Axalta Coating Systems Ltd. reported first quarter 2025 net sales of $1.26 billion, a 3% decline year over year due to foreign currency headwinds and lower volumes in Performance Coatings. However, net income rose 154% to $99 million, and adjusted EBITDA reached a first-quarter record of $270 million, up 4% year over year. Adjusted EBITDA margin improved 140 basis points to 21.4%.

Diluted earnings per share increased to $0.45 from $0.18, while adjusted diluted EPS rose 16% to $0.59. Cash provided by operating activities totaled $26 million for the quarter, with free cash flow use of $14 million.

Segment performance was mixed. Performance Coatings sales declined 3% to $822 million due to lower volumes and FX headwinds, though CoverFlexx contributed to growth. Refinish sales were down 2%, while Industrial sales dropped 6%. The segment delivered $197 million in adjusted EBITDA, with margin gains driven by lower costs.

Mobility Coatings sales fell 1% to $440 million. The segment recorded $73 million in adjusted EBITDA, up from $63 million in Q1 2024, with margins expanding to 16.5%.

“Axalta delivered record first-quarter adjusted EBITDA and continued earnings momentum despite a challenging macro environment,” said CEO and President Chris Villavarayan. “We remain focused on delivering on our A Plan, driving operating excellence and supporting customers.”

The company reaffirmed its full-year 2025 guidance, projecting $5.3 billion to $5.375 billion in net sales, adjusted EBITDA of $1.15 billion to $1.175 billion, and free cash flow of $475 million to $500 million.

See full results at https://ir.axalta.com/news/press-releases/detail/663/axalta-releases-first-quarter-2025-results.