| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 1.3K | 7.3% | 3.1% |
| Total Income | 1.3K | 7.3% | 3.1% |
| Expenditure | 1.2K | 6.4% | 6.0% |
| PBT | 134.00 | 27.6% | 6.3% |
| Net Profit | 89.00 | 1.1% | 18.4% |
| OPM | 12.41% | 0.76pp | 2.38pp |
| NPM | 6.61% | 0.56pp | 1.74pp |
| EPS | 0.42 | 0.0% | 16.0% |
Axalta Reports Q2 2026 Results with Record Adjusted EBITDA and Diluted EPS
28 Jul 2026 · 28 Jul, 3:39 pm
Summary
Axalta Coating Systems reported strong second quarter 2026 results, with net sales increasing 3% year over year to $1.35 billion. The company achieved record Adjusted EBITDA of $305 million and record Adjusted Diluted EPS of $0.72, up 13% year over year, driven by operational excellence and strong financial performance. Despite a decrease in net income due to merger and acquisition costs, management expressed confidence in the business model's earnings power and solid momentum heading into the second half of the year, also highlighting the upcoming merger of equals with AkzoNobel.
Key Highlights
- 1
Axalta announced second quarter net sales of $1.35 billion, representing a 3% increase year over year.
- 2
The company achieved a record quarter for Adjusted EBITDA, reaching $305 million with an Adjusted EBITDA margin of 22.7%.
- 3
Net income for the second quarter was $89 million, with a net income margin of 6.6%.
- 4
Diluted EPS was $0.41, while Adjusted Diluted EPS reached a record $0.72, an increase of 13% year over year.
- 5
Cash provided by operating activities increased by 7% year over year to $152 million.
- 6
Free cash flow for the quarter was $107 million, up 6% year over year.
- 7
Total net leverage reached 2.2x, marking the lowest point in Axalta's history.
Management Comments
Chris Villavarayan
We delivered an excellent second quarter with record Adjusted EBITDA and Adjusted Diluted EPS, expanded margins and generated strong free cash flow demonstrating the earnings power of our business model. Our team continues to drive operational excellence that underpins our consistent financial performance, and we carry solid momentum into the second half of the year. We look forward to Axalta's Special General Meeting on August 5 to approve the compelling merger of equals with AkzoNobel. This strategic combination creates a premier global coatings company and provides significant value creation opportunities for Axalta shareholders.
Informational and educational content only. Not investment advice.