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PHILADELPHIA - On Wednesday, Axalta Coating Systems Ltd . (NYSE:AXTA) reported record adjusted earnings for the second quarter despite a revenue decline, as operational efficiency initiatives helped expand profit margins.
The company’s shares remained relatively flat in after hours trading following the earnings release.
The global coatings company posted adjusted earnings per share of $0.64, exceeding analyst estimates of $0.62 and marking a 5% increase from the prior year. However, revenue fell 3% YoY to $1.3 billion, slightly below the consensus estimate of $1.32 billion, as volume declines in the Performance Coatings segment outweighed contributions from the CoverFlexx acquisition.
Axalta’s Adjusted EBITDA reached a quarterly record of $292 million, with margins expanding 90 basis points YoY to 22.4%.
"We delivered another excellent quarter, setting new records for Adjusted EBITDA and Adjusted Diluted EPS," said Chris Villavarayan, CEO and President of Axalta. "Our performance reflects Axalta’s drive for operational excellence, and our commitment to meet financial targets and create value through our A Plan objectives."
The Performance Coatings segment saw net sales decline 6% to $836 million, while Mobility Coatings delivered exceptional performance with Adjusted EBITDA of $92 million, up from $68 million in the prior year period, and margin expansion to 19.8%.
For the third quarter, Axalta projects adjusted EPS of $0.63-$0.67, compared to analyst expectations of $0.67. The company narrowed its full-year 2025 outlook, forecasting adjusted EPS of $2.45-$2.55 on revenue of $5.2-$5.27 billion, slightly below the consensus of $5.28 billion.
Cash provided by operating activities increased 25% YoY to $142 million, reflecting the company’s focus on margin expansion and operational discipline.
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