borrowings (USD Mn) | 26.9 | 2,041.9 | 904 | 420 | 230 |
Proceeds from long-term borrowings (USD Mn) | 0 | 1,980.0 | 697 | 333 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Return on equity, year-end equity (%) | 17.2 | 12.8 | 15.1 | 20.0 | 15.8 |
Return on assets, year-end assets (%) | 3.7 | 2.7 | 3.7 | 5.4 | 5.0 |
Return on invested capital, NOPAT over debt plus equity (%) | 6.7 | 6.1 | 8.4 | 10.3 | 9.1 |
Current ratio (x) | 1.93 | 1.93 | 1.98 | 2.01 | 2.06 |
Debt to equity (x) | 2.49 | 2.47 | 1.98 | 1.75 | 1.34 |
Net debt to Adjusted EBITDA, company-reported (x) | 3.5 | 3.8 | 2.9 | 2.5 | 2.3 |
Interest coverage, operating income over net interest (x) | 3.4 | 3.0 | 2.8 | 3.4 | 4.2 |
Asset turnover (x) | 0.61 | 0.69 | 0.71 | 0.73 | 0.67 |
Days sales outstanding (days) | 77.5 | 79.8 | 88.7 | 86.3 | 87.7 |
Days inventory outstanding (days) | 81.8 | 87.4 | 75.8 | 77.0 | 82.2 |
Days payables outstanding (days) | 80.3 | 77.3 | 74.2 | 69.2 | 69.3 |
Cash conversion cycle (days) | 79.0 | 89.9 | 90.3 | 94.1 | 100.6 |
Income Statement and Margin Analysis (%)
| Metric | H1 FY2025 | H1 FY2026 |
|---|---|---|
Net sales (USD Mn) | 2,567 | 2,600 |
Income from operations (USD Mn) | 369 | 313 |
Net income (USD Mn) | 209 | 180 |
Adjusted EBITDA (USD Mn) | 562 | 564 |
Adjusted EBITDA margin (%) | 21.9 | 21.7 |
Diluted EPS (USD) | 0.95 | 0.84 |
Adjusted diluted EPS (USD) | 1.23 | 1.27 |
Merger and acquisition-related costs (USD Mn) | 6 | 57 |
Cash provided by operating activities (USD Mn) | 168 | 220 |
Free cash flow (USD Mn) | 87 | 128 |
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View Subscription PlansRevenue by Region
| Region | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
North America net sales (USD Mn) | 1,722.9 | 2,022.0 | 2,038 | 2,014 | 1,761 |
EMEA net sales (USD Mn) | 1,618.7 | 1,604.1 | 1,776 | 1,784 | 1,824 |
Asia Pacific net sales (USD Mn) | 671.1 | 735.0 | 781 | 862 | 902 |
Latin America incl. Mexico net sales (USD Mn) | 403.5 | 523.3 | 589 | 616 | 630 |
Total net sales (USD Mn) | 4,416.2 | 4,884.4 | 5,184 | 5,276 | 5,117 |
Region Margins & Growth (%) and Revenue by Region (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
North America growth (%) | 0.8 | -1.2 | -12.6 |
EMEA growth (%) | 10.7 | 0.5 | 2.2 |
Asia Pacific growth (%) | 6.3 | 10.4 | 4.6 |
Latin America growth (%) | 12.6 | 4.6 | 2.3 |
North America share of net sales (%) | 39.3 | 38.2 | 34.4 |
EMEA share of net sales (%) | 34.3 | 33.8 | 35.6 |
Asia Pacific share of net sales (%) | 15.1 | 16.3 | 17.6 |
Latin America share of net sales (%) | 11.4 | 11.7 | 12.3 |
Revenue by Region (%)
| Country | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
China share of net sales (%) | 10 | 11 | 12 |
Germany share of net sales (%) | 7 | 7 | 7 |
Mexico share of net sales (%) | 7 | 7 | 6 |
Brazil share of net sales (%) | 3 | 4 | 5 |
Canada share of net sales (%) | 3 | 3 | 3 |
Region Assets & Liabilities
| Region | FY2024 | FY2025 |
|---|---|---|
North America long-lived assets (USD Mn) | 539 | 561 |
EMEA long-lived assets (USD Mn) | 362 | 420 |
Asia Pacific long-lived assets (USD Mn) | 185 | 185 |
Latin America long-lived assets (USD Mn) | 95 | 133 |
Total long-lived assets (USD Mn) | 1,181 | 1,299 |
Share Price History
| Date | Price (USD) | Note |
|---|---|---|
Nov 2014 | 19.50 | IPO price |
31 Dec 2024 | 34.22 | Year-end reference |
Nov 2025 | Approximately 30.92 | Shortly after merger announcement |
29 Jun 2026 | 33.51 | 52-week range at that date 25.44 to 35.57 |
8 Sep 2026 | 35.53 | Latest verified quote; up 9.7% over the prior twelve months |
Valuation Snapshot
| Metric | Value | Basis |
|---|---|---|
Market capitalisation | Approximately USD 7.6 billion | About 214 million shares |
Net debt | USD 2435 million | Total debt USD 3068 million less cash USD 633 million |
Enterprise value | Approximately USD 10.0 billion | Excludes pensions and noncontrolling interests |
EV / LTM Adjusted EBITDA | Approximately 8.9x | LTM Adjusted EBITDA USD 1130 million |
EV / LTM sales | Approximately 1.9x | LTM net sales USD 5150 million |
P/E on FY2025 Adjusted diluted EPS | Approximately 14.3x | USD 2.49 |
P/E on FY2026 guidance midpoint | Approximately 13.5x | USD 2.625 |
P/E on FY2025 GAAP diluted EPS | Approximately 20.4x | USD 1.74 |
Price / book | Approximately 3.0x | Axalta shareholders' equity USD 2522 million |
Dividends & Capital Returns and Share Count (M)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Share repurchases (USD Mn) | 243.8 | 200.1 | 50 | 100 | 165 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Treasury shares at year-end (M) | 24.4 | 31.8 | 33.6 | 36.4 | 41.7 |
Diluted weighted average shares (M) | 231.9 | 222.3 | 221.9 | 220.4 | 217.0 |
Source Details
| Source | Rating / target | Date |
|---|---|---|
S&P Global consensus (15 analysts) | "Buy"; average target USD 36.71; range USD 30–44 | 8 Jul 2026 |
Alternative tally | 6 buy, 9 hold, 0 sell | 2 Jul 2026 |
BofA Securities | Buy; USD 42 | 29 Jul 2026 |
BMO Capital | Market perform; USD 39 | 29 Jul 2026 |
KeyBanc | Overweight (initiation) | 11 Sep 2026 |
Baird | Neutral; USD 37 | 2026 |
UBS | Neutral; USD 36 | 2026 |
Credit Ratings
| Agency | Rating | Outlook / status | Source |
|---|---|---|---|
S&P Global Ratings | BB+ | CreditWatch positive (upgraded after merger announcement) | Reported January 2026 |
Moody's | Ba2 | Under review for upgrade | Moody's AkzoNobel credit opinion, 19 March 2026 |
Capital Instruments
| Instrument | Principal (USD Mn) | Coupon / rate | Maturity | Note |
|---|---|---|---|---|
2027 Dollar Senior Notes | 500 | 4.750% | 15 June 2027 | Classified as current from 30 June 2026; to be repaid or refinanced by maturity |
2029 Dollar Senior Notes | 700 | — | 2029 | Fixed rate |
2029 Dollar Term Loans | 1,342 | Floating (SOFR-based), partly swapped | December 2029 | To be refinanced by AkzoNobel before closing; merger is a change of control under the credit agreement |
2031 Dollar Senior Notes | 500 | — | 2031 | Issued November 2023 |
Revolving Credit Facility | Undrawn; USD 770 million available at 31 March 2026 net of USD 30 million letters of credit | Floating | 2029 | Plus USD 63 million of other non-US lines |
Analyst Conclusions
Management guidance. FY2026 Adjusted EBITDA of USD 1140–1170 million (a further record at any point in the range), Adjusted diluted EPS of USD 2.55–2.70, free cash flow above USD 500 million and low-single-digit sales growth, reaffirmed on 28 July 2026. First-half delivery (USD 564 million of Adjusted EBITDA) plus the Q3 guide of USD 295–305 million implies a fourth quarter of roughly USD 271–311 million, which is achievable against Q4 2025's USD 272 million. Management expects net leverage below 2.0x by year-end.
Consensus. Average target of about USD 36.71 against a share price in the mid-30s implies limited upside on stand-alone fundamentals; the stock is effectively trading on the merger exchange ratio and regulatory probability.
Bull case
-
Earnings quality has structurally improved. Adjusted EBITDA margin has risen every year since FY2022 and held at record levels through a 3% sales decline, showing that the gains are cost- and mix-driven rather than volume-dependent.
-
Volume recovery is optional upside. Commercial Vehicle has turned positive, Europe and Asia are growing organically and refinish pricing is intact; any normalisation of North American claims activity drops through at high incremental margins.
-
The merger crystallises value. About USD 600 million of synergies on a combined EBITDA base of roughly USD 2.7 billion before synergies, an investment-grade balance sheet, a dividend and index-eligible scale would address each of the reasons Axalta has traded at a discount.
Bear case
-
The top line is not growing. Net sales are below FY2023 levels, Industrial has contracted for three years and North America fell 12.6% in FY2025; cost-out cannot compound indefinitely.
-
Deal risk is asymmetric in the near term. Regulatory remedies in refinish could remove some of Axalta's highest-margin revenue, and a failed deal would leave a sub-investment-grade company that has spent a year under operating restrictions and more than USD 80 million of deal costs.
-
Structural pressure on refinish. Collision-avoidance technology, higher total-loss rates and insurer behaviour are secular headwinds for the segment that generates the largest share of profit.
Catalysts and monitorables (next 12 months)
| Item | Timing | Why it matters |
|---|---|---|
| European Commission Phase 1 decision | 22 October 2026, or later if remedies are offered | Clearance, remedies or a Phase 2 inquiry determines timing and value |
| Q3 2026 results | Late October 2026 | Delivery against USD 295–305 million Adjusted EBITDA guide; North American refinish volume trend |
| Other merger clearances (UK and remaining jurisdictions) | Q4 2026 – Q1 2027 | Conditions to closing |
| Combined-company name, ticker and listing mechanics | Before closing | Index and shareholder-base implications |
| Refinancing of the 2029 term loan and treatment of the June 2027 notes | Before closing / by June 2027 | Capital structure and rating outcome |
| FY2026 results and any combined-company guidance | February 2027 | First view of integration plan and synergy phasing |
| Merger outside date | 18 May 2027 (extendable to 18 November 2027) | Backstop |
| North American Class 8 production and insurance claims data | Ongoing | Lead indicators for Commercial Vehicle and Refinish |
| Raw-material and energy costs | Ongoing | Geopolitical caveat added in Q2 2026 |
Analyst verdict
Axalta enters the final quarter of 2026 as a better business than at any point since its 2014 listing and, simultaneously, as a company whose independent life is probably ending. Under the current management team the company has done the unglamorous work that its predecessors did not: it closed the price/cost gap, fixed a damaging ERP rollout, rebuilt Mobility margins from 7% to above 18%, cut net leverage from 3.8x to 2.2x and delivered three consecutive years of roughly USD 450 million of free cash flow. Record Adjusted EBITDA in a year when sales fell 3% is the clearest evidence that the improvement is structural.
The weakness is equally clear. Axalta has not found organic growth. Industrial has shrunk for three years, North American refinish volumes are under secular as well as cyclical pressure, reported R&D is thin, and working capital has quietly deteriorated. A stand-alone Axalta would be a high-margin, low-growth, cash-generative mid-cap with a sub-investment-grade rating, deserving a modest multiple.
That is why the AkzoNobel merger is the rational outcome. It supplies scale in procurement, a global powder leader, an investment-grade balance sheet and a credible synergy pool, while Axalta contributes the superior margin structure, the chair, the deputy CEO and the CFO. The attempted break-up bid for AkzoNobel by Nippon Paint and Sherwin-Williams confirmed that strategic buyers see more value in these assets than public markets have. The decisive variable is now regulatory: the extent of refinish remedies demanded in Europe and elsewhere will determine how much of Axalta's best business survives into the combination.
On balance the risk-reward is moderately favourable: stand-alone fundamentals support the current price, and a clean clearance offers upside through synergy participation. Investors should size positions for a binary regulatory event rather than for operating surprise.
End of dossier.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Salary | Stock awards | Non-equity incentive | All other | Total |
|---|---|---|---|---|---|---|
Chris Villavarayan | Chief Executive Officer and President; director | 1,100,000 | 7,389,552 | 973,391 | 88,778 | 9,551,721 |
Carl D. Anderson II | Senior Vice President and Chief Financial Officer | 709,901 | 1,915,797 | 438,512 | 57,378 | 3,121,588 |
Troy D. Weaver | President, Global Refinish | 614,804 | 1,231,575 | 283,162 | 49,799 | 2,179,340 |
Timothy Bowes | President, Global Industrial Coatings | 588,127 | 1,135,224 | 332,913 | 32,937 | 2,089,201 |
Hadi H. Awada | President, Global Mobility Coatings | 588,381 | 985,240 | 367,313 | 47,120 | 1,988,054 |
Executive Leadership Team — Chris Villavarayan
| Name | Role | Tenure | Prior roles |
|---|---|---|---|
Chris Villavarayan | CEO and President | Since 1 January 2023 | CEO and President of Meritor, Inc.; earlier Meritor operating roles |
Carl D. Anderson II | SVP and CFO; designated CFO of the combined company | Since August 2023 | CFO of XPO; CFO of Meritor |
Troy D. Weaver | President, Global Refinish | Long-tenured Axalta/DuPont refinish executive | Refinish commercial leadership |
Hadi H. Awada | President, Global Mobility Coatings | — | Automotive supplier leadership roles |
Timothy Bowes | President, Global Industrial Coatings | Since January 2025 | Senior roles at Meritor and Cummins |
Dr. Robert K. Roop | Senior Vice President and Chief Technology Officer (title as understood; recipient of the 2026 PCI Lifetime Achievement Award) | Long-tenured | Coatings R&D leadership |
General Counsel, CHRO, operations and supply chain leaders | Named on the company's executive team page | — | — |
Board of Directors
| Director | Role | Verification |
|---|---|---|
Rakesh Sachdev | Independent non-executive Chair; designated Chair of the combined company | Form 425 filings 2026 |
Chris Villavarayan | CEO and director; designated Deputy CEO of the combined company | Form 425 filings 2026 |
Jan A. Bertsch, William M. Cook, Tyrone M. Jordan, Deborah J. Kissire, Robert M. McLaughlin, Samuel L. Smolik, Mary S. Zappone | Independent directors | — |
Major Shareholders
| Holder category | Stake | Source |
|---|---|---|
Institutional holders, aggregate | Approximately 98.3% of shares | — |
Insiders, aggregate | Approximately 0.3% | Market data aggregator |
Competitive Landscape
Key Competitors
| Competitor | Refinish | Industrial | Light Vehicle OEM | Commercial Vehicle | Positioning relative to Axalta |
|---|---|---|---|---|---|
PPG Industries | Yes | Yes | Yes | Yes | Closest like-for-like rival across all four end-markets; larger and more diversified (aerospace, packaging, protective) |
BASF Coatings (majority sale to Carlyle announced 2025) | Yes | Limited | Yes | Yes | Strong in OEM and European refinish; now under private-equity control |
AkzoNobel | Yes | Yes (global powder leader) | Limited | Yes | Merger partner; overlap in refinish and powder |
Sherwin-Williams | Yes | Yes | Limited | Yes | Largest coatings company; strong in North American refinish and general industrial |
Nippon Paint Holdings | Regional | Yes | Yes (Asia) | Regional | Asian OEM strength; acquisitive |
Kansai Paint | Regional | Yes | Yes (Japan, India) | Regional | Japanese and Indian OEM incumbent |
KCC Corporation | Regional | Yes | Yes (Korea) | Regional | Korean OEM incumbent |
IDR Mn International | No | Yes | No | No | Industrial and specialty niches |
Jotun, Hempel | No | Yes (protective, powder) | No | No | Powder and protective overlap |
Local and regional refinish and powder producers | Yes | Yes | No | Limited | Price competition in economy tiers and emerging markets |
Peer Comparison FY2025
| Company | Latest verified revenue | Revenue growth | Adjusted EBITDA margin | R&D intensity | Note |
|---|---|---|---|---|---|
Axalta (FY2025) | USD 5117 million | -3.0% | 22.0% | 1.4% (income-statement line) | Form 10-K FY2025 |
PPG Industries (FY2024) | Approximately USD 15.8 billion | — | — | — | — |
Sherwin-Williams (FY2024) | Approximately USD 23.1 billion | — | — | — | — |
AkzoNobel (FY2024) | Approximately EUR 10.7 billion | — | — | — | Combined company pro forma EBITDA margin "approaching 20%" including synergies per merger release |
