Axalta reports USD 1.3B net sales in Q3 FY26 

USA – Axalta Coating Systems Ltd., an American coatings company, has reported its financial results for the third quarter ended September 30, 2026. 

The company recorded net sales of USD 1.3 billion, up 2% from the same period last year, and posted a record quarter for Mobility Coatings net sales. 

Net income was USD 95 million, producing a net income margin of 7.2%, while Adjusted EBITDA reached USD 282 million with an adjusted EBITDA margin of 21.5%. 

Axalta generated USD 135 million in cash from operating activities, broadly in line with the prior year, and increased free cash flow by 3% year over year to USD 92 million.

Axalta’s third-quarter net sales rose 2% to USD 1.3 billion, supported by volume growth in three of its four regions, favourable foreign-currency translation, contributions from acquisitions, and positive price mix. 

Net income fell by USD 15 million year over year to USD 95 million, mainly because of an additional USD 14 million in merger and acquisition-related expenses during the current period. 

Adjusted net income, which excludes those expenses, declined 6% to USD 136 million, reflecting lower Performance Coatings volumes and higher raw-material and freight costs, although these pressures were partly offset by reduced operating expenses, favourable price mix, and lower interest expense.

Adjusted EBITDA decreased 4% year over year to USD 282 million, resulting in an Adjusted EBITDA margin of 21.5%. 

Diluted EPS fell to USD 0.44 from USD 0.51 in the prior-year quarter, driven by lower Performance Coatings volumes and higher merger and acquisition-related costs.

Adjusted Diluted EPS declined 6% to USD 0.63, as lower volumes and higher variable costs were partially offset by reduced interest expense resulting from Axalta’s continued deleveraging. 

Within Performance Coatings, net sales were USD 818 million, down USD 10 million year over year, as lower Refinish volumes in Europe outweighed favourable currency translation, acquisition contributions, and positive price mix. 

Outside Europe, demand remained generally stable, with net sales declining by low single digits in North America while increasing by high single digits in both Latin America and Asia Pacific, continuing the growth momentum seen over the previous four quarters.

Refinish net sales fell 2% to USD 504 million, mainly due to weaker European volumes, although acquisitions and favourable price mix provided some support. Industrial net sales increased 1% to USD 314 million, primarily driven by volume growth in Asia Pacific.

Performance Coatings Adjusted EBITDA was USD 188 million, down from USD 211 million a year earlier. 

The decline reflected lower volumes, variable-cost inflation, and investments related to recently awarded business wins, partially offset by lower operating expenses, pricing actions, and contributions from acquisitions. 

The segment’s Adjusted EBITDA margin was 23.0%, compared with 25.5% in the prior-year period.

Mobility Coatings delivered record quarterly net sales of USD 493 million, an increase of 7% year over year.

For the fourth quarter of 2026, Axalta expects net sales to be approximately flat year over year, with Adjusted EBITDA projected at USD 254 million to USD 264 million. 

For the full year, the company forecasts low-single-digit net sales growth, Adjusted EBITDA of USD 1.10 billion to USD 1.11 billion, Adjusted Diluted EPS of approximately USD 2.45, and free cash flow of about USD 450 million, including roughly USD 80 million of merger and acquisition-related cash costs. 

Axalta also expects depreciation and amortisation of USD 310 million, an adjusted tax rate of approximately 24%, about 215 million diluted shares outstanding, interest expense of USD 150 million, and capital expenditures of around USD 200 million.

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