Axalta Coating Systems (NYSE:AXTA) Issues Earnings Results

Axalta Coating Systems (NYSE:AXTA) issued its quarterly earnings data on Tuesday. The specialty chemicals company reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.07, FiscalAI reports. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.31 billion. Axalta Coating Systems had a return on equity of 22.37% and a net margin of 7.22%.The company’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.64 EPS. Axalta Coating Systems updated its FY 2026 guidance to 2.550-2.700 EPS and its Q3 2026 guidance to 0.700-0.700 EPS.

Here are the key takeaways from Axalta Coating Systems’ conference call:

• Record profitability and cash generation: Adjusted EBITDA rose 5% year over year to $305 million, with a 22.7% margin, while adjusted EPS increased 13% to $0.72. Operating cash flow reached $152 million and free cash flow was $107 million.
• Refinish momentum strengthened: Sales increased 6% as destocking largely abated and price mix improved. Axalta secured roughly 2,700 net body-shop wins through July, including approximately 800 North American MSO locations, supporting expected volume growth in the second half.
• Balance sheet continued to improve: Axalta reduced gross debt by $80 million during the quarter, lowering net leverage to a record-low 2.2 times and keeping the company on track to exit 2026 below 2 times.
• Guidance was maintained amid macro uncertainty: Management cited tariffs, geopolitical tensions and the situation in Iran while retaining full-year sales, EBITDA, EPS and free-cash-flow guidance. Third-quarter EBITDA is expected at $295 million to $305 million, with sales up low single digits.
• AkzoNobel merger remains on track: Shareholders are scheduled to vote on August 5, with closing expected in late 2026 or early 2027. Axalta continues to forecast approximately $600 million in annual run-rate cost synergies, although the quarter included $31 million of merger-related costs that reduced GAAP net income.

Axalta Coating Systems Stock Performance

Shares of AXTA stock opened at $35.46 on Tuesday. The company has a debt-to-equity ratio of 1.27, a quick ratio of 1.53 and a current ratio of 2.10. The firm has a market cap of $7.59 billion, a price-to-earnings ratio of 20.65, a P/E/G ratio of 1.60 and a beta of 1.24. Axalta Coating Systems has a 52 week low of $24.94 and a 52 week high of $35.72. The firm’s 50-day simple moving average is $32.48 and its two-hundred day simple moving average is $31.22.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AXTA. Goldman Sachs Group Inc. increased its stake in shares of Axalta Coating Systems by 4.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,161,682 shares of the specialty chemicals company’s stock worth $38,533,000 after purchasing an additional 51,130 shares during the last quarter. Jane Street Group LLC boosted its stake in Axalta Coating Systems by 29.0% in the 1st quarter. Jane Street Group LLC now owns 156,122 shares of the specialty chemicals company’s stock worth $5,179,000 after purchasing an additional 35,092 shares during the period. Invesco Ltd. lifted its holdings in shares of Axalta Coating Systems by 8.5% in the second quarter. Invesco Ltd. now owns 406,511 shares of the specialty chemicals company’s stock worth $12,069,000 after buying an additional 31,759 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Axalta Coating Systems by 371.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,501 shares of the specialty chemicals company’s stock valued at $104,000 after acquiring an additional 2,758 shares during the period. Finally, First Trust Advisors LP grew its stake in Axalta Coating Systems by 22.0% during the second quarter. First Trust Advisors LP now owns 318,122 shares of the specialty chemicals company’s stock valued at $9,445,000 after acquiring an additional 57,440 shares in the last quarter. 98.28% of the stock is owned by institutional investors.

Trending Headlines about Axalta Coating Systems

Here are the key news stories impacting Axalta Coating Systems this week:

• Positive Sentiment: Axalta reported second-quarter adjusted earnings of $0.72 per share, exceeding the $0.65 analyst consensus by $0.07. Revenue reached $1.35 billion, ahead of the $1.31 billion estimate, supporting the positive market reaction. Axalta Coating Systems tops estimates, shares jump on results
• Positive Sentiment: The quarter produced a 22.37% return on equity and a 7.22% net margin, indicating continued profitability and operating efficiency in the specialty-coatings business. Axalta Releases Second Quarter 2026 Results
• Neutral Sentiment: Axalta maintained full-year 2026 EPS guidance of $2.55 to $2.70. The midpoint of $2.625 is slightly above the $2.59 consensus, but the lower end remains below expectations, leaving investors focused on demand trends and execution in the second half.
• Negative Sentiment: Third-quarter EPS guidance of $0.70 came in below the $0.72 analyst consensus. This suggests potential near-term pressure from market conditions, costs, or expected operating performance despite the second-quarter beat.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AXTA. Royal Bank Of Canada lifted their target price on Axalta Coating Systems from $34.00 to $36.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 8th. UBS Group raised their price objective on Axalta Coating Systems from $31.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Citigroup started coverage on shares of Axalta Coating Systems in a report on Thursday, June 4th. They set a “buy” rating and a $44.00 price objective on the stock. Wall Street Zen upgraded shares of Axalta Coating Systems to a “buy” rating in a research note on Saturday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Axalta Coating Systems in a report on Tuesday, June 16th. Four research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $35.67.

Axalta Coating Systems Company Profile

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company’s product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.