10-Q · July 29, 2026
Axalta posted Q2 revenue of $1.346 billion, up 3.1% year over year and 7.7% sequentially from $1.250 billion, but organic conditions remained soft: company volume declined 0.8% and foreign exchange supplied a 2.6% sales…
Earnings analysis · 10-Q
AXTA earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Axalta delivered mixed Q3 results: revenue increased approximately 2% year over year to $1.311 billion and Mobility Coatings achieved record $493 million sales, but diluted EPS of $0.44 missed the $0.70 consensus…
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Axalta delivered mixed Q3 results: revenue increased approximately 2% year over year to $1.311 billion and Mobility Coatings achieved record $493 million sales, but diluted EPS of $0.44 missed the $0.70 consensus estimate. Free cash flow improved to $92 million from $87 million, and leverage declined to 2.1x, although Performance Coatings profitability weakened and merger-related costs pressured earnings and cash conversion. The supplied 10-Q reports no material changes to previously disclosed risk factors, while the accompanying outlook calls for approximately $2.45 of full-year adjusted diluted EPS and $450 million of free cash flow.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
- Segment
- Mobility Coatings: $493 million of sales, a record level.
- Segment
- Performance Coatings: segment revenue not disclosed in the supplied 10-Q text; profitability weakened according to the earnings update.
What stood out
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Revenue grew 2% year over year
Revenue was $1.311 billion, up approximately 2% from $1.29 billion in Q3 2025 and $21 million from $1.29 billion in the immediately prior-year quarter.
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Mobility Coatings reached record sales
Mobility Coatings generated record sales of $493 million, supporting the company’s reported top-line growth.
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Free cash flow improved year over year
Free cash flow was $92 million versus $87 million in Q3 2025, an increase of $5 million year over year.
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Leverage improved to 2.1x
Net leverage declined to 2.1x, indicating improved balance-sheet flexibility after the quarter.
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Full-year cash outlook remains substantial
Full-year 2026 outlook calls for adjusted EBITDA of $1.100-$1.110 billion and approximately $450 million of free cash flow.
What to watch
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Quarterly earnings missed consensus
Diluted EPS was $0.44 versus the $0.70 consensus estimate, a $0.26 shortfall; revenue of $1.311 billion was $22 million below the $1.333 billion estimate.
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Merger costs weigh on cash flow
The full-year free-cash-flow outlook of approximately $450 million includes approximately $80 million of merger- and acquisition-related cash costs, which may constrain cash conversion.
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Performance profitability remains a headwind
Performance Coatings profitability weakened, while the supplied quarterly history shows company operating margin declining from 16.3% in Q3 2025 to 12.4% in Q2 2026; the current-quarter operating margin was not disclosed in the supplied 10-Q text.
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No material risk-factor updates
The 10-Q states that there were no material changes in risk factors from the company’s 2025 Form 10-K, limiting evidence of a newly identified filing-specific risk.
Management's outlook
The supplied 10-Q text does not include a prior-outlook comparison, so guidance direction cannot be assessed. The accompanying earnings update provided Q4 2026 outlook of approximately $0.55 adjusted diluted EPS and $254-$264 million of adjusted EBITDA, and full-year 2026 outlook of approximately $2.45 adjusted diluted EPS, $1.100-$1.110 billion of adjusted EBITDA, and approximately $450 million of free cash flow, including approximately $80 million of merger-related cash costs.
Earlier filings 4
10-Q · April 30, 2026
Axalta's Q1 2026 earnings reflect a slight revenue decline of 0.6% year-over-year to $1.25 billion, driven mainly by lower sales volumes. Despite beating Adjusted EBITDA expectations, the diluted EPS fell to $0.42,…
10-K · February 13, 2026
Axalta’s 2025 10-K highlights an all‑stock merger agreement with AkzoNobel announced in November 2025 while describing a stable two‑segment strategy (Performance and Mobility) driven by proprietary color‑matching…
10-Q · October 29, 2025
Axalta reported Q3 net sales of $1,288 million (down $32 million vs. Q3 2024) with income from operations of $204 million (up $11 million). Net income was $110 million and diluted EPS was $0.51, both higher than the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.