Palantir shares slip by 7% despite posting record revenue in third quarter
PHILADELPHIA - Axalta Coating Systems Ltd. (NYSE:AXTA) reported third-quarter adjusted earnings that exceeded analyst expectations on Tuesday.
The company’s shares edged up 1% in pre-market trading following the announcement.
The global coatings company posted adjusted earnings per share of $0.67 for the third quarter, beating the analyst consensus of $0.64. Revenue came in at $1.3 billion, in line with estimates but down 2% YoY. The company achieved record quarterly adjusted EBITDA of $294 million, with margins expanding 70 basis points YoY to 22.8%.
"We executed another strong quarter delivering record Adjusted EBITDA and Adjusted Diluted EPS," said Chris Villavarayan, Chief Executive Officer and President of Axalta. "Our results reflect our focus on operational excellence while the team has done an exceptional job navigating the challenging macroeconomic environment."
The company’s Performance Coatings segment saw net sales decrease to $828 million from $877 million in the prior-year period, primarily due to macroeconomic pressures in North America. Meanwhile, Mobility Coatings achieved record third-quarter sales of $460 million, up 4% YoY, driven by positive price-mix and favorable currency translation.
For the fourth quarter, Axalta expects adjusted EPS of approximately $0.60, below the analyst consensus of $0.62. The company projects full-year 2025 revenue of approximately $5.1 billion, slightly below the consensus estimate of $5.2 billion, with adjusted EPS of around $2.50, marginally above the $2.49 consensus.
Axalta also accelerated its capital allocation strategy, repurchasing $100 million worth of shares during the quarter and announcing plans to deploy up to $250 million for additional share repurchases in the fourth quarter.
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