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1. Company Snapshot

1.a. Company Description

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.It operates through two segments, Performance Coatings and Transportation Coatings.The company offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops.


It also provides functional and decorative liquid, and powder coatings used in various industrial applications, including architectural cladding and fittings, automotive coatings, general industrial, job coaters, energy solutions, HVAC, appliances, industrial wood, coil, and oil and gas pipelines; and coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Tufcote, and Ceranamel for liquid coatings; and Alesta, Nap-Gard, Abcite, Teodur, and Plascoat brands for powder coatings.In addition, the company develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands.It also sells its product under the Audurra, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names.


The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd.and changed its name to Axalta Coating Systems Ltd.in August 2014.


Axalta Coating Systems Ltd.was founded in 1866 and is headquartered in Philadelphia, Pennsylvania.

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1.b. Last Insights on AXTA

Axalta Coating Systems' recent performance was negatively impacted by end market weakness. Despite beating Q3 earnings estimates with $0.67 per share, the company's growth prospects are being questioned. A proposed sale to Akzo Nobel N.V. for 0.6539 shares of AkzoNobel stock per Axalta share is under investigation by several law firms, including Halper Sadeh LLC and Kahn Swick & Foti, LLC, regarding fairness to shareholders. The deal, valued at $9.2 billion, could reshape the global coatings market.

1.c. Company Highlights

2. Axalta Coating Systems' Strong Q3 2025 Earnings Driven by Disciplined Execution

Axalta Coating Systems reported a robust third quarter 2025, with net sales reaching $1.3 billion. The company's Mobility segment saw a 4% increase in sales to a third-quarter record of $460 million, driven by new business wins and operational rigor. Adjusted EBITDA margin for the segment expanded by 230 basis points to 18%. The company's adjusted EBITDA increased by $3 million to $294 million, a quarterly record, while adjusted diluted EPS rose 6% to $0.67. Notably, the actual EPS came in at $0.509, below estimates of $0.64.

Publication Date: Oct -29

📋 Highlights
  • Record Adjusted EBITDA and EPS Growth: Axalta achieved $294 million adjusted EBITDA (+$3M YoY) and $0.67 adjusted diluted EPS (+6% YoY) in Q3 2025.
  • Mobility Segment Performance: Net sales rose 4% to $460 million, with an 18% EBITDA margin (up 230 bps YoY), driven by operational rigor and new business wins.
  • Share Repurchase Momentum: $100M in Q3 share buybacks reduced outstanding shares by >3% since 2023, lowering net leverage to 2.5x (historical low).
  • A Plan Strategic Progress: 500 bps of cost reductions and $60–70M in 2025 savings from the Transformation Initiative, supporting margin expansion and growth pivot.
  • Q4 Outlook Adjustments: Forecasts mid-single-digit sales decline YoY but anticipates record EBITDA ($284M) and EPS ($0.60), with $250M planned share repurchases.

Segment Performance

The Performance Coatings segment also saw adjusted EBITDA margin expansion, increasing by 20 basis points to 25.5%. The company's focus on cost management has yielded over 500 basis points in cost reduction, driven by its Transformation Initiative, which has delivered approximately $60 million to $70 million in incremental savings in 2025.

Outlook and Guidance

Axalta expects to deliver record adjusted diluted earnings per share and adjusted EBITDA on lower revenue expectations. The company forecasts net sales to decline by mid-single digits in the fourth quarter, but anticipates an improved Refinish demand environment in North America. Axalta plans to repurchase a significant amount of stock, with up to $250 million allocated for share buybacks in the fourth quarter, citing its confidence in the business's growth prospects. As Carl Anderson noted, the company sees tremendous value in its stock.

Valuation and Growth Prospects

With a P/E Ratio of 14.03 and an EV/EBITDA of 5.68, Axalta's valuation appears reasonable. Analysts estimate revenue growth at 2.5% next year. The company's ROIC of 9.54% and ROE of 21.33% indicate strong profitability. Axalta's net debt to EBITDA ratio is -0.57, highlighting its healthy balance sheet. The company's plans to continue buying back shares and its focus on driving business expansion through innovation position it for potential long-term growth.

3. NewsRoom

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Why One Fund Put 12.6% of Its Portfolio Into Axalta — and What $294M EBITDA Says About the Stock

Dec -04

Source: fool.com

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Axalta Coating Systems Ltd. (AXTA) Presents at Citigroup 2025 Basic Materials Conference Transcript

Dec -02

Source: seekingalpha.com

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Halper Sadeh LLC Encourages RPTX, THS, RMBI Shareholders to Contact the Firm to Discuss Their Rights

Nov -27

Source: globenewswire.com

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BRODSKY & SMITH SHAREHOLDER UPDATE: Notifying Investors of the Following Investigations: Axalta Coating Systems Ltd. (NYSE – AXTA), Green Dot Corporation (NYSE – GDOT), Blue Foundry Bancorp (Nasdaq – BLFY), Golden Entertainment, Inc (Nasdaq - GDEN)

Nov -25

Source: globenewswire.com

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Axalta Wins 2025 R&D 100 Award for Groundbreaking Fast Cure, Low Energy Collision Repair Paint System

Nov -24

Source: globenewswire.com

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Axalta Investor Urges Company to Restructure $17 Billion Merger With AkzoNobel

Nov -21

Source: wsj.com

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Axalta Coating Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Axalta Coating Systems Ltd. - AXTA

Nov -20

Source: businesswire.com

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Axalta Investor Artisan Partners Voices Opposition to $17 Billion AkzoNobel Merger

Nov -20

Source: wsj.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.26%)

6. Segments

Performance Coatings

Expected Growth: 3.5%

Axalta's Performance Coatings segment growth of 3.5% is driven by increasing demand for sustainable and eco-friendly coatings in the automotive and industrial markets, coupled with the company's strategic expansion into emerging markets and continuous innovation in coating technologies.

Mobility Coatings

Expected Growth: 2.8%

Axalta's Mobility Coatings segment growth of 2.8% is driven by increasing demand for sustainable and eco-friendly coatings in the automotive industry, coupled with the company's strategic expansion into emerging markets and continuous innovation in coating technologies, such as waterborne and powder coatings.

7. Detailed Products

Refinish Coatings

A wide range of coatings for the automotive refinish market, including basecoats, clearcoats, and single-stage urethanes.

Light Vehicle OEM Coatings

Coatings for original equipment manufacturers (OEMs) of light vehicles, including e-coats, primers, basecoats, and clearcoats.

Commercial Vehicle OEM Coatings

Coatings for OEMs of commercial vehicles, including trucks, buses, and trailers.

Industrial Coatings

Coatings for a variety of industrial applications, including coil coatings, general industrial coatings, and powder coatings.

Electrocoat (E-Coat) Products

Electrocoat products for a variety of applications, including automotive, industrial, and architectural coatings.

8. Axalta Coating Systems Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Axalta Coating Systems Ltd. operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the company's products are not entirely unique, and customers may find alternative solutions.

Bargaining Power Of Customers

Axalta Coating Systems Ltd. has a diverse customer base, reducing the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Axalta Coating Systems Ltd. relies on a few key suppliers for raw materials, giving them some bargaining power. However, the company's large scale of operations and long-term contracts mitigate this risk.

Threat Of New Entrants

The coatings industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants and allows Axalta Coating Systems Ltd. to maintain its market position.

Intensity Of Rivalry

The coatings industry is highly competitive, with several established players competing for market share. Axalta Coating Systems Ltd. must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.18%
Debt Cost 7.97%
Equity Weight 32.82%
Equity Cost 11.51%
WACC 9.13%
Leverage 204.68%

11. Quality Control: Axalta Coating Systems Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WD-40

A-Score: 4.7/10

Value: 1.5

Growth: 6.0

Quality: 8.2

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Axalta Coating Systems

A-Score: 4.6/10

Value: 5.8

Growth: 5.6

Quality: 6.9

Yield: 0.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Quaker Chemical

A-Score: 4.4/10

Value: 5.8

Growth: 6.3

Quality: 3.2

Yield: 3.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Avient

A-Score: 4.2/10

Value: 5.2

Growth: 3.2

Quality: 4.0

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Albemarle

A-Score: 3.9/10

Value: 8.2

Growth: 3.6

Quality: 2.9

Yield: 3.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Avantor

A-Score: 3.5/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.08$

Current Price

29.08$

Potential

-0.00%

Expected Cash-Flows