Axalta reports record performance in 2025 amidst challenging market conditions

Axalta Coating Systems, a global player in the coatings industry, has released its financial results for the fourth quarter and full year 2025. The company reported record Adjusted EBITDA of EUR 1,128 million, demonstrating resilience despite a challenging macroeconomic environment and a 3 % decline in net sales, which totalled EUR 4.8 billion for the year.

Chris Villavarayan, CEO and President of Axalta, stated, “We delivered record earnings in 2025, demonstrating the resilience of our business and the successful execution of our 2026 A Plan in the midst of a challenging macro environment. Looking ahead, we will continue to leverage the strong foundation we’ve established to drive further improvement in our financial performance.”

Performance in coatings segments

Axalta’s Performance Coatings segment saw a decline in net sales by 6 % in the fourth quarter, driven by reduced volumes in North America and Europe. Refinish coatings experienced a 7 % drop, while Industrial coatings decreased by 5 %. Adjusted EBITDA for the segment reached EUR 166 million, reflecting a slight margin reduction to 22.8 %.

Conversely, the Mobility Coatings segment delivered a fourth-quarter net sales increase of 1 %, attributed to positive price-mix and favourable foreign currency translation, offsetting lower volumes. Adjusted EBITDA for Mobility Coatings reached a record EUR 85 million, driven by cost-saving initiatives and improved operational efficiency.

Operational excellence and strategic merger

Axalta’s operational performance was marked by record free cash flow of EUR 426 million for 2025, an increase of EUR 15 million year over year. The company also reduced its net debt-to-Adjusted EBITDA ratio to a historic low of 2.3x, supported by strong cash collections and reduced interest expenses.

In November 2025, Axalta announced a definitive agreement for an all-stock merger with AkzoNobel, aimed at combining complementary portfolios to enhance global scale, profitability, and long-term value creation. The merger is expected to close in late 2026 or early 2027, subject to shareholder and regulatory approvals.

Outlook for 2026

Axalta remains focused on executing its 2026 A Plan, targeting further improvements in Adjusted EBITDA margins and operational efficiency. While cautious about ongoing economic uncertainties, the company points to its strong balance sheet and proven portfolio as key assets for navigating future challenges.

With the merger on the horizon, Axalta is poised to redefine its market position and expand its capabilities in the coatings industry.

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