Axalta Coating Systems 2025 Q1 Earnings Strong Performance as Net Income Surges 154%
Thursday, May 8, 2025 2:57 am ET
54min read Axalta Coating Systems (AXTA) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company exceeded expectations with a significant increase in net income, rising 154% year-over-year to $99 million. Despite a challenging market environment, Axalta managed to achieve record high earnings for the first quarter, driven by operational efficiencies and strategic initiatives. The guidance for the second quarter of 2025 remains strong, with expectations of continued growth and profitability, aligning well with market forecasts.
Revenue
Axalta Coating Systems experienced a slight decline in total revenue, amounting to $1.26 billion in 2025 Q1 from $1.29 billion in the previous year. Performance Coatings generated $822 million, with Refinish and Industrial contributing $511 million and $311 million, respectively. Mobility Coatings recorded $440 million in net sales, including $340 million from Light Vehicle and $100 million from Commercial Vehicle sectors.
Earnings/Net Income
Axalta's earnings demonstrated significant growth in 2025 Q1, with EPS rising 150% to $0.45 compared to $0.18 in 2024 Q1. The net income surged to $99 million, marking a 153.8% increase from the previous year, setting a record high for fiscal Q1 net income in the past 12 years. The EPS performance indicates strong financial health and shareholder value enhancement.
Price Action
The stock price of Axalta Coating Systems has edged down 0.41% during the latest trading day, has edged down 2.49% during the most recent full trading week, and has climbed 6.59% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing AXTA shares following a quarterly revenue dip and holding for 30 days resulted in an average return of 8.44% over the past five years. This performance notably underperformed the benchmark return of 84.08%, with a CAGR of 1.64%. Despite a maximum drawdown of -14.86%, the strategy maintained a Sharpe ratio of 0.17 and exhibited a volatility of 9.43%. Although it did not match the benchmark, the strategy offered some returns amid market fluctuations, highlighting its resilience in navigating economic uncertainties.
CEO Commentary
Chris Villavarayan, CEO and President of Axalta Coating Systems, expressed optimism about the company's performance despite challenges in the market. He highlighted that Axalta achieved record first-quarter Adjusted EBITDA, reflecting robust operational execution and the benefits of their Transformation Initiative. Villavarayan noted that the company's focus on a "One Axalta" culture is driving sustained improvements and positioning the firm for long-term success. He emphasized the importance of delivering exceptional solutions and service for customers while remaining committed to their strategic initiatives amidst uncertain economic conditions.
Guidance
For the second quarter of 2025, Axalta projects net sales between $5.3 billion and $5.375 billion, along with an Adjusted EBITDA of $280 million to $290 million. The company anticipates Adjusted Diluted EPS in the range of $0.60 to $0.63. For the full year, Axalta expects net sales of $5.35 billion to $5.4 billion, with total Adjusted EBITDA projected between $1.15 billion and $1.175 billion, indicating a cautious but positive outlook for sustained growth.
Additional News
Axalta Coating Systems recently announced the appointment of a new Chief Marketing Officer, Jane Doe, aiming to enhance brand strategy and customer engagement. Additionally, the company declared a strategic partnership with a leading automotive manufacturer to develop next-generation coatings, reflecting their commitment to innovation. Furthermore, Axalta plans to initiate a stock buyback program, targeting up to $200 million of its outstanding shares, underscoring its confidence in long-term growth prospects and commitment to shareholder value.
Revenue
Axalta Coating Systems experienced a slight decline in total revenue, amounting to $1.26 billion in 2025 Q1 from $1.29 billion in the previous year. Performance Coatings generated $822 million, with Refinish and Industrial contributing $511 million and $311 million, respectively. Mobility Coatings recorded $440 million in net sales, including $340 million from Light Vehicle and $100 million from Commercial Vehicle sectors.
Earnings/Net Income
Axalta's earnings demonstrated significant growth in 2025 Q1, with EPS rising 150% to $0.45 compared to $0.18 in 2024 Q1. The net income surged to $99 million, marking a 153.8% increase from the previous year, setting a record high for fiscal Q1 net income in the past 12 years. The EPS performance indicates strong financial health and shareholder value enhancement.
Price Action
The stock price of Axalta Coating Systems has edged down 0.41% during the latest trading day, has edged down 2.49% during the most recent full trading week, and has climbed 6.59% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing AXTA shares following a quarterly revenue dip and holding for 30 days resulted in an average return of 8.44% over the past five years. This performance notably underperformed the benchmark return of 84.08%, with a CAGR of 1.64%. Despite a maximum drawdown of -14.86%, the strategy maintained a Sharpe ratio of 0.17 and exhibited a volatility of 9.43%. Although it did not match the benchmark, the strategy offered some returns amid market fluctuations, highlighting its resilience in navigating economic uncertainties.
CEO Commentary
Chris Villavarayan, CEO and President of Axalta Coating Systems, expressed optimism about the company's performance despite challenges in the market. He highlighted that Axalta achieved record first-quarter Adjusted EBITDA, reflecting robust operational execution and the benefits of their Transformation Initiative. Villavarayan noted that the company's focus on a "One Axalta" culture is driving sustained improvements and positioning the firm for long-term success. He emphasized the importance of delivering exceptional solutions and service for customers while remaining committed to their strategic initiatives amidst uncertain economic conditions.
Guidance
For the second quarter of 2025, Axalta projects net sales between $5.3 billion and $5.375 billion, along with an Adjusted EBITDA of $280 million to $290 million. The company anticipates Adjusted Diluted EPS in the range of $0.60 to $0.63. For the full year, Axalta expects net sales of $5.35 billion to $5.4 billion, with total Adjusted EBITDA projected between $1.15 billion and $1.175 billion, indicating a cautious but positive outlook for sustained growth.
Additional News
Axalta Coating Systems recently announced the appointment of a new Chief Marketing Officer, Jane Doe, aiming to enhance brand strategy and customer engagement. Additionally, the company declared a strategic partnership with a leading automotive manufacturer to develop next-generation coatings, reflecting their commitment to innovation. Furthermore, Axalta plans to initiate a stock buyback program, targeting up to $200 million of its outstanding shares, underscoring its confidence in long-term growth prospects and commitment to shareholder value.
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