Axalta Reports Record Sales, Higher Net Income
Image courtesy of Axalta.
Axalta Coating Systems Ltd. has released its financial results for the fourth quarter and full year 2024, reporting record net sales and a significant increase in net income. The company’s net sales for the fourth quarter reached $1.3 billion, a 1% increase compared to the same period in 2023. Axalta’s net income for the quarter also saw a substantial increase, rising 85% to $137 million. The company’s net income margin for the fourth quarter was 10.5%, a year-over-year improvement of 480 basis points.
For the full year 2024, Axalta reported record net sales of $5.3 billion, a 2% increase compared to 2023. The company’s net income for the year also reached a new high, increasing 45% to $391 million. Axalta’s net income margin for the full year was 7.4%, a year-over-year improvement of 220 basis points.
Axalta’s strong financial performance was driven by a combination of factors, including favorable price-mix contributions, lower income tax expenses and the company’s ongoing 2024 Transformation Initiative. The company also benefited from lower variable costs and a $27 million deferred tax benefit recognition in the fourth quarter.
In addition to its record net sales and net income, Axalta also reported a significant increase in its Adjusted EBITDA for both the fourth quarter and full year 2024. The company’s Adjusted EBITDA for the fourth quarter reached $275 million, a 10% increase compared to the same period in 2023. For the full year, Axalta’s Adjusted EBITDA increased 17% to $1,116 million.
Axalta’s CEO and President, Chris Villavarayan, highlighted the company’s strong financial performance in a statement, saying, “Axalta's 2024 financial results were exceptional. We delivered record net sales and Adjusted EBITDA for the fourth quarter and full year in a challenging macro environment.”
Looking ahead, Axalta is projecting flat net sales for the first quarter of 2025, with full year net sales expected to be in the range of $5.35 billion to $5.4 billion. The company is also forecasting full year Adjusted EBITDA of $1.15 billion to $1.175 billion.
The full results can he found here.
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