Axalta Coating Systems (NYSE:AXTA) Issues Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Axalta beat Q1 expectations with adjusted EPS of $0.56 versus a $0.50 consensus and revenue of $1.25 billion, delivering $259 million of adjusted EBITDA and keeping adjusted EBITDA margin above 20% for the ninth straight quarter.
• The company set FY‑2026 guidance at $2.55–$2.70 EPS and Q2 guidance at $0.65, while generating $68 million of cash from operations, $21 million of free cash flow, repaying $54 million of debt and reporting a net leverage ratio of 2.3x with a plan to be below 2x by year‑end.
• Near‑term headwinds — including roughly $22 million of transaction costs related to the pending Akzo Nobel merger, geopolitical uncertainty and raw‑material inflation — leave the company tracking toward the lower end of its full‑year EBITDA and EPS targets.

Axalta Coating Systems (NYSE:AXTA - Get Free Report) issued its earnings results on Thursday. The specialty chemicals company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.06, FiscalAI reports. Axalta Coating Systems had a net margin of 7.39% and a return on equity of 23.60%. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the business posted $0.59 earnings per share. The firm's revenue for the quarter was down .6% compared to the same quarter last year. 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 Price Performance

AXTA stock traded up $0.28 on Thursday, reaching $28.49. The company had a trading volume of 2,349,008 shares, compared to its average volume of 2,008,447. 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 1.33, a quick ratio of 1.50 and a current ratio of 2.06. The company's fifty day moving average is $29.04 and its 200 day moving average is $30.42. The company has a market cap of $6.10 billion, a P/E ratio of 16.37, a PEG ratio of 1.21 and a beta of 1.33.

More Axalta Coating Systems News

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

Hedge Funds Weigh In On Axalta Coating Systems

A number of institutional investors have recently made changes to their positions in the stock. Summit Securities Group LLC acquired a new stake in shares of Axalta Coating Systems during the fourth quarter valued at $32,000. Los Angeles Capital Management LLC acquired a new position in Axalta Coating Systems in the 4th quarter valued at about $35,000. CIBC Private Wealth Group LLC lifted its holdings in Axalta Coating Systems by 2,174.6% in 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 acquired a new stake in shares of Axalta Coating Systems during the 4th quarter worth about $69,000. Finally, Empowered Funds LLC acquired a new stake in shares of Axalta Coating Systems during the 4th quarter worth about $78,000. 98.28% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

AXTA has been the topic of several research analyst reports. Citigroup decreased their price target on Axalta Coating Systems from $45.00 to $42.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Axalta Coating Systems in a report on Wednesday, January 21st. Wells Fargo & Company downgraded Axalta Coating Systems from an "overweight" rating to an "equal weight" rating and decreased their target price for the stock from $39.00 to $30.00 in a research report on Friday, April 10th. The Goldman Sachs Group upped their target price on Axalta Coating Systems from $36.00 to $40.00 and gave the company a "buy" rating in a report on Wednesday, February 11th. Finally, Mizuho cut their price target on Axalta Coating Systems from $39.00 to $32.00 and set an "outperform" rating for the company in a research note on Monday, March 23rd. Five equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. Based on data from MarketBeat, Axalta Coating Systems currently has an average rating of "Hold" and a consensus price target of $35.40.

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.

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