Did Axalta Coating Systems beat or miss consensus estimates last quarter?

What does Axalta Coating Systems do and what are its main business segments?

What were the key takeaways from Axalta Coating Systems's earnings call?

What is the revenue and EPS growth rate for Axalta Coating Systems year over year?

What is Axalta Coating Systems's latest dividend and current dividend yield?

What is the market's earnings forecast for Axalta Coating Systems next quarter?

What guidance did Axalta Coating Systems's management provide for the next earnings period?

What factors drove the changes in Axalta Coating Systems's revenue and profit?

- **Record financials**: Q3 2025 adjusted EBITDA ($294M) and EPS ($0.67) set new records, up 6% YoY.
- **Mobility growth**: $460M net sales (+4% YoY) driven by China/Latin America wins, 12Q EBITDA margin expansion to 18%.
- **Share buyback focus**: $250M+ Q4 share repurchases planned, 90%+ free cash flow allocation to buybacks in 2025.
- **2026 outlook**: Refinish volumes to stabilize in Q2, Industrial recovery with lower rates, Mobility growth on track.
- **Cost leadership**: 500+ basis points Industrial margin expansion, $40M+ savings from cost initiatives, 2.5x net leverage (lowest in history).

**【CEO Summary Section】**
- Q3 2025 net sales: $1.3 billion (down 2% YoY) due to North America macro challenges, but Mobility segment net sales up 4% to $460 million.
- Record adjusted EBITDA: $294 million (22.8% margin), 12 consecutive quarters of YoY growth.
- Refinish segment: $90 million incremental net sales from new body shop wins (+2,200 net shops), pricing actions, and CoverFlexx integration.
- Industrial segment: 12Q EBITDA margin expansion to 18%, outperforming A Plan targets.
- Share repurchases: $100 million in Q3, $165 million YTD, with plans to deploy up to $250 million in Q4.
- 2025 guidance: Adjusted EBITDA $1.14 billion, adjusted EPS $2.50 (6% YoY growth).
- 2026 outlook: Refinish volumes expected to stabilize in Q2, Mobility growth driven by China/Latin America, Industrial recovery with lower interest rates.

**【CFO Financial Commentary】**
- Gross margin held steady at 35%, SG&A down 7% YoY due to cost control initiatives.
- Operating cash flow: $137 million (Q3), free cash flow $89 million (down due to higher capex and working capital).
- Net leverage: 2.5x (lowest in company history), interest expense down 15% YoY.
- Q4 2025 outlook: Net sales down mid-single digits YoY, adjusted EBITDA $284 million, adjusted EPS $0.60.

**【Q&A Highlights】**
- Refinish destocking impact: ~7% of Q3 volume decline, expected to abate in Q2 2026.
- Cost discipline: $40 million+ savings from 2024 Transformation Initiative, 500+ basis points margin expansion in Industrial segment.
- Capital allocation: 90%+ of free cash flow allocated to share buybacks in 2025, no dividend plans but open to M&A at lower valuations.
- Raw materials: Stable pricing environment, $20 million tariff-related costs absorbed.
- A Plan progress: 12Q EBITDA margin expansion, 500+ basis points Industrial margin improvement vs. 2026 target.


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