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

Axalta Coating Systems (NYSE:AXTA) announced its quarterly earnings data on Tuesday. The specialty chemicals company reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.07, FiscalAI reports. Axalta Coating Systems had a net margin of 7.22% and a return on equity of 22.37%. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the firm posted $0.64 earnings per share. The firm’s quarterly revenue was up 3.1% compared to the same quarter last year. 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 Up 5.7%

Shares of NYSE AXTA opened at $35.65 on Tuesday. The company has a 50 day simple moving average of $32.48 and a 200 day simple moving average of $31.22. The firm has a market cap of $7.63 billion, a PE ratio of 20.78, a price-to-earnings-growth ratio of 1.60 and a beta of 1.24. Axalta Coating Systems has a 1 year low of $24.94 and a 1 year high of $35.72. The company has a debt-to-equity ratio of 1.27, a current ratio of 2.10 and a quick ratio of 1.53.

Hedge Funds Weigh In On Axalta Coating Systems

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Summit Securities Group LLC acquired a new position in Axalta Coating Systems in the fourth quarter valued at $32,000. Los Angeles Capital Management LLC acquired a new stake in Axalta Coating Systems in the fourth quarter valued at approximately $35,000. CIBC Private Wealth Group LLC increased its stake in Axalta Coating Systems by 2,174.6% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,615 shares of the specialty chemicals company’s stock valued at $52,000 after purchasing an additional 1,544 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Axalta Coating Systems in the fourth quarter worth approximately $69,000. Finally, Empowered Funds LLC purchased a new position in Axalta Coating Systems during the 4th quarter worth $78,000. 98.28% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Axalta Coating Systems

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

• Positive Sentiment: Axalta reported second-quarter adjusted earnings of $0.72 per share, exceeding the $0.65 analyst consensus by $0.07. Revenue reached $1.35 billion, ahead of the $1.31 billion estimate, supporting the positive market reaction. Axalta Coating Systems tops estimates, shares jump on results
• Positive Sentiment: The quarter produced a 22.37% return on equity and a 7.22% net margin, indicating continued profitability and operating efficiency in the specialty-coatings business. Axalta Releases Second Quarter 2026 Results
• Neutral Sentiment: Axalta maintained full-year 2026 EPS guidance of $2.55 to $2.70. The midpoint of $2.625 is slightly above the $2.59 consensus, but the lower end remains below expectations, leaving investors focused on demand trends and execution in the second half.
• Negative Sentiment: Third-quarter EPS guidance of $0.70 came in below the $0.72 analyst consensus. This suggests potential near-term pressure from market conditions, costs, or expected operating performance despite the second-quarter beat.

Analyst Ratings Changes

A number of brokerages have weighed in on AXTA. The Goldman Sachs Group set a $36.00 target price on Axalta Coating Systems in a report on Friday, May 1st. Citigroup assumed coverage on Axalta Coating Systems in a research report on Thursday, June 4th. They set a “buy” rating and a $44.00 price objective for the company. Royal Bank Of Canada lifted their target price on Axalta Coating Systems from $34.00 to $36.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Axalta Coating Systems in a research report on Tuesday, June 16th. Finally, Mizuho increased their target price on shares of Axalta Coating Systems from $32.00 to $39.00 and gave the stock an “outperform” rating in a report on Wednesday, July 1st. Four equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $35.67.

About Axalta Coating Systems

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.