Axalta Coating Systems (AXTA) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to the Axalta Coating Systems Q1 twenty twenty five Earnings Call. All participants will be in a listen only mode. A question and answer session will follow the presentation by management. Today's call is being recorded and a replay will be available through May 14. Those listening after today's call should please note that information provided in the recording will ...

Axalta Coating Systems (AXTA) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.26%. A quarter ago, it was expected that this high-performance coating system maker would post earnings of $0.51 per share when it actually produced earnings of $0.60, delivering a surprise of 17.65%.Over ...

Financial Performance - Net sales for the first quarter of 2025 decreased by 3% year over year to $1.26 billion, impacted by a 3% headwind from foreign currency translation [3] - Net income increased by 154% year over year to $99 million, resulting in a net income margin of 7.8% [4] - Adjusted EBITDA rose by 4% to $270 million compared to $259 million in the prior year period, with an adjusted EBITDA margin expanding by 140 basis points to 21.4% [4][10] Segment Results - Performance Coatings net sales were $822 million, down 3% year over year, primarily due to volume declines and foreign currency headwinds [6] - Mobility Coatings net sales were $440 million, a decrease of 1% from the prior year period, with Light Vehicle net sales declining by 1% year over year [8] Cash Flow and Expenditures - Cash provided by operating activities was $26 million, down from $34 million in the same period last year, primarily due to increases in working capital [5] - Free cash flow was a use of $14 million in the first quarter of 2025 compared to a use of $15 million in the prior year period [5] Outlook - For Q2 2025, net sales are projected to grow at a low single-digit percentage, with full-year net sales expected to be between $5.3 billion and $5.375 billion [12] - Adjusted EBITDA for Q2 2025 is projected to be between $280 million and $290 million, with full-year adjusted EBITDA expected to be between $1.15 billion and $1.175 billion [12] Awards and Recognition - The company won two Edison Awards™ and a BIG Innovation Award for advancements in automotive materials and electrical systems [10] Management Commentary - The CEO emphasized the record first quarter Adjusted EBITDA and the company's focus on delivering exceptional solutions and service for customers amid challenging global economic conditions [11]

PHILADELPHIA, April 16, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems (AXTA), a leading global coatings company, announced today that the digital paint technology Axalta NextJet™ was named a 2025 Automotive News PACE Pilot Innovation to Watch. The recognition honors pre-commercial innovations in the automotive and future mobility space. Axalta NextJet™ is a next-generation, sustainable digital paint technology for the automotive industry. This advancement allows for precise paint placement and enables des ...

Company Overview - Axalta Coating Systems (AXTA) shares increased by 11.5% to close at $31.76, following a significant trading volume compared to typical sessions, despite a 16.1% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $0.54 per share, reflecting a year-over-year increase of 12.5%, while revenues are projected to be $1.28 billion, a decrease of 1.4% from the previous year [2] Earnings Estimates and Trends - The consensus EPS estimate for Axalta has been revised 0.8% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [3] - Empirical research suggests a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring AXTA's performance [2][3] Industry Context - Axalta is part of the Zacks Chemical - Specialty industry, which includes other companies like Minerals Technologies (MTX), whose shares rose by 9.1% to $58.45, despite a -20.2% return over the past month [3] - For Minerals Technologies, the consensus EPS estimate remains unchanged at $1.33, representing a decline of 10.7% from the previous year [4]

PHILADELPHIA, April 09, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems (NYSE: AXTA), a leading global coatings company, will release its first quarter 2025 financial results at 6 a.m. ET on Wednesday, May 7. The release and supporting materials will be posted to Axalta’s Investor Relations site. In addition, the company will host a conference call at 8 a.m. ET on May 7. Chris Villavarayan, Chief Executive Officer and President, and Carl Anderson, Senior Vice President and Chief Financial Officer, will revi ...

Group 1: Company Overview - Pitney Bowes (PBI) is a global technology company facilitating billions of transactions in commerce, with a Zacks Rank 1 (Strong Buy) and a current year earnings estimate increase of 8% over the last 60 days [1] - BJ's Restaurants (BJRI) operates a chain of high-end casual dining restaurants in the U.S., also holding a Zacks Rank 1, with a current year earnings estimate increase of 13.6% over the last 60 days [2] - Axalta Coating Systems (AXTA) is a global coatings company involved in manufacturing and distributing coatings systems, carrying a Zacks Rank 1 and a current year earnings estimate increase of 7.2% over the last 60 days [3] Group 2: Financial Metrics - Pitney Bowes has a PEG ratio of 0.44, which is lower than the industry average of 0.45, and possesses a Growth Score of A [2] - BJ's Restaurants has a PEG ratio of 1.35 compared to the industry average of 2.12, with a Growth Score of B [2] - Axalta Coating Systems has a PEG ratio of 0.76, slightly higher than the industry average of 0.63, and also has a Growth Score of B [3]

Core Insights - Axalta Coating Systems has won two 2025 Edison Awards for its innovative products, with Axalta Irus Scan™ receiving Silver and MyColor receiving Bronze in the Automotive Materials category [1][5] Group 1: Product Innovations - Axalta Irus Scan™ is the first handheld color measurement device for automotive coatings, featuring patented measurement capabilities such as colored sparkle detection, hue-shifting pigments detection, and gloss measurement, which enhances accuracy in color matching for collision repairs [3] - MyColor addresses the demand for complex, custom colors, significantly reducing the time for automotive OEM approvals from 26-104 weeks to just four weeks, while also improving inventory control and reducing waste [4] Group 2: Company Commitment to Innovation - The company emphasizes that innovation is central to its operations, continuously investing in technologies that solve customer challenges related to surface aesthetics, performance, and productivity [2] - Axalta has been recognized for seven consecutive years with Edison Awards, highlighting its commitment to market-leading innovations in new products and services [1][5] Group 3: Company Overview - Axalta is a global leader in the coatings industry, serving over 100,000 customers in more than 140 countries, with a focus on providing sustainable and innovative coating solutions across various applications [6]

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Core Viewpoint - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection, highlighting that companies with high efficiency levels are expected to deliver better returns [1]. Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance in managing accounts receivable [2]. - **Asset Utilization**: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold (COGS), where a high ratio reflects efficient inventory management [4]. - **Operating Margin**: This ratio measures the proportion of revenue that remains after covering operating expenses, with higher values indicating better expense management [5]. Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios, narrowing down the stock universe from over 7,906 to just seven candidates [6][7]. Selected Stocks - **Embraer (ERJ)**: A company involved in designing and manufacturing aircraft, with an average four-quarter earnings surprise of 138.4% [8]. - **Steelcase (SCS)**: A designer and manufacturer of products for high-performance work environments, showing an average four-quarter earnings surprise of 31.5% [8]. - **Axalta Coating Systems (AXTA)**: A global coatings company with an average four-quarter earnings surprise of nearly 16.3% [9].