Axalta Coating Systems Exceeds Expectations in Q3 Results, Shares Climb

PHILADELPHIA - Axalta Coating Systems Ltd. (NYSE:AXTA) reported third-quarter results that exceeded expectations, with shares rising 2.37% in pre-market trading on Wednesday.
The global coatings company announced adjusted earnings of $0.59 per share, surpassing analyst estimates of $0.51. Revenue for the quarter was $1.32 billion, aligning with consensus expectations.
Axalta's net sales for the third quarter increased by 0.8% year-over-year, reaching a record level of $1.32 billion. Net income rose by 40% to $102 million, while the net profit margin expanded to 7.7%.
Axalta's CEO and President Chris Villavarayan stated, "Our results for the third quarter were extraordinary. Despite macroeconomic challenges in our four end markets, I am proud of the commitment and dedication shown by each of our employees to achieve record third-quarter net sales and adjusted EBITDA figures for the company."
The net sales of Axalta's Performance Coatings segment rose by 2% year-over-year to $877 million, aided by the acquisition of CoverFlexx and gains in new collision repair shop openings. In contrast, the net sales of the Mobility Coatings segment declined by 2% to $443 million.
Axalta expects approximately $5.275 billion in revenue for the full year 2024, slightly below the consensus estimate of $5.295 billion.
In the third quarter, the company repurchased over 1.4 million shares for a total of $50 million.