Axalta Reports Stable Quarter Amid Cost Pressures
Axalta Coating Systems Ltd. reported net sales of $1.25 billion for the first quarter of 2026, a slight decrease year over year as foreign currency translation partially offset lower volumes.
Net income declined to $91 million, resulting in a net income margin of 7.3%, while adjusted net income reached $120 million. Adjusted EBITDA totaled $259 million, with a margin of 20.6%, slightly above the company’s first-quarter guidance.
“We delivered another quarter of excellent execution surpassing our expectations on revenue, Adjusted EBITDA and Adjusted Diluted EPS, while maintaining strong margins and improved cash flow generation,” said Chris Villavarayan, CEO and president.
Cash provided by operating activities reached a first-quarter record of $68 million, while free cash flow totaled $21 million, also a record for the period.
Segment performance varied, with Performance Coatings net sales declining year over year, while Mobility Coatings achieved record first-quarter net sales of $452 million, supported by growth in multiple regions and favorable currency effects.
The company said it continues to advance workstreams related to its proposed merger of equals with AkzoNobel and remains on track with its timeline.
Axalta maintained its full-year 2026 outlook, including adjusted EBITDA of $1.14 billion to $1.17 billion and free cash flow exceeding $500 million.
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