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- **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.


Axalta Coating Systems Ltd. (AXTA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AXTA

AXTA fundamentals

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