Axalta Posts Record Year as It Sets Up Next Phase
Axalta Coating Systems Ltd. reported fourth-quarter and full-year 2025 financial results, citing record full-year adjusted EBITDA and improved adjusted EBITDA margin performance for the year ended Dec. 31, 2025.
For fourth quarter 2025, Axalta reported net sales of $1,262 million, net income of $60 million and adjusted EBITDA of $272 million. The company reported an adjusted EBITDA margin of 21.5% and free cash flow of $290 million for the quarter. Axalta said fourth-quarter net sales decreased 4% year over year, attributing the change primarily to lower volumes, partially offset by foreign currency translation and price-mix in Mobility Coatings.
For full year 2025, Axalta reported net sales of $5,117 million, net income of $379 million and adjusted EBITDA of $1,128 million. The company reported an adjusted EBITDA margin of 22.0% and free cash flow of $466 million for the year. Axalta said full-year net sales decreased 3% compared to the prior year, citing volume declines primarily in North America, partially offset by business wins, foreign currency translation and price-mix in three of four businesses.
In segment results, Axalta reported fourth-quarter Performance Coatings net sales of $791 million and Mobility Coatings net sales of $471 million. The company reported fourth-quarter segment adjusted EBITDA of $180 million for Performance Coatings and $92 million for Mobility Coatings, with Mobility Coatings adjusted EBITDA margin reported at 19.4%, an increase of 300 basis points year over year.
Axalta also provided 2026 guidance. For Q1 2026, the company projected adjusted EBITDA of $240 million to $250 million and adjusted diluted EPS of about $0.50. For full year 2026, Axalta projected adjusted EBITDA of $1,140 million to $1,170 million, adjusted diluted EPS of $2.55 to $2.70 and free cash flow of more than $500 million.
The company also reiterated details of its previously announced all-stock merger of equals with AkzoNobel, stating the transaction remains subject to shareholder and regulatory approvals and other customary closing conditions and is expected to close in late 2026 or early 2027.
Read the full results here.
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