Axalta Coating Systems (NYSE:AXTA) Issues Quarterly Earnings Results

Axalta Coating Systems (NYSE:AXTA) released its quarterly earnings data on Thursday. The specialty chemicals company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.06, FiscalAI reports. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.22 billion. Axalta Coating Systems had a net margin of 7.39% and a return on equity of 23.60%. The company’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.59 EPS. Axalta Coating Systems updated its FY 2026 guidance to 2.550-2.70 EPS and its Q2 2026 guidance to 0.650-0.65 EPS.

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

• Reported strong Q1 results: Net sales of $1.25 billion, Adjusted EBITDA of $259 million and adjusted diluted EPS of $0.56 (12% above expectations), with Adjusted EBITDA margin holding above 20% for nine consecutive quarters.
• Set first-quarter cash records with $68 million of cash from operations and $21 million of free cash flow, repaid $54 million of gross debt and ended the quarter at a net leverage ratio of 2.3x with a plan to be below 2x by year-end.
• Mobility was a standout with record Q1 net sales of $452 million and a 17.5% Adjusted EBITDA margin, driven by new business wins and a strong Commercial Transportation Solutions performance.
• Management emphasized margin protection through procurement and pricing actions — ~60% of direct spend now under contract, planned mid-single-digit Refinish pricing, and >50% of Mobility revenue indexed to raw materials — supporting a ~22% adjusted EBITDA margin target for the year.
• Near-term risks include $22 million of transaction costs related to the pending Akzo Nobel merger, heightened geopolitical uncertainty (Middle East) and raw-material inflation that leave the company tracking toward the lower end of full-year EBITDA and EPS guidance.

Axalta Coating Systems Stock Up 1.0%

AXTA stock traded up $0.28 during trading hours on Thursday, hitting $28.49. The company’s stock had a trading volume of 2,349,008 shares, compared to its average volume of 2,008,447. The company has a quick ratio of 1.50, a current ratio of 2.06 and a debt-to-equity ratio of 1.33. The company has a market capitalization of $6.10 billion, a PE ratio of 16.37, a price-to-earnings-growth ratio of 1.21 and a beta of 1.33. Axalta Coating Systems has a 12 month low of $24.94 and a 12 month high of $35.72. The stock has a 50 day moving average price of $29.04 and a two-hundred day moving average price of $30.42.

Institutional Trading of Axalta Coating Systems

Several large investors have recently added to or reduced their stakes in AXTA. Channing Capital Management LLC grew its position in Axalta Coating Systems by 672.6% in the fourth quarter. Channing Capital Management LLC now owns 3,037,990 shares of the specialty chemicals company’s stock worth $98,157,000 after acquiring an additional 2,644,783 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Axalta Coating Systems by 36.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,941,250 shares of the specialty chemicals company’s stock worth $224,282,000 after acquiring an additional 1,845,353 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its position in Axalta Coating Systems by 11.6% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 17,456,984 shares of the specialty chemicals company’s stock worth $564,035,000 after acquiring an additional 1,815,715 shares in the last quarter. AQR Capital Management LLC grew its position in Axalta Coating Systems by 301.6% in the second quarter. AQR Capital Management LLC now owns 2,319,863 shares of the specialty chemicals company’s stock worth $68,877,000 after acquiring an additional 1,742,203 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC grew its position in Axalta Coating Systems by 817.7% in the third quarter. Schonfeld Strategic Advisors LLC now owns 1,464,564 shares of the specialty chemicals company’s stock worth $41,916,000 after acquiring an additional 1,304,973 shares in the last quarter. 98.28% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Vertical Research lowered shares of Axalta Coating Systems from a “buy” rating to a “hold” rating in a research note on Wednesday, January 7th. UBS Group dropped their price objective on shares of Axalta Coating Systems from $36.00 to $31.00 and set a “neutral” rating on the stock in a research note on Thursday, April 2nd. Royal Bank Of Canada upped their price objective on shares of Axalta Coating Systems from $33.00 to $35.00 and gave the company a “sector perform” rating in a research note on Thursday, February 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Axalta Coating Systems in a research note on Wednesday, January 21st. Finally, The Goldman Sachs Group upped their price objective on shares of Axalta Coating Systems from $36.00 to $40.00 and gave the company a “buy” rating in a research note on Wednesday, February 11th. Five research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $35.40.

Trending Headlines about Axalta Coating Systems

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

• Positive Sentiment: Q1 earnings beat — Axalta reported GAAP EPS of $0.56, topping the consensus of $0.50, signaling better-than-expected near-term profitability. Zacks: Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue beat — Q1 revenue was $1.25B versus ~$1.22B consensus, showing resiliency in demand despite a small year-over-year decline. GlobeNewswire: Q1 2026 Results
• Positive Sentiment: Profitability metrics strong — reported net margin (~7.4%) and ROE (~23.6%) remain healthy, which supports earnings quality and cash-generation expectations. MarketBeat: Q1 Results Summary
• Neutral Sentiment: Earnings materials available — Management hosted a call and released slides and a press release (useful for details on segment trends and cost actions). Slide Deck / Press Release
• Neutral Sentiment: Full transcript available — Investors can review management’s commentary and Q&A for cadence on end markets and cost actions. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Q2 guidance slightly below consensus — Axalta set Q2 EPS guidance at $0.65, marginally under the Street’s $0.66 estimate, introducing near-term downside risk to expectations. Zacks: Q1 Metrics vs Estimates
• Negative Sentiment: Year-over-year pressure — EPS of $0.56 declined from $0.59 a year ago and revenue was down ~0.6% YoY, highlighting ongoing demand or mix challenges in some end markets. MarketBeat: Q1 Results Summary

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.