Axalta Coating Systems Ltd, a leading global coatings company, announced its financial results for the third quarter ended September 30, 2024.
From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, Axalta coatings are designed to prevent corrosion, increase productivity and enhance durability.
Third Quarter 2024 Highlights
- Record third quarter net sales of $1.32 billion
- Net income increased 40 per cent year over year to $102 million; net income margin of 7.7 per cent
- Record third quarter Adjusted EBITDA of $291 million
- Adjusted EBITDA margin improved 220 basis points year over year to 22.1 per cent
- Diluted EPS increased 39 per cent year over year to $0.46 and Adjusted Diluted EPS increased 31 per cent year over year to $0.59
- Repurchased $50 million of common shares
Third Quarter 2024 Consolidated Financial Results
According to Axalta, third quarter 2024 net sales increased 0.8 per cent year over year to a third quarter company record of $1.32 billion. This was in contribution from the CoverFlexx acquisition and volume growth that were partially offset by contractual raw material index impacts and mix headwinds.
Net income increased by 40 per cent year over year to $102 million with net income margins of 7.7 per cent. Adjusted net income improved by $31 million year over year to $129 million driven by lower variable costs and a reduction in operating expenses.
Discussion of Segment Results
Performance Coatings third quarter 2024 net sales were $877 million, up 2 per cent compared to the prior year period. Refinish net sales grew 5 per cent year over year to $554 million as contribution from the CoverFlexx acquisition and net new body shop wins were partially offset by mix headwinds and lower body shop activity.
Industrial net sales decreased by 1 per cent year over year to $323 million as positive pricing was more than offset by lower volumes.
Performance Coatings generated third quarter Adjusted EBITDA of $221 million compared to $200 million in the prior year period, with Adjusted EBITDA margins of 25.3 per cent and 23.3 per cent. The increases in segment Adjusted EBITDA and segment Adjusted EBITDA margin were driven by lower variable costs and a reduction in operating expenses.
Mobility Coatings third quarter 2024 net sales were $443 million, a decrease of 2 per cent from the prior year period. Light Vehicle net sales were flat year over year as 5 per cent volume growth was offset by contractual raw material pass-through impacts and a modest foreign exchange translation headwind.
Commercial Vehicle net sales decreased by 8 per cent year over year to $103 million led by lower volumes due to an expected decline in Class 8 builds in North America and Latin America. As expected, Mobility Coatings price-mix declined by 3 per cent year over year driven by mix and contractual raw material pass-through impacts.
The Mobility Coatings segment generated Adjusted EBITDA of $70 million in the third quarter compared to $61 million in the prior year period, with margins of 15.7 per cent and 13.4 per cent. The increases in segment Adjusted EBITDA and segment Adjusted EBITDA margin were driven by lower variable costs, new business wins and lower operating costs.
Axalta CEO and President, Chris , celebrated the third quarter results as ‘exceptional’.
“I am extremely proud of the commitment and dedication from each of our employees to deliver a record third quarter for the company in net sales and Adjusted EBITDA, despite macroeconomic headwinds in all four end markets,” Villavarayan says.
“As One Axalta, we are successfully executing on our 2026 A Plan and outperforming against key industry benchmarks as we remain dedicated to unlocking our full earnings potential.”
Full Year 2024 Outlook
