Axalta Releases First Quarter 2025 Results

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Axalta achieves record Q1 profitability and significant margin expansion despite revenue headwinds, demonstrating effective cost management and operational excellence.

Axalta delivered impressive profitability improvements in Q1 2025 despite moderate top-line pressure. While net sales decreased 3% to $1.26 billion (entirely due to currency translation headwinds), the company achieved substantial bottom-line growth with net income surging 154% to $99 million.

The dramatic net income increase primarily reflects the absence of $55 million in transformation expenses recorded in the prior year. However, even the adjusted metrics show meaningful operational improvements:

Record Q1 Adjusted EBITDA of $270 million, up 4% year-over-year
Adjusted EBITDA margin expanded 140 basis points to 21.4%
Adjusted diluted EPS increased 16% to $0.59

Both business segments achieved notable margin expansion despite volume challenges. Performance Coatings (representing 65% of sales) improved margins by 100 basis points to 24.1%. More impressively, Mobility Coatings expanded margins by 230 basis points to 16.5% with Adjusted EBITDA rising 16% year-over-year.

Working capital increases led to slightly weaker cash generation, with operating cash flow at $26 million (down from $34 million) and negative free cash flow of $14 million. However, full-year guidance projects robust free cash flow of $475-$500 million, suggesting Q1 cash dynamics are seasonal rather than structural.

Management's Q2 outlook projects continued margin strength with Adjusted EBITDA of $280-$290 million despite expecting a low-single-digit sales decline. The full-year guidance reinforces confidence in the company's ability to drive profitability improvements through operational excellence despite challenging global economic conditions.

Axalta's results demonstrate effective execution of its "A Plan" strategy, prioritizing margin expansion and cost discipline while navigating volume constraints. The consistent profitability improvements across both segments indicate systematic operational enhancements rather than isolated successes.

05/07/2025 - 06:00 AM

PHILADELPHIA, May 07, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems Ltd. (NYSE:AXTA) (鈥淎xalta鈥�), a leading global coatings company, announced its financial results for the first quarter ended March听31, 2025.

First Quarter 2025 Highlights:

First quarter net sales of $1.26 billion
Net income increased 154% year over year to $99 million; net income margin of 7.8%
Record first quarter Adjusted EBITDA of $270 million, an increase of 4% year over year
Adjusted EBITDA margin improved 140 basis points year over year to 21.4%
Diluted EPS increased 150% to $0.45 and Adjusted Diluted EPS increased 16% to $0.59, first quarter records
Won two Edison Awards鈩� and a BIG Innovation Award for technology advancements in automotive materials and electrical systems

First Quarter 2025 Consolidated Financial Results

Net sales decreased 3% year over year to $1.26 billion in the first quarter of 2025, inclusive of a 3% headwind from foreign currency translation. Contributions from the CoverFlexx acquisition and favorable price-mix were offset by volume declines primarily in Performance Coatings.

Net income increased by 154% year over year to $99 million resulting in a net income margin of 7.8%. The increase was largely due to the $55 million of expenses recorded in the prior year period related to our 2024 Transformation Initiative. Adjusted net income improved by $16 million year over year to $129 million driven by lower operating and variable costs. Adjusted EBITDA increased by 4% to $270 million compared to $259 million in the prior year period. Adjusted EBITDA margin expanded by 140 basis points to 21.4%. Diluted earnings per share increased by 150% to $0.45 compared to $0.18 in the prior year period. Adjusted diluted earnings per share improved by 16% to $0.59.

In the first quarter of 2025, cash provided by operating activities was $26 million compared to $34 million in the same period last year. The year-over-year decrease in cash provided by operating activities was driven primarily by increases in working capital partially offset by higher earnings. Free cash flow was a use of $14 million in the first quarter of 2025 compared to $15 million in the prior year period, primarily driven by lower cash provided by operating activities and an increase in planned capital expenditures.

Discussion of Segment Results

Performance Coatings first quarter 2025 net sales were $822 million, down 3% compared to the prior year period primarily driven by volume declines and the impact of foreign currency headwinds, partially offset by contributions from CoverFlexx. Refinish net sales declined 2% year over year to $511 million, inclusive of a 3% currency headwind. Organic net sales for Refinish were down 1% year over year and CoverFlexx contributed 270 basis points of growth. Industrial net sales decreased by 6% year over year to $311 million as positive price-mix was more than offset by lower volumes and foreign currency translation headwinds.

The Performance Coatings segment generated Adjusted EBITDA of $197 million compared to $196 million in the prior year period, with Adjusted EBITDA margins of 24.1% and 23.1%, respectively. Lower operating expenses and lower variable costs drove the increases in segment Adjusted EBITDA and Adjusted EBITDA margin.

Mobility Coatings first quarter 2025 net sales were $440 million, a decrease of 1% from the prior year period. Light Vehicle net sales declined 1% year over year to $340 million, as 2% organic growth was more than offset by a 3% foreign currency translation headwind. Commercial Vehicle net sales decreased by 3% year over year to $100 million due to lower volumes from Class 8 builds in North America and Latin America. Mobility Coatings price-mix was positive, contributing a 2% benefit year over year.

The Mobility Coatings segment generated Adjusted EBITDA of $73 million in the first quarter compared to $63 million in the prior year period, with margins of 16.5% and 14.2%, respectively. The increases in segment Adjusted EBITDA and segment Adjusted EBITDA margin were driven by positive price-mix, lower variable costs, and lower operating costs.

鈥淲e achieved a record first quarter Adjusted EBITDA, expanded Adjusted Diluted EPS by 16% and continued accelerating our performance in challenging global economic conditions,鈥� said Chris Villavarayan, CEO and President of Axalta. 鈥淥ur One Axalta culture is driving sustained operating improvement and is positioning the company to achieve long term success in an uncertain environment. We remain focused on delivering on our A Plan, driving operating excellence and providing exceptional solutions and service for our customers.鈥�

Second Quarter and Full Year 2025 Outlook

(in millions, except %鈥檚 and per share data)	听	Projection
听	听	听	听
Item	听	Q2 2025	FY 2025
听	听	听	听
Net Sales (YoY % growth for Q2 2025)	听	(LSD)	$5,300 -$5,375
Adjusted EBITDA	听	$280 - $290	$1,150 - $1,175
Adjusted Diluted EPS	听	$0.60 - $0.63	$2.50 - $2.60
Free Cash Flow	听	听	$475 - $500
Depreciation and Amortization	听	听	~$285
Tax Rate, As Adjusted	听	听	~25%
Diluted Shares Outstanding	听	听	~219
Interest Expense	听	听	~$180
Capex	听	听	$175 - $190

^{LSD = low single digit percentage}

Axalta does not provide a reconciliation for non-GAAP estimates for Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow or tax rate, as adjusted, on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. See 鈥淣on-GAAP Financial Measures鈥� for more information.

Conference Call Information

Axalta will hold a conference call to discuss its first quarter 2025 financial results on Wednesday, May 7, 2025, at 8:00 a.m. ET. A live webcast of the conference call will be available online at . A replay of the webcast will be posted shortly after the call and will remain accessible through May 7, 2026. The dial-in phone number for the conference call is 1-800-245-3047 and the conference ID is AXALTA. For those unable to participate, a replay will be available through May 14, 2025. The replay dial-in number is +1-844-512-2921. The replay passcode is 11158545.

Cautionary Statement Concerning Forward-Looking Statements

This release may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited to, statements regarding our previously announced three-year 2024-2026 strategy (the 鈥�2026 A Plan鈥�), and our outlook and/or guidance, which includes net sales, net sales growth, Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, depreciation and amortization, tax rate, as adjusted, diluted shares outstanding, interest expense and capital expenditures. Axalta has identified some of these forward-looking statements with words such as 鈥渙utlook,鈥� 鈥渓ong term,鈥� and 鈥減rojection,鈥� and the negative of these words or other comparable or similar terminology. All of these statements are based on management鈥檚 expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, including the tariffs imposed by the U.S. and any retaliatory actions from other countries, and technological factors outside of Axalta鈥檚 control, as well as risks related to the execution of, and assumptions underlying, the 2024 Transformation Initiative and the 2026 A Plan, that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect Axalta鈥檚 financial results is available in 鈥淔orward-Looking Statements,鈥� 鈥淩isk Factors鈥� and 鈥淢anagement鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥� within Axalta鈥檚 most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission ("SEC"). Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This release includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (鈥淕AAP鈥�), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, tax rate, as adjusted, and Adjusted EBIT. Management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, tax rate, as adjusted, and Adjusted EBIT in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Management uses Free Cash Flow in the analysis of (1) our liquidity, (2) our ability to incur and service our debt and (3) strategic capital allocation decisions. Adjusted EBITDA, Adjusted Diluted EPS, adjusted net income and Adjusted EBIT consist of EBITDA, Diluted EPS, net income attributable to common shareholders and EBIT, respectively, adjusted for (i) certain non-cash items included within net income, (ii) certain items Axalta does not believe are indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items that have not otherwise occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Free Cash Flow consists of cash provided by (used for) operating activities less purchase of property, plant and equipment plus interest proceeds on swaps designated as net investment hedges. We believe that making the foregoing adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. The non-GAAP financial measures used by Axalta may differ from similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, tax rate, as adjusted, and Adjusted EBIT should not be considered as alternatives to net sales, net income (loss), income (loss) from operations or any other financial measures derived in accordance with GAAP. These non-GAAP financial measures have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This release includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Axalta does not provide a reconciliation for Adjusted EBITDA, Adjusted Diluted EPS, tax rate, as adjusted, or Free Cash Flow on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include the impact of foreign currency exchange gains or losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. These items are uncertain, depend on various factors and may have a substantial and unpredictable impact on our GAAP results.

Non-GAAP Reporting Changes

Beginning with the results for the fourth quarter and full year 2024, we have made changes to our presentation of the non-GAAP financial measures of adjusted net income (which is also leveraged in the calculation of Adjusted Diluted EPS) and Adjusted EBIT. More detail on these changes can be found in the Current Report on Form 8-K we furnished to the SEC on January 21, 2025, which is available on the investor relations portion of our website at . Nothing on our website shall be deemed to be incorporated by reference into this release.

Segment Financial Measures

The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results and that management believes reflects Axalta鈥檚 core operating performance. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP is not available.

Organic Net Sales

Organic net sales are calculated by excluding (i) the impact of the change in average exchange rates between the current and comparable period by currency denomination exposure of the comparable period amount and (ii) net sales of CoverFlexx.

Defined Terms

All capitalized terms contained within this release that are not otherwise defined herein have been previously defined in our filings with the SEC.

Rounding

Certain amounts may not foot or crossfoot due to rounding. Additionally, certain percentages may not recalculate due to rounding.

About Axalta Coating Systems

Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 140 countries better every day with the finest coatings, application systems and technology. For more information visit axalta.com and follow us @axalta on X.

听
Financial Statement Tables
AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
听
听	听	Three Months Ended听March 31,
听	听	听	2025	听	听	听	2024	听
Net sales	听	$	1,262	听	听	$	1,294	听
Cost of goods sold	听	听	829	听	听	听	865	听
Selling, general and administrative expenses	听	听	202	听	听	听	207	听
Other operating charges	听	听	14	听	听	听	61	听
Research and development expenses	听	听	17	听	听	听	18	听
Amortization of acquired intangibles	听	听	24	听	听	听	22	听
Income from operations	听	听	176	听	听	听	121	听
Interest expense, net	听	听	44	听	听	听	54	听
Other expense, net	听	听	3	听	听	听	8	听
Income before income taxes	听	听	129	听	听	听	59	听
Provision for income taxes	听	听	30	听	听	听	20	听
Net income	听	听	99	听	听	听	39	听
Less: Net loss attributable to noncontrolling interests	听	听	鈥�	听	听	听	(2	)
Net income attributable to common shareholders	听	$	99	听	听	$	41	听
Basic net income per share	听	$	0.45	听	听	$	0.18	听
Diluted net income per share	听	$	0.45	听	听	$	0.18	听
Basic weighted average shares outstanding	听	听	218.3	听	听	听	220.3	听
Diluted weighted average shares outstanding	听	听	219.4	听	听	听	221.3	听

AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except per share data)
听
听	听	March 31, 2025			听	December 31, 2024
Assets	听	听			听	听
Current assets:	听	听			听	听
Cash and cash equivalents	听	$	575	听	听	$	593	听
Restricted cash	听	听	3	听	听	听	3	听
Accounts and notes receivable, net	听	听	1,282	听	听	听	1,248	听
Inventories	听	听	787	听	听	听	734	听
Prepaid expenses and other current assets	听	听	174	听	听	听	145	听
Total current assets	听	听	2,821	听	听	听	2,723	听
Property, plant and equipment, net	听	听	1,199	听	听	听	1,181	听
Goodwill	听	听	1,677	听	听	听	1,640	听
Identifiable intangibles, net	听	听	1,146	听	听	听	1,149	听
Other assets	听	听	568	听	听	听	556	听
Total assets	听	$	7,411	听	听	$	7,249	听
Liabilities, Shareholders鈥� Equity	听	听			听	听
Current liabilities:	听	听			听	听
Accounts payable	听	$	732	听	听	$	659	听
Current portion of borrowings	听	听	20	听	听	听	20	听
Other accrued liabilities	听	听	578	听	听	听	675	听
Total current liabilities	听	听	1,330	听	听	听	1,354	听
Long-term borrowings	听	听	3,398	听	听	听	3,401	听
Accrued pensions	听	听	223	听	听	听	220	听
Deferred income taxes	听	听	153	听	听	听	151	听
Other liabilities	听	听	185	听	听	听	167	听
Total liabilities	听	听	5,289	听	听	听	5,293	听
Shareholders鈥� equity:	听	听			听	听
Common shares, $1.00 par, 1,000.0 shares authorized, 255.0 and 254.5 shares issued at March听31, 2025 and December听31, 2024, respectively	听	听	255	听	听	听	255	听
Capital in excess of par	听	听	1,602	听	听	听	1,599	听
Retained earnings	听	听	1,776	听	听	听	1,677	听
Treasury shares, at cost, 36.4 shares at March听31, 2025 and December听31, 2024	听	听	(1,037	)	听	听	(1,037	)
Accumulated other comprehensive loss	听	听	(520	)	听	听	(582	)
Total Axalta shareholders鈥� equity	听	听	2,076	听	听	听	1,912	听
Noncontrolling interests	听	听	46	听	听	听	44	听
Total shareholders鈥� equity	听	听	2,122	听	听	听	1,956	听
Total liabilities and shareholders鈥� equity	听	$	7,411	听	听	$	7,249	听

AXALTA COATING SYSTEMS LTD.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
听
听	听	Three Months Ended听March 31,
听	听	听	2025	听	听	听	2024	听
Operating activities:	听	听			听	听
Net income	听	$	99	听	听	$	39	听
Adjustment to reconcile net income to cash provided by operating activities:	听	听			听	听
Depreciation and amortization	听	听	70	听	听	听	68	听
Amortization of deferred financing costs and original issue discount	听	听	2	听	听	听	2	听
Debt extinguishment and refinancing-related costs	听	听	鈥�	听	听	听	3	听
Deferred income taxes	听	听	8	听	听	听	6	听
AG真人官方ized and unrealized foreign exchange losses, net	听	听	8	听	听	听	9	听
Stock-based compensation	听	听	5	听	听	听	6	听
Interest income on swaps designated as net investment hedges	听	听	(3	)	听	听	(3	)
Other non-cash, net	听	听	(1	)	听	听	2	听
Changes in operating assets and liabilities:	听	听			听	听
Trade accounts and notes receivable	听	听	(18	)	听	听	4	听
Inventories	听	听	(37	)	听	听	(20	)
Prepaid expenses and other assets	听	听	(59	)	听	听	(40	)
Accounts payable	听	听	66	听	听	听	11	听
Other accrued liabilities	听	听	(106	)	听	听	(75	)
Other liabilities	听	听	(8	)	听	听	22	听
听听Cash provided by operating activities	听	听	26	听	听	听	34	听
Investing activities:	听	听			听	听
Acquisition, net of cash acquired	听	听	(6	)	听	听	鈥�	听
Purchase of property, plant and equipment	听	听	(43	)	听	听	(22	)
Interest proceeds on swaps designated as net investment hedges	听	听	3	听	听	听	3	听
Other investing activities, net	听	听	2	听	听	听	鈥�	听
听听Cash used for investing activities	听	听	(44	)	听	听	(19	)
Financing activities:	听	听			听	听
Proceeds from long-term borrowings	听	听	鈥�	听	听	听	107	听
Payments on short-term borrowings	听	听	鈥�	听	听	听	(5	)
Payments on long-term borrowings	听	听	(5	)	听	听	(183	)
Financing-related costs	听	听	鈥�	听	听	听	(2	)
Net cash flows associated with stock-based awards	听	听	(2	)	听	听	1	听
Other financing activities, net	听	听	(1	)	听	听	鈥�	听
听听Cash used for financing activities	听	听	(8	)	听	听	(82	)
听听Decrease in cash	听	听	(26	)	听	听	(67	)
Effect of exchange rate changes on cash	听	听	8	听	听	听	(9	)
Cash at beginning of period	听	听	596	听	听	听	703	听
Cash at end of period	听	$	578	听	听	$	627	听
听	听	听			听	听
Cash at end of period reconciliation:	听	听			听	听
Cash and cash equivalents	听	$	575	听	听	$	624	听
Restricted cash	听	听	3	听	听	听	3	听
听Cash at end of period	听	$	578	听	听	$	627	听

The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods presented (in millions):

听

Twelve Months Ended听March听31, 2025

听

Three Months Ended听March 31,

听

Year Ended听December听31, 2024

听

2025

听

2024

听

Net income

听

451

听

391

听

Interest expense, net

听

195

听

205

听

Provision for income taxes

听

115

听

105

听

Depreciation and amortization

听

282

听

280

听

EBITDA

听

1,043

听

243

听

181

听

981

听

Debt extinguishment and refinancing-related costs听^(a)

听

鈥�

听

Termination benefits and other employee-related costs听^(b)

听

Acquisition and divestiture-related costs听^(c)

听

Site closure costs听^(d)

听

Foreign exchange remeasurement losses听^(e)

听

Long-term employee benefit plan adjustments听^(f)

听

Stock-based compensation听^(g)

听

Environmental charge听^(h)

听

鈥�

听

鈥�

听

Other adjustments听⁽ⁱ⁾

听

鈥�

听

鈥�

听

)

听

)

Adjusted EBITDA

听

1,127

听

270

听

259

听

1,116

听

Net sales

听

5,244

听

1,262

听

1,294

听

5,276

听

Net income margin

听

8.6

听

7.8

听

3.0

听

7.4

Adjusted EBITDA margin

听

21.5

听

21.4

听

20.0

听

21.2

听

Segment Adjusted EBITDA:

听

Performance Coatings

听

839

听

197

听

196

听

838

听

Mobility Coatings

听

288

听

278

听

Total

听

1,127

听

270

听

259

听

1,116

听

^(a)	^{Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.}
^(b)	^{Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.}
^(c)	^{Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.}
^(d)	^{Represents costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.}
^(e)	^{Represents foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures.}
^(f)	^{Represents the non-cash, non-service cost components of long-term employee benefit costs.}
^(g)	^{Represents non-cash impacts associated with stock-based compensation.}
^(h)	^{Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.}
⁽ⁱ⁾	^{Represents costs for certain non-operational or non-cash gains, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.}

The following table reconciles net income to adjusted net income for the periods presented (in millions, except per share data):

听	听	Three Months Ended听March 31,
听	听	听	2025	听	听	听	2024	听
Net income	听	$	99	听	听	$	39	听
Less: Net loss attributable to noncontrolling interests	听	听	鈥�	听	听	听	(2	)
Net income attributable to common shareholders	听	听	99	听	听	听	41	听
Debt extinguishment and refinancing-related costs听^(a)	听	听	鈥�	听	听	听	3	听
Termination benefits and other employee-related costs听^(b)	听	听	11	听	听	听	55	听
Acquisition and divestiture-related costs听^(c)	听	听	2	听	听	听	2	听
Accelerated depreciation and site closure costs听^(d)	听	听	4	听	听	听	1	听
Environmental charge听^(e)	听	听	鈥�	听	听	听	4	听
Other adjustments听^(f)	听	听	(1	)	听	听	鈥�	听
Amortization of acquired intangibles听^(g)	听	听	24	听	听	听	22	听
Total adjustments	听	听	40	听	听	听	87	听
Income tax provision impacts听^(h)	听	听	10	听	听	听	15	听
Adjusted net income	听	$	129	听	听	$	113	听
Adjusted diluted net income per share	听	$	0.59	听	听	$	0.51	听
Diluted weighted average shares outstanding	听	听	219.4	听	听	听	221.3	听

^(a)	^{Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.}
^(b)	^{Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.}
^(c)	^{Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.}
^(d)	^{Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.}
^(e)	^{Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.}
^(f)	^{Represents costs for certain non-operational or non-cash gains, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.}
^(g)	^{Represents non-cash amortization expense for intangible assets acquired through business combinations or asset acquisitions.}
^(h)	^{The income tax impacts are determined using the applicable rates in the taxing jurisdictions in which expense or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. Additionally, the income tax impact includes the removal of discrete income tax impacts within our effective tax rate which were benefits of $1 million and expenses of $3 million for the three months ended March 31, 2025 and 2024, respectively.}

The following table reconciles cash provided by operating activities to free cash flow for the periods presented (in millions):

听	听	Three Months Ended听March 31,
听	听	听	2025	听	听	听	2024	听
Cash provided by operating activities	听	$	26	听	听	$	34	听
Purchase of property, plant and equipment	听	听	(43	)	听	听	(22	)
Interest proceeds on swaps designated as net investment hedges	听	听	3	听	听	听	3	听
Free cash flow	听	$	(14	)	听	$	15	听

The following table reconciles income from operations to adjusted EBIT and segment adjusted EBIT for the periods presented (in millions):

听	听	Three Months Ended听March 31,
听	听	听	2025	听	听	听	2024	听
Income from operations	听	$	176	听	听	$	121	听
Other expense, net	听	听	3	听	听	听	8	听
Total	听	听	173	听	听	听	113	听
Debt extinguishment and refinancing-related costs听^(a)	听	听	鈥�	听	听	听	3	听
Termination benefits and other employee-related costs听^(b)	听	听	11	听	听	听	55	听
Acquisition and divestiture-related costs听^(c)	听	听	2	听	听	听	2	听
Accelerated depreciation and site closure costs听^(d)	听	听	4	听	听	听	1	听
Environmental charge听^(e)	听	听	鈥�	听	听	听	4	听
Other adjustments听^(f)	听	听	(1	)	听	听	鈥�	听
Amortization of acquired intangibles听^(g)	听	听	24	听	听	听	22	听
Adjusted EBIT	听	$	213	听	听	$	200	听

^(a)	^{Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance.}
^(b)	^{Represents expenses and associated changes to estimates related to employee termination benefits, consulting, legal and other employee-related costs associated with restructuring programs and other employee-related costs. These amounts are not considered indicative of our ongoing operating performance.}
^(c)	^{Represents acquisition and divestiture-related expenses and integration activities associated with our business combinations, all of which are not considered indicative of our ongoing operating performance.}
^(d)	^{Represents incremental depreciation expense resulting from truncated useful lives of the assets impacted by our manufacturing footprint assessments and costs related to the closure of certain manufacturing sites, which we do not consider indicative of our ongoing operating performance.}
^(e)	^{Represents costs related to certain environmental remediation activities, which are not considered indicative of our ongoing operating performance.}
^(f)	^{Represents costs for certain non-operational or non-cash gains, unrelated to our core business and which we do not consider indicative of our ongoing operating performance.}
^(g)	^{Represents non-cash amortization expense for intangible assets acquired through business combinations or asset acquisitions.}

Investor Contact
Colleen Lubic
D +1 610-999-9407

Media Contact
Corporate Communications

FAQ

What were Axalta's (AXTA) key financial results for Q1 2025?

In Q1 2025, Axalta reported net sales of $1.26 billion, net income of $99 million (up 154%), and record Q1 Adjusted EBITDA of $270 million (up 4%). Diluted EPS increased 150% to $0.45.

How did Axalta's (AXTA) business segments perform in Q1 2025?

Performance Coatings sales decreased 3% to $822 million, while Mobility Coatings sales declined 1% to $440 million. Both segments showed margin improvements despite revenue declines.

What is Axalta's (AXTA) financial outlook for full-year 2025?

Axalta projects FY2025 net sales of $5.3-5.375 billion, Adjusted EBITDA of $1.15-1.175 billion, and Adjusted Diluted EPS of $2.50-2.60.

How did Axalta's (AXTA) cash flow perform in Q1 2025?

Operating cash flow decreased to $26 million from $34 million year-over-year, with negative free cash flow of $14 million due to working capital increases and higher planned capital expenditures.

What awards did Axalta (AXTA) win in Q1 2025?

Axalta won two Edison Awards鈩� and a BIG Innovation Award for technology advancements in automotive materials and electrical systems.

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