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

Axalta Coating Systems (NYSE:AXTA) issued its quarterly earnings results on Thursday. The specialty chemicals company reported $0.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($0.07), Zacks reports. The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.33 billion. Axalta Coating Systems had a return on equity of 22.35% and a net margin of 6.78%. The firm’s revenue was up 1.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.67 earnings per share.

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

• Full-year outlook was reduced after weaker-than-expected European Refinish volumes and increased macroeconomic uncertainty. Axalta now expects fourth-quarter sales to be roughly flat year over year, fourth-quarter adjusted EBITDA of $254 million–$264 million, and full-year adjusted EBITDA of approximately $1.10 billion–$1.11 billion.
• Mobility Coatings delivered a record quarter, with sales up 7% to $493 million and adjusted EBITDA up 13% to $94 million. Commercial Vehicle sales surged 24%, while Light Vehicle volumes remained roughly flat despite global production declining nearly 2%.
• Third-quarter adjusted EBITDA declined 4% to $282 million, pressured by lower European Refinish volumes, freight costs rising more than 15%, higher raw-material costs, and investments to convert major body-shop wins. Management also expects near-term margin pressure as those conversions accelerate.
• Cash generation and leverage improved significantly: year-to-date free cash flow rose 25% to $220 million, while gross debt fell below $3 billion and net leverage reached a record-low 2.1 times. Excluding merger-related costs, underlying free cash flow was up nearly 50%.
• The proposed AkzoNobel merger remains on track for an early-2027 closing, with regulatory clearance secured in two-thirds of required jurisdictions. Management continues to target approximately $600 million of annual run-rate cost synergies, with about 90% expected within three years after closing.

Axalta Coating Systems Price Performance

Shares of NYSE:AXTA opened at $33.57 on Friday. The firm has a market cap of $7.18 billion, a price-to-earnings ratio of 20.72, a P/E/G ratio of 1.87 and a beta of 1.26. The firm has a fifty day moving average price of $34.03 and a 200 day moving average price of $32.34. Axalta Coating Systems has a fifty-two week low of $24.94 and a fifty-two week high of $38.61. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.12 and a current ratio of 1.53.

Key Headlines Impacting Axalta Coating Systems

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

• Positive Sentiment: Third-quarter revenue rose 1.8% year over year to approximately $1.31 billion, indicating modest underlying demand growth. Axalta reports higher Q3 sales but lower net income
• Positive Sentiment: Management projected 2026 adjusted EBITDA of approximately $1.10 billion to $1.11 billion, signaling continued confidence in full-year profitability and cost discipline. Axalta anticipates 2026 adjusted EBITDA
• Neutral Sentiment: Ariel Global Fund said a potential combination with Akzo Nobel could offer meaningful cost-saving opportunities. However, this reflects investor commentary rather than a confirmed transaction or company announcement. Axalta merger with Akzo Nobel offers cost-saving potential
• Negative Sentiment: Adjusted earnings were $0.63 per share, below analyst estimates ranging from $0.70 to $0.71 and down from $0.67 a year earlier. Revenue also missed the approximately $1.33 billion consensus estimate. Axalta Q3 earnings and revenues miss estimates
• Negative Sentiment: Net income declined to about $95 million, while the company guided to fourth-quarter adjusted EPS of roughly $0.55. The outlook suggests profitability may remain pressured in the near term, contributing to the stock’s decrease. Axalta releases third-quarter 2026 results

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AXTA. The Goldman Sachs Group reaffirmed a “buy” rating and set a $38.00 price target on shares of Axalta Coating Systems in a report on Friday, October 9th. Royal Bank Of Canada boosted their target price on Axalta Coating Systems from $34.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Wednesday, July 8th. Barclays initiated coverage on shares of Axalta Coating Systems in a research note on Monday, October 12th. They set an “overweight” rating and a $45.00 target price on the stock. KeyCorp reaffirmed an “overweight” rating on shares of Axalta Coating Systems in a report on Monday, October 5th. Finally, Weiss Ratings upgraded shares of Axalta Coating Systems from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $39.10.

About Axalta Coating Systems

Axalta Coating Systems Ltd. (NYSE: AXTA) develops, manufactures and sells coatings and coating technologies designed to protect, enhance and improve the appearance of vehicles, equipment and industrial products. Its offerings include liquid, powder and electrocoat products, along with related color-management tools, application technologies and technical services.

The company serves several markets, including automotive original equipment manufacturers, automotive refinish businesses, commercial transportation, industrial equipment, architecture and general manufacturing.