Overview

* Axalta Q2 net sales fall 3% yr/yr, missing analyst expectations, per LSEG data

* Record Adjusted EBITDA of $292 mln, margin expands 90 basis points yr/yr

* Adjusted EPS rises 5% to $0.64, beating analyst expectations, per LSEG data

Outlook

* Axalta projects Q3 2025 net sales growth in low single digits

* Axalta expects Q3 2025 adjusted diluted EPS of $0.63-$0.67

* Axalta forecasts FY 2025 net sales of $5.2 bln-$5.275 bln

* Company anticipates FY 2025 adjusted EBITDA of $1.14 bln-$1.165 bln

* Axalta expects FY 2025 free cash flow of $475 mln-$500 mln

Result Drivers

* VOLUME DECLINES - Axalta's net sales fell 3% due to volume declines, particularly in Performance Coatings

* RESTRUCTURING COSTS - Restructuring programs impacted net income, but were offset by lower operating expenses

* MOBILITY COATINGS - Segment saw margin expansion due to positive price-mix and cost management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.30 $1.32

bln bln (15

Analysts

)

Q2 Beat $0.64 $0.61

Adjusted (17

EPS Analysts

)

Q2 EPS $0.5

Q2 $139 mln

Adjusted

Net

Income

Q2 Net $110 mln

Income

Q2 $193 mln

Income

from

operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commodity chemicals peer group is "buy"

* Wall Street's median 12-month price target for Axalta Coating Systems Ltd ( AXTA ) is $38.50, about 25.5% above its July 29 closing price of $28.70

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)