Axalta Coating Systems (NYSE:AXTA) Announces Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Axalta Coating Systems (NYSE:AXTA) released its quarterly earnings results on Tuesday. The specialty chemicals company reported $0.72 EPS for the quarter, topping the consensus estimate of $0.65 by $0.07, FiscalAI reports. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.31 billion. Axalta Coating Systems had a return on equity of 22.37% and a net margin of 7.22%.Axalta Coating Systems’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.64 EPS. Axalta Coating Systems updated its FY 2026 guidance to 2.550-2.700 EPS and its Q3 2026 guidance to 0.700-0.700 EPS.

Here are the key takeaways from Axalta Coating Systems’ conference call:

• Record profitability and cash generation: Adjusted EBITDA rose 5% year over year to $305 million, with a 22.7% margin, while adjusted EPS increased 13% to $0.72. Operating cash flow reached $152 million and free cash flow was $107 million.
• Refinish momentum strengthened: Sales increased 6% as destocking largely abated and price mix improved. Axalta secured roughly 2,700 net body-shop wins through July, including approximately 800 North American MSO locations, supporting expected volume growth in the second half.
• Balance sheet continued to improve: Axalta reduced gross debt by $80 million during the quarter, lowering net leverage to a record-low 2.2 times and keeping the company on track to exit 2026 below 2 times.
• Guidance was maintained amid macro uncertainty: Management cited tariffs, geopolitical tensions and the situation in Iran while retaining full-year sales, EBITDA, EPS and free-cash-flow guidance. Third-quarter EBITDA is expected at $295 million to $305 million, with sales up low single digits.
• AkzoNobel merger remains on track: Shareholders are scheduled to vote on August 5, with closing expected in late 2026 or early 2027. Axalta continues to forecast approximately $600 million in annual run-rate cost synergies, although the quarter included $31 million of merger-related costs that reduced GAAP net income.

Axalta Coating Systems Stock Down 0.9%

AXTA stock traded down $0.32 during midday trading on Wednesday, hitting $35.12. 145,062 shares of the company’s stock were exchanged, compared to its average volume of 2,722,466. The firm has a 50 day moving average price of $32.63 and a 200-day moving average price of $31.24. Axalta Coating Systems has a 12-month low of $24.94 and a 12-month high of $35.98. The stock has a market capitalization of $7.52 billion, a price-to-earnings ratio of 20.45, a price-to-earnings-growth ratio of 1.65 and a beta of 1.24. The company has a current ratio of 2.10, a quick ratio of 1.53 and a debt-to-equity ratio of 1.27.

Institutional Trading of Axalta Coating Systems

Hedge funds have recently made changes to their positions in the stock. Rothschild Wealth LLC acquired a new stake in Axalta Coating Systems in the fourth quarter valued at $256,000. Principal Securities Inc. grew its holdings in Axalta Coating Systems by 7.5% during the 4th quarter. Principal Securities Inc. now owns 7,292 shares of the specialty chemicals company’s stock worth $236,000 after acquiring an additional 511 shares in the last quarter. Brooklyn Investment Group grew its holdings in Axalta Coating Systems by 636.3% during the 3rd quarter. Brooklyn Investment Group now owns 8,048 shares of the specialty chemicals company’s stock worth $230,000 after acquiring an additional 6,955 shares in the last quarter. CIBC Asset Management Inc bought a new stake in shares of Axalta Coating Systems in the 4th quarter worth about $223,000. Finally, Smartleaf Asset Management LLC increased its position in shares of Axalta Coating Systems by 939.3% in the 4th quarter. Smartleaf Asset Management LLC now owns 6,776 shares of the specialty chemicals company’s stock worth $222,000 after purchasing an additional 6,124 shares during the last quarter. Institutional investors and hedge funds own 98.28% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on AXTA shares. Mizuho lifted their price objective on shares of Axalta Coating Systems from $32.00 to $39.00 and gave the company an “outperform” rating in a research note on Wednesday, July 1st. Weiss Ratings restated a “hold (c)” rating on shares of Axalta Coating Systems in a research note on Tuesday, June 16th. Wells Fargo & Company lowered shares of Axalta Coating Systems from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $39.00 to $30.00 in a report on Friday, April 10th. Wall Street Zen raised shares of Axalta Coating Systems to a “buy” rating in a research note on Saturday. Finally, Royal Bank Of Canada boosted their price objective on shares of Axalta Coating Systems from $34.00 to $36.00 and gave the stock a “sector perform” rating in a report on Wednesday, July 8th. Four analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, Axalta Coating Systems currently has a consensus rating of “Hold” and an average price target of $36.00.

Axalta Coating Systems News Summary

Here are the key news stories impacting Axalta Coating Systems this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: Axalta reported adjusted earnings of $0.72 per share, versus the $0.65 consensus estimate and $0.64 a year earlier. Revenue increased 3.1% year over year to $1.35 billion, exceeding expectations of $1.31 billion. Axalta Releases Second Quarter 2026 Results
• Positive Sentiment: Profitability showed improvement: The quarter featured strong EBITDA growth, while return on equity reached 22.37% and net margin was 7.22%. The earnings beat and stronger operating performance were the primary catalysts behind the favorable investor reaction. Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Full-year outlook remains broadly in line: Axalta maintained fiscal 2026 EPS guidance of $2.55 to $2.70, compared with analyst expectations of $2.59. The midpoint is slightly above consensus, but the range indicates limited upside relative to current forecasts. Q2 Earnings and Revenues Surpass Estimates
• Negative Sentiment: Q3 guidance trails expectations: Axalta forecast third-quarter EPS of $0.70, below the $0.72 consensus estimate. This more cautious near-term outlook could temper enthusiasm following the quarterly earnings beat. Axalta Tops Estimates
• Neutral Sentiment: Baird raised its price target: Robert W. Baird increased its target from $35 to $37 but retained a “neutral” rating, implying only modest additional upside from the reported $35.52 reference price.

Axalta Coating Systems Company Profile

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company’s product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.