Axalta Coating Systems (NYSE:AXTA) Issues Quarterly Earnings Results

Posted by Brenda Bartman on Jul 28th, 2026

Axalta Coating Systems (NYSE:AXTA – Get Free Report) released its quarterly earnings results on Tuesday. The specialty chemicals company reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.07, FiscalAI reports. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.31 billion. Axalta Coating Systems had a net margin of 7.22% and a return on equity of 22.37%. The company’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.64 earnings per share. Axalta Coating Systems updated its FY 2026 guidance to 2.550-2.700 EPS and its Q3 2026 guidance to 0.700-0.700 EPS.

Here are the key takeaways from Axalta Coating Systems’ conference call:

Record profitability and cash generation: Adjusted EBITDA rose 5% year over year to $305 million, with a 22.7% margin, while adjusted EPS increased 13% to $0.72. Operating cash flow reached $152 million and free cash flow was $107 million.
Refinish momentum strengthened: Sales increased 6% as destocking largely abated and price mix improved. Axalta secured roughly 2,700 net body-shop wins through July, including approximately 800 North American MSO locations, supporting expected volume growth in the second half.
Balance sheet continued to improve: Axalta reduced gross debt by $80 million during the quarter, lowering net leverage to a record-low 2.2 times and keeping the company on track to exit 2026 below 2 times.
Guidance was maintained amid macro uncertainty: Management cited tariffs, geopolitical tensions and the situation in Iran while retaining full-year sales, EBITDA, EPS and free-cash-flow guidance. Third-quarter EBITDA is expected at $295 million to $305 million, with sales up low single digits.
AkzoNobel merger remains on track: Shareholders are scheduled to vote on August 5, with closing expected in late 2026 or early 2027. Axalta continues to forecast approximately $600 million in annual run-rate cost synergies, although the quarter included $31 million of merger-related costs that reduced GAAP net income.

Axalta Coating Systems Stock Up 5.1%

Shares of NYSE:AXTA opened at $35.46 on Tuesday. The company has a debt-to-equity ratio of 1.27, a quick ratio of 1.53 and a current ratio of 2.10. Axalta Coating Systems has a 52-week low of $24.94 and a 52-week high of $35.72. The business’s 50 day simple moving average is $32.48 and its two-hundred day simple moving average is $31.22. The firm has a market cap of $7.59 billion, a P/E ratio of 20.65, a PEG ratio of 1.60 and a beta of 1.24.

Hedge Funds Weigh In On Axalta Coating Systems

Institutional investors have recently modified their holdings of the company. Summit Securities Group LLC acquired a new stake in Axalta Coating Systems in the 4th quarter valued at $32,000. Los Angeles Capital Management LLC acquired a new position in Axalta Coating Systems during the fourth quarter worth $35,000. CIBC Private Wealth Group LLC lifted its stake in shares of Axalta Coating Systems by 2,174.6% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,615 shares of the specialty chemicals company’s stock valued at $52,000 after buying an additional 1,544 shares in the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Axalta Coating Systems during the fourth quarter valued at about $69,000. Finally, Empowered Funds LLC acquired a new position in shares of Axalta Coating Systems during the fourth quarter valued at about $78,000. 98.28% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on AXTA shares. Wall Street Zen raised shares of Axalta Coating Systems to a “buy” rating in a research note on Saturday. Wells Fargo & Company downgraded shares of Axalta Coating Systems from an “overweight” rating to an “equal weight” rating and lowered their target price for the stock from $39.00 to $30.00 in a research note on Friday, April 10th. The Goldman Sachs Group set a $36.00 target price on shares of Axalta Coating Systems in a report on Friday, May 1st. Royal Bank Of Canada upped their price target on shares of Axalta Coating Systems from $34.00 to $36.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 8th. Finally, UBS Group upped their price target on shares of Axalta Coating Systems from $31.00 to $32.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Four research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $35.67.

Read Our Latest Analysis on AXTA

Key Headlines Impacting Axalta Coating Systems

Here are the key news stories impacting Axalta Coating Systems this week:

Positive Sentiment: Axalta reported second-quarter adjusted earnings of $0.72 per share, exceeding the $0.65 analyst consensus by $0.07. Revenue reached $1.35 billion, ahead of the $1.31 billion estimate, supporting the positive market reaction. Axalta Coating Systems tops estimates, shares jump on results
Positive Sentiment: The quarter produced a 22.37% return on equity and a 7.22% net margin, indicating continued profitability and operating efficiency in the specialty-coatings business. Axalta Releases Second Quarter 2026 Results
Neutral Sentiment: Axalta maintained full-year 2026 EPS guidance of $2.55 to $2.70. The midpoint of $2.625 is slightly above the $2.59 consensus, but the lower end remains below expectations, leaving investors focused on demand trends and execution in the second half.
Negative Sentiment: Third-quarter EPS guidance of $0.70 came in below the $0.72 analyst consensus. This suggests potential near-term pressure from market conditions, costs, or expected operating performance despite the second-quarter beat.

About Axalta Coating Systems

(Get Free Report)

Axalta Coating Systems is a global leader in the development, manufacture and sale of liquid and powder coatings. The company’s product portfolio spans refinish coatings for the automotive collision repair market, original equipment manufacturer (OEM) coatings for new vehicle production, and industrial coatings including electrodeposition (E-coat) and powder coatings for a variety of sectors such as architecture, heavy equipment and general industrial applications.

Tracing its roots to the 19th century and rebranded as Axalta following its separation from DuPont Performance Coatings in 2013, the company has built a presence in more than 100 countries.