AXTA Q4 2026 Adjusted EBITDA $282 million, Beat Guidance by +$23.0M
AXTA beat prior Q4 2026 Adjusted EBITDA guidance by +$23.0M. Adjusted EBITDA was cut by $-40.0M to $1,100-$1,110 million (midpoint $1,105 million). Axalta reported Q3 2026 Adjusted EBITDA of $282 million, which was within the prior full-year guidance range of $1,100-$1,110 million (implied Q3 midpoint of $282M based on YTD performance). Net sales increased 2% year over year to $1.311 billion, driven by record Mobility Coatings net sales of $493 million, but net income declined $15 million to $95 million due to i...
Guidance comparison
Guidance updates
Forward guidance
Key takeaways
Q3 net sales of $1.311 billion increased 2% year over year with volume growth in three of four regions, partially offset by volume declines in Europe.
Performance Coatings net sales declined to $818 million due to lower Refinish volumes in Europe, though Asia Pacific and Latin America posted high single-digit growth.
Mobility Coatings achieved record quarterly net sales of $493 million, up 7% year over year, with Commercial Vehicle net sales increasing 24% driven by Class 8 production growth in North America.
Adjusted EBITDA declined 4% year over year to $282 million with Adjusted EBITDA margin of 21.5%, down from 22.8% in the prior-year period.
Free cash flow increased 3% year over year to $92 million, and total net leverage reached 2.1x, the lowest in company history.
Full-year 2026 Adjusted EBITDA guidance was cut by $50 million at the midpoint to $1,100-$1,110 million, and Adjusted Diluted EPS guidance was lowered by $0.175 at the midpoint to approximately $2.45.
Merger and acquisition-related expenses were $14 million higher in Q3 2026 versus the prior-year period, contributing to the decline in net income.
Key metrics
Disclosure changes
- Proposed merger of equals with AkzoNobel
Axalta and AkzoNobel shareholders voted in favor of the Proposed Merger at the Extraordinary General Meeting of AkzoNobel and the Special General Meeting of Axalta on August 5, 2026. The proxy statement/prospectus was declared effective by the SEC on June 23, 2026, and the transaction remains pending subject to customary closing conditions.
The proposed merger represents a significant corporate transaction that may have material impact on the company's future operations, financial condition, and stockholder value - North America Building Products divestiture
The company disclosed a planned divestiture of its North America Building Products business as part of its strategic positioning for the proposed merger with AkzoNobel.
The planned divestiture represents a strategic portfolio adjustment in connection with the proposed merger transaction - Total net leverage
Total net leverage of 2.1x represents the lowest in company history, demonstrating continued deleveraging progress.
Lowest leverage in company history provides financial flexibility and supports strategic initiatives
Primary source
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