Axalta Coating Systems (AXTAN) Q3 2026 Earnings Report
MX:AXTAN Q3 2026 EPS Results
- Actual EPS
- MXN 11.90
- Consensus EPS
- MXN 13.20
- Beat/Miss
- Missed by -MXN 1.30
- One Year Ago EPS
- MXN 12.65
MX:AXTAN Q3 2026 Revenue Results
- Actual Revenue
- MXN 24.75B
- Expected Revenue
- MXN 25.17B
- Beat/Miss
- Missed by -MXN 417.71M
- YoY Revenue Growth
- +1.79%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
Axalta Coating Systems's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was overall positive, supported by record Mobility Coatings performance, strong Commercial Vehicle growth, sustained margins above 20%, robust cash generation, lower leverage, continued body shop wins and progress toward the AkzoNobel merger. However, management lowered fourth-quarter and full-year expectations because of weaker European Refinish volumes, macroeconomic uncertainty, higher freight and raw material costs, and near-term margin pressure from MSO conversion investments.
For the fourth quarter, Axalta expects net sales to be approximately flat year-over-year compared to being up 3% previously, adjusted EBITDA of $254 million to $264 million, and adjusted diluted earnings per share of approximately $0.55; Commercial Vehicle is expected to be up year-on-year, Light Vehicle down to flattish, Industrial roughly flat year-on-year, and European Refinish roughly flat on a year-over-year basis. For the full year, the company anticipates adjusted EBITDA of $1.1 billion to $1.110 billion, adjusted diluted earnings per share of approximately $2.45, and free cash flow of approximately $450 million; excluding deal costs, it expects greater than $500 million of free cash flow. Raw materials are tracking up about mid-single digits year-on-year for the full year and at high single-digit type inflation for the fourth quarter, while Commercial Vehicle production is expected to take another increase in ’27.
- Net Sales Growth Across Most Markets and RegionsThird-quarter net sales increased 2% year-over-year to $1.311 billion, with volume growth in 3 of 4 end markets and 3 of 4 regions. Growth was driven by significant Commercial Vehicle growth, favorable foreign currency, Refinish acquisitions and favorable price/mix.
- Mobility Coatings Delivered Record ResultsMobility Coatings net sales increased 7% year-over-year to a quarterly record of $493 million. Adjusted EBITDA increased 13% to $94 million, and adjusted EBITDA margin expanded 100 basis points to 19%, reflecting strong operational execution, favorable volume leverage and disciplined cost management.
- Commercial Vehicle Business SurgedCommercial Vehicle net sales increased 24% year-over-year to $119 million, supported by volume growth across all 4 regions and increased Class 8 production in North America. The company said Class 8 production was back above replacement demand levels and that the business was positioned to benefit from the expected production ramp into 2027.
- Light Vehicle Outperformed Global Production TrendsLight Vehicle net sales were $374 million, up 2% year-over-year, driven primarily by favorable foreign currency translation. Global auto production was down almost 2%, while Axalta's Light Vehicle volumes were roughly flat, with performance in Asia and Latin America offsetting weakness in North America and Europe.
- Adjusted EBITDA Margin Remained Above 20%Third-quarter adjusted EBITDA was $282 million, with an adjusted EBITDA margin of 21.5%. This marked the company's 11th consecutive quarter with adjusted EBITDA margin above 20%.
- Positive Price/Mix and Pricing Actions Offset InflationPricing actions continued to offset inflation and generated positive price/mix for the business. Pure price was approximately 3% in the third quarter and about 2% for the full year, while Refinish pure price was close to 5% in the quarter and had been 4.8% on the stated basis.
- Strong Cash Flow GenerationThird-quarter free cash flow increased 3% year-over-year to $92 million despite approximately $21 million of merger-related cash costs. Year-to-date free cash flow increased 25% to $220 million, cash from operating activities increased 16% to $355 million, and underlying free cash flow excluding more than $40 million of merger-related payments was up nearly 50% year-over-year.
- Balance Sheet Strengthened FurtherGross debt was reduced by $211 million during the first 9 months of the year and fell below $3 billion for the first time in company history. Debt has declined approximately $500 million since September 2024, total net leverage ended at a record-low 2.1x, and year-to-date interest expense declined by $22 million.
- Cost Discipline Supported ResultsSG&A increased 2%, while operating expenses declined 3%, reflecting strong cost discipline across the organization.
- Body Shop Wins and Future Conversion PipelineAxalta had won approximately 2,600 net new body shops through September, including two very large top-10 body shop wins in the second quarter and approximately 830 MSO wins announced in the second quarter. Conversion velocity is expected to accelerate in the fourth quarter, with much of the implementation volume beginning in the fourth quarter and the first half of 2027.
- Industrial Growth in Asia and Energy SolutionsIndustrial net sales increased approximately 1% year-over-year to $314 million, driven primarily by volume growth in Asia Pacific. Industrial sales in Asia Pacific recorded their seventh straight quarter of net sales growth, supported by electrical applications, impregnating resins for motors and battery coatings. Demand remained strong in Energy Solutions.
- Refinish Business Remained Above Prior-Year Levels Year-to-DateAlthough the quarter was affected by Europe, year-to-date Refinish net sales were modestly above prior-year levels, supported by acquisitions, new body shop wins and positive price/mix. Management said European Refinish sales were up 4% to 5% over the last 3 years and up 5% year-to-date.
- North American Refinish Market Showing Signs of StabilizationManagement said North American Refinish volumes were down slightly in the quarter but described the quarter as very good. Insurance premiums were starting to abate, miles driven were growing slightly, and year-over-year declines in insurance claims were becoming less pronounced.
- Progress Toward AkzoNobel MergerAxalta had secured regulatory clearance in 2/3 of the required jurisdictions, and divestitures of AkzoNobel's European Refinish business and Axalta's North America Building Products business were underway. The companies remained on track to close in early 2027.
- Merger Synergy Opportunity MaintainedManagement remained confident in approximately $600 million of annual run-rate cost synergies, with roughly 90% expected to be captured within the first 3 years following close. The company also cited meaningful revenue synergy opportunities through cross-selling, technology sharing and expanded customer access.
- Continued Investment in Future GrowthCapital investment remained at record levels, and the company was accelerating investments to convert strategic MSO wins. Management said the fourth-quarter investment in those conversions would be almost $8 million and described the investment as supporting future growth.
MX:AXTAN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 11.06- | 11.14 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 13.2011.90 | 12.65 | -5.97% (-0.76) | |
| Jul 28, 2026 | 2026 (Q2) | 12.2213.60 | 12.08 | 12.50% (+1.51) | |
| Apr 30, 2026 | 2026 (Q1) | 9.4610.57 | 11.14 | -5.08% (-0.57) | |
| Feb 10, 2026 | 2025 (Q4) | 11.3311.14 | 11.33 | -1.67% (-0.19) | |
| Oct 28, 2025 | 2025 (Q3) | 12.1612.65 | 11.14 | 13.56% (+1.51) | |
| Jul 30, 2025 | 2025 (Q2) | 11.5712.08 | 10.76 | 12.28% (+1.32) | |
| May 07, 2025 | 2025 (Q1) | 10.3311.14 | 9.06 | 22.92% (+2.08) | |
| Feb 04, 2025 | 2024 (Q4) | 9.6311.33 | 8.12 | 39.53% (+3.21) | |
| Oct 30, 2024 | 2024 (Q3) | 9.6711.14 | 8.5 | 31.11% (+2.64) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.